Paternoster Resources reports 210 pp EBITDA Margin growth from -159% to 50.2% in 2018 in 2018 and 16.9% Revenue growth
05 Feb 2019 • About Paternoster Resources (
$PRS) • By InTwits
Paternoster Resources reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 50.2% in 2018, -159.4% in 2017, 53.4% in 2016, 24.7% in 2015, 57.0% in 2014
- Paternoster Resources has high CAPEX intensity: 5 year average CAPEX/Revenue was 58.9%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: £9m in 2018, £10m in 2017, £484m in 2016, £701m in 2015, £211m in 2014
- The company has potentially unprofitable business model: ROIC is 3.0%
- It operates with high leverage: Net Debt/EBITDA is 6.6x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Paternoster Resources's Revenue jumped on 16.9%. Having stable revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 25.2 pp from -416% to -390% in FY2018.
SG&A as a % of Revenue decreased on 2.9 pp from 5.5% to 2.6% in 2018. SG&A as a % of Revenue declined at -1.4 pp per annum in 2014-2018.
Net Income margin surged on 194 pp from -229% to -34.6% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 2.6%. The company's CAPEX/Revenue dropped on 145 pp from 148% in 2015 to 2.6% in 2018. Average CAPEX/Revenue for the last three years was 36.1%. During 2014-2018 CAPEX as a % of Revenue topped in 2015 at 148% and was declining since that time.
Return on investment
The company operates at low but positive ROIC (3.0%) and negative ROE (-25.5%). ROIC jumped on 29.5 pp from -26.4% to 3.0% in 2018. ROE jumped on 54.0 pp from -79.5% to -25.5% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.6x and Debt / EBITDA is 7.5x. Net Debt / EBITDA surged6.6x from to 6.6x in 2018. Debt decreased on 7.8% while cash dropped on 39.5%.
Paternoster Resources has no short term refinancing risk: cash is higher than short term debt (315.3%).
Management team
Jesper Kragh Andresen is a Paternoster Resources's CEO. Jesper Kragh Andresen is a founder and has spent 2 years with the company. Paternoster Resources's CFO Stig H Christiansen has spent 4 years with the company.
Financial and operational results
FY ended 31 Dec 2018
Paternoster Resources ($PRS) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 548.7 | 474.7 | 474.0 | 283.0 | 330.8 | 16.9% |
| SG&A | 43.9 | 39.1 | 33.6 | 15.5 | 8.5 | -45.2% |
| EBITDA | 312.6 | 117.3 | 253.2 | -451.0 | 166.0 | |
| EBIT | | 30.8 | | | | |
| Tax | | 10.5 | | | | |
| Net Income | 178.8 | -50.6 | 172.6 | -647.1 | -114.5 | |
Balance Sheet
|
|---|
| Cash | 122.4 | 57.1 | 205.7 | 231.9 | 140.3 | -39.5% |
| Accounts Receivable | | 60.0 | | | | |
| Accounts Payable | | 17.8 | | | | |
| Short Term Debt | 0.0 | 139.5 | 47.9 | 18.6 | 44.5 | 139.2% |
| Long Term Debt | 830.1 | 1,107.5 | 1,342.9 | 1,329.1 | 1,198.5 | -9.8% |
Cash flow
|
|---|
| Capex | 211.0 | 700.7 | 483.9 | 10.1 | 8.7 | -13.9% |
| Dividends | | 34.0 | | | | |
Ratios
|
|---|
| Revenue growth | 4.8% | -13.5% | -0.1% | -40.3% | 16.9% | |
| EBITDA growth | 2.0% | -62.5% | 115.9% | -278.1% | -136.8% | |
|
|---|
| EBITDA Margin | 57.0% | 24.7% | 53.4% | -159.4% | 50.2% | 209.5% |
| EBIT Margin | | 6.5% | | | |
| SG&A, % of revenue | 8.0% | 8.2% | 7.1% | 5.5% | 2.6% | -2.9% |
| Net Income Margin | 32.6% | -10.7% | 36.4% | -228.7% | -34.6% | 194.0% |
| CAPEX, % of revenue | 38.5% | 147.6% | 102.1% | 3.6% | 2.6% | -0.9% |
|
|---|
| ROIC | 15.9% | 1.7% | 2.3% | -26.4% | 3.0% | 29.5% |
| ROE | 24.0% | -6.9% | 18.7% | -79.5% | -25.5% | 54.0% |
| Net Debt/EBITDA | 2.3x | 10.1x | 4.7x | | 6.6x |
People
|
|---|
| Employees | | 851 | | | | |
| Revenue/Employee, th. £ | | 558 | | | | |
Peers in Personal Goods
Below you can find Paternoster Resources benchmarking vs. other companies in Personal Goods 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 |
|---|
| Creightons ($CRL) | | 4.2% | 4.1% | 45.6% | 13.8% |
| Swallowfield ($SWL) | | -1.2% | 10.1% | 36.5% | -0.5% |
| Pittards ($PTD) | -3.0% | -12.1% | -11.5% | 12.1% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | | 10.8% | -86.7% | 8.4% | |
| Far Eastern New Century Corp ($FETD) | | -7.5% | -1.0% | 0.9% | |
| |
|---|
| Median (6 companies) | -2.8% | -4.3% | -6.2% | 10.3% | 6.7% |
|---|
| Paternoster Resources ($PRS) | | -13.5% | -0.1% | -40.3% | 16.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Creightons ($CRL) | 40.8% | 39.2% | 42.2% | 42.5% | 40.6% |
| Pittards ($PTD) | 20.3% | 21.7% | 8.0% | 23.4% | |
| Far Eastern New Century Corp ($FETD) | 20.3% | 23.2% | 23.7% | 22.8% | |
| Swallowfield ($SWL) | 10.3% | 11.8% | 14.8% | 18.7% | 18.5% |
| Bagir Grp Ltd ($BAGR) | 17.4% | 9.8% | 16.4% | 15.0% | |
| |
|---|
| Median (5 companies) | 20.3% | 22.4% | 20.1% | 22.8% | 29.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 15.2% | 14.6% | 22.1% | 21.9% | |
| Far Eastern New Century Corp ($FETD) | 12.1% | 15.0% | 15.7% | 16.5% | |
| Swallowfield ($SWL) | 4.0% | 4.5% | 6.7% | 6.5% | 8.9% |
| Creightons ($CRL) | 4.7% | 5.0% | 4.7% | 6.1% | 6.4% |
| Pittards ($PTD) | 6.9% | 6.2% | -10.9% | 5.2% | |
| |
|---|
| Median (6 companies) | 5.8% | 5.6% | 5.7% | 6.3% | 7.6% |
|---|
| Paternoster Resources ($PRS) | 57.0% | 24.7% | 53.4% | -159.4% | 50.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 6.6% | 19.8% | 21.5% | |
| Far Eastern New Century Corp ($FETD) | 12.0% | 11.1% | 9.3% | 10.8% | |
| Pittards ($PTD) | 1.7% | 14.3% | 4.4% | 2.3% | |
| Swallowfield ($SWL) | 1.8% | 3.1% | 2.2% | 1.8% | 2.2% |
| Creightons ($CRL) | 1.1% | 0.8% | 3.7% | 1.8% | 1.8% |
| |
|---|
| Median (6 companies) | 1.8% | 4.9% | 4.0% | 2.1% | 2.0% |
|---|
| Paternoster Resources ($PRS) | 38.5% | 147.6% | 102.1% | 3.6% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Swallowfield ($SWL) | 5.1% | 8.4% | 18.7% | 18.4% | 17.2% |
| Creightons ($CRL) | 8.4% | 8.8% | 6.7% | 15.5% | 14.4% |
| Far Eastern New Century Corp ($FETD) | 2.6% | 3.0% | 3.1% | 3.3% | |
| Pittards ($PTD) | 8.2% | 5.2% | -11.9% | 3.3% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 8.7% | 9.0% | 1.9% | 2.8% | |
| |
|---|
| Median (6 companies) | 6.7% | 6.8% | 2.5% | 3.3% | 15.8% |
|---|
| Paternoster Resources ($PRS) | 15.9% | 1.7% | 2.3% | -26.4% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pittards ($PTD) | 3.2x | 3.4x | | 5.1x | |
| Far Eastern New Century Corp ($FETD) | 5.6x | 5.1x | 4.7x | 4.7x | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.2x | 1.7x | 9.7x | 1.8x | |
| Bagir Grp Ltd ($BAGR) | 4.0x | | -5.9x | 0.1x | |
| Swallowfield ($SWL) | -0.3x | 0.3x | -0.1x | -0.4x | 0.5x |
| |
|---|
| Median (6 companies) | 2.7x | 1.7x | -0.1x | 1.0x | 0.2x |
|---|
