Gateley Holdings Plc reports 33.3% EBITDA growth in 2020 and 4.6 pp EBITDA Margin growth from 17.8% to 22.4%
29 Sep 2020 • About Gateley Holdings Plc (
$GTLY) • By InTwits
Gateley Holdings Plc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Gateley Holdings Plc is a growth stock: FY2020 revenue growth was 6.2%, 5 year revenue CAGR was 12.5% at FY2020 ROIC 27.9%
- Gateley Holdings Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 0.5%.
- CAPEX is quite volatile: £7m in FY2020, £14m in FY2019, £22m in FY2018, £41m in FY2017, £36m in FY2016
- The company has highly profitable business model: ROIC is 27.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gateley Holdings Plc's Revenue increased on 6.2%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.6 pp from 17.8% to 22.4% in FY2020.
Net Income margin decreased slightly on 1.9 pp from 12.6% to 10.7% in FY2020. During the last 5 years Net Income margin topped in FY2018 at 13.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.78% in FY2020. CAPEX/Revenue decreased slightly on 1.1 pp from 1.9% in FY2017 to 0.78% in FY2020. It's average CAPEX/Revenue for the last three years was 0.87%.
Return on investment
The company operates at high and attractive ROIC (27.9%) and ROE (31.1%). ROIC dropped on 15.8 pp from 43.7% to 27.9% in FY2020. ROE dropped on 17.6 pp from 48.7% to 31.1% in FY2020. ROE declined at -16.4 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 0.2x to 1.1x in FY2020. Debt surged on 378% while cash increased slightly on 1.2%. During FY2016-FY2020 Net Debt/EBITDA bottomed in FY2018 at 0.040x and was growing since that time.
Gateley Holdings Plc has short term refinancing risk: cash is only 61.1% of short term debt.
Financial and operational results
FY ended 30 Apr 2020
Gateley Holdings Plc ($GTLY) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 67.1 | 77.6 | 86.1 | 103.5 | 109.8 | 6.2% |
| EBITDA | 12.0 | 14.6 | 16.4 | 18.4 | 24.6 | 33.3% |
| Net Income | 8.6 | 10.1 | 11.8 | 13.0 | 11.7 | -10.1% |
Balance Sheet
|
|---|
| Cash | 9.8 | 2.7 | 4.3 | 2.9 | 2.9 | 1.2% |
| Short Term Debt | 6.6 | 2.5 | 2.0 | 3.0 | 4.8 | 57.2% |
| Long Term Debt | 7.4 | 5.0 | 3.0 | 3.1 | 24.5 | 695.8% |
Cash flow
|
|---|
| Capex | 0.7 | 1.5 | 0.7 | 1.0 | 0.9 | -15.1% |
Ratios
|
|---|
| Revenue growth | 10.2% | 15.7% | 11.0% | 20.2% | 6.2% | |
| EBITDA growth | 12.6% | 21.8% | 12.7% | 12.3% | 33.3% | |
|
|---|
| EBITDA Margin | 17.8% | 18.8% | 19.1% | 17.8% | 22.4% | 4.6% |
| Net Income Margin | 12.8% | 13.0% | 13.7% | 12.6% | 10.7% | -1.9% |
| CAPEX, % of revenue | 1.0% | 1.9% | 0.9% | 1.0% | 0.8% | -0.2% |
|
|---|
| ROIC | 55.2% | 50.9% | 55.9% | 43.7% | 27.9% | -15.8% |
| ROE | 103.9% | 66.7% | 58.4% | 48.7% | 31.1% | -17.6% |
| Net Debt/EBITDA | 0.4x | 0.3x | 0.0x | 0.2x | 1.1x | 0.9x |
Peers in Research & Consulting Services
Below you can find Gateley Holdings Plc benchmarking vs. other companies in Research & Consulting 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| K3 Capital Group Plc ($K3C) | - | 26.5% | 52.4% | -17.7% | 10.5% |
| |
|---|
| Median (1 company) | - | 26.5% | 52.4% | -17.7% | 10.5% |
|---|
| Gateley Holdings Plc ($GTLY) | - | 15.7% | 11.0% | 20.2% | 6.2% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| K3 Capital Group Plc ($K3C) | 37.6% | 34.8% | 44.8% | 36.7% | 45.3% |
| |
|---|
| Median (1 company) | 37.6% | 34.8% | 44.8% | 36.7% | 45.3% |
|---|
| Gateley Holdings Plc ($GTLY) | 17.8% | 18.8% | 19.1% | 17.8% | 22.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| K3 Capital Group Plc ($K3C) | 0.3% | 1.5% | 0.2% | 0.5% | 0.2% |
| |
|---|
| Median (1 company) | 0.3% | 1.5% | 0.2% | 0.5% | 0.2% |
|---|
| Gateley Holdings Plc ($GTLY) | 1.0% | 1.9% | 0.9% | 1.0% | 0.8% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| K3 Capital Group Plc ($K3C) | 160.8% | 94.6% | 103.6% | 62.6% | 71.9% |
| |
|---|
| Median (1 company) | 160.8% | 94.6% | 103.6% | 62.6% | 71.9% |
|---|
| Gateley Holdings Plc ($GTLY) | 55.2% | 50.9% | 55.9% | 43.7% | 27.9% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| K3 Capital Group Plc ($K3C) | -0.3x | -0.9x | -1.0x | -1.2x | -1.1x |
| |
|---|
| Median (1 company) | -0.3x | -0.9x | -1.0x | -1.2x | -1.1x |
|---|
| Gateley Holdings Plc ($GTLY) | 0.4x | 0.3x | 0.0x | 0.2x | 1.1x |
