With the business potentially at an important milestone, we thought we'd take a closer look at Bonhill Group Plc's (LON:BONH) future prospects. Bonhill Group Plc, a B2B media company, provides business insight, analysis, and networking and research in the United Kingdom, Europe, the Middle East, Africa North America, and the Asia Pacific. The UK£12m market-cap company announced a latest loss of UK£11m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Bonhill Group's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Bonhill Group
Bonhill Group is bordering on breakeven, according to the 2 British Media analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£400k in 2023. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 105% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Bonhill Group's upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 3.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Bonhill Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bonhill Group's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:
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Valuation: What is Bonhill Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bonhill Group is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bonhill Group’s board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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