NBU financial analysis 3 years9 Jan 2015 18:56
So whilst the company was glossing brilliant sets of figures - a trend analysis of the financials would have shown a disturbing trend - a trend that could have been noticed in May 2014 when the share price was approx. 75p. Below are the figures:
Gross Profit margin: 28% (year ending 2011), 27% (year ending 2012) and then 27% (year ending 2013).
Verdict: So despite an increase in revenues from 1.4B to 1.9B, the Gross profit margin dropped a percentage.
Net Profit Margin: 18.9% (2011), 15.8% (2012) and then 15.9% (2013).
Verdict: so despite saying net profit had increased 283M to 307M, the net profit margin also dropped.
Return on Equity: 43.4% (2011), 27.2% (2012) and down to 24.1% (end of 2013).
So return on equity, which measure how well a company uses shareholders funds to generate a profit, actually dropped over the time NBU was listed on AIM (dropped from 43.4% to 24.1%.
Return on Assets: 31% (2011), 22.6% (2012) and then down to 20% (end of 2013).
Return on Assets, which measures what earnings are derived from a companies assets, also dropped from 31% to 20% - yet another warning sign.
Return on Capital Employed (ROCE): 52% (2011), 36% (2012) and then down to 32% (end of 2013).
So ROCE, which measures how a companies profitability and its efficiency, was also drastically reduced from 52% to 32% in the same period.