Private & Commercial Finance Group Net Income jumped on 50.5%
05 Dec 2018 • About Private & Commercial Finance Group (
$PCF) • By InTwits
Private & Commercial Finance Group reported FY2018 financial results today. Here are the key drivers of the company's long term financial model: The company has potentially unprofitable business model: ROIC is 5.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Private & Commercial Finance Group's Revenue jumped on 22.4%.
Net Income margin increased on 3.1 pp from 13.6% to 16.7% in FY2018. Net Income margin followed a growing trend at 4.0 pp per annum in the last 5 years. The efficient tax rate was 19.0% in FY2018.
Return on investment
The company operates at low ROIC (5.0%) and ROE (10.3%). ROIC increased slightly on 1.8 pp from 3.2% to 5.0% in FY2018. ROE increased slightly on 1.3 pp from 9.0% to 10.3% in FY2018.
Leverage (Debt)
Debt dropped on 68.3% while cash jumped on 25.4%.
Private & Commercial Finance Group has short term refinancing risk: cash is only 43.7% of short term debt.
Management team
2.7% of the company is owned by insiders. Insider ownership didn't change in 2018.
Financial and operational results
FY ended 30 Nov -0001
Private & Commercial Finance Group ($PCF) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 42.656 | 45.293 | 51.262 | 20.478 | 25.071 | 22.4% |
| Gross Profit | 12.558 | 13.447 | 15.139 | | | |
| SG&A | | 6.686 | 6.875 | | | |
| EBITDA | 5.840 | 6.974 | 8.486 | | | |
| Tax | | | | 0.847 | 0.981 | 15.8% |
| Net Income | 0.732 | 1.614 | 2.633 | 2.786 | 4.192 | 50.5% |
| Stock Based Compensation | | | | 0.052 | | |
Balance Sheet
|
|---|
| Cash | 0.283 | 0.139 | 0.084 | 17.018 | 21.338 | 25.4% |
| Short Term Debt | 8.570 | 11.436 | 71.879 | 77.067 | 48.881 | -36.6% |
| Long Term Debt | 72.784 | 78.521 | 18.089 | 77.067 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.008 | 0.083 | 0.038 | 0.195 | | |
| Dividends | | | | 0.000 | | |
Ratios
|
|---|
| Revenue growth | 3.1% | 6.2% | 13.2% | -60.1% | 22.4% | |
| EBITDA growth | 13.0% | 19.4% | 21.7% | | | |
|
|---|
| Gross Margin | 29.4% | 29.7% | 29.5% | | | |
| EBITDA Margin | 13.7% | 15.4% | 16.6% | | |
| SG&A, % of revenue | | 14.8% | 13.4% | | | |
| SBC, % of revenue | | | | 0.3% | |
| Net Income Margin | 1.7% | 3.6% | 5.1% | 13.6% | 16.7% | 3.1% |
| CAPEX, % of revenue | 0.0% | 0.2% | 0.1% | 1.0% | | |
|
|---|
| ROIC | 6.6% | 7.1% | 7.8% | 3.2% | 5.0% | 1.8% |
| ROE | 7.4% | 14.5% | 15.1% | 9.0% | 10.3% | 1.3% |
| Net Debt/EBITDA | 13.9x | 12.9x | 10.6x | | |
People
|
|---|
| Insider ownership | | | | 2.7% | 2.7% | 0.0% |
Peers in Financial Services
Below you can find Private & Commercial Finance Group 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 ($AFHP) | 39.3% | 39.5% | 15.0% | 39.4% | |
| |
|---|
| Median (33 companies) | 0.8% | 2.7% | 5.0% | 12.9% | 7.6% |
|---|
| Private & Commercial Finance Group ($PCF) | | 6.2% | 13.2% | -60.1% | 22.4% |
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 ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | 67.2% |
| |
|---|
| Median (14 companies) | 52.2% | 52.8% | 63.3% | 51.4% | 53.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($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 (31 companies) | 16.8% | 18.3% | 18.5% | 22.1% | 20.7% |
|---|
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 ($REC) | 0.1% | 0.6% | 0.1% | 3.8% | 1.0% |
| |
|---|
| Median (30 companies) | 0.8% | 1.0% | 1.0% | 1.0% | 1.0% |
|---|
| Private & Commercial Finance Group ($PCF) | 0.0% | 0.2% | 0.1% | 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 ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| |
|---|
| Median (35 companies) | 8.9% | 7.8% | 7.8% | 9.9% | 6.7% |
|---|
| Private & Commercial Finance Group ($PCF) | 6.6% | 7.1% | 7.8% | 3.2% | 5.0% |
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 (27 companies) | -2.3x | -1.2x | -1.4x | -1.5x | -0.9x |
|---|
