Aukett Swanke Group revenue dropped on 18.5% and EBITDA Margin dropped on 17.3 pp from -0.91% to -18.2%
30 Jan 2019 • About Aukett Swanke Group (
$AUK) • By InTwits
Aukett Swanke Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -18.2%
- EBITDA Margin is quite volatile: -18.2% in FY2018, -0.9% in FY2017, 6.6% in FY2016, 12.8% in FY2015, 9.5% in FY2014
- Aukett Swanke Group 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 1.9%.
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £1m in FY2014
- The company has unprofitable business model: ROIC is -41.3%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Aukett Swanke Group's Revenue dropped on 18.5%. Revenue decline was accelerating on average at -27.8 pp per annum in FY2014-FY2018. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.3 pp from -0.91% to -18.2% in FY2018. EBITDA Margin declined at -6.9 pp per annum in FY2014-FY2018.
Net Income margin dropped on 15.9 pp from -2.0% to -17.9% in FY2018. Net Income margin stuck to a declining trend at -6.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.60% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average CAPEX/Revenue for the last three years was 0.52%. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2017 at 0.17%.
Return on investment
The company operates at negative ROIC (-41.3%) and ROE (-43.5%). ROIC dropped on 34.4 pp from -6.9% to -41.3% in FY2018. ROE dropped on 38.7 pp from -4.8% to -43.5% in FY2018. ROIC followed a declining trend at -17.6 pp per annum in FY2014-FY2018. ROE declined at -17.3 pp per annum in FY2014-FY2018.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 44.9% while cash dropped on 40.2%.
Aukett Swanke Group has no short term refinancing risk: cash is higher than short term debt (288.6%).
Financial and operational results
FY ended 30 Sep 2018
Aukett Swanke Group ($AUK) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 14.732 | 16.886 | 18.410 | 16.070 | 13.094 | -18.5% |
| EBITDA | 1.405 | 2.158 | 1.216 | -0.146 | -2.388 | |
| Net Income | 1.046 | 1.653 | 0.772 | -0.323 | -2.345 | |
Balance Sheet
|
|---|
| Cash | 1.891 | 1.873 | 1.839 | 1.188 | 0.710 | -40.2% |
| Short Term Debt | 0.113 | 0.000 | 0.247 | 0.467 | 0.246 | -47.3% |
| Long Term Debt | 0.000 | 0.000 | 0.802 | 0.537 | 0.307 | -42.8% |
Cash flow
|
|---|
| Capex | 0.523 | 0.163 | 0.147 | 0.027 | 0.079 | 192.6% |
Ratios
|
|---|
| Revenue growth | 107.0% | 14.6% | 9.0% | -12.7% | -18.5% | |
| EBITDA growth | 213.6% | 53.6% | -43.7% | -112.0% | 1,535.6% | |
|
|---|
| EBITDA Margin | 9.5% | 12.8% | 6.6% | -0.9% | -18.2% | -17.3% |
| Net Income Margin | 7.1% | 9.8% | 4.2% | -2.0% | -17.9% | -15.9% |
| CAPEX, % of revenue | 3.6% | 1.0% | 0.8% | 0.2% | 0.6% | 0.4% |
|
|---|
| ROIC | 27.3% | 31.6% | 9.6% | -6.9% | -41.3% | -34.4% |
| ROE | 25.9% | 29.5% | 11.7% | -4.8% | -43.5% | -38.7% |
| Net Debt/EBITDA | -1.3x | -0.9x | -0.6x | | |
Peers in Construction & Materials
Below you can find Aukett Swanke Group benchmarking vs. other companies in Construction & Materials 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 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 68.0% | -56.5% | 5.3% | 46.2% | |
| Mountfield Group ($MOGP) | -4.1% | 10.4% | -26.1% | 31.7% | |
| LSR Group OJSC ($LSRG) | | -6.0% | 22.1% | 30.0% | |
| Michelmersh Brick Hldgs ($MBH) | 9.8% | 2.1% | 3.4% | 26.0% | |
| Steppe Cement ($STCM) | -8.9% | -19.7% | -44.0% | 25.5% | |
| |
|---|
| Median (23 companies) | 9.8% | 1.6% | 5.3% | 11.6% | 6.3% |
|---|
| Aukett Swanke Group ($AUK) | | 14.6% | 9.0% | -12.7% | -18.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 21.7% | 51.7% | 64.7% | 58.1% | |
| Heath(Samuel)& Sons ($HSM) | 48.6% | 47.6% | 48.1% | 51.1% | 49.6% |
| James Halstead ($JHD) | 41.0% | 41.7% | 42.4% | 43.5% | 41.9% |
| Billington Hldgs ($BILN) | 38.8% | 36.3% | 37.7% | 35.6% | |
| Michelmersh Brick Hldgs ($MBH) | 31.1% | 38.2% | 34.4% | 35.4% | |
| |
|---|
| Median (23 companies) | 26.3% | 29.2% | 29.7% | 26.9% | 28.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lucky Cement Ltd ($LKCS) | 24.4% | 26.5% | 30.4% | 29.7% | 22.4% |
| James Halstead ($JHD) | 20.1% | 20.9% | 21.6% | 20.8% | |
| Asia Cement Corp ($ASCD) | 18.3% | 14.8% | 19.1% | 19.4% | |
| Michelmersh Brick Hldgs ($MBH) | 14.1% | 20.3% | 18.7% | 19.4% | |
| Smart(J.)& Co(Contractors) ($SMJ) | -2.0% | 12.3% | 13.7% | 18.6% | 46.8% |
| |
|---|
| Median (23 companies) | 9.4% | 9.5% | 11.9% | 9.8% | 10.6% |
|---|
| Aukett Swanke Group ($AUK) | 9.5% | 12.8% | 6.6% | -0.9% | -18.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 12.8% | 54.9% | 313.4% | 40.8% | |
| Lucky Cement Ltd ($LKCS) | 6.9% | 12.0% | 9.0% | 13.0% | 20.3% |
| Accsys Technologies ($AXS) | 1.7% | 2.0% | 4.9% | 11.3% | 48.5% |
| Low & Bonar ($BD46) | 4.6% | 9.1% | 4.7% | 6.4% | |
| Heath(Samuel)& Sons ($HSM) | 2.0% | 2.0% | 3.1% | 4.9% | 1.5% |
| |
|---|
| Median (23 companies) | 2.4% | 2.3% | 3.0% | 2.3% | 3.1% |
|---|
| Aukett Swanke Group ($AUK) | 3.6% | 1.0% | 0.8% | 0.2% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Heath(Samuel)& Sons ($HSM) | 19.7% | 32.0% | 89.2% | 54.2% | 35.4% |
| Alumasc Group ($ALU) | 22.6% | 36.0% | 47.8% | 50.2% | 23.1% |
| Clarke(T.) ($CTO) | -0.4% | 19.6% | 23.6% | 48.5% | |
| James Halstead ($JHD) | 46.7% | 45.3% | 47.1% | 46.5% | 39.9% |
| Yolo Leisure & Technology ($YOLO) | -49.9% | -26.1% | -51.5% | 24.2% | |
| |
|---|
| Median (25 companies) | 5.4% | 6.4% | 8.2% | 8.8% | 12.4% |
|---|
| Aukett Swanke Group ($AUK) | 27.3% | 31.6% | 9.6% | -6.9% | -41.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Low & Bonar ($BD46) | 2.1x | 2.4x | 2.1x | 14.3x | |
| Asia Cement Corp ($ASCD) | 6.8x | 8.6x | 6.1x | 5.8x | |
| Michelmersh Brick Hldgs ($MBH) | 0.5x | -0.5x | -0.8x | 2.4x | |
| Crh ($CRH) | 1.6x | 3.1x | 1.8x | 1.9x | |
| LSR Group OJSC ($LSRG) | 0.1x | 0.7x | 1.8x | 1.7x | |
| |
|---|
| Median (21 companies) | 0.5x | -0.0x | -0.8x | -0.6x | -1.3x |
|---|
