Eclectic Bar Grp reports 97.7% CAPEX growth in 2018 and 1.2% Revenue growth
25 Sep 2018 • About Eclectic Bar Grp (
$BAR) • By InTwits
Eclectic Bar Grp reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eclectic Bar Grp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: £3m in FY2018, £2m in FY2017, £1m in FY2016, £2m in FY2015, £3m in FY2014
- The company has business model with low profitability: ROIC is 8.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.4x while industry average is -2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 1.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 5.2% to 6.3% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2016 at 6.1% and was growing since that time.
Gross Margin increased slightly on 0.58 pp from 82.3% to 82.9% in FY2018. Gross Margin followed a growing trend at 1.1 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
Eclectic Bar Grp's CAPEX/Revenue was 10.5% in FY2018. Eclectic Bar Grp's CAPEX/Revenue increased slightly on 1.8 pp from 8.7% in FY2015 to 10.5% in FY2018. For the last three years the average CAPEX/Revenue was 7.1%. The company maintained rich investment policy and has spent a big chunk of EBITDA (80.9%) to CAPEX. During the last 5 years CAPEX as a % of Revenue bottomed in FY2017 at 5.4%.
Return on investment
The company operates at low ROIC (8.1%) and ROE (9.5%). ROIC showed almost no change in FY2018. ROE decreased on 3.2 pp from 12.8% to 9.5% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 4.0x. Net Debt / EBITDA surged on 1.3x from 2.1x to 3.4x in FY2018. Debt jumped on 47.6% while cash dropped on 31.0%.
Eclectic Bar Grp has no short term refinancing risk: cash is higher than short term debt (165.8%).
Financial and operational results
FY ended 30 Nov -0001
Eclectic Bar Grp ($BAR) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 22.707 | 22.282 | 22.592 | 31.304 | 31.682 | 1.2% |
| Gross Profit | 17.947 | 17.693 | 18.227 | 25.764 | 26.258 | 1.9% |
| EBITDA | 1.841 | 1.753 | 1.381 | 3.481 | 4.126 | 18.5% |
| Net Income | -0.270 | -5.773 | -0.096 | 1.875 | 1.761 | -6.1% |
Balance Sheet
|
|---|
| Cash | 0.461 | 0.976 | 3.064 | 4.073 | 2.812 | -31.0% |
| Short Term Debt | 0.671 | 0.176 | 1.200 | 1.200 | 1.696 | 41.3% |
| Long Term Debt | 1.801 | 3.489 | 11.194 | 10.102 | 14.988 | 48.4% |
Cash flow
|
|---|
| Capex | 3.210 | 1.935 | 1.237 | 1.687 | 3.336 | 97.7% |
Ratios
|
|---|
| Revenue growth | 10.5% | -1.9% | 1.4% | 38.6% | 1.2% | |
| EBITDA growth | -21.7% | -4.8% | -21.2% | 152.1% | 18.5% | |
|
|---|
| Gross Margin | 79.0% | 79.4% | 80.7% | 82.3% | 82.9% | 0.6% |
| EBITDA Margin | 8.1% | 7.9% | 6.1% | 11.1% | 13.0% | 1.9% |
| Net Income Margin | -1.2% | -25.9% | -0.4% | 6.0% | 5.6% | -0.4% |
| CAPEX, % of revenue | 14.1% | 8.7% | 5.5% | 5.4% | 10.5% | 5.1% |
|
|---|
| ROIC | 3.5% | -1.1% | 1.2% | 8.3% | 8.1% | -0.2% |
| ROE | -5.2% | -83.1% | -1.1% | 12.8% | 9.5% | -3.2% |
| Net Debt/EBITDA | 1.1x | 1.5x | 6.8x | 2.1x | 3.4x | 1.3x |
Peers in Travel & Leisure
Below we provide Eclectic Bar Grp benchmarking against other companies in Travel & Leisure industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nektan ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Celtic ($CCP) | | -21.1% | 1.8% | 74.3% | 12.1% |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Everyman Media Group ($EMAN) | 22.4% | 44.1% | 45.5% | 37.4% | |
| |
|---|
| Median (26 companies) | 5.9% | 7.6% | 8.7% | 7.3% | 5.7% |
|---|
| Eclectic Bar Grp ($BAR) | | -1.9% | 1.4% | 38.6% | 1.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Action Hotels ($AHCG) | 73.3% | 74.0% | 70.7% | 69.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| Dalata Hotel Group ($DAL) | 62.8% | 61.5% | 62.2% | 63.2% | |
| |
|---|
| Median (17 companies) | 39.7% | 40.1% | 39.3% | 36.2% | 20.2% |
|---|
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | 82.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (26 companies) | 12.7% | 12.9% | 17.0% | 17.6% | 16.3% |
|---|
| Eclectic Bar Grp ($BAR) | 8.1% | 7.9% | 6.1% | 11.1% | 13.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | |
| Action Hotels ($AHCG) | 90.0% | 172.4% | 120.1% | 139.5% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Richoux Group ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| |
|---|
| Median (26 companies) | 5.1% | 5.7% | 14.1% | 7.4% | 8.9% |
|---|
| Eclectic Bar Grp ($BAR) | 14.1% | 8.7% | 5.5% | 5.4% | 10.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| |
|---|
| Median (27 companies) | 5.3% | 6.3% | 6.3% | 6.5% | 8.1% |
|---|
| Eclectic Bar Grp ($BAR) | 3.5% | -1.1% | 1.2% | 8.3% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Action Hotels ($AHCG) | 9.6x | 12.3x | 14.4x | 23.9x | |
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| |
|---|
| Median (23 companies) | 1.3x | 0.8x | 1.9x | 1.9x | 2.2x |
|---|
| Eclectic Bar Grp ($BAR) | 1.1x | 1.5x | 6.8x | 2.1x | 3.4x |
