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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. Overall the company's long term financial model is characterised by the following facts:
  • 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%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.1 pp from 27.7% to 10.6% 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 the last 5 years Net Income margin topped in FY2019 at 6.7%.

Investments (CAPEX, working capital and M&A)


The company'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)


Debt level is 5.0x Net Debt / EBITDA and 5.2x Debt / EBITDA. Net Debt / EBITDA surged on 3.5x from 1.6x to 5.0x in FY2020. Debt jumped 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. £201620172018201920202020/2019
P&L
Revenue90.8110.6140.7190.8144.4-24.3%
Gross Profit13.816.734.327.4-20.3%
SG&A7.88.918.219.77.8%
EBITDA6.88.618.714.1-24.7%
Net Income4.15.47.412.87.6-40.5%
Balance Sheet
Cash0.08.33.11.5-50.3%
Short Term Debt0.80.51.019.21,796.0%
Long Term Debt28.541.031.653.368.4%
Cash flow
Capex0.30.81.50.6-64.3%
Ratios
Revenue growth7.7%21.8%27.2%35.6%-24.3%
EBITDA growth57.4%26.8%-24.7%

Gross Margin15.2%15.1%18.0%18.9%0.9%
EBITDA Margin7.5%7.8%9.8%9.7%-0.0%
SG&A, % of revenue8.6%8.1%9.6%13.6%4.1%
Net Income Margin4.5%4.8%5.2%6.7%5.3%-1.4%
CAPEX, % of revenue0.3%0.8%0.8%0.4%-0.4%

ROIC11.5%11.8%7.6%
ROE14.7%17.4%8.3%
Net Debt/EBITDA4.3x3.9x1.6x5.0x3.5x

Peers in Homebuilding


Below you can find Springfield Properties Plc benchmarking vs. other companies in Homebuilding 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.