Image Scan Hldgs revenue decline continued from 31.2% in FY2018 to 31.7% in FY2019
03 Dec 2019 • About Image Scan Hldgs (
$IGE) • By InTwits
Image Scan Hldgs reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -16.0%
- The company has unprofitable business model: ROIC is -27.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Image Scan Hldgs's Revenue dropped on 31.7%. During FY2015-FY2019 Revenue growth topped in FY2016 at 94.1% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.95 pp from 5.5% to 6.4% in FY2019.
Gross Margin increased on 6.6 pp from 47.5% to 54.1% in FY2019.
Net Income margin decreased on 9.2 pp from -6.3% to -15.6% in FY2019.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.42% in FY2019. Image Scan Hldgs showed almost no change in CAPEX/Revenue from FY2016 to FY2019. Average CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at negative ROIC (-27.7%) and ROE (-25.4%). ROIC dropped on 19.2 pp from -8.5% to -27.7% in FY2019. ROE dropped on 12.7 pp from -12.7% to -25.4% in FY2019.
Leverage (Debt)
The company has no debt. Cash dropped on 18.1%.
Financial and operational results
FY ended 30 Sep 2019
Image Scan Hldgs ($IGE) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 1.708 | 3.315 | 5.034 | 3.465 | 2.365 | -31.7% |
| Gross Profit | | 1.404 | 1.930 | 1.645 | 1.279 | -22.3% |
| EBITDA | | 0.117 | 0.522 | -0.130 | -0.379 | |
| Net Income | | 0.105 | 0.580 | -0.220 | -0.368 | |
Balance Sheet
|
|---|
| Cash | | 1.055 | 1.253 | 0.782 | 0.640 | -18.1% |
| Short Term Debt | | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | | 0.019 | 0.023 | 0.023 | 0.010 | -56.5% |
Ratios
|
|---|
| Revenue growth | -22.2% | 94.1% | 51.9% | -31.2% | -31.7% | |
| EBITDA growth | | | 344.9% | -125.0% | 190.4% | |
|
|---|
| Gross Margin | | 42.3% | 38.3% | 47.5% | 54.1% | 6.6% |
| EBITDA Margin | | 3.5% | 10.4% | -3.8% | -16.0% | -12.2% |
| Net Income Margin | | 3.2% | 11.5% | -6.3% | -15.6% | -9.2% |
| CAPEX, % of revenue | | 0.6% | 0.5% | 0.7% | 0.4% | -0.2% |
|
|---|
| ROIC | | 16.4% | 39.8% | -8.5% | -27.7% | -19.2% |
| ROE | | 15.5% | 45.3% | -12.7% | -25.4% | -12.7% |
| Net Debt/EBITDA | | -9.0x | -2.4x | | |
Peers in Electronic & Electrical Equipment
Below we provide Image Scan Hldgs benchmarking against other companies in Electronic & Electrical Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Lpa Group ($LPA) | -3.4% | 31.7% | 4.9% | 24.5% | |
| Maruwa Co Ltd ($MAW) | -2.0% | -6.8% | 5.3% | 19.7% | |
| Solid State ($SSP) | 13.9% | 20.6% | -9.2% | 15.6% | |
| Gooch & Housego ($GHH) | | 9.3% | 30.2% | 11.5% | 3.4% |
| Dewhurst ($DWHA) | -1.4% | 2.6% | 12.2% | 3.1% | |
| |
|---|
| Median (9 companies) | -1.3% | -1.2% | 6.9% | 3.1% | 3.4% |
|---|
| Image Scan Hldgs ($IGE) | | 94.1% | 51.9% | -31.2% | -31.7% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Elektron Technology ($EKT) | 35.6% | 37.2% | 39.1% | 49.7% | |
| Maruwa Co Ltd ($MAW) | 30.0% | 35.9% | 36.9% | 43.1% | |
| Gooch & Housego ($GHH) | 39.4% | 37.5% | 41.1% | 40.1% | 34.8% |
| Zytronic ($ZYT) | 41.9% | 42.8% | 41.1% | 37.0% | |
| Solid State ($SSP) | 30.5% | 31.8% | 30.1% | 27.5% | |
| |
|---|
| Median (7 companies) | 25.0% | 30.5% | 29.1% | 37.0% | 34.8% |
|---|
| Image Scan Hldgs ($IGE) | | 42.3% | 38.3% | 47.5% | 54.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 14.7% | 19.6% | 21.4% | 28.7% | |
| Zytronic ($ZYT) | 27.8% | 25.6% | 28.8% | 23.7% | |
| Elektron Technology ($EKT) | 7.2% | 8.1% | 5.8% | 17.8% | |
| Dewhurst ($DWHA) | 14.7% | 13.4% | 13.6% | 14.2% | |
| Gooch & Housego ($GHH) | 19.8% | 17.3% | 17.3% | 14.1% | 13.4% |
| |
|---|
| Median (8 companies) | 7.2% | 8.9% | 8.9% | 14.2% | 13.4% |
|---|
| Image Scan Hldgs ($IGE) | | 3.5% | 10.4% | -3.8% | -16.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 6.5% | 4.4% | 6.1% | 6.9% | |
| Gooch & Housego ($GHH) | 3.9% | 11.3% | 5.2% | 4.7% | 4.5% |
| Dewhurst ($DWHA) | 1.9% | 1.9% | 1.8% | 2.1% | |
| Lpa Group ($LPA) | 1.8% | 6.0% | 7.3% | 1.8% | |
| Elektron Technology ($EKT) | 1.1% | 1.8% | 0.9% | 1.3% | |
| |
|---|
| Median (8 companies) | 1.4% | 1.8% | 2.0% | 1.6% | 4.5% |
|---|
| Image Scan Hldgs ($IGE) | | 0.6% | 0.5% | 0.7% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 5.7% | 9.0% | 11.4% | 19.2% | |
| Dewhurst ($DWHA) | 27.3% | 24.6% | 24.1% | 18.9% | |
| Elektron Technology ($EKT) | 9.9% | 7.0% | -9.0% | 18.8% | |
| Solid State ($SSP) | 20.0% | 23.0% | 14.6% | 15.2% | |
| Zytronic ($ZYT) | 22.7% | 18.1% | 20.9% | 15.1% | |
| |
|---|
| Median (11 companies) | 7.8% | 9.4% | 13.4% | 15.1% | 5.7% |
|---|
| Image Scan Hldgs ($IGE) | | 16.4% | 39.8% | -8.5% | -27.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Lpa Group ($LPA) | 3.8x | 1.3x | 1.1x | 0.7x | |
| Gooch & Housego ($GHH) | -1.1x | -0.8x | -0.8x | 0.6x | 0.8x |
| Solid State ($SSP) | 0.7x | 0.7x | -0.3x | -0.2x | |
| Volex ($VLX) | -0.7x | 0.3x | | -0.8x | |
| Elektron Technology ($EKT) | 0.8x | 0.5x | -0.5x | -1.0x | |
| |
|---|
| Median (8 companies) | 0.3x | 0.4x | -0.5x | -0.9x | 0.8x |
|---|
