Croma Security Solutions Group reports 6.6% revenue decline in FY2020 and almost no change in EBITDA Margin of 5.4%
21 Oct 2020 • About Croma Security Solutions Group (
$CSSG) • By InTwits
Croma Security Solutions Group reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Croma Security Solutions Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 6.6%. EBITDA Margin showed almost no change in FY2020.
Gross Margin decreased slightly on 1.7 pp from 18.8% to 17.1% in FY2020. SG&A as a % of Revenue increased on 4.0 pp from 14.6% to 18.5% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 14.6%.
Net Income margin decreased on 3.8 pp from 3.4% to -0.41% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2018 at 4.6% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.37% in FY2020. CAPEX/Revenue showed almost no change from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 0.72%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2019 at 1.0%.
Return on investment
The company operates at low but positive ROIC (0.9%) and negative ROE (-1.1%). ROIC dropped on 10.6 pp from 11.5% to 0.94% in FY2020. ROE dropped on 11.2 pp from 10.1% to -1.1% in FY2020. During the last 5 years ROIC topped in FY2018 at 18.2% and was declining since that time. During the last 5 years ROE topped in FY2018 at 15.1% and was declining since that time.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and 0.7x Debt / EBITDA. Debt surged on 2,459% while cash jumped on 136%.
Croma Security Solutions Group has no short term refinancing risk: cash is higher than short term debt (1,198.8%).
Financial and operational results
FY ended 30 Jun 2020
Croma Security Solutions Group ($CSSG) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 19.031 | 22.058 | 35.119 | 34.599 | 32.321 | -6.6% |
| Gross Profit | 3.890 | 4.025 | 7.149 | 6.490 | 5.516 | -15.0% |
| SG&A | 3.675 | 3.802 | 5.136 | 5.041 | 5.995 | 18.9% |
| EBITDA | 0.588 | 0.799 | 2.500 | 1.871 | 1.754 | -6.3% |
| Net Income | 0.153 | 0.360 | 1.616 | 1.166 | -0.134 | -111.5% |
Balance Sheet
|
|---|
| Cash | 0.392 | 0.770 | 2.154 | 1.729 | 4.076 | 135.7% |
| Short Term Debt | 0.640 | 0.195 | 0.066 | 0.046 | 0.340 | 639.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.837 | |
Cash flow
|
|---|
| Capex | 0.073 | 0.114 | 0.264 | 0.356 | 0.121 | -66.0% |
Ratios
|
|---|
| Revenue growth | 20.2% | 15.9% | 59.2% | -1.5% | -6.6% | |
| EBITDA growth | 21.0% | 35.9% | 212.9% | -25.2% | -6.3% | |
|
|---|
| Gross Margin | 20.4% | 18.2% | 20.4% | 18.8% | 17.1% | -1.7% |
| EBITDA Margin | 3.1% | 3.6% | 7.1% | 5.4% | 5.4% | 0.0% |
| SG&A, % of revenue | 19.3% | 17.2% | 14.6% | 14.6% | 18.5% | 4.0% |
| Net Income Margin | 0.8% | 1.6% | 4.6% | 3.4% | -0.4% | -3.8% |
| CAPEX, % of revenue | 0.4% | 0.5% | 0.8% | 1.0% | 0.4% | -0.7% |
|
|---|
| ROIC | 2.4% | 4.0% | 18.2% | 11.5% | 0.9% | -10.6% |
| ROE | 1.6% | 3.5% | 15.1% | 10.1% | -1.1% | -11.2% |
| Net Debt/EBITDA | 0.4x | -0.7x | -0.8x | -0.9x | -1.7x | -0.8x |
Peers in Support Services
Below you can find Croma Security Solutions Group benchmarking vs. other companies in Support 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 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mobilityone Ltd ($MBO) | - | 37.9% | 47.4% | 35.0% | - |
| Newmark Security ($NWT) | - | -26.5% | 0.1% | 22.0% | -4.2% |
| Rws Hldgs ($RWS) | 28.1% | 34.5% | 86.6% | 16.2% | - |
| Sthree ($STHR) | 13.1% | 16.1% | 12.9% | 6.9% | - |
| Camco Clean Energy ($CCE) | -2.5% | 9.3% | 97,196.8% | 4.3% | - |
| |
|---|
| Median (8 companies) | 3.9% | 6.9% | 8.2% | 5.6% | -6.3% |
|---|
| Croma Security Solutions Group ($CSSG) | - | 15.9% | 59.2% | -1.5% | -6.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Rws Hldgs ($RWS) | 42.8% | 43.8% | 38.8% | 40.1% | - |
| Newmark Security ($NWT) | 41.7% | 27.9% | 36.1% | 39.3% | 39.7% |
| Camco Clean Energy ($CCE) | 20.9% | 30.5% | 38.7% | 38.2% | - |
| Ricardo ($RCDO) | 39.0% | 37.7% | 37.7% | 35.1% | 32.7% |
| Sthree ($STHR) | 26.9% | 25.8% | 25.5% | 25.5% | - |
| |
|---|
| Median (7 companies) | 27.7% | 28.4% | 31.6% | 35.1% | 36.2% |
|---|
| Croma Security Solutions Group ($CSSG) | 20.4% | 18.2% | 20.4% | 18.8% | 17.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Rws Hldgs ($RWS) | 26.4% | 25.5% | 20.8% | 23.4% | - |
| Camco Clean Energy ($CCE) | -51.7% | -65.5% | 15.7% | 18.2% | - |
| Ricardo ($RCDO) | 14.7% | 14.5% | 11.9% | 11.6% | 8.4% |
| Christie Group ($CTG) | 4.8% | 6.5% | 6.7% | 10.5% | - |
| Driver Group ($DRV) | -4.9% | 4.5% | 5.5% | 6.4% | - |
| |
|---|
| Median (8 companies) | 5.8% | 5.7% | 6.6% | 8.4% | 7.7% |
|---|
| Croma Security Solutions Group ($CSSG) | 3.1% | 3.6% | 7.1% | 5.4% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Camco Clean Energy ($CCE) | 0.7% | 4.4% | 4.6% | 4.2% | - |
| Ricardo ($RCDO) | 2.6% | 1.8% | 2.0% | 2.0% | 6.3% |
| Rws Hldgs ($RWS) | 0.6% | 0.9% | 0.6% | 1.1% | - |
| Newmark Security ($NWT) | 0.9% | 1.3% | 9.8% | 1.0% | 0.8% |
| Christie Group ($CTG) | 1.3% | 0.8% | 0.9% | 0.7% | - |
| |
|---|
| Median (8 companies) | 1.1% | 0.9% | 1.0% | 0.8% | 3.5% |
|---|
| Croma Security Solutions Group ($CSSG) | 0.4% | 0.5% | 0.8% | 1.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Christie Group ($CTG) | - | - | 472.3% | 82.9% | - |
| Sthree ($STHR) | 46.2% | 43.4% | 36.3% | 40.2% | - |
| Mobilityone Ltd ($MBO) | 15.0% | -8.6% | -35.1% | 29.9% | - |
| Driver Group ($DRV) | -19.2% | 7.6% | 13.2% | 14.7% | - |
| Rws Hldgs ($RWS) | 23.5% | 20.2% | 12.8% | 12.3% | - |
| |
|---|
| Median (9 companies) | 8.1% | 7.9% | 7.9% | 12.3% | 1.4% |
|---|
| Croma Security Solutions Group ($CSSG) | 2.4% | 4.0% | 18.2% | 11.5% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Camco Clean Energy ($CCE) | - | - | 2.9x | 2.8x | - |
| Mobilityone Ltd ($MBO) | 1.0x | - | - | 1.3x | - |
| Ricardo ($RCDO) | 0.7x | 0.7x | 0.6x | 1.1x | 3.5x |
| Christie Group ($CTG) | 1.3x | 0.5x | 0.4x | 0.6x | - |
| Rws Hldgs ($RWS) | 0.0x | 0.5x | 1.0x | 0.4x | - |
| |
|---|
| Median (8 companies) | 0.1x | 0.5x | 0.6x | 0.5x | 2.3x |
|---|
| Croma Security Solutions Group ($CSSG) | 0.4x | -0.7x | -0.8x | -0.9x | -1.7x |
