Parkmead Group(The) reports 69.7% revenue growth in FY2018 and 23.5 pp EBITDA Margin growth from -21.4% to 2.2%
16 Nov 2018 • About Parkmead Group(The) (
$PMG) • By InTwits
Parkmead Group(The) reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parkmead Group(The) is a growth stock: FY2018 revenue growth was 69.7%, 5 year revenue CAGR was 11.5% at FY2018 ROIC -7.9%
- Parkmead Group(The) motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -15.8% for the sames years
- Parkmead Group(The) has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.7%. At the same time it's a lot of higher than industry average of 15.4%.
- CAPEX is quite volatile: £0m in FY2018, £1m in FY2017, £1m in FY2016, £13m in FY2015, £10m in FY2014
- The company has unprofitable business model: ROIC is -7.9%
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 surged on 69.7%. During FY2014-FY2018 Revenue growth bottomed in FY2017 at -60.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 23.5 pp from -21.4% to 2.2% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2015 at -71.9% and was growing since that time.
Gross Margin jumped on 29.4 pp from 28.5% to 57.8% in FY2018. During FY2014-FY2018 Gross Margin bottomed in FY2015 at -111% and was growing since that time. SG&A as a % of Revenue increased on 2.5 pp from 56.7% to 59.1% in FY2018. During the last 5 years SG&A as a % of Revenue bottomed in FY2015 at 0% and was growing since that time.
Net Income margin jumped on 16.9 pp from -119% to -102% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Parkmead Group(The) had CAPEX/Revenue of 1.4%. CAPEX/Revenue dropped on 66.0 pp from 67.4% in FY2015 to 1.4% in FY2018. For the last three years the average CAPEX/Revenue was 8.7%. To deliver its fast growth Parkmead Group(The) invested a large share of EBITDA (66.2%) to CAPEX.
Return on investment
The company operates at negative ROIC (-7.9%) and ROE (-10.7%). ROIC decreased on 2.4 pp from -5.5% to -7.9% in FY2018. ROE decreased on 3.8 pp from -6.9% to -10.7% in FY2018.
Leverage (Debt)
The company has no debt. Cash decreased on 9.8%.
Financial and operational results
FY ended 30 Jun 2018
Parkmead Group(The) ($PMG) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 24.656 | 18.639 | 10.441 | 4.137 | 7.022 | 69.7% |
| Gross Profit | 3.230 | -20.779 | -4.620 | 1.178 | 4.062 | 244.8% |
| SG&A | 5.668 | 0.000 | 0.527 | 2.344 | 4.153 | 77.2% |
| EBITDA | 6.605 | -13.402 | -2.732 | -0.885 | 0.151 | |
| Net Income | 1.237 | -31.361 | -6.692 | -4.910 | -7.147 | |
Balance Sheet
|
|---|
| Cash | 46.346 | 41.121 | 28.288 | 26.396 | 23.804 | -9.8% |
| Short Term Debt | 2.071 | 0.412 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 4.178 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 9.810 | 12.566 | 0.642 | 0.772 | 0.100 | -87.0% |
Ratios
|
|---|
| Revenue growth | 505.8% | -24.4% | -44.0% | -60.4% | 69.7% | |
| EBITDA growth | -211.7% | -302.9% | -79.6% | -67.6% | -117.1% | |
|
|---|
| Gross Margin | 13.1% | -111.5% | -44.2% | 28.5% | 57.8% | 29.4% |
| EBITDA Margin | 26.8% | -71.9% | -26.2% | -21.4% | 2.2% | 23.5% |
| SG&A, % of revenue | 23.0% | 0.0% | 5.0% | 56.7% | 59.1% | 2.5% |
| Net Income Margin | 5.0% | -168.3% | -64.1% | -118.7% | -101.8% | 16.9% |
| CAPEX, % of revenue | 39.8% | 67.4% | 6.1% | 18.7% | 1.4% | -17.2% |
|
|---|
| ROIC | -3.7% | -21.3% | -7.6% | -5.5% | -7.9% | -2.4% |
| ROE | 1.8% | -34.8% | -8.7% | -6.9% | -10.7% | -3.8% |
| Net Debt/EBITDA | -6.1x | | | | -157.6x |
Peers in Oil & Gas Producers
Below we provide Parkmead Group(The) benchmarking against other companies in Oil & Gas Producers 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 |
|---|
| Eland Oil & Gas ($ELA) | | 54.8% | -86.9% | 2,804.1% | |
| President Energy ($PPC) | -6.1% | -19.8% | -1.9% | 81.3% | |
| Amerisur Resources ($AMER) | 17.9% | -69.3% | -22.9% | 79.6% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | -3.3% | -7.1% | -5.5% | 54.8% | |
| Urals Energy Public Co ($UEN) | -11.5% | -38.8% | 6.8% | 52.1% | |
| |
|---|
| Median (32 companies) | -2.6% | -19.5% | -8.9% | 19.7% | 37.2% |
|---|
| Parkmead Group(The) ($PMG) | | -24.4% | -44.0% | -60.4% | 69.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 99.0% | 98.5% | 98.7% | |
| Serica Energy ($SQZ) | | 67.0% | 30.7% | 60.4% | |
| Oil & Gas Development Co ($OGDC) | 68.5% | 62.7% | 54.0% | 55.3% | 59.2% |
| Tethys Petroleum Limited ($TPL) | 46.2% | -76.0% | -30.0% | 42.8% | |
| Zoltav Resources Inc ($ZOL) | 32.5% | 30.7% | 41.9% | 36.0% | |
| |
|---|
| Median (21 companies) | 19.6% | 12.6% | 13.7% | 18.0% | 1.8% |
|---|
| Parkmead Group(The) ($PMG) | 13.1% | -111.5% | -44.2% | 28.5% | 57.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 25.1% | 30.9% | 13.0% | 77.1% | |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 62.5% | 49.7% | 59.3% | |
| Oil & Gas Development Co ($OGDC) | 69.3% | 62.4% | 53.9% | 55.8% | 59.3% |
| Zoltav Resources Inc ($ZOL) | -16.1% | 25.6% | 42.6% | 49.8% | |
| Serica Energy ($SQZ) | | 61.3% | 24.6% | 47.9% | |
| |
|---|
| Median (32 companies) | 15.2% | 18.8% | 13.3% | 17.9% | -1.7% |
|---|
| Parkmead Group(The) ($PMG) | 26.8% | -71.9% | -26.2% | -21.4% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| President Energy ($PPC) | 10.4% | 142.7% | 147.0% | 69.1% | |
| Tethys Petroleum Limited ($TPL) | 95.2% | 37.5% | 12.0% | 66.0% | |
| Ithaca Energy Inc ($IAE) | 103.5% | 42.8% | 41.6% | 33.9% | |
| Volga Gas ($VGAS) | 14.0% | 45.5% | 12.8% | 33.9% | |
| Amerisur Resources ($AMER) | 21.2% | 72.4% | 65.8% | 33.8% | |
| |
|---|
| Median (32 companies) | 15.6% | 15.4% | 13.1% | 10.6% | 5.2% |
|---|
| Parkmead Group(The) ($PMG) | 39.8% | 67.4% | 6.1% | 18.7% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 8.0% | 11.0% | -18.7% | 80.5% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 5.3% | 25.4% | 16.8% | 25.6% | |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | | 10.9% | 20.3% | |
| Novatek OAO ($NVTK) | 21.2% | 19.4% | 26.6% | 17.7% | |
| Serica Energy ($SQZ) | -5.5% | 19.4% | 5.5% | 16.9% | |
| |
|---|
| Median (36 companies) | 5.3% | 1.3% | 4.7% | 5.5% | 1.7% |
|---|
| Parkmead Group(The) ($PMG) | -3.7% | -21.3% | -7.6% | -5.5% | -7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ruspetro ($RPO) | 27.9x | 116.8x | | 22.9x | |
| Ithaca Energy Inc ($IAE) | | | 4.5x | 7.5x | |
| Jkx Oil & Gas ($JKX) | | | | 3.5x | |
| Rosneft OJSC ($ROSN) | 2.8x | 2.3x | 2.3x | 3.1x | |
| Hellenic Petroleum Sa ($HLPD) | | 2.5x | 2.1x | 2.1x | |
| |
|---|
| Median (27 companies) | 1.3x | 1.5x | 0.9x | 0.9x | -0.0x |
|---|
