Pob Sba
ANALYSIS OF DERRIMON
March-30-2012
1
Profitability & Revenue
Derrimon has shown increased profitability over the 6 year review period driven by increased sales, diversity of revenue (rental income) and key partnerships with renown brands. The growth in profitability however, has been a bit erratic.
Net Profit/(Loss) For the Year
60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 11,661,103 8,387,370 10,000,000 0 Dec-06 (10,000,000) Dec-07 Dec-08 Dec-09 Dec-10 9-Months Est. 'Decto Sep-11 211 (2,970,803) 4,664,720 308,596
0.0% 500.0% -110.4% -44.4% 150.0% 1500.0% 1000.0% 396.3%
Growth in Net Profit/(Loss) For the Year
57,874,197
3000.0% 2617.9% 2500.0%
43,405,648
2000.0%
Dec-07
-500.0%
Dec-08
Dec-09
Dec-10
Est. 'Dec-211
March-30-2012
2
Profitability & Revenue
While sales has shown tremendous growth, cost of sales and operating expenses has also grown in similar proportions–leading to thin margins.
Sales/Revenue Growth 135.0% Growth in Cost of Sales Growth in Operating Expenses 126%
115.0%
95.0% 72.2% 75.0% 71.2% 62% 55.0% 40% 35.0% 22.4% 20.4% 15.0% Dec-07 Dec-08 83.5%
84.4%
87%
65.7% 63.3%
38.0%
35.4%
32.7%
Dec-09
Dec-10
Est. 'Dec-211
March-30-2012
3
Operating Cash Flows
Net cash flow from operations has been negative for 3 of the last five 5 financial years, expensive bank over draft is being used to fund operations. Listing would ease pressure, but business must be able to generate cash on its own. What are the plans to improve this?
Net Cash Provided by Operations
60,000,000 40,000,000
20,000,000 12,684,280 9,518,411 10,000,000 5,476,246 12,435,134
Bank Overdraft
30,000,000
Cash on Hand
28,997,580 $16,580,179
58,314,746
20,000,000 0
7,809,010
(5,264,676)
Dec-07 (20,000,000) (40,000,000) (60,000,000)
Dec-08
Dec-09
Dec-10
9-Months to Sep-11
Est. 'Dec2011
0 Dec-07 (10,000,000) (1,092,685) Dec-08 (3,264,004) Dec-09 Dec-10
March-30-2012
1
Profitability & Revenue
Derrimon has shown increased profitability over the 6 year review period driven by increased sales, diversity of revenue (rental income) and key partnerships with renown brands. The growth in profitability however, has been a bit erratic.
Net Profit/(Loss) For the Year
60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 11,661,103 8,387,370 10,000,000 0 Dec-06 (10,000,000) Dec-07 Dec-08 Dec-09 Dec-10 9-Months Est. 'Decto Sep-11 211 (2,970,803) 4,664,720 308,596
0.0% 500.0% -110.4% -44.4% 150.0% 1500.0% 1000.0% 396.3%
Growth in Net Profit/(Loss) For the Year
57,874,197
3000.0% 2617.9% 2500.0%
43,405,648
2000.0%
Dec-07
-500.0%
Dec-08
Dec-09
Dec-10
Est. 'Dec-211
March-30-2012
2
Profitability & Revenue
While sales has shown tremendous growth, cost of sales and operating expenses has also grown in similar proportions–leading to thin margins.
Sales/Revenue Growth 135.0% Growth in Cost of Sales Growth in Operating Expenses 126%
115.0%
95.0% 72.2% 75.0% 71.2% 62% 55.0% 40% 35.0% 22.4% 20.4% 15.0% Dec-07 Dec-08 83.5%
84.4%
87%
65.7% 63.3%
38.0%
35.4%
32.7%
Dec-09
Dec-10
Est. 'Dec-211
March-30-2012
3
Operating Cash Flows
Net cash flow from operations has been negative for 3 of the last five 5 financial years, expensive bank over draft is being used to fund operations. Listing would ease pressure, but business must be able to generate cash on its own. What are the plans to improve this?
Net Cash Provided by Operations
60,000,000 40,000,000
20,000,000 12,684,280 9,518,411 10,000,000 5,476,246 12,435,134
Bank Overdraft
30,000,000
Cash on Hand
28,997,580 $16,580,179
58,314,746
20,000,000 0
7,809,010
(5,264,676)
Dec-07 (20,000,000) (40,000,000) (60,000,000)
Dec-08
Dec-09
Dec-10
9-Months to Sep-11
Est. 'Dec2011
0 Dec-07 (10,000,000) (1,092,685) Dec-08 (3,264,004) Dec-09 Dec-10