You may or may not have heard of Perform Group PLC, a company recently listed back in the middle of 2011 and is a constituent of the FTSE 250. The company states that it is a leader in the commercialisation of multimedia sports content across multiple platforms. The valuation for this company is summarised by the table below:
|
|
|
(%) change |
|
Number of shares at IPO |
56m shares |
|
|
Number of shares since IPO |
262m shares |
368 |
|
Offer price |
260 pence/share |
|
|
Current share price |
275 pence/share |
5.7 |
|
Market value at IPO |
£145.60m |
|
|
Current market value |
£722m |
396 |
|
Net Income in 2010 |
£9.5m |
|
|
Net Income in 2013 |
£4.5m |
-52.6 |
|
Free cash flow in 2010 |
£6.173m |
|
|
Free cash flow in 2013 |
-£33.78m |
-647 |
Having looked into the accounts of Perform Group I found it tricky to value this business at first glance therefore I decided to investigate further and try to answer the following points:
- The company made numerous acquisitions over the years, hopefully I could decipher the valuation of each acquisition and how they contribute to the company valuation for investors;
- Understanding the company’s account to explain why net profit isn’t growing at the same pace as revenue and total assets;
- Finally to answer whether this company is a screaming buy having fallen by 50% from their peak or are there bad news to come.
ACQUISITIONS
Looking at the company’s acquisitions can be mind-bogging; but in their latest set of results they mentioned that they have set an objective is to seek organic growth and to make strategic acquisitions. Now I am going to test the waters on how ORGANIC THE COMPANY IS GROWING.
So the result for the company from 2010 to 2013 for…
