Sureserve Group Plc reports 11.8% EBITDA growth in 2018 and almost no change in EBITDA Margin of 4.6%
22 Jan 2019 • About Sureserve Group Plc (
$SUR) • By InTwits
Sureserve Group Plc reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.6% in FY2018, 4.3% in FY2017, -6.6% in FY2016, 3.7% in FY2015, 2.4% in FY2014
- Sureserve Group Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is 4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sureserve Group Plc's Revenue increased on 5.1%. During the last 5 years Revenue growth bottomed in FY2017 at -44.5%. EBITDA Margin showed almost no change in FY2018.
Gross Margin decreased slightly on 0.51 pp from 14.9% to 14.3% in FY2018.
Net Income margin decreased on 5.4 pp from 0.0055% to -5.4% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.23% in FY2018. The company showed almost no change in CAPEX/Revenue from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.33%.
Return on investment
The company operates at low but positive ROIC (4.6%) and negative ROE (-23.2%). ROIC surged on 10.4 pp from -5.7% to 4.6% in FY2018. ROE dropped on 23.2 pp from 0.020% to -23.2% in FY2018.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.1x from 0.2x to 1.3x in FY2018. Debt dropped on 52.3% while cash dropped on 93.5%.
Sureserve Group Plc has short term refinancing risk: cash is only 13.1% of short term debt.
Financial and operational results
FY ended 30 Sep 2018
Sureserve Group Plc ($SUR) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 302.5 | 340.2 | 327.2 | 181.5 | 190.8 | 5.1% |
| Gross Profit | 30.8 | 43.4 | 27.5 | 27.0 | 27.4 | 1.5% |
| EBITDA | 7.3 | 12.4 | -21.5 | 7.8 | 8.7 | 11.8% |
| Net Income | -0.4 | 2.4 | -29.3 | 0.0 | -10.4 | -103,650.0% |
Balance Sheet
|
|---|
| Cash | 4.2 | 6.9 | 0.0 | 26.1 | 1.7 | -93.5% |
| Short Term Debt | 3.5 | 0.4 | 0.3 | 0.2 | 13.0 | 7,047.8% |
| Long Term Debt | 7.9 | 0.3 | 20.8 | 27.2 | 0.1 | -99.8% |
Cash flow
|
|---|
| Capex | 0.9 | 1.2 | 0.8 | 0.9 | 0.4 | -52.7% |
Ratios
|
|---|
| Revenue growth | 57.7% | 12.5% | -3.8% | -44.5% | 5.1% | |
| EBITDA growth | 13.7% | 70.2% | -272.7% | -136.3% | 11.8% | |
|
|---|
| Gross Margin | 10.2% | 12.8% | 8.4% | 14.9% | 14.3% | -0.5% |
| EBITDA Margin | 2.4% | 3.7% | -6.6% | 4.3% | 4.6% | 0.3% |
| Net Income Margin | -0.1% | 0.7% | -8.9% | 0.0% | -5.4% | -5.4% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.3% | 0.5% | 0.2% | -0.3% |
|
|---|
| ROIC | 3.1% | 6.1% | -43.2% | -5.7% | 4.6% | 10.4% |
| ROE | -1.2% | 3.6% | -42.9% | 0.0% | -23.2% | -23.2% |
| Net Debt/EBITDA | 1.0x | -0.5x | | 0.2x | 1.3x | 1.1x |
Peers in Diversified Support Services
Below you can find Sureserve Group Plc benchmarking vs. other companies in Diversified Support 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | | 1.2% | 8.6% | 17.6% | |
| |
|---|
| Median (1 company) | | 1.2% | 8.6% | 17.6% | |
|---|
| Sureserve Group Plc ($SUR) | | 12.5% | -3.8% | -44.5% | 5.1% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | 28.4% | 27.6% | 31.4% | 32.5% | |
| |
|---|
| Median (1 company) | 28.4% | 27.6% | 31.4% | 32.5% | |
|---|
| Sureserve Group Plc ($SUR) | 10.2% | 12.8% | 8.4% | 14.9% | 14.3% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | 9.3% | 9.2% | 7.1% | 5.1% | |
| |
|---|
| Median (1 company) | 9.3% | 9.2% | 7.1% | 5.1% | |
|---|
| Sureserve Group Plc ($SUR) | 2.4% | 3.7% | -6.6% | 4.3% | 4.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | 9.5% | 7.8% | 4.4% | 6.1% | |
| |
|---|
| Median (1 company) | 9.5% | 7.8% | 4.4% | 6.1% | |
|---|
| Sureserve Group Plc ($SUR) | 0.3% | 0.3% | 0.3% | 0.5% | 0.2% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | | 3.4% | 1.7% | 0.4% | |
| |
|---|
| Median (1 company) | | 3.4% | 1.7% | 0.4% | |
|---|
| Sureserve Group Plc ($SUR) | 3.1% | 6.1% | -43.2% | -5.7% | 4.6% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arena Events Group Plc ($ARE) | 5.4x | 5.7x | 9.6x | 2.2x | |
| |
|---|
| Median (1 company) | 5.4x | 5.7x | 9.6x | 2.2x | |
|---|
| Sureserve Group Plc ($SUR) | 1.0x | -0.5x | | 0.2x | 1.3x |
