Premier Asset Management Group Plc reports 41.1% Net Income growth in 2018 and 16.0% Revenue growth
29 Nov 2018 • About Premier Asset Management Group Plc (
$PAM) • By InTwits
Premier Asset Management Group Plc reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Premier Asset Management Group Plc is a growth stock: FY2018 revenue growth was 16.0%, 5 year revenue CAGR was 14.4% at FY2018 ROIC 34.2%
- EBITDA Margin is expanding: 33.4% in FY2018 vs. 31.1% in FY2017 vs. in FY2014
- In the last 5 years the company invested considerably less than D&A: £1m vs. £2m. In FY2018 this situation was still the same: CAPEX was 0 while D&A was 2
- The company has highly profitable business model: ROIC is 34.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 16.0%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 31.1% to 33.4% in FY2018.
SG&A as a % of Revenue decreased slightly on 2.0 pp from 68.5% to 66.6% in FY2018.
Net Income margin increased on 4.2 pp from 19.3% to 23.5% in FY2018. Net Income margin stuck to a growing trend at 10.0 pp per annum in FY2014-FY2018. The efficient tax rate was 21.3% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.61% in FY2018. Premier Asset Management Group Plc's CAPEX/Revenue increased slightly on 0.61 pp from in FY2015 to 0.61% in FY2018. For the last three years the average CAPEX/Revenue was 0.53%.
Return on investment
The company operates at high and attractive ROIC (34.2%) and ROE (27.7%). ROIC increased on 5.6 pp from 28.6% to 34.2% in FY2018.
Leverage (Debt)
The company has no debt. Cash jumped on 26.1%.
The company paid 79.9% of Net Income as dividends in FY2018.
Management team
The company has 107 employees. Average revenue per employee in FY2018 was £499,028.
Financial and operational results
FY ended 30 Sep 2018
Premier Asset Management Group Plc ($PAM) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 30.680 | 35.765 | 39.149 | 46.046 | 53.396 | 16.0% |
| SG&A | | | 28.505 | 31.558 | 35.548 | 12.6% |
| EBITDA | | | 10.398 | 14.298 | 17.837 | 24.8% |
| EBIT | | | | | 15.914 | |
| Tax | | | | | 3.393 | |
| Net Income | -4.312 | -2.021 | 0.985 | 8.876 | 12.523 | 41.1% |
| Stock Based Compensation | | | | | 1.033 | |
Balance Sheet
|
|---|
| Cash | 9.618 | 8.852 | 10.638 | 16.449 | 20.744 | 26.1% |
| Short Term Debt | 3.000 | 2.250 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 2.250 | | 42.670 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | | | 0.214 | 0.203 | 0.325 | 60.1% |
| Dividends | | | | | 10.000 | |
Ratios
|
|---|
| Revenue growth | 12.5% | 16.6% | 9.5% | 17.6% | 16.0% | |
| EBITDA growth | | | | 37.5% | 24.8% | |
|
|---|
| EBITDA Margin | | | 26.6% | 31.1% | 33.4% | 2.4% |
| EBIT Margin | | | | | 29.8% |
| SG&A, % of revenue | | | 72.8% | 68.5% | 66.6% | -2.0% |
| SBC, % of revenue | | | | | 1.9% |
| Net Income Margin | -14.1% | -5.7% | 2.5% | 19.3% | 23.5% | 4.2% |
| CAPEX, % of revenue | | | 0.5% | 0.4% | 0.6% | 0.2% |
|
|---|
| ROIC | -103.9% | | | 28.6% | 34.2% | 5.6% |
| ROE | | | | | 27.7% | |
| Net Debt/EBITDA | | | 3.1x | -1.2x | -1.2x | -0.0x |
People
|
|---|
| Employees | | | | | 107 | |
| Revenue/Employee, th. £ | | | | | 499 | |
Peers in Asset Management & Custody Ban
Below we provide Premier Asset Management Group Plc benchmarking against other companies in Asset Management & Custody Ban 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| AJ Bell Plc ($AJB) | -6.2% | 6.6% | 13.0% | 17.2% | |
| |
|---|
| Median (1 company) | -6.2% | 6.6% | 13.0% | 17.2% | |
|---|
| Premier Asset Management Group Plc ($PAM) | | 16.6% | 9.5% | 17.6% | 16.0% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| AJ Bell Plc ($AJB) | 33.8% | 30.6% | 29.2% | 31.5% | |
| |
|---|
| Median (1 company) | 33.8% | 30.6% | 29.2% | 31.5% | |
|---|
| Premier Asset Management Group Plc ($PAM) | | | 26.6% | 31.1% | 33.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| AJ Bell Plc ($AJB) | 1.2% | 0.6% | 0.9% | 4.6% | |
| |
|---|
| Median (1 company) | 1.2% | 0.6% | 0.9% | 4.6% | |
|---|
| Premier Asset Management Group Plc ($PAM) | | | 0.5% | 0.4% | 0.6% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| AJ Bell Plc ($AJB) | 30.5% | 28.5% | 29.8% | 35.4% | |
| |
|---|
| Median (1 company) | 30.5% | 28.5% | 29.8% | 35.4% | |
|---|
| Premier Asset Management Group Plc ($PAM) | -103.9% | | | 28.6% | 34.2% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| AJ Bell Plc ($AJB) | -1.8x | -2.1x | -2.0x | -1.8x | |
| |
|---|
| Median (1 company) | -1.8x | -2.1x | -2.0x | -1.8x | |
|---|
| Premier Asset Management Group Plc ($PAM) | | | 3.1x | -1.2x | -1.2x |
