Springfield Properties Plc Debt surged on 122% while Revenue dropped on 24.3%
29 Sep 2020 • About Springfield Properties Plc (
$SPR) • By InTwits
Springfield Properties Plc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company has business model with low profitability: ROIC is 7.6%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 5.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 24.3%. During the last 5 years Revenue growth topped in FY2019 at 35.6%. EBITDA Margin showed almost no change in FY2020.
Gross Margin increased slightly on 0.94 pp from 18.0% to 18.9% in FY2020. SG&A as a % of Revenue increased on 4.1 pp from 9.6% to 13.6% in FY2020.
Net Income margin decreased slightly on 1.4 pp from 6.7% to 5.3% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2019 at 6.7%.
Investments (CAPEX, working capital and M&A)
Springfield Properties Plc's CAPEX/Revenue was 0.38% in FY2020. CAPEX/Revenue showed almost no change from FY2017 to FY2020.
Return on investment
The company operates at low ROIC (7.6%) and ROE (8.3%).
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.2x. Net Debt / EBITDA jumped on 3.5x from 1.6x to 5.0x in FY2020. Debt surged on 122% while cash dropped on 50.3%.
Springfield Properties Plc has short term refinancing risk: cash is only 7.9% of short term debt.
Financial and operational results
FY ended 31 May 2020
Springfield Properties Plc ($SPR) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 90.8 | 110.6 | 140.7 | 190.8 | 144.4 | -24.3% |
| Gross Profit | 13.8 | 16.7 | | 34.3 | 27.4 | -20.3% |
| SG&A | 7.8 | 8.9 | | 18.2 | 19.7 | 7.8% |
| EBITDA | 6.8 | 8.6 | | 18.7 | 14.1 | -24.7% |
| Net Income | 4.1 | 5.4 | 7.4 | 12.8 | 7.6 | -40.5% |
Balance Sheet
|
|---|
| Cash | 0.0 | 8.3 | | 3.1 | 1.5 | -50.3% |
| Short Term Debt | 0.8 | 0.5 | | 1.0 | 19.2 | 1,796.0% |
| Long Term Debt | 28.5 | 41.0 | | 31.6 | 53.3 | 68.4% |
Cash flow
|
|---|
| Capex | 0.3 | 0.8 | | 1.5 | 0.6 | -64.3% |
Ratios
|
|---|
| Revenue growth | 7.7% | 21.8% | 27.2% | 35.6% | -24.3% | |
| EBITDA growth | 57.4% | 26.8% | | | -24.7% | |
|
|---|
| Gross Margin | 15.2% | 15.1% | | 18.0% | 18.9% | 0.9% |
| EBITDA Margin | 7.5% | 7.8% | | 9.8% | 9.7% | -0.0% |
| SG&A, % of revenue | 8.6% | 8.1% | | 9.6% | 13.6% | 4.1% |
| Net Income Margin | 4.5% | 4.8% | 5.2% | 6.7% | 5.3% | -1.4% |
| CAPEX, % of revenue | 0.3% | 0.8% | | 0.8% | 0.4% | -0.4% |
|
|---|
| ROIC | 11.5% | 11.8% | | | 7.6% | |
| ROE | 14.7% | 17.4% | | | 8.3% | |
| Net Debt/EBITDA | 4.3x | 3.9x | | 1.6x | 5.0x | 3.5x |
Peers in Homebuilding
Below we provide Springfield Properties Plc benchmarking against other companies in Homebuilding 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.
