Nektan revenue jumped on 50.1% and EBITDA Margin jumped on 14.6 pp from -18.7% to -4.1%
27 Dec 2018 • About Nektan (
$NKTN) • By InTwits
Nektan reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Nektan is a fast growth stock: FY2018 revenue growth was 50.1%, 5 year revenue CAGR was 79.7% at FY2018 ROIC -728%
- The company operates at negative EBITDA Margin: -4.1%
- Nektan spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -49.9%
- Nektan has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 30.0%.
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £0m in FY2014
- In the last 5 years the company invested considerably less than D&A: £0m vs. £1m
- The company has unprofitable business model: ROIC is -728.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Nektan's Revenue jumped on 50.1%. Having stable revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 25.2 pp from -416% to -390% in FY2018. During the last 5 years EBITDA Margin bottomed in FY2015 at -1,208% and was growing since that time.
Gross Margin decreased slightly on 1.8 pp from 64.1% to 62.2% in FY2018. SG&A as a % of Revenue dropped on 13.5 pp from 44.6% to 31.1% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue topped in FY2015 at 1,361% and was declining since that time.
Net Income margin jumped on 11.3 pp from -46.2% to -34.9% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2015 at -1,542% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2018 Nektan had CAPEX/Revenue of 0.42%. The company's CAPEX/Revenue decreased on 4.1 pp from 4.5% in FY2015 to 0.42% in FY2018. For the last three years the average CAPEX/Revenue was 0.86%. CAPEX as a % of Revenue stuck to a declining trend at -2.1 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -11.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2018. Debt surged on 23.1% while cash surged on 120%.
Nektan has no short term refinancing risk: cash is higher than short term debt (140,200.0%).
Financial and operational results
FY ended 30 Jun 2018
Nektan ($NKTN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1.865 | 0.528 | 5.783 | 13.250 | 19.894 | 50.1% |
| Gross Profit | 1.075 | 0.225 | 3.924 | 8.487 | 12.378 | 45.8% |
| SG&A | 6.805 | 7.188 | 7.665 | 5.908 | 6.181 | 4.6% |
| EBITDA | -3.729 | -6.379 | -7.213 | -2.475 | -0.809 | |
| EBIT | | -7.206 | | | | |
| Interest expence | | 0.230 | | | | |
| Tax | | 0.019 | | | | |
| Net Income | -5.421 | -8.142 | -10.486 | -6.121 | -6.952 | |
| Stock Based Compensation | | 0.007 | | | | |
Balance Sheet
|
|---|
| Cash | 0.877 | 3.396 | 0.099 | 0.638 | 1.402 | 119.7% |
| Short Term Debt | 0.000 | | 0.027 | 0.008 | 0.001 | -87.5% |
| Long Term Debt | 0.000 | 5.090 | 9.229 | 8.368 | 10.309 | 23.2% |
Cash flow
|
|---|
| Capex | 0.167 | 0.024 | 0.096 | 0.067 | 0.083 | 23.9% |
| Acquisitions | | 1.749 | | | | |
Ratios
|
|---|
| Revenue growth | 75.8% | -71.7% | 995.3% | 129.1% | 50.1% | |
| EBITDA growth | 87.0% | 71.1% | 13.1% | -65.7% | -67.3% | |
|
|---|
| Gross Margin | 57.6% | 42.6% | 67.9% | 64.1% | 62.2% | -1.8% |
| EBITDA Margin | -199.9% | -1,208.1% | -124.7% | -18.7% | -4.1% | 14.6% |
| EBIT Margin | | -1,364.8% | | | |
| SG&A, % of revenue | 364.9% | 1,361.4% | 132.5% | 44.6% | 31.1% | -13.5% |
| SBC, % of revenue | | 1.3% | | | |
| Net Income Margin | -290.7% | -1,542.0% | -181.3% | -46.2% | -34.9% | 11.3% |
| CAPEX, % of revenue | 9.0% | 4.5% | 1.7% | 0.5% | 0.4% | -0.1% |
|
|---|
| ROIC | -153.4% | -133.0% | -156.8% | -191.9% | -728.0% | -536.0% |
| ROE | -155.0% | -286.9% | | | | |
| Interest expence / Average debt | | 9.0% | | | | |
People
|
|---|
| Insider ownership | | 8.5% | | | | |
| Employees | | 67 | | | | |
| Revenue/Employee, th. £ | | 8 | | | | |
Peers in Travel & Leisure
Below you can find Nektan benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Celtic ($CCP) | | -21.1% | 1.8% | 74.3% | 12.1% |
| Webis Holdings ($WEB) | | 29.7% | 45.3% | 65.8% | 24.0% |
| Easyhotel ($EZH) | | 56.4% | 8.7% | 39.7% | 33.7% |
| Eclectic Bar Grp ($BAR) | | -1.9% | 1.4% | 38.6% | 1.2% |
| Everyman Media Group ($EMAN) | 22.4% | 44.1% | 45.5% | 37.4% | |
| |
|---|
| Median (26 companies) | 9.2% | 7.6% | 8.3% | 7.3% | 7.7% |
|---|
| Nektan ($NKTN) | | -71.7% | 995.3% | 129.1% | 50.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | 82.9% |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Action Hotels ($AHCG) | 73.3% | 74.0% | 70.7% | 69.8% | |
| Dalata Hotel Group ($DAL) | 62.8% | 61.5% | 62.2% | 63.2% | |
| |
|---|
| Median (17 companies) | 39.7% | 40.1% | 39.3% | 36.2% | 33.1% |
|---|
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | 62.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (26 companies) | 12.7% | 12.9% | 17.0% | 17.6% | 16.2% |
|---|
| Nektan ($NKTN) | -199.9% | -1,208.1% | -124.7% | -18.7% | -4.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | 412.1% |
| Action Hotels ($AHCG) | 90.0% | 172.4% | 120.1% | 139.5% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Richoux Group ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| |
|---|
| Median (26 companies) | 5.1% | 7.2% | 14.1% | 7.4% | 10.5% |
|---|
| Nektan ($NKTN) | 9.0% | 4.5% | 1.7% | 0.5% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| |
|---|
| Median (27 companies) | 5.3% | 6.3% | 6.3% | 7.1% | 8.9% |
|---|
| Nektan ($NKTN) | -153.4% | -133.0% | -156.8% | -191.9% | -728.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Action Hotels ($AHCG) | 9.6x | 12.3x | 14.4x | 23.9x | |
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| |
|---|
| Median (24 companies) | 1.2x | 1.2x | 2.1x | 1.9x | 1.7x |
|---|
