Arden Partners Net Income dropped on 485% and EBITDA Margin dropped on 45.3 pp from 7.2% to -38.0%
24 Jan 2019 • About Arden Partners (
$ARDN) • By InTwits
Arden Partners reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arden Partners is a company in decline: FY2018 revenue growth was -29.7%, 5 years revenue CAGR was -6.1%
- The company operates at negative EBITDA Margin: -38.0%
- Arden Partners motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.3% while average EBITDA Margin was -12.2% for the sames years
- Arden Partners has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has unprofitable business model: ROIC is -25.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Arden Partners's Revenue dropped on 29.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 45.3 pp from 7.2% to -38.0% in FY2018.
SG&A as a % of Revenue surged on 45.6 pp from 93.0% to 139% in FY2018.
Net Income margin dropped on 45.3 pp from 7.0% to -38.3% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Arden Partners had CAPEX/Revenue of 0.99%. CAPEX/Revenue increased slightly on 0.86 pp from 0.13% in FY2015 to 0.99% in FY2018. Average CAPEX/Revenue for the last three years was 0.67%. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2015 at 0.13% and was growing since that time.
Return on investment
The company operates at negative ROIC (-25.6%) and ROE (-25.9%). ROIC dropped on 33.0 pp from 7.4% to -25.6% in FY2018. ROE dropped on 33.4 pp from 7.4% to -25.9% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -11.4x and Debt / EBITDA is . Debt dropped on 65.5% while cash dropped on 48.3%.
Arden Partners has no short term refinancing risk: cash is higher than short term debt (7,910.2%).
Financial and operational results
FY ended 31 Oct 2018
Arden Partners ($ARDN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 7.955 | 5.486 | 5.857 | 10.477 | 7.366 | -29.7% |
| SG&A | | 7.646 | 6.323 | 9.741 | 10.204 | 4.8% |
| EBITDA | 0.101 | -2.135 | -0.443 | 0.757 | -2.802 | -470.1% |
| EBIT | | -2.160 | | | | |
| Interest expence | | 0.002 | | | | |
| Net Income | 0.115 | -2.097 | -0.470 | 0.732 | -2.821 | -485.4% |
| Stock Based Compensation | | 0.111 | | | | |
Balance Sheet
|
|---|
| Cash | 8.282 | 5.372 | 5.161 | 9.028 | 4.667 | -48.3% |
| Short Term Debt | 0.075 | 0.092 | 0.048 | 0.171 | 0.059 | -65.5% |
| Long Term Debt | 0.000 | | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.033 | 0.007 | 0.025 | 0.061 | 0.073 | 19.7% |
| Dividends | | 0.000 | | | | |
Ratios
|
|---|
| Revenue growth | -21.3% | -31.0% | 6.8% | 78.9% | -29.7% | |
| EBITDA growth | -92.8% | -2,213.9% | -79.3% | -270.9% | -470.1% | |
|
|---|
| EBITDA Margin | 1.3% | -38.9% | -7.6% | 7.2% | -38.0% | -45.3% |
| EBIT Margin | | -39.4% | | | |
| SG&A, % of revenue | | 139.4% | 108.0% | 93.0% | 138.5% | 45.6% |
| SBC, % of revenue | | 2.0% | | | |
| Net Income Margin | 1.4% | -38.2% | -8.0% | 7.0% | -38.3% | -45.3% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.4% | 0.6% | 1.0% | 0.4% |
|
|---|
| ROIC | 0.2% | -22.7% | -6.2% | 7.4% | -25.6% | -33.0% |
| ROE | 1.0% | -22.0% | -6.3% | 7.4% | -25.9% | -33.4% |
| Net Debt/EBITDA | -81.3x | | | -11.7x | |
| Interest expence / Average debt | | 2.4% | | | | |
People
|
|---|
| Insider ownership | | 23.5% | | | | |
| Employees | | 40 | | | | |
| Revenue/Employee, th. £ | | 137 | | | | |
Peers in Financial Services
Below you can find Arden Partners 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% | |
| Impax Asset Management Group ($IPX) | | -3.1% | 6.8% | 55.2% | 100.9% |
| Afh Financial Group ($AFHP) | | 39.5% | 15.0% | 39.4% | 50.6% |
| S & U ($46IE) | | -40.6% | 25.2% | 33.9% | 31.8% |
| |
|---|
| Median (33 companies) | 0.3% | 2.9% | 5.0% | 12.3% | 16.3% |
|---|
| Arden Partners ($ARDN) | | -31.0% | 6.8% | 78.9% | -29.7% |
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 ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | 67.2% |
| |
|---|
| Median (14 companies) | 51.3% | 52.5% | 59.3% | 51.4% | 54.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($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) | 16.8% | 18.3% | 18.5% | 22.8% | 22.2% |
|---|
| Arden Partners ($ARDN) | 1.3% | -38.9% | -7.6% | 7.2% | -38.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($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% | 1.0% | 1.0% | 1.0% | 1.0% |
|---|
| Arden Partners ($ARDN) | 0.4% | 0.1% | 0.4% | 0.6% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plus500 Ltd ($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% | 8.1% | 9.9% | 6.7% |
|---|
| Arden Partners ($ARDN) | 0.2% | -22.7% | -6.2% | 7.4% | -25.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($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 | -1.2x | -1.3x | -0.9x |
|---|
| Arden Partners ($ARDN) | -81.3x | | | -11.7x | |
