Aukett Swanke Group revenue increased on 4.7% and EBITDA Margin surged on 19.6 pp from -18.2% to 1.3%
30 Jan 2020 • About Aukett Swanke Group (
$AUK) • By InTwits
Aukett Swanke Group reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 1.3% in FY2019, -18.2% in FY2018, -0.9% in FY2017, 6.6% in FY2016, 12.8% in FY2015
- Aukett Swanke Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is -0.9%
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 increased on 4.7%. During the last 5 years Revenue growth bottomed in FY2018 at -18.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 36.9% to 40.0% in 2019. During FY2015-FY2019 EBITDA Margin bottomed in FY2018 at -18.2%.
Net Income margin jumped on 20.4 pp from -17.9% to 2.5% in FY2019. During FY2015-FY2019 Net Income margin bottomed in FY2018 at -17.9%.
Investments (CAPEX, working capital and M&A)
Aukett Swanke Group's CAPEX/Revenue was 0.66% in FY2019. CAPEX/Revenue showed almost no change from FY2016 to FY2019. It's average level of CAPEX/Revenue for the last three years was 0.48%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2017 at 0.17% and was growing since that time.
Return on investment
The company operates at negative ROIC (-0.9%) and low but positive ROE (8.1%). ROIC jumped on 40.4 pp from -41.3% to -0.90% in FY2019. ROE surged on 51.5 pp from -43.5% to 8.1% in FY2019. During the last 5 years ROIC bottomed in FY2018 at -41.3%. During FY2015-FY2019 ROE bottomed in FY2018 at -43.5%.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and 3.3x Debt / EBITDA. Debt increased on 9.0% while cash jumped on 61.3%.
Aukett Swanke Group has no short term refinancing risk: cash is higher than short term debt (345.9%).
Valuation and dividends
Aukett Swanke Group's trades at EV/EBITDA 22.3x and P/E 13.4x.
Financial and operational results
FY ended 30 Sep 2019
Aukett Swanke Group ($AUK) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 16.886 | 18.410 | 16.070 | 13.094 | 13.711 | 4.7% |
| EBITDA | 2.158 | 1.216 | -0.146 | -2.388 | 0.183 | |
| Net Income | 1.653 | 0.772 | -0.323 | -2.345 | 0.346 | |
Balance Sheet
|
|---|
| Cash | 1.873 | 1.839 | 1.188 | 0.710 | 1.145 | 61.3% |
| Short Term Debt | 0.000 | 0.247 | 0.467 | 0.246 | 0.331 | 34.6% |
| Long Term Debt | 0.000 | 0.802 | 0.537 | 0.307 | 0.272 | -11.4% |
Cash flow
|
|---|
| Capex | 0.163 | 0.147 | 0.027 | 0.079 | 0.090 | 13.9% |
Ratios
|
|---|
| Revenue growth | 14.6% | 9.0% | -12.7% | -18.5% | 4.7% | |
| EBITDA growth | 53.6% | -43.7% | -112.0% | 1,535.6% | -107.7% | |
|
|---|
| EBITDA Margin | 12.8% | 6.6% | -0.9% | -18.2% | 1.3% | 19.6% |
| Net Income Margin | 9.8% | 4.2% | -2.0% | -17.9% | 2.5% | 20.4% |
| CAPEX, % of revenue | 1.0% | 0.8% | 0.2% | 0.6% | 0.7% | 0.1% |
|
|---|
| ROIC | 31.6% | 9.6% | -6.9% | -41.3% | -0.9% | 40.4% |
| ROE | 29.5% | 11.7% | -4.8% | -43.5% | 8.1% | 51.5% |
| Net Debt/EBITDA | -0.9x | -0.6x | | | -3.0x |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Lucky Cement Ltd ($LKCS) | 1.2% | -0.1% | 6.5% | 11.6% | |
| Heath(Samuel)& Sons ($HSM) | 2.0% | 12.4% | 3.7% | 10.0% | |
| Accsys Technologies ($AXS) | 37.5% | 14.5% | 7.1% | 7.8% | |
| Titon Hldgs ($TON) | | 6.6% | 18.1% | 6.3% | -8.8% |
| James Halstead ($JHD) | 1.7% | -0.5% | 6.5% | 3.6% | |
| |
|---|
| Median (7 companies) | 1.4% | 5.3% | 11.6% | 6.3% | -8.8% |
|---|
| Aukett Swanke Group ($AUK) | | 9.0% | -12.7% | -18.5% | 4.7% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Heath(Samuel)& Sons ($HSM) | 47.6% | 48.1% | 51.1% | 49.6% | |
| James Halstead ($JHD) | 41.7% | 42.4% | 43.5% | 41.9% | |
| Alumasc Group ($ALU) | 32.7% | 33.4% | 31.3% | 30.6% | |
| Titon Hldgs ($TON) | 29.3% | 29.7% | 25.9% | 28.9% | 30.2% |
| Lucky Cement Ltd ($LKCS) | 31.3% | 33.9% | 33.1% | 26.2% | |
| |
|---|
| Median (7 companies) | 29.2% | 29.7% | 26.9% | 28.9% | 30.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | 12.3% | 13.7% | 18.6% | 46.8% | |
| Lucky Cement Ltd ($LKCS) | 26.5% | 30.4% | 29.7% | 22.4% | |
| Heath(Samuel)& Sons ($HSM) | 10.2% | 12.1% | 13.6% | 12.2% | |
| Titon Hldgs ($TON) | 9.5% | 9.8% | 8.8% | 9.0% | 8.8% |
| Alumasc Group ($ALU) | 9.7% | 9.7% | 9.8% | 7.8% | |
| |
|---|
| Median (6 companies) | 9.5% | 11.9% | 9.8% | 10.6% | -2,610.6% |
|---|
| Aukett Swanke Group ($AUK) | 12.8% | 6.6% | -0.9% | -18.2% | 1.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Accsys Technologies ($AXS) | 2.0% | 4.9% | 11.3% | 48.5% | |
| Lucky Cement Ltd ($LKCS) | 12.0% | 9.0% | 13.0% | 20.3% | |
| Smart(J.)& Co(Contractors) ($SMJ) | 2.3% | 1.7% | 2.1% | 4.3% | |
| Alumasc Group ($ALU) | 1.2% | 1.1% | 0.9% | 3.1% | |
| Titon Hldgs ($TON) | 2.2% | 3.0% | 1.9% | 1.9% | 2.6% |
| |
|---|
| Median (7 companies) | 2.3% | 3.0% | 2.3% | 3.1% | 1.3% |
|---|
| Aukett Swanke Group ($AUK) | 1.0% | 0.8% | 0.2% | 0.6% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| James Halstead ($JHD) | 45.3% | 47.1% | 46.5% | 39.9% | |
| Heath(Samuel)& Sons ($HSM) | 32.0% | 89.2% | 54.2% | 35.4% | |
| Alumasc Group ($ALU) | 36.0% | 47.8% | 50.2% | 23.1% | |
| Lucky Cement Ltd ($LKCS) | 20.0% | 20.6% | 18.6% | 12.5% | |
| Titon Hldgs ($TON) | 13.7% | 13.3% | 12.0% | 12.2% | 9.5% |
| |
|---|
| Median (17 companies) | 6.4% | 8.2% | 8.8% | 12.2% | -10.3% |
|---|
| Aukett Swanke Group ($AUK) | 31.6% | 9.6% | -6.9% | -41.3% | -0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Alumasc Group ($ALU) | -0.1x | -1.0x | -0.6x | 0.6x | |
| Lucky Cement Ltd ($LKCS) | -0.3x | -0.7x | -1.0x | -0.7x | |
| Titon Hldgs ($TON) | -1.4x | -1.0x | -1.3x | -1.3x | -1.9x |
| Heath(Samuel)& Sons ($HSM) | -1.4x | -1.4x | -1.2x | -1.3x | |
| Smart(J.)& Co(Contractors) ($SMJ) | -5.2x | -3.6x | -4.2x | -2.4x | |
| |
|---|
| Median (5 companies) | -0.0x | -0.8x | -0.6x | -1.3x | -1.9x |
|---|
