Arden Partners revenue dropped on 10.0%

03 Feb 2020 • About Arden Partners ($ARDN) • By InTwits

Arden Partners reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:

Arden Partners is a company in decline: FY2019 revenue growth was -10.0%, 5 years revenue CAGR was -3.6%
Arden Partners motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 was 0.3% while average EBITDA Margin was -12.9% for the sames years
It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is -1.7x

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Arden Partners's Revenue dropped on 10.0%.

Net Income margin showed almost no change in FY2019. During the last 5 years Net Income margin topped in FY2017 at 7.0% and was declining since that time.

Financial and operational results

FY ended 30 Nov -0001

Arden Partners ($ARDN) key annual financial indicators

mln. £	2015	2016	2017	2018	2019	2019/2018
P&L
Revenue	5.486	5.857	10.477	7.366	6.627	-10.0%
SG&A	7.646	6.323	9.741	10.204
EBITDA	-2.135	-0.443	0.757	-2.802
EBIT	-2.160
Interest expence	0.002
Net Income	-2.097	-0.470	0.732	-2.821	-2.560
Stock Based Compensation	0.111
Balance Sheet
Cash	5.372	5.161	9.028	4.667
Short Term Debt	0.092	0.048	0.171	0.059
Long Term Debt		0.000	0.000	0.000
Cash flow
Capex	0.007	0.025	0.061	0.073
Dividends	0.000
Ratios
Revenue growth	-31.0%	6.8%	78.9%	-29.7%	-10.0%
EBITDA growth	-2,213.9%	-79.3%	-270.9%	-470.1%

EBITDA Margin	-38.9%	-7.6%	7.2%	-38.0%
EBIT Margin	-39.4%
SG&A, % of revenue	139.4%	108.0%	93.0%	138.5%
SBC, % of revenue	2.0%
Net Income Margin	-38.2%	-8.0%	7.0%	-38.3%	-38.6%	-0.3%
CAPEX, % of revenue	0.1%	0.4%	0.6%	1.0%

ROIC	-22.7%	-6.2%	7.4%	-25.6%
ROE	-22.0%	-6.3%	7.4%	-25.9%
Net Debt/EBITDA			-11.7x
Interest expence / Average debt	2.2%
People
Insider ownership	23.5%
Employees	40
Revenue/Employee, th. £	137

Peers in Financial Services

Below we provide Arden Partners benchmarking against other companies in Financial Services 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
Polo Resources Ltd ($POL)			-93.4%	308.5%	-44.4%
Impax Asset Management Group ($IPX)		6.8%	55.2%	100.9%	12.2%
Plus500 Ltd ($PLUS)	20.4%	19.0%	33.3%	64.8%
Afh Financial Group ($AFHP)		15.0%	39.4%	50.6%	46.7%
S & U ($46IE)	-40.6%	25.2%	33.9%	31.8%
Median (18 companies)	2.9%	5.0%	12.3%	18.3%	12.4%
Arden Partners ($ARDN)		6.8%	78.9%	-29.7%	-10.0%

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%	53.4%
S & U ($46IE)	65.3%	63.3%	58.6%	53.8%
Median (8 companies)	52.5%	59.3%	51.4%	54.1%	53.4%

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 ($46IE)	47.2%	48.0%	44.8%	41.7%
Median (16 companies)	18.3%	18.5%	22.8%	25.3%	26.3%
Arden Partners ($ARDN)	-38.9%	-7.6%	7.2%	-38.0%

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%	1.9%
Impax Asset Management Group ($IPX)	0.8%	0.5%	1.1%	2.6%	0.5%
Median (17 companies)	1.0%	1.0%	1.0%	1.0%	0.6%
Arden Partners ($ARDN)	0.1%	0.4%	0.6%	1.0%

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 ($REC)	20.2%	18.5%	20.7%	22.0%
Median (24 companies)	7.8%	8.1%	9.9%	7.4%	8.0%
Arden Partners ($ARDN)	-22.7%	-6.2%	7.4%	-25.6%

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)	-1.1x	-1.2x	-1.3x	-0.7x	-1.4x

Arden Partners stock price chart

Arden Partners financials

mln.	FY2013	FY2014	FY2015

Revenue	10.103	7.955	5.486
EBITDA	1.397	0.101	-2.135
Net income	0.990	0.115	-2.097
CAPEX	0.024	0.033	0.007
Debt	0.000	0.075	0.092
Cash	3.733	8.282	5.372

About Arden Partners

Arden Partners PLC operates as an institutional stock broking company that provides various financial services to corporate and institutional clients in the United Kingdom. The company is involved in the corporate finance, equity research, equity sales, and market making activities. It offers advisory and broking services, such as public company takeovers, mergers, acquisitions and disposals, flotations, fundraisings, and restructurings to corporate clients; and corporate broking, as well as trade execution services for fund managers and dealers. The company also provides research and real time analysis primarily on medium and small cap companies in various industry sectors comprising aerospace and defense, alternative energy, chemicals, construction, infrastructure and property, electronic and electrical equipment, energy and oil services, financials, health, household goods, industrial engineering, support services, technology, and other sectors. Arden Partners plc was founded in 2002 and is based in Birmingham, the United Kingdom.