Sgro.L

(a) Capital structure and liquidity: The company holds total assets of £18.18 billion against total liabilities of £5.91 billion, resulting in total equity of £12.27 billion. Long-term debt stands at £5.03 billion, yielding a debt-to-equity ratio of 0.41, which indicates a moderate leverage profile. However, liquidity is constrained, with a current ratio of 0.28 and cash and equivalents of only £111 million. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt.

(b) Profitability and returns: The company reports revenue of £726 million and net income of £551 million, resulting in a return on equity (ROE) of 4.49% and a return on assets (ROA) of 3.03%. These returns are modest, reflecting the capital-intensive nature of the real estate business. The valuation multiples are exceptionally high, with a P/E ratio of 2,386.74 and an EV/EBITDA of 1,990.97, suggesting that the current earnings base is small relative to the market capitalization of £1.32 trillion.

Revenue £726.0M, +7,6% YoY; Operating income −5,4% YoY.

• ▍Revenue £726.0M, +7,6% YoY
• ▍Operating income −5,4% YoY
• ▍Net income −7,2% YoY
• ▍Free cash flow −56,1% YoY
• ▍Net margin 75.9%

Revenue £675.0M, −9,9% YoY; Operating income +487,3% YoY.

• ▍Revenue £675.0M, −9,9% YoY
• ▍Operating income +487,3% YoY
• ▍Net income +334,8% YoY
• ▍Free cash flow +166,2% YoY
• ▍Net margin 88.0%

Revenue £749.0M, +12,0% YoY; Operating income +89,3% YoY.

• ▍Revenue £749.0M, +12,0% YoY
• ▍Operating income +89,3% YoY
• ▍Net income +86,9% YoY
• ▍Free cash flow +78,6% YoY
• ▍Net margin -33.8%

Revenue £669.0M, +22,5% YoY; Operating income −137,8% YoY.

• ▍Revenue £669.0M, +22,5% YoY
• ▍Operating income −137,8% YoY
• ▍Net income −147,5% YoY
• ▍Free cash flow −155,5% YoY
• ▍Net margin -288.0%

Revenue £546.0M; Operating income £4.48B.

• ▍Revenue £546.0M
• ▍Operating income £4.48B
• ▍Net margin 743.6%