Formation Group revenue decreased on 8.0%
31 Jan 2020 • About Formation Group (
$FRM) • By InTwits
Formation Group reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2019 vs. -1.0% in FY2018 vs. -0.8% in FY2015.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Formation Group's Revenue decreased on 8.0%.
Net Income margin increased on 3.5 pp from -0.74% to 2.8% in FY2019.
Financial and operational results
FY ended 30 Nov -0001
Formation Group ($FRM) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 23.764 | 29.410 | 37.011 | 38.629 | 35.526 | -8.0% |
| Gross Profit | 1.498 | 2.922 | 2.176 | 0.955 | | |
| SG&A | 1.716 | 2.189 | 2.283 | 1.371 | | |
| EBITDA | -0.193 | 0.748 | -0.085 | -0.402 | | |
| Net Income | 1.814 | 2.785 | -0.152 | -0.284 | 0.978 | |
Balance Sheet
|
|---|
| Cash | 1.633 | 0.330 | 4.229 | 0.746 | | |
| Short Term Debt | 9.963 | 3.314 | 0.000 | 0.000 | | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.025 | 0.011 | 0.021 | 0.007 | | |
Ratios
|
|---|
| Revenue growth | 199.3% | 23.8% | 25.8% | 4.4% | -8.0% | |
| EBITDA growth | 221.7% | -487.6% | -111.4% | 372.9% | | |
|
|---|
| Gross Margin | 6.3% | 9.9% | 5.9% | 2.5% | | |
| EBITDA Margin | -0.8% | 2.5% | -0.2% | -1.0% | |
| SG&A, % of revenue | 7.2% | 7.4% | 6.2% | 3.5% | | |
| Net Income Margin | 7.6% | 9.5% | -0.4% | -0.7% | 2.8% | 3.5% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.1% | 0.0% | | |
|
|---|
| ROIC | -1.5% | 4.7% | -0.9% | -4.1% | | |
| ROE | 27.1% | 31.0% | -1.5% | -2.8% | | |
| Net Debt/EBITDA | | 4.0x | | | |
Peers in Real Estate Investment & Services
Below you can find Formation Group benchmarking vs. other companies in Real Estate Investment & 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 |
|---|
| Caledonian Trust ($CNN) | | 6.0% | -29.7% | 65.9% | -4.3% |
| Development Securities ($DSC) | 156.8% | 18.9% | -48.8% | 40.1% | |
| St.Modwen Properties ($SMP) | 7.9% | 0.1% | 10.7% | 36.9% | |
| Hml Hldgs ($HMLH) | 16.7% | 7.8% | 12.6% | 24.2% | |
| Safestore Hldgs ($SAFE) | | 10.1% | 12.6% | 10.8% | 5.5% |
| |
|---|
| Median (7 companies) | 5.5% | 7.6% | 8.3% | 24.2% | 0.6% |
|---|
| Formation Group ($FRM) | | 23.8% | 25.8% | 4.4% | -8.0% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 50.4% | 80.5% | 74.8% | 52.8% |
| Damac Real Estate Development Ltd ($DMC) | 59.4% | 55.9% | 48.8% | 34.6% | |
| Safeland ($SAF) | 26.9% | 33.7% | 18.9% | 10.5% | |
| |
|---|
| Median (3 companies) | 46.6% | 42.8% | 33.4% | 34.6% | 52.8% |
|---|
| Formation Group ($FRM) | 6.3% | 9.9% | 5.9% | 2.5% | |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 17.4% | 191.0% | 316.6% | 238.5% |
| Safestore Hldgs ($SAFE) | 128.4% | 95.1% | 84.8% | 137.7% | 108.3% |
| Safeland ($SAF) | 65.8% | 28.0% | 15.2% | 94.0% | |
| St.Modwen Properties ($SMP) | 47.8% | 32.8% | 28.6% | 21.3% | |
| Damac Real Estate Development Ltd ($DMC) | 53.5% | 52.2% | 38.5% | 20.8% | |
| |
|---|
| Median (7 companies) | 26.7% | 32.8% | 28.6% | 21.3% | 173.4% |
|---|
| Formation Group ($FRM) | -0.8% | 2.5% | -0.2% | -1.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| St.Modwen Properties ($SMP) | 55.8% | 31.3% | 19.3% | 25.8% | |
| Safestore Hldgs ($SAFE) | 7.2% | 24.5% | 16.7% | 19.2% | 25.5% |
| Hml Hldgs ($HMLH) | 3.1% | 1.5% | 1.5% | 1.6% | |
| Safeland ($SAF) | 19.5% | 0.5% | 1.1% | 1.5% | |
| Development Securities ($DSC) | 24.6% | 2.9% | 2.5% | 1.4% | |
| |
|---|
| Median (7 companies) | 8.1% | 1.5% | 1.8% | 1.5% | 13.0% |
|---|
| Formation Group ($FRM) | 0.1% | 0.0% | 0.1% | 0.0% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Safestore Hldgs ($SAFE) | 17.8% | 12.1% | 10.3% | 16.5% | 12.1% |
| Caledonian Trust ($CNN) | | 0.6% | 4.7% | 11.7% | 7.6% |
| Hml Hldgs ($HMLH) | 12.5% | 11.3% | 9.6% | 9.1% | |
| Safeland ($SAF) | 31.2% | 22.5% | 6.7% | 8.9% | |
| Damac Real Estate Development Ltd ($DMC) | 41.5% | 24.5% | 16.0% | 6.5% | |
| |
|---|
| Median (9 companies) | 5.3% | 6.9% | 7.1% | 8.9% | 9.8% |
|---|
| Formation Group ($FRM) | -1.5% | 4.7% | -0.9% | -4.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Development Securities ($DSC) | 3.5x | 5.7x | 70.8x | 3.9x | |
| Safeland ($SAF) | 1.2x | 1.3x | 1.2x | 3.4x | |
| St.Modwen Properties ($SMP) | 3.7x | 5.5x | 5.4x | 3.0x | |
| Safestore Hldgs ($SAFE) | 2.1x | 3.4x | 3.2x | 2.1x | 2.7x |
| Caledonian Trust ($CNN) | | 25.7x | 4.0x | 1.4x | 2.3x |
| |
|---|
| Median (7 companies) | 4.4x | 5.2x | 3.7x | 2.1x | 2.5x |
|---|
