Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Alpha Financial Markets Consulting plc
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
=== How much does the company expect to make over the next five years? === ==== Most recent full-year results ==== In the 12-months period ended 31st March 2022, revenue increased by 61.1% to £158.0 million (FY21: £98.1 million), driven almost entirely by net fee income (99.9%), across all three of the company's main geographical markets (i.e. North America, United Kingdom and Europe & APAC). The North America region saw the largest growth of all of the regions (184% vs. 38.6% for Europe & APAC and 34.9% for the United Kingdom), while the United Kingdom region represents the largest share of the total (46% vs. 30% for North America and 25% for Europe & APAC). Gross profit increased by 70.4% to 59.4 million (FY21: 34.8 million), equating to a two percentage point improvement in the profit margin, to 37.59% (FY21: 35.47%). The improved margin is mainly due higher consultancy utilisation levels and improved consulting rates. Mainly reflecting increased acquisition costs, higher acquired intangible asset amortisation and share-based payments costs, profit before tax increased by 65.9% to £14.9 million (FY21: £9.0 million), equating to a 26 basis point improvement in the profit margin, to 9.43% (FY21: 9.17%). Basic earnings per share increased by 33.7% to 7.69p (FY21: 5.75p). On a like-for-like basis (i.e. excluding the acquisition of Lionpoint), revenue increased by 31.3% to £128.6 million. Adjusted EBITDA increased by 56.0% to £33.9 million (FY21: £21.7 million), adjusted profit before tax increased by 62.2% to £31.8 million (FY21: £19.6 million), and adjusted earnings per share increased by 43.9% to 21.46p (FY21: 14.91p). In relation to the financial position of the company, net current assets increased by 21.5% to £27.2 million (FY21: £22.4 million), and cash increased by 86.7% to £63.5 million (FY21: £34.0 million). Net assets increased by 40.7% to £132.7 million (FY21: £94.4 million). With no debt, net cash increased by 86.7% to £63.5 million (FY21: £34.0 million). After adjusting for higher share-based payments (£4.08m for FY22 vs. £1.69m for FY21), taxation (£6.37 for FY22 and £3.14m for FY21) and other items, net cash generated from operating activities increased by 59.3% to £33.5 million (FY21: £21.0 million). Mainly due to the Lionpoint acquisition (in May 2021), net cash used from investing activities increased by 8x to £24.5 million (FY21: £2.9 million). Net cash from financing activities swung to using £20.0 million (FY21: £8.5 million), mainly due to the issuance of new shares (to fund the Lionpoint acquisition). Final dividend increased by 55% to 7.50p per share (FY21: 4.85p), resulting in a 49.6% jump in the total dividend for the year, to 10.40p (FY21: 6.95p). On a like-for-like basis (i.e. excluding the acquisition of Lionpoint), adjusted cash generated from operating activities increased by 61% to £36.0 million (FY21: £22.3 million), equating to an adjusted cash conversion of 112% (FY 21: 111%). ==== Most recent interims ==== In the six month period ended 30th September 2022, revenue increased by 57.3% to £107.6 million (H1 FY22: £68.4 million), driven almost entirely by higher net fee income (net fee income accounts for 99.4% of revenue), from all of the company's main geographical markets (i.e. North America, United Kingdom and Europe & APAC). The North America region experienced the highest level of growth of all of the company's key regions (at 135%) and now accounts for the largest amount of the group's total net fee income (41.4% of the group's total net fee income). Total net fee income jumped by 56.5% to £107.0 million (H1 FY22: £68.4 million). The number of client relationships increased by 19% to 787 clients (H1 22: 662), boosted by both new clients wins and client retention. Gross profit increased by 45.3% to £38.4 million (H1 FY22: £26.5 million), equating to a three percentage point decrease in the gross profit margin, to 35.7% (H1 FY22: 38.7%). The decrease in the margin is mainly due to higher consultant day rates. The number of consultants increased by 40.4% to 921 consultants (H1 FY22: 656 consultants), driven by client demand. The director headcount increased by 11% to 97 directors (H1 FY22: 88 directors). Profit before tax increased by 235.6% to £14.2 million (H1 22: £4.2 million), equating to a seven percentage point improvement in the profit margin, to 13.20% (H1 FY22: 6.14%). Basic earnings per share increased by 10x to 9.10p (H1 22: 0.87p). On a like-for-like basis (i.e. excluding the acquisition of Lionpoint), net fee income increased by 45.3% (H1 FY22: 21.7%). Adjusted EBITDA increased by 45.6% to £22.5 million (H1 FY22: £15.4 million), equating to a 1 percentage point decease in the margin, to 21.5% (H1 FY22: 22.6%). Adjusted profit before tax increased by 47.2% to £21.3 million (H1 22: £14.4 million). Adjusted earnings per share increased by 43.0% to 14.09p (H1 22: 9.85p). Net current assets decreased by 32.0% to £18.5 million (H2 22: £27.2 million), and cash decreased by 24.7% to £47.8 million (H2 22: £63.5 million) as funds were used towards the (Lionpoint) acquisition. Net assets increased by 11.4% to £147.9 million (H2 22: £132.7 million), and debt increased to £7.5 million (H2 22: nil). The company has access to a £20.0m revolving credit facility, enabling the company to further improve its liquidity if required. Overall, net cash decreased by 36.5% to £40.3 million (H2 22: £63.5 million). Net cash generated from operating activities decreased by 63.3% to £2.2 million (H1 FY22: £6.0 million) as the improved profits were outweighed by higher working capital requirements and tax payments. Adjusted cash generated from operating activities decreased by 50.6% to £4.2 million (H1 FY22: £8.5 million). Net cash used from investing activities decreased by 10.4% to £21.5 million (H1 FY22: £24.0 million). A significant portion of the cash (96%) was used to pay for the (Lionpoint) acquisition. Net cash from financing activities switched to using £3.3 million (H1 FY22: £23.8 million), mainly because no new shares were issued during the period. Interim dividend increased by 27.6% to 3.70p per share (H1 FY22: 2.90p). ==== Since interims ==== The company added that it is well on the way to achieving its medium-term goal of doubling the size of the Alpha Group over the four-year period to November 2024 (from November 2000). The company sees significant market potential in the insurance industry and, ultimately, believe that its insurance offerings could grow to a similar size as Alpha's asset and wealth management consulting ("AWM") business in the medium to long term. ==== What are the financials? ==== {| class="wikitable" |+Financial performance !Year end 31 March (£000's) !2019 !2020 !2021 !2022 !2023e !2024e |- |Revenue |77,661 |90,901 |98,066 |158,005 | | |- |Rechargeable expenses |(1,701) |(1,977) |(112) |(196) | | |- |Net fee income |75,960 |88,924 |97,954 |157,809 |196,846 |209,496 |- |Cost of sales |(46,878) |(54,521) |(63,130) |(98,452) |(125,390) |(133,372) |- |Gross profit |29,082 |34,403 |34,824 |59,357 |71,456 |76,124 |- |Gross margin (%) |38.3 |38.7 |35.6 |37.6 |36.3 |36.3 |- |Administration expenses (underlying) |(12,867) |(15,605) |(14,815) |(27,200) |(34,000) |(36,380) |- |Adjusted operating profit |16,215 |18,798 |20,009 |32,157 |37,456 |39,744 |- |Adjusted operating margin (%) |21.3 |21.1 |20.4 |20.4 |19.0 |19.0 |- |Amortisation of acquired intangible assets |(2,586) |(3,376) |(3,517) |(4,716) |(4,500) |(4,500) |- |Loss on disposal of fixed assets |(6) |(11) |(13) |(32) |0 |0 |- |Share-based payments charge |(872) |(1,307) |(2,496) |(6,218) |(8,000) |(6,000) |- |Earn-out and deferred consideration |(295) |(2,761) |(3,606) |(1,423) |(3,862) |(6,158) |- |Acquisition costs |0 |(488) |0 |(683) |0 |0 |- |Integration costs |0 |(509) |(107) |0 |0 |0 |- |Foreign exchange losses/(gains) |116 |80 |(94) |(1,310) |0 |0 |- |Adjusting items |(3,643) |(8,372) |(9,833) |(14,382) |(16,362) |(15,668) |- |Operating profit |12,572 |10,426 |10,176 |17,775 |21,094 |24,076 |- | | | | | | | |- |Depreciation |263 |1,022 |1,085 |1,155 |1,800 |1,890 |- |Amortisation of capitalised development costs |0 |428 |613 |556 |300 |300 |- |Adjusting items |3,643 |8,372 |9,833 |14,382 |16,362 |15,668 |- |Adjusted EBITDA |16,478 |20,248 |21,707 |33,868 |39,556 |41,934 |- |Adjusted EBITDA margin (%) |21.7 |22.8 |22.2 |21.5 |20.1 |20.0 |- | | | | | | | |- |Finance income |0 |1 |0 |1 |150 |200 |- |Finance expense |(52) |(182) |(404) |(406) |(400) |(400) |- |Adjusted profit before tax |16,163 |18,617 |19,605 |31,752 |37,206 |39,544 |- |Normalised taxation |(3,923) |(4,269) |(4,500) |(7,994) |(9,673) |(10,875) |- |Adjusted profit after tax |12,240 |14,348 |15,105 |23,758 |27,532 |28,670 |- |Adjusting items |(3,643) |(8,372) |(9,833) |(14,382) |(16,362) |(15,668) |- |Non-underlying finance expenses |0 |(951) |(803) |(2,488) |0 |0 |- |Tax impact of adjusting items |602 |1,142 |1,358 |1,624 |0 |0 |- |Profit for the year |9,199 |6,167 |5,827 |8,512 |11,170 |13,002 |- |Exch differences on translation of foreign operations |2,505 |1,311 |(3,104) |3,180 |0 |0 |- |Total comprehensive income/(expense) for the year |11,704 |7,478 |2,723 |11,692 |11,170 |13,002 |- | | | | | | | |- |Adjusted profit after tax |12,240 |14,348 |15,105 |23,758 |27,532 |28,670 |- |Weighted average number of shares |101.6 |101.0 |101.3 |110.7 |115.7 |118.6 |- |Wtd ave number of shares incl potentially dilutive |104.0 |105.3 |105.9 |117.4 |123.0 |125.9 |- | | | | | | | |- |Basic earnings per ordinary share (p) |9.05 |6.11 |5.75 |7.69 | | |- |Diluted earnings per ordinary share (p) |8.84 |5.85 |5.50 |7.25 | | |- | | | | | | | |- |Adjusted earnings per ordinary share (p) |12.05 |14.21 |14.91 |21.46 |23.80 |24.18 |- |Adjusted diluted earnings per ordinary share (p) |11.77 |13.62 |14.26 |20.23 |22.39 |22.78 |} {| class="wikitable" |+ ! !31st March 2019 !31st March 2020 !31st March 2021 !31st March 2022 |- |Cash |(18,581) |(25,996) |(34,012) |(63,516) |- |Short-term debt |0 |5,000 |0 |0 |- |Long-term debt |0 |0 |0 |0 |- |Net bank debt |(18,581) |(20,996) |(34,012) |(63,516) |- |Short-term leases |0 |791 |514 |1,134 |- |Long-term leases |0 |1,878 |1,379 |1,275 |- |Earnouts & deferred cons ST |0 |3,699 |1,992 |20,500 |- |Earnouts & deferred cons LT |486 |6,864 |9,071 |20,146 |- |Total net debt/(cash) |(18,095) |(7,764) |(21,056) |(20,461) |- |Net assets |89,140 |91,386 |94,356 |124,537 |- |Capital employed |71,045 |83,622 |73,300 |104,076 |- |Net debt/equity (%) |(20) |(8) |(22) |1 |} {| class="wikitable" |+ !Year end 31 March (£000's) !2021 !2022 !2023e !2024e |- |Cash flows from operating activities: | | | | |- |Operating profit for the period |10,176 |17,775 |21,094 |24,076 |- |Depreciation of property, plant and equipment |1,085 |1,155 |1,800 |1,890 |- |Loss on disposal of fixed assets |13 |32 |0 |0 |- |Amortisation of intangible fixed assets |4,130 |5,272 |4,800 |4,800 |- |Acquisition related costs |0 |0 |0 |0 |- |Share-based payment charge |1,693 |4,075 |8,000 |6,000 |- |Increase in provisions |0 |1,302 |0 |0 |- |Foreign exchange gain on cash and cash equivalents |0 |0 |0 |0 |- |Operating cash flows before movements in working capital |17,097 |29,611 |35,694 |36,766 |- |Working capital adjustments: | | | | |- |(Increase)/decrease in trade and other receivables |3,221 |(7,066) |(6,500) |(5,918) |- |Increase/(decrease) in trade and other payables |6,424 |15,729 |4,000 |5,507 |- |Tax paid |(5,707) |(4,767) |(8,834) |(10,274) |- |Net cash generated from operating activities |21,035 |33,507 |24,360 |26,082 |- |Cash flows from investing activities: | | | | |- |Interest received |0 |1 |65 |200 |- |Acquisition of subsidiary, net of acquired cash |(2,752) |(23,796) |(20,716) |(20,000) |- |Capitalised development costs |0 |0 |0 |0 |- |Additions to property, plant and equipment |(151) |(684) |(700) |(500) |- |Purchase of intangible assets |0 |0 |(319) |0 |- |Net cash used in investing activities |(2,903) |(24,479) |(21,670) |(20,300) |- |Cash flows from financing activities: | | | | |- |Issue of ordinary share capital |0 |31,102 |0 |0 |- |Share issuance costs |0 |(1,053) |0 |0 |- |Net settlement of vested share options |0 |0 |(322) |0 |- |Purchase of own shares by the employee benefit trust |0 |(205) |(1,129) |0 |- |Repayment of borrowings |(5,000) |0 |0 |0 |- |Drawdown of bank borrowings |0 |0 |0 |0 |- |Interest and bank loan fees |(486) |(285) |(300) |(300) |- |Principal lease liability payments |(809) |(814) |(1,300) |(1,430) |- |Interest on lease liabilities |(102) |(111) |(113) |(119) |- |Dividends paid |(2,136) |(8,678) |(12,747) |(14,021) |- |Net cash used in financing activities |(8,533) |19,956 |(15,911) |(15,870) |- | | | | | |- |Net increase/(decrease) in cash and cash equivalents |9,599 |28,984 |(13,221) |(10,088) |- |Cash and cash equivalents at beginning of the period |25,996 |34,012 |63,516 |50,295 |- |Effect of exchange rate fluctuations on cash held |(1,583) |520 |0 |0 |- |Cash and cash equivalents at end of the period |34,012 |63,516 |50,295 |40,207 |} {| class="wikitable" |+Financials |- !Year !'''1''' !'''2''' !'''3''' !'''4''' !5 !!6!!7!!8!!9 !10 !11 !12 !13 !14 !15 !16 !17 !18 !19 !20 !21 !22 !23 !24 !25 !26 !27 !28 !29 !30 !31 !32 !33 !34 !35 !36 !37 !38 !39 !40 !41 !42 !43 !44 !45 !46 !47 !48 !49 !50 |- |'''Year end date''' |'''31/12/2018''' |'''31/12/2019''' |'''31/12/2020''' |'''31/12/2021'''||'''31/12/2022'''||'''31/12/2023'''||'''31/12/2024'''||'''31/12/2025'''||'''31/12/2026''' |'''31/12/2027''' |'''31/12/2028''' |'''31/12/2029''' |'''31/12/2030''' |'''31/12/2031''' |'''31/12/2032''' |'''31/12/2033''' |'''31/12/2034''' |'''31/12/2035''' |'''31/12/2036''' |'''31/12/2037''' |'''31/12/2038''' |'''31/12/2039''' |'''31/12/2040''' |'''31/12/2041''' |'''31/12/2042''' |'''31/12/2043''' |'''31/12/2044''' |'''31/12/2045''' |'''31/12/2046''' |'''31/12/2047''' |'''31/12/2048''' |'''31/12/2049''' |'''31/12/2050''' |'''31/12/2051''' |'''31/12/2052''' |'''31/12/2053''' |'''31/12/2054''' |'''31/12/2055''' |'''31/12/2056''' |'''31/12/2057''' |'''31/12/2058''' |'''31/12/2059''' |'''31/12/2060''' |'''31/12/2061''' |'''31/12/2062''' |'''31/12/2063''' |'''31/12/2064''' |'''31/12/2065''' |'''31/12/2066''' |'''31/12/2067''' |- |'''Type''' |'''Historic''' |'''Historic''' |'''Historic''' |'''Historic''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |'''Forecast''' |- | colspan="45" |<div style="text-align: center;">'''Income statement'''</div> | | | | | | |- |Revenues (£'000) |NA |4 |1,147 |538|| 1,801||3,534||6,711||12,327||21,906 |37,665 |62,654 |100,833 |157,000 |236,506 |344,688 |486,019 |663,015 |875,059 |1,117,362 |1,380,364 |1,649,821 |1,907,756 |2,134,284 |2,310,068 |2,419,025 |2,450,751 |2,402,156 |2,277,961 |2,089,943 |1,855,094 |1,593,091 |1,323,605 |1,063,945 |827,415 |622,545 |453,170 |319,150 |217,456 |143,348 |91,423 |56,411 |33,675 |19,449 |10,868 |5,875 |3,073 |1,555 |761 |361 |165 |- |Gross profits (£'000) |NA |(763) |408 |(266) |1,351||2,651||5,033||9,245||16,430 |28,249 |46,990 |75,625 |117,750 |177,379 |224,047 |364,514 |497,262 |656,294 |726,285 |897,237 |907,401 |1,049,266 |1,173,856 |1,270,537 |1,330,464 |1,347,913 |1,321,186 |1,252,878 |1,149,469 |1,020,302 |716,891 |595,622 |478,775 |372,337 |280,145 |203,926 |143,617 |97,855 |64,506 |41,140 |25,385 |15,154 |8,752 |4,890 |2,644 |1,383 |700 |343 |162 |74 |- |Operating profits (£'000) |NA |(687) |(2,819) |(10,814)||1,081||2,121||4,026||7,396||13,144 |22,599 |37,592 |60,500 |94,200 |141,904 |172,344 |291,611 |397,809 |525,035 |558,681 |690,182 |659,928 |763,103 |853,714 |924,027 |967,610 |980,300 |960,862 |911,184 |835,977 |742,038 |477,927 |397,081 |319,184 |248,224 |186,763 |135,951 |95,745 |65,237 |43,004 |27,427 |16,923 |10,103 |5,835 |3,260 |1,763 |922 |466 |228 |108 |50 |- |Net profits (£'000) |NA |(551) |(2,964) |(12,487)||1,081||2,121||4,026||7,396|| 13,144 |22,599 |37,592 |60,500 |94,200 |141,904 |151,663 |256,618 |350,072 |462,031 |491,639 |607,360 |580,737 |671,530 |751,268 |813,144 |851,497 |862,664 |845,559 |801,842 |735,660 |652,993 |420,576 |349,432 |280,881 |218,437 |164,352 |119,637 |84,256 |57,408 |37,844 |24,136 |14,892 |8,890 |5,135 |2,869 |1,551 |811 |410 |201 |95 |44 |} ==== What are the assumptions used to estimate the financial forecasts?==== {| class="wikitable" |+Key inputs !Description !Value !Commentary |- | colspan="3" | <div style="text-align: center;">'''Revenue'''</div> |- |What's the estimated current size of the total addressable market? |$590,000,000,000 |Here, the total addressable market (TAM) is defined as the global consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (27th January 2023), in terms of revenue, is $590 billion. |- |What is the estimated company lifespan? |50 years |Research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref> |- |What's the estimated annual growth rate of the total addressable market over the lifecycle of the company? |3% |Research shows that the growth rate of the global consultancy market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>. |- |What's the estimated company peak market share? |1% |We estimate that especially given the experienced team of the company, the peak market share of Alpha FMC is around 1%, and, therefore, suggests using the share amount here. As of 30th September 2022, Alpha FMC's current share of the market is 0.033%. |- |Which distribution function do you want to use to estimate company revenue? |Gaussian |Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so we suggest using that function here. |- |What's the estimated standard deviation of company revenue? | 5.5 years |Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Alpha FMC's current revenue amount (i.e. $250 million) and Alpha FMC's estimated lifespan (i.e. 50 years) and Alpha FMC's estimated current stage of its lifecycle (i.e. growth stage), the we suggest using five and a half years (i.e. 68% of all sales happen within five and a half years either side of the mean year), so that's what's used here. |- | colspan="3" |'''<div style="text-align: center;">Growth stages</div>''' |- |How many main stages of growth is the company expected to go through? | 4 stages |Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref> In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. We estimate that with Alpha FMC's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth remaining. |- |What proportion of the company lifecycle is represented by growth stage 1? |30% |Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref> |- |What proportion of the company lifecycle is represented by growth stage 2? |10% |Research suggests 10%.<ref name=":6" /> |- | What proportion of the company lifecycle is represented by growth stage 3? |20% | Research suggests 20%.<ref name=":6" /> |- |What proportion of the company lifecycle is represented by growth stage 4? |40% |Research suggests 40%.<ref name=":6" /> |- | colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' |- |Cost of goods sold as a proportion of revenue (%) |35% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 35%. |- |Operating expenses as a proportion of revenue (%) |15% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 15%. |- |Tax rate (%) |12% |Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the rate for its peers is 12%. |- |Depreciation and amortisation as a proportion of fixed capital (%) |10% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 10%. |- |Fixed capital as a proportion of revenue (%) |10% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 10%. |- |Working capital as a proportion of revenue (%) |15% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%. |- |Net borrowing ($000) |Zero |We suggest that for simplicity, the net borrowing figure is zero. |- |Interest amount ($000) |Zero |We suggest that for simplicity, the interest amount figure is zero. |- | colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' |- |Cost of goods sold as a proportion of revenue (%) |45% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 45%. |- |Operating expenses as a proportion of revenue (%) |15% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 15%. |- |Tax rate (%) |12% |Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the rate for its peers is 12%. |- |Depreciation and amortisation as a proportion of fixed capital (%) |10% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 10%. |- |Fixed capital as a proportion of revenue (%) |10% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 10%. |- |Working capital as a proportion of revenue (%) |15% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 15%. |- |Net borrowing ($000) |Zero |We suggest that for simplicity, the net borrowing figure is zero. |- |Interest amount ($000) |Zero |We suggest that for simplicity, the interest amount figure is zero. |- | colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' |- |Cost of goods sold as a proportion of revenue (%) |55% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 55%. |- |Operating expenses as a proportion of revenue (%) |15% |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 15%. |- |Tax rate (%) |12% |Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the rate for its peers is 12%. |- |Depreciation and amortisation as a proportion of fixed capital (%) |10% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. |- |Fixed capital as a proportion of revenue (%) | 10% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. |- |Working capital as a proportion of revenue (%) | 15% |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 15%. |- |Net borrowing ($000) |Zero |We suggest that for simplicity, the net borrowing figure is zero. |- |Interest amount ($000) |Zero |We suggest that for simplicity, the interest amount figure is zero. |}
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)