Private & Commercial Finance Group reports 52.5% Net Income growth in 2019 and 36.2% Revenue growth
04 Dec 2019 • About Private & Commercial Finance Group (
$PCF) • By InTwits
Private & Commercial Finance Group reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is 8.3%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 36.2%.
Net Income margin increased slightly on 2.0 pp from 16.7% to 18.7% in FY2019. Net Income margin grew at 4.2 pp per annum in FY2015-FY2019. The efficient tax rate was 20.3% in FY2019.
Return on investment
The company operates at good ROE (12.6%) while ROIC is low (8.3%). ROIC increased on 3.4 pp from 5.0% to 8.3% in FY2019. ROE increased on 2.3 pp from 10.3% to 12.6% in FY2019.
Leverage (Debt)
Debt decreased on 9.1% while cash dropped on 65.5%.
Private & Commercial Finance Group has short term refinancing risk: cash is only 16.6% of short term debt.
Management team
2.7% of the company is owned by insiders. Insider ownership didn't change in 2019.
Financial and operational results
FY ended 30 Nov -0001
Private & Commercial Finance Group ($PCF) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 45.293 | 51.262 | 20.478 | 25.071 | 34.157 | 36.2% |
| Gross Profit | 13.447 | 15.139 | | | | |
| SG&A | 6.686 | 6.875 | | | | |
| EBITDA | 6.974 | 8.486 | | | | |
| Tax | | | 0.847 | 0.981 | 1.624 | 65.5% |
| Net Income | 1.614 | 2.633 | 2.786 | 4.192 | 6.394 | 52.5% |
| Stock Based Compensation | | | 0.052 | | | |
Balance Sheet
|
|---|
| Cash | 0.139 | 0.084 | 17.018 | 21.338 | 7.371 | -65.5% |
| Short Term Debt | 11.436 | 71.879 | 77.067 | 48.881 | 44.412 | -9.1% |
| Long Term Debt | 78.521 | 18.089 | 77.067 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.083 | 0.038 | 0.195 | | | |
| Dividends | | | 0.000 | | | |
Ratios
|
|---|
| Revenue growth | 6.2% | 13.2% | -60.1% | 22.4% | 36.2% | |
| EBITDA growth | 19.4% | 21.7% | | | | |
|
|---|
| Gross Margin | 29.7% | 29.5% | | | | |
| EBITDA Margin | 15.4% | 16.6% | | | |
| SG&A, % of revenue | 14.8% | 13.4% | | | | |
| SBC, % of revenue | | | 0.3% | | |
| Net Income Margin | 3.6% | 5.1% | 13.6% | 16.7% | 18.7% | 2.0% |
| CAPEX, % of revenue | 0.2% | 0.1% | 1.0% | | | |
|
|---|
| ROIC | 7.1% | 7.8% | 3.2% | 5.0% | 8.3% | 3.4% |
| ROE | 14.5% | 15.1% | 9.0% | 10.3% | 12.6% | 2.3% |
| Net Debt/EBITDA | 12.9x | 10.6x | | | |
People
|
|---|
| Insider ownership | | | 2.7% | 2.7% | 2.7% | 0.0% |
Peers in Financial Services
Below you can find Private & Commercial Finance Group 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Polo Resources Ltd ($POL) | | | -93.4% | 308.5% | |
| Impax Asset Management Group ($IPX) | | 6.8% | 55.2% | 100.9% | 12.2% |
| Plus500 Ltd ($PLUS) | 20.4% | 19.0% | 33.3% | 64.8% | |
| Afh Financial Group ($AFHP) | 39.5% | 15.0% | 39.4% | 50.6% | |
| S & U ($46IE) | -40.6% | 25.2% | 33.9% | 31.8% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.0% | 12.9% | 17.1% | 12.2% |
|---|
| Private & Commercial Finance Group ($PCF) | | 13.2% | -60.1% | 22.4% | 36.2% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Record ($REC) | 99.3% | 99.0% | 98.8% | 98.7% | |
| First Property Group ($FPO) | 83.0% | 80.6% | 78.6% | 76.3% | |
| Walker Crips Group ($WCW) | 66.7% | 67.7% | 69.8% | 67.2% | |
| Afh Financial Group ($AFHP) | 52.3% | 55.4% | 53.4% | 54.4% | |
| S & U ($46IE) | 65.3% | 63.3% | 58.6% | 53.8% | |
| |
|---|
| Median (8 companies) | 52.8% | 63.3% | 51.4% | 54.1% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 80.3% | 79.3% | 79.5% | 81.8% | |
| Plus500 Ltd ($PLUS) | 48.2% | 46.0% | 59.3% | 70.2% | |
| Hargreaves Lansdown ($HL.) | 51.2% | 57.5% | 69.3% | 66.8% | |
| First Property Group ($FPO) | 42.9% | 52.2% | 57.4% | 52.9% | |
| S & U ($46IE) | 47.2% | 48.0% | 44.8% | 41.7% | |
| |
|---|
| Median (17 companies) | 18.3% | 18.5% | 22.1% | 24.0% | 29.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 0.1% | 6.4% | 8.5% | 9.4% | |
| Walker Crips Group ($WCW) | 2.5% | 0.9% | 1.7% | 5.4% | |
| Mxc Capital ($MXCP) | 0.5% | 4.9% | 0.0% | 4.7% | 0.2% |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.9% | 3.3% | 1.8% | 3.8% | |
| Impax Asset Management Group ($IPX) | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% |
| |
|---|
| Median (18 companies) | 1.0% | 1.0% | 1.0% | 1.0% | 0.5% |
|---|
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Plus500 Ltd ($PLUS) | 116.5% | 118.9% | 143.2% | 196.2% | |
| Hargreaves Lansdown ($HL.) | 87.5% | 90.0% | 93.3% | 82.4% | |
| Impax Asset Management Group ($IPX) | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% |
| Fulcrum Utility Services Ld ($FCRM) | | 347.2% | 103.4% | 29.9% | |
| Record ($REC) | 20.2% | 18.5% | 20.7% | 22.0% | |
| |
|---|
| Median (24 companies) | 7.8% | 7.8% | 9.9% | 7.4% | 14.3% |
|---|
| Private & Commercial Finance Group ($PCF) | 7.1% | 7.8% | 3.2% | 5.0% | 8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 12.3x | 9.4x | 7.6x | 7.7x | |
| S & U ($46IE) | 3.1x | 0.5x | 1.8x | 3.2x | |
| Leeds Group ($LDSG) | -0.3x | 1.4x | 2.6x | 2.5x | |
| Impax Asset Management Group ($IPX) | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x |
| Hargreaves Lansdown ($HL.) | -1.1x | -0.9x | -0.3x | -0.4x | |
| |
|---|
| Median (14 companies) | -1.2x | -1.4x | -1.5x | -0.7x | -2.2x |
|---|
