Maestrano Group Plc CAPEX surged on 81.6% while Revenue decreased on 3.7%
26 Oct 2020 • About Maestrano Group Plc (
$MNO) • By InTwits
Maestrano Group Plc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -34.3%
- Maestrano Group Plc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -109.6% for the sames years
- Maestrano Group Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: £0m in FY2020, £0m in FY2019, £0m in FY2018, £0m in FY2017, £0m in FY2016
- The company has unprofitable business model: ROIC is -11.6%
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 3.7%. During the last 5 years Revenue growth bottomed in FY2018 at -16.4% and was accelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 160 pp from -195% to -34.3% in FY2020.
Net Income margin jumped on 185 pp from -296% to -111% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2019 at -296%.
Investments (CAPEX, working capital and M&A)
Maestrano Group Plc's CAPEX/Revenue was 6.1% in FY2020. Maestrano Group Plc showed CAPEX/Revenue growth of 5.5 pp from 0.64% in FY2017 to 6.1% in FY2020. It's average level of CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-11.6%) and ROE (-34.1%). ROIC surged on 35.3 pp from -46.9% to -11.6% in FY2020. ROE jumped on 35.8 pp from -69.9% to -34.1% in FY2020.
Leverage (Debt)
Debt level is -7.7x Net Debt / EBITDA and Debt / EBITDA. Debt surged while cash dropped on 30.4%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 30 Jun 2020
Maestrano Group Plc ($MNO) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1.036 | 1.170 | 0.977 | 0.905 | 0.872 | -3.7% |
| EBITDA | -0.874 | -1.460 | -1.042 | -1.763 | -0.299 | |
| Net Income | -0.938 | -2.028 | -1.949 | -2.680 | -0.970 | |
Balance Sheet
|
|---|
| Cash | 2.648 | 1.050 | 5.236 | 2.247 | 1.564 | -30.4% |
| Short Term Debt | 0.000 | 2.766 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 2.267 | 0.000 | 0.000 | 0.000 | 0.085 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.008 | 0.002 | 0.029 | 0.053 | 81.6% |
Ratios
|
|---|
| Revenue growth | 184.2% | 12.8% | -16.4% | -7.4% | -3.7% | |
| EBITDA growth | 260.2% | 67.0% | -28.7% | 69.3% | -83.0% | |
|
|---|
| EBITDA Margin | -84.4% | -124.9% | -106.6% | -194.7% | -34.3% | 160.4% |
| Net Income Margin | -90.5% | -173.4% | -199.4% | -296.0% | -111.2% | 184.8% |
| CAPEX, % of revenue | 0.0% | 0.6% | 0.2% | 3.2% | 6.1% | 2.9% |
|
|---|
| ROIC | -47.3% | -76.8% | -33.1% | -46.9% | -11.6% | 35.3% |
| ROE | -128.1% | | | -69.9% | -34.1% | 35.8% |
Peers in Application Software
Below we provide Maestrano Group Plc benchmarking against other companies in Application Software 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.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| I-Nexus Global Plc ($INX) | 1.0% | 20.5% | 15.3% | 0.4% | - |
| |
|---|
| Median (1 company) | 1.0% | 20.5% | 15.3% | 0.4% | - |
|---|
| Maestrano Group Plc ($MNO) | - | 12.8% | -16.4% | -7.4% | -3.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| I-Nexus Global Plc ($INX) | 59.9% | 69.4% | 68.6% | 74.5% | - |
| |
|---|
| Median (1 company) | 59.9% | 69.4% | 68.6% | 74.5% | - |
|---|
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| I-Nexus Global Plc ($INX) | 0.9% | 0.8% | 2.5% | 5.2% | - |
| |
|---|
| Median (1 company) | 0.9% | 0.8% | 2.5% | 5.2% | - |
|---|
| Maestrano Group Plc ($MNO) | 0.0% | 0.6% | 0.2% | 3.2% | 6.1% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| I-Nexus Global Plc ($INX) | - | - | -43.3% | -104.8% | - |
| |
|---|
| Median (1 company) | - | - | -43.3% | -104.8% | - |
|---|
| Maestrano Group Plc ($MNO) | -47.3% | -76.8% | -33.1% | -46.9% | -11.6% |
