Premier Asset Management Group Plc reports 13.3% EBITDA decline in 2019 and 4.1 pp EBITDA Margin decline from 33.4% to 29.3%
16 Dec 2019 • About Premier Asset Management Group Plc (
$PAM) • By InTwits
Premier Asset Management Group Plc reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- In the last 5 years the company invested considerably less than D&A: £1m vs. £4m. In FY2019 this situation was still the same: CAPEX was 0 while D&A was 2
- The company has highly profitable business model: ROIC is 28.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Premier Asset Management Group Plc's Revenue decreased slightly on 1.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.1 pp from 33.4% to 29.3% in FY2019.
SG&A as a % of Revenue increased on 2.3 pp from 66.6% to 68.9% in FY2019. Stock Based Compensation (SBC) as a % of Revenue increased on 2.9 pp from 1.9% to 4.8% in FY2019.
Net Income margin decreased on 2.6 pp from 23.5% to 20.9% in FY2019. Net Income margin grew at 7.4 pp per annum in the last 5 years. The efficient tax rate was 19.7% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 Premier Asset Management Group Plc had CAPEX/Revenue of 0.81%. CAPEX/Revenue showed almost no change from FY2016 to FY2019. Average CAPEX/Revenue for the last three years was 0.62%.
Return on investment
The company operates at high and attractive ROIC (28.5%) and ROE (24.3%). ROIC decreased on 5.7 pp from 34.2% to 28.5% in FY2019. ROE decreased on 3.3 pp from 27.7% to 24.3% in FY2019.
Leverage (Debt)
The company has no debt. Cash showed almost no change in FY2019.
The company paid 99.8% of Net Income as dividends in FY2019.
Management team
The company has 108 employees. The number of employees increased slightly on 0.93%. Average revenue per employee in FY2019 was £489,083 and it decreased slightly on 2.0%.
Financial and operational results
FY ended 30 Sep 2019
Premier Asset Management Group Plc ($PAM) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 35.765 | 39.149 | 46.046 | 53.396 | 52.821 | -1.1% |
| SG&A | | 28.505 | 31.558 | 35.548 | 36.403 | 2.4% |
| EBITDA | | 10.398 | 14.298 | 17.837 | 15.464 | -13.3% |
| EBIT | | | | 15.914 | 13.718 | -13.8% |
| Tax | | | | 3.393 | 2.696 | -20.5% |
| Net Income | -2.021 | 0.985 | 8.876 | 12.523 | 11.022 | -12.0% |
| Stock Based Compensation | | | | 1.033 | 2.551 | 147.0% |
Balance Sheet
|
|---|
| Cash | 8.852 | 10.638 | 16.449 | 20.744 | 20.689 | -0.3% |
| Short Term Debt | 2.250 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | | 42.670 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | | 0.214 | 0.203 | 0.325 | 0.426 | 31.1% |
| Dividends | | | | 10.000 | 11.000 | 10.0% |
Ratios
|
|---|
| Revenue growth | 16.6% | 9.5% | 17.6% | 16.0% | -1.1% | |
| EBITDA growth | | | 37.5% | 24.8% | -13.3% | |
|
|---|
| EBITDA Margin | | 26.6% | 31.1% | 33.4% | 29.3% | -4.1% |
| EBIT Margin | | | | 29.8% | 26.0% | -3.8% |
| SG&A, % of revenue | | 72.8% | 68.5% | 66.6% | 68.9% | 2.3% |
| SBC, % of revenue | | | | 1.9% | 4.8% | 2.9% |
| Net Income Margin | -5.7% | 2.5% | 19.3% | 23.5% | 20.9% | -2.6% |
| CAPEX, % of revenue | | 0.5% | 0.4% | 0.6% | 0.8% | 0.2% |
|
|---|
| ROIC | | | 28.6% | 34.2% | 28.5% | -5.7% |
| ROE | | | | 27.7% | 24.3% | -3.3% |
| Net Debt/EBITDA | | 3.1x | -1.2x | -1.2x | -1.3x | -0.2x |
People
|
|---|
| Employees | | | | 107 | 108 | 0.9% |
| Revenue/Employee, th. £ | | | | 499 | 489 | -2.0% |
Peers in Asset Management & Custody Banks
Below we provide Premier Asset Management Group Plc benchmarking against other companies in Asset Management & Custody Banks 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AJ Bell Plc ($AJB) | | 13.0% | 17.2% | 18.7% | 17.0% |
| |
|---|
| Median (1 company) | | 13.0% | 17.2% | 18.7% | 17.0% |
|---|
| Premier Asset Management Group Plc ($PAM) | | 9.5% | 17.6% | 16.0% | -1.1% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AJ Bell Plc ($AJB) | 30.6% | 29.2% | 31.5% | 33.7% | 37.7% |
| |
|---|
| Median (1 company) | 30.6% | 29.2% | 31.5% | 33.7% | 37.7% |
|---|
| Premier Asset Management Group Plc ($PAM) | | 26.6% | 31.1% | 33.4% | 29.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AJ Bell Plc ($AJB) | 0.6% | 0.9% | 4.6% | 1.1% | 0.8% |
| |
|---|
| Median (1 company) | 0.6% | 0.9% | 4.6% | 1.1% | 0.8% |
|---|
| Premier Asset Management Group Plc ($PAM) | | 0.5% | 0.4% | 0.6% | 0.8% |
Top companies by ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AJ Bell Plc ($AJB) | 28.5% | 29.8% | 35.4% | 42.2% | |
| |
|---|
| Median (1 company) | 28.5% | 29.8% | 35.4% | 42.2% | |
|---|
| Premier Asset Management Group Plc ($PAM) | | | 28.6% | 34.2% | 28.5% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AJ Bell Plc ($AJB) | -2.1x | -2.0x | -1.8x | -1.6x | -1.7x |
| |
|---|
| Median (1 company) | -2.1x | -2.0x | -1.8x | -1.6x | -1.7x |
|---|
| Premier Asset Management Group Plc ($PAM) | | 3.1x | -1.2x | -1.2x | -1.3x |
