Section 5.6 · Northgate Facilities Services Ltd
Revenue quality
Recurring share, customer concentration, cash conversion and capital intensity. The four measures that decide whether an earnings number is worth a multiple.
Recurring revenue
68.0%
Contracted, £2,801,600
Largest customer
18.4%
Warning threshold 20%
FCF / EBITDA
63.2%
On normalised EBITDA
Working capital / revenue
9.2%
Debtor days 55.6
Revenue by contract type
| Type | FY2025 | Share | Read |
|---|---|---|---|
| Contracted, multi-year | 2,142,400 | 52.0% | Recurring |
| Contracted, rolling 12 month | 659,200 | 16.0% | Recurring |
| Repeat, no contract | 741,600 | 18.0% | Repeat, not contracted |
| Project and reactive | 576,800 | 14.0% | One-off |
| Total | 4,120,000 | 100.0% |
Recurring is defined as contracted only. Repeat work without a contract is counted separately, because it behaves like recurring revenue until the day it does not.
Contract expiry ladder is missing. The 68% recurring figure carries no maturity profile. Until the expiry schedule arrives, the recurring component of the score is capped at 7 of 10.
Customer concentration
Mandate warns at 20%, refuses above 25%. Inside tolerance, close to the warning.
| Customer | Revenue | Share | Term |
|---|---|---|---|
| Customer A, regional landlord | 758,080 | 18.4% | 3 year, 19 months remaining |
| Customer B, NHS trust framework | 432,600 | 10.5% | Framework, retender 2027 |
| Customer C, business park operator | 288,400 | 7.0% | Rolling 12 month |
| Customer D, retail group | 243,080 | 5.9% | 2 year, 8 months remaining |
| Customer E, logistics operator | 177,160 | 4.3% | Rolling 12 month |
| Top 5 | 1,899,320 | 46.1% |
Customer names are withheld in the seller pack. The platform stores them as labels, not as invented identities. Losing Customer A is modelled on the stress screen.
Cash conversion detail
| Step | GBP | Note |
|---|---|---|
| Platform normalised EBITDA | 585,200 | From the bridge |
| Less maintenance capex | −62,520 | Vehicles and plant, 10.7% of EBITDA |
| Less working capital movement | −38,600 | Debtor growth in line with revenue |
| Less cash tax | −114,170 | At the prevailing corporation tax rate |
| Free cash flow | 369,910 | 63.2% of normalised EBITDA |
Free cash flow, not EBITDA, is what services debt. The DSCR on the funding screen uses cash available for debt service derived from this line, and the working capital stress test starts here.
Capital intensity and asset profile
- Maintenance capex
- £62,520, 10.7% of normalised EBITDA Asset light enough
- Growth capex assumed
- £0 in the base case
- Net tangible assets
- £402,000
- Fleet
- 14 vehicles, 9 on hire purchase
- Freehold property
- None. Leased depot.
- Working capital cycle
- 55.6 debtor days less 44.2 creditor days
- Asset-light preference
- Mandate prefers asset light. This business qualifies.
Debtor days run above the sector norm. A 15 day deterioration consumes £169,300 of cash and takes DSCR to 1.01×. That is the binding stress in the whole model, and it is a working capital problem rather than a trading one.
Revenue quality summary
| Measure | Value | Mandate reference | Effect on the deal |
|---|---|---|---|
| Recurring revenue share | 68.0% | Preferred, not required | Supports the +0.35 multiple adjustment |
| Largest customer | 18.4% | Warn 20%, refuse 25% | Costs 0.30 of a turn on the multiple |
| Top 5 concentration | 46.1% | No hard threshold | Reduces the diversification score to 7 of 10 |
| FCF / EBITDA | 63.2% | No hard threshold | Supports a 1.78× base DSCR |
| Working capital / revenue | 9.2% | No hard threshold | Drives the binding stress case |
| Maintenance capex / EBITDA | 10.7% | Asset light preferred | Capital efficiency scores 4 of 5 |
Every row links a measured fact to a specific consequence in valuation, scoring or funding. Nothing on this screen is descriptive only.
AcquiScope produces analysis and modelling, not regulated investment advice. Customer labels A to E are placeholders. No customer identity was inferred, obtained or invented.