Accrol Group Holdings Plc Debt surged on 47.1% and Revenue jumped on 13.1%
02 Sep 2020 • About Accrol Group Holdings Plc (
$ACRL) • By InTwits
Accrol Group Holdings Plc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Accrol Group Holdings Plc is a growth stock: FY2020 revenue growth was 13.1%, 5 year revenue CAGR was 10.5% at FY2020 ROIC 1.2%
- EBITDA Margin is quite volatile: 5.4% in FY2020, -6.9% in FY2019, -10.3% in FY2018, 10.2% in FY2017, 13.4% in FY2016
- Accrol Group Holdings Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 2.7%
- CAPEX is quite volatile: £4m in FY2020, £4m in FY2019, £3m in FY2018, £4m in FY2017, £1m in FY2016
- The company has potentially unprofitable business model: ROIC is 1.2%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 4.7x
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 jumped on 13.1%. During FY2016-FY2020 Revenue growth bottomed in FY2019 at -14.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.1 pp from 32.3% to 41.4% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2018 at -10.3% and was growing since that time.
Gross Margin increased on 7.2 pp from 14.7% to 21.9% in FY2020. During the last 5 years Gross Margin bottomed in FY2019 at 14.7%. SG&A as a % of Revenue increased slightly on 0.85 pp from 21.6% to 22.5% in FY2020.
Net Income margin increased on 8.7 pp from -9.9% to -1.2% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.7% in FY2020. The company showed small CAPEX/Revenue decline of 0.56 pp from 3.3% in FY2017 to 2.7% in FY2020. Average CAPEX/Revenue for the last three years was 2.6%. To deliver its fast growth Accrol Group Holdings Plc invested a large share of EBITDA (50.9%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (1.2%) and negative ROE (-3.5%). ROIC jumped on 17.4 pp from -16.2% to 1.2% in FY2020. ROE surged on 22.6 pp from -26.1% to -3.5% in FY2020. During the last 5 years ROIC bottomed in FY2018 at -23.9% and was growing since that time.
Leverage (Debt)
Debt level is 4.7x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA jumped4.7x from to 4.7x in FY2020. Debt surged on 47.1% while cash surged on 274%.
Accrol Group Holdings Plc has short term refinancing risk: cash is only 44.9% of short term debt.
Financial and operational results
FY ended 30 Apr 2020
Accrol Group Holdings Plc ($ACRL) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 118.2 | 134.2 | 139.7 | 119.1 | 134.8 | 13.1% |
| Gross Profit | 34.5 | 37.1 | 24.5 | 17.6 | 29.5 | 68.3% |
| SG&A | 18.7 | 27.5 | 47.9 | 25.8 | 30.3 | 17.6% |
| EBITDA | 15.8 | 13.7 | -14.3 | -8.2 | 7.2 | |
| Net Income | 5.7 | 6.7 | -20.0 | -11.7 | -1.6 | |
Balance Sheet
|
|---|
| Cash | 2.5 | 3.9 | 0.4 | 2.2 | 8.1 | 274.4% |
| Short Term Debt | 12.2 | 9.7 | 21.7 | 16.7 | 18.2 | 8.7% |
| Long Term Debt | 50.9 | 13.1 | 11.8 | 11.8 | 23.8 | 101.3% |
Cash flow
|
|---|
| Capex | 0.7 | 4.4 | 2.9 | 3.6 | 3.7 | 2.8% |
Ratios
|
|---|
| Revenue growth | 44.3% | 13.5% | 4.2% | -14.8% | 13.1% | |
| EBITDA growth | 58.4% | -13.5% | -204.8% | -42.9% | -188.5% | |
|
|---|
| Gross Margin | 29.2% | 27.7% | 17.5% | 14.7% | 21.9% | 7.2% |
| EBITDA Margin | 13.4% | 10.2% | -10.3% | -6.9% | 5.4% | 12.2% |
| SG&A, % of revenue | 15.8% | 20.5% | 34.3% | 21.6% | 22.5% | 0.9% |
| Net Income Margin | 4.8% | 5.0% | -14.3% | -9.9% | -1.2% | 8.7% |
| CAPEX, % of revenue | 0.6% | 3.3% | 2.1% | 3.0% | 2.7% | -0.3% |
|
|---|
| ROIC | 17.1% | 13.0% | -23.9% | -16.2% | 1.2% | 17.4% |
| ROE | | 24.4% | -41.8% | -26.1% | -3.5% | 22.6% |
| Net Debt/EBITDA | 3.8x | 1.4x | | | 4.7x |
Peers in Household Products
Below you can find Accrol Group Holdings Plc benchmarking vs. other companies in Household Products 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.
