Image Scan Hldgs reports 138% Net Income decline in 2018 and 14.1 pp EBITDA Margin decline from 10.4% to -3.8%
05 Dec 2018 • About Image Scan Hldgs (
$IGE) • By InTwits
Image Scan Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -3.8%
- The company has unprofitable business model: ROIC is -8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Image Scan Hldgs's Revenue dropped on 31.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.1 pp from 10.4% to -3.8% in FY2018.
Gross Margin increased on 9.1 pp from 38.3% to 47.5% in FY2018.
Net Income margin dropped on 17.9 pp from 11.5% to -6.3% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.66% in FY2018. The company showed small growth in CAPEX/Revenue of 0.66 pp from in FY2015 to 0.66% in FY2018. Average CAPEX/Revenue for the last three years was 0.56%.
Return on investment
The company operates at negative ROIC (-8.5%) and ROE (-12.7%). ROIC dropped on 48.3 pp from 39.8% to -8.5% in FY2018. ROE dropped on 58.0 pp from 45.3% to -12.7% in FY2018.
Leverage (Debt)
The company has no debt. Cash dropped on 37.6%.
Financial and operational results
FY ended 30 Sep 2018
Image Scan Hldgs ($IGE) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 2.195 | 1.708 | 3.315 | 5.034 | 3.465 | -31.2% |
| Gross Profit | 0.673 | | 1.404 | 1.930 | 1.645 | -14.7% |
| SG&A | 1.197 | | | | | |
| EBITDA | -0.404 | | 0.117 | 0.522 | -0.130 | -125.0% |
| Net Income | -0.451 | | 0.105 | 0.580 | -0.220 | -137.9% |
Balance Sheet
|
|---|
| Cash | 0.948 | | 1.055 | 1.253 | 0.782 | -37.6% |
| Short Term Debt | 0.000 | | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.006 | | 0.019 | 0.023 | 0.023 | -0.3% |
Ratios
|
|---|
| Revenue growth | -13.5% | -22.2% | 94.1% | 51.9% | -31.2% | |
| EBITDA growth | 34.8% | | | 344.9% | -125.0% | |
|
|---|
| Gross Margin | 30.7% | | 42.3% | 38.3% | 47.5% | 9.1% |
| EBITDA Margin | -18.4% | | 3.5% | 10.4% | -3.8% | -14.1% |
| SG&A, % of revenue | 54.5% | | | | | |
| Net Income Margin | -20.6% | | 3.2% | 11.5% | -6.3% | -17.9% |
| CAPEX, % of revenue | 0.3% | | 0.6% | 0.5% | 0.7% | 0.2% |
|
|---|
| ROIC | -45.6% | | 16.4% | 39.8% | -8.5% | -48.3% |
| ROE | -49.2% | | 15.5% | 45.3% | -12.7% | -58.0% |
| Net Debt/EBITDA | | | -9.0x | -2.4x | |
Peers in Electronic & Electrical Equipment
Below you can find Image Scan Hldgs benchmarking vs. other companies in Electronic & Electrical Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Flowgroup ($FLOW) | 141.9% | 21.1% | 144.6% | 39.8% | |
| Gooch & Housego ($GHH) | | 12.3% | 9.3% | 30.2% | 11.5% |
| Walsin Lihwa Corp ($WALS) | | -8.4% | -4.0% | 17.0% | |
| Stadium Group ($SDM) | -1.1% | 29.0% | -1.5% | 15.2% | |
| Holders Technology ($HDT) | -5.5% | -16.9% | -4.4% | 14.1% | |
| |
|---|
| Median (16 companies) | -2.8% | -1.1% | -1.2% | 6.9% | 11.5% |
|---|
| Image Scan Hldgs ($IGE) | | -22.2% | 94.1% | 51.9% | -31.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Prophotonix Ltd ($PPIR) | | | 45.4% | 44.6% | |
| Gooch & Housego ($GHH) | 40.5% | 39.4% | 37.5% | 41.1% | 40.1% |
| Zytronic ($ZYT) | 36.6% | 41.9% | 42.8% | 41.1% | |
| Elektron Technology ($EKT) | 34.8% | 35.6% | 37.2% | 39.1% | 49.7% |
| Maruwa Co Ltd ($MAW) | 32.8% | 30.0% | 35.9% | 36.9% | 43.1% |
| |
|---|
| Median (14 companies) | 29.2% | 25.0% | 30.5% | 29.1% | 40.1% |
|---|
| Image Scan Hldgs ($IGE) | 30.7% | | 42.3% | 38.3% | 47.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Zytronic ($ZYT) | 22.9% | 27.8% | 25.6% | 28.8% | |
| Maruwa Co Ltd ($MAW) | 17.8% | 14.7% | 19.6% | 21.4% | 28.7% |
| Morgan Advanced Materials ($BA29) | 9.8% | 12.8% | 14.6% | 19.2% | |
| Gooch & Housego ($GHH) | 13.4% | 19.8% | 17.3% | 17.3% | 14.1% |
| Dewhurst ($DWHA) | 13.7% | 14.7% | 13.4% | 13.6% | |
| |
|---|
| Median (15 companies) | 5.7% | 7.2% | 8.9% | 8.9% | 14.1% |
|---|
| Image Scan Hldgs ($IGE) | -18.4% | | 3.5% | 10.4% | -3.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lpa Group ($LPA) | 14.8% | 1.8% | 6.0% | 7.3% | |
| Maruwa Co Ltd ($MAW) | 7.6% | 6.5% | 4.4% | 6.1% | 6.9% |
| Gooch & Housego ($GHH) | 2.7% | 3.9% | 11.3% | 5.2% | 4.7% |
| Wintek Corp ($WTKA) | 2.4% | 0.6% | 1.6% | 4.2% | |
| Solid State ($SSP) | 1.3% | 1.4% | 2.0% | 3.7% | 0.9% |
| |
|---|
| Median (16 companies) | 1.4% | 1.4% | 1.8% | 2.0% | 1.3% |
|---|
| Image Scan Hldgs ($IGE) | 0.3% | | 0.6% | 0.5% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Morgan Advanced Materials ($BA29) | 10.9% | 18.4% | 21.9% | 31.6% | |
| Prophotonix Ltd ($PPIR) | | | | 25.8% | |
| Dewhurst ($DWHA) | 24.5% | 27.3% | 24.6% | 24.1% | |
| Zytronic ($ZYT) | 17.0% | 22.7% | 18.1% | 20.9% | |
| Lpa Group ($LPA) | 7.0% | 2.1% | 13.4% | 15.9% | |
| |
|---|
| Median (16 companies) | 6.8% | 7.8% | 9.4% | 13.4% | 15.2% |
|---|
| Image Scan Hldgs ($IGE) | -45.6% | | 16.4% | 39.8% | -8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Apc Technology Group ($APC) | 0.5x | | | 5.2x | |
| Walsin Lihwa Corp ($WALS) | 3.9x | 4.6x | 2.7x | 1.9x | |
| Stadium Group ($SDM) | 1.2x | 0.3x | 0.7x | 1.4x | |
| Lpa Group ($LPA) | 1.5x | 3.8x | 1.3x | 1.1x | |
| Morgan Advanced Materials ($BA29) | 2.3x | 1.8x | 1.7x | 0.9x | |
| |
|---|
| Median (13 companies) | 0.8x | 0.3x | 0.4x | -0.5x | -0.8x |
|---|
| Image Scan Hldgs ($IGE) | | | -9.0x | -2.4x | |
