Numis Corp reports 17.4% EBITDA decline in 2018 and 6.4 pp EBITDA Margin decline from 30.3% to 24.0%
05 Dec 2018 • About Numis Corp (
$NUM) • By InTwits
Numis Corp reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Numis Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: £1m in FY2018, £0m in FY2017, £0m in FY2016, £4m in FY2015, £0m in FY2014
- The company has highly profitable business model: ROIC is 20.5%
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 on 4.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 11.9 pp from -3.7% to 8.2% in FY2018. During the last 5 years EBITDA Margin topped in FY2017 at 30.3%.
SG&A as a % of Revenue increased on 4.8 pp from 73.3% to 78.2% in FY2018.
Net Income margin decreased on 3.7 pp from 23.3% to 19.6% in FY2018. During the last 5 years Net Income margin topped in FY2016 at 23.5% and was declining since that time. The efficient tax rate was 15.7% in FY2018.
Investments (CAPEX, working capital and M&A)
Numis Corp's CAPEX/Revenue was 0.97% in FY2018. Numis Corp's CAPEX/Revenue decreased on 3.0 pp from 4.0% in FY2015 to 0.97% in FY2018. It's average CAPEX/Revenue for the last three years was 0.55%.
Return on investment
The company operates at high and attractive ROIC (20.5%) while ROE is a bit lower (19.3%). ROIC decreased on 5.8 pp from 26.3% to 20.5% in FY2018. ROE decreased on 3.8 pp from 23.1% to 19.3% in FY2018. During the last 5 years ROIC topped in FY2017 at 26.3%. During the last 5 years ROE topped in FY2017 at 23.1%.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and 0.4x Debt / EBITDA. Debt dropped on 26.4% while cash surged on 16.5%.
Numis Corp has good short term financial stability: Interest coverage ratio (ICR) is 2,245.1x. Numis Corp has no short term refinancing risk: cash is higher than short term debt (763.2%).
Average interest expence paid by the company was 0.096% in FY2018.
Valuation and dividends
The company's trades at EV/EBITDA 5.8x and P/E 10.7x.
The company paid 48.7% of Net Income as dividends in FY2018.
Management team
Insider ownership is 7.4%.
At the end of financial year the company had 273 employees. Average revenue per employee in FY2018 was £498,341.
Financial and operational results
FY ended 30 Sep 2018
Numis Corp ($NUM) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 92.9 | 98.0 | 112.3 | 130.1 | 136.0 | 4.6% |
| SG&A | | 70.1 | 83.6 | 95.4 | 106.3 | 11.5% |
| EBITDA | 24.4 | 27.4 | 33.7 | 39.4 | 32.6 | -17.4% |
| EBIT | | | | | 31.4 | |
| Interest expence | | | | | 0.0 | |
| Tax | | | | | 5.0 | |
| Net Income | 20.1 | 21.5 | 26.4 | 30.4 | 26.7 | -12.2% |
| Stock Based Compensation | | | | | 10.6 | |
Balance Sheet
|
|---|
| Cash | 74.5 | 59.6 | 89.0 | 95.9 | 111.7 | 16.5% |
| Inventory | | | | | 7.9 | |
| Short Term Debt | 11.0 | 6.9 | 12.3 | 19.9 | 14.6 | -26.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 3.9 | 0.3 | 0.5 | 1.3 | 166.5% |
| Dividends | | | | | 13.0 | |
Ratios
|
|---|
| Revenue growth | 19.6% | 5.5% | 14.6% | 15.8% | 4.6% | |
| EBITDA growth | 8.2% | 12.7% | 22.9% | 16.9% | -17.4% | |
|
|---|
| EBITDA Margin | 26.2% | 28.0% | 30.0% | 30.3% | 24.0% | -6.4% |
| EBIT Margin | | | | | 23.1% |
| SG&A, % of revenue | | 71.6% | 74.4% | 73.3% | 78.2% | 4.8% |
| SBC, % of revenue | | | | | 7.8% |
| Net Income Margin | 21.6% | 22.0% | 23.5% | 23.3% | 19.6% | -3.7% |
| CAPEX, % of revenue | 0.2% | 4.0% | 0.3% | 0.4% | 1.0% | 0.6% |
|
|---|
| ROIC | 20.7% | 22.3% | 25.2% | 26.3% | 20.5% | -5.8% |
| ROE | 18.5% | 19.1% | 21.6% | 23.1% | 19.3% | -3.8% |
| Net Debt/EBITDA | -2.6x | -1.9x | -2.3x | -1.9x | -3.0x | -1.1x |
| Interest expence / Average debt | | | | | 0.1% | |
People
|
|---|
| Insider ownership | | | | | 7.4% | |
| Employees | | | | | 273 | |
| Revenue/Employee, th. £ | | | | | 498 | |
Peers in Financial Services
Below you can find Numis Corp benchmarking vs. other companies in Financial Services 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 |
|---|
| Starvest ($SVE) | | -52.9% | -4.8% | 346.6% | |
| Henderson Group ($HGG) | 13.8% | 13.0% | -1.0% | 90.7% | |
| Arden Partners ($ARDN) | -21.3% | -31.0% | 6.8% | 78.9% | |
| Impax Asset Management Group ($IPX) | 10.3% | -3.1% | 6.8% | 55.2% | |
| Afh Financial Group ($AFHP) | 39.3% | 39.5% | 15.0% | 39.4% | |
| |
|---|
| Median (33 companies) | 0.8% | 2.7% | 5.0% | 12.3% | 16.0% |
|---|
| Numis Corp ($NUM) | | 5.5% | 14.6% | 15.8% | 4.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Record ($REC) | 99.6% | 99.3% | 99.0% | 98.8% | 98.7% |
| London Capital Group Hldgs ($LCG) | 73.6% | 67.9% | 84.2% | 86.4% | |
| Schroders ($SDRC) | 77.7% | 78.3% | 79.9% | 80.0% | |
| First Property Group ($FPO) | 67.9% | 83.0% | 80.6% | 78.6% | 76.3% |
| Walker Crips Group ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | 67.2% |
| |
|---|
| Median (14 companies) | 51.3% | 52.5% | 59.3% | 51.4% | 53.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 77.0% | 80.3% | 79.3% | 79.5% | 81.8% |
| Hargreaves Lansdown ($HL.) | 58.7% | 51.2% | 57.5% | 69.3% | 66.8% |
| Plus500 Ltd ($PLUS) | 63.5% | 48.2% | 46.0% | 59.3% | |
| First Property Group ($FPO) | 40.2% | 42.9% | 52.2% | 57.4% | 52.9% |
| Livermore Investments Group Ltd ($LIV) | 78.8% | 83.5% | 71.9% | 56.8% | |
| |
|---|
| Median (30 companies) | 14.4% | 16.9% | 17.2% | 20.9% | 17.4% |
|---|
| Numis Corp ($NUM) | 26.2% | 28.0% | 30.0% | 30.3% | 24.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 15.0% | 6.5% | 15.1% | 11.2% | |
| First Property Group ($FPO) | 0.3% | 0.1% | 6.4% | 8.5% | 9.4% |
| Schroders ($SDRC) | 1.5% | 1.9% | 3.0% | 6.9% | |
| Leeds Group ($LDSG) | 0.6% | 0.9% | 11.5% | 5.6% | 1.0% |
| Record ($REC) | 0.1% | 0.6% | 0.1% | 3.8% | 1.0% |
| |
|---|
| Median (30 companies) | 0.8% | 0.8% | 1.0% | 1.0% | 1.2% |
|---|
| Numis Corp ($NUM) | 0.2% | 4.0% | 0.3% | 0.4% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plus500 Ltd ($PLUS) | 164.3% | 116.5% | 118.9% | 143.2% | |
| Fulcrum Utility Services Ld ($FCRM) | | | 347.2% | 103.4% | 29.9% |
| Hargreaves Lansdown ($HL.) | 101.0% | 87.5% | 90.0% | 93.3% | 82.4% |
| Guinness Peat Group ($GPG) | 10.0% | 13.7% | 23.8% | 28.8% | |
| Lighthouse Group ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| |
|---|
| Median (35 companies) | 7.6% | 7.6% | 7.5% | 8.5% | 5.0% |
|---|
| Numis Corp ($NUM) | 20.7% | 22.3% | 25.2% | 26.3% | 20.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 10.7x | 8.0x | 13.4x | 12.7x | |
| First Property Group ($FPO) | 5.6x | 12.3x | 9.4x | 7.6x | 7.7x |
| Leeds Group ($LDSG) | -0.5x | -0.3x | 1.4x | 2.6x | 2.5x |
| S & U ($46IE) | 1.7x | 3.1x | 0.5x | 1.8x | 3.2x |
| Guinness Peat Group ($GPG) | -2.1x | -1.6x | -0.4x | 1.2x | |
| |
|---|
| Median (26 companies) | -1.9x | -1.1x | -1.0x | -1.3x | -0.6x |
|---|
| Numis Corp ($NUM) | -2.6x | -1.9x | -2.3x | -1.9x | -3.0x |
