The London Stock Exchange’s (LSE) international market for listing smaller companies, AIM, (The Alternative Investment Market) has always been considered a comparatively riskier platform to trade than its broader counterpart. No doubt, the smaller companies who get listed at AIM due to less stringent procedures and regulations are risky in nature and faces liquidity constraints as well, but on the same time, they offer the opportunity to amass humongous wealth. The platform offers a diversification opportunity away from the large-cap stocks of the main market, provides global exposure, and most importantly, it has lots of companies who are regular dividend-paying ones. Now a days lots of major companies are getting listed on the index and hold a substantial market cap. Another factor that can lure the investors to the index is that AIM listed securities are fully exempted from inheritance tax when held for two years.
Today we are talking about the three stocks of Alternative Investment Market, which have released their earnings. These companies are Tissue Regenix Group Plc, Young & Co's Brewery Plc and Getech Group Plc.
Overview of Tissue Regenix Group Plc
Tissue Regenix Group Plc (LON: TRX) is one of the prominent global medical technology company. Its primary focus is on the expansion of growing back products utilising two-stage technology, i.e. dCELL, focusing soft tissue requirements and BioRinse™, delivering inductive bone allografts.
TRX – Financial Highlights
On 05th June 2020, the company declared annual results for the period ended 31st December 2019.
- Revenues of the company increased by 12 per cent during the FY2019 (8 per cent on constant currency) to £13.03 million (2018: £11.62 million).
- Company’s Joint venture GBM-v sales improved by 13 per cent to £2.08 million during the FY2019 (2018: £1.84 million).
- Gross profit of the company increased to £6.02 million for the FY2019 (2018: £5.92 million).
- As at 31st December 2019, the net cash was reported at £2.38 million (2018: £7.82 million), it consisted of £1 million of the MidCap Revolving Credit Facility.
- As at 31st December 2019, the company reported drawdown of $2 million of the Midcap Financial Term Mortgage, with the access of line of credits to $3 million.
- The company’s Finance income was reported at £17,000 during the FY2019 (2018: £72,000), mainly due to interest earned on cash deposits.
- The loss for the year was said to be £7,106k during the FY2019 (2018: loss £8,259k) resulting in a basic loss per share of (0.60 pence) (2018: loss (0.70 pence)).
- Non-current liabilities were of £2,286k debt facility, which comprises £761k of the revolving credit facility and £1,525k of the term loan.
- For securing financing, a lease has been signed for an extra 21,000 square feet nearby San Antonio facility.
The share price performance of Tissue Regenix Group Plc- On 05th June 2020, the stock price of TRX closed at GBX 0.425, higher by 1.19 per cent or 0.005 points as compared to the previous day’s closing price of GBX 0.42. The company’s one year high/low price is GBX 0.300/ GBX 6.38, which were reported on 22nd May 2020 and 05th June 2019, respectively.
Overview of Young & Co's Brewery Plc
Young & Co's Brewery Plc's (LON: YNGN) hotels and Pubs are at the heart of native groups in the South of England and London. The company is engaged in sales of drink, food and the provision of housing, through more than 200 establishments.
YNGN – Financial Highlights
On 04th June 2020, the company declared the preliminary results for the 52 weeks for the period ended 30th March 2020.
- Total group revenue of the company increased by 2.6 per cent (pre-IFRS 16) to £311.6 million during the FY2020. Managed house revenue of the company improved by 3.0 per cent to £299.1 million, helped by a substantial contribution from the Redcomb pubs after their acquisition in January 2019.
- Managed house adjusted operating profits of the company decreased by 5.0 per cent to £58.4 million and Ram Pub adjusted operating profit of the company decreased by £0.9 million to £4.1 million.
- The company’s board decided not to recommend the final dividend and concentrate on cash preservation in a difficult situation. The total dividend reported was of 10.57 pence during FY2020 (2019: 20.78 pence).
- Operating profit of the company decreased to £36.2 million i.e. dropped by £8.4 million during the FY2020.
- Net debt to EBITDA ratio increased to 3.5X for the year 2020 as compared to 2.8X for the year 2019.
- The net asset per share decreased marginally to 12.05 pence in the FY2020 as compared to 12.06 pence in the FY2019.
- As at 30th March 2020, the company’s inventory decreased to £3.3 million as compared to £3.7 million as of 30th March 2019.
- As at 30th March 2020, the company’s Borrowings decreased to £149.2 million as compared to £163.6 million as at 30th March 2019.
- As at 30th March 2020, the company’s Deferred tax liabilities decreased to £69.9 million as compared to £60.6 million as at 30th March 2019.
The share price performance of Young & Co's Brewery Plc - On 5th June 2020, the stock price of YNGN last traded at GBX 737.50, higher by 0.68 per cent or 5.00 points as compared to the previous day’s closing price of GBX 732.50. The company’s one year high/low price is GBX1,320.00 / GBX 5.60, which were reported on 20th January 2020 and 20th March 2020, respectively.
Overview of Getech Group Plc
Getech Group Plc (LON: GTC) is into delivering the proficiency, support and knowhow that companies and government authority essentially require to procure and improve Natural Resources. The company has a wide customer base spread across industries including mining, nuclear, petroleum, and water and it helps them to complete their business objectives of cost control, functioning excellence, controlling compliance and environmental responsibility.
GTC – Financial Highlights
On 05th June 2020, the company has released its results for the year ended 31st December 2019.
- Revenue of the company decreased to £6.1 million during the FY2019 (2018: £8.0 million). However, the company’s new forward sales increased by 41 per cent to £2.4 million (2018: £1.7 million).
- As at 31st December 2019, order book of the company improved by 48 per cent to £3.1 million (31st December 2018: £2.1 million).
- As at 31st December 2019, the annualised Recurring Revenue remained consistent at £2.3 million as compared to the prior year (31st December 2018: £2.3 million).
- Total expense base was lower by 16% as compared to the year 2018 (2019: £6.4 million; 2018: £7.6 million).
- Adjusted EBITDA also decreased to £0.9 million during the FY2019 (2018: £1.3 million), before extraordinary items totalling £2.8 million.
- Adjusted earnings per share were reported at (0.75 pence) during the FY2019 (2018: 1.88 pence).
- As at 31st December 2019, the Net cash was of £2.7 million with the Group generating free cash in the second half of the year 2019 (31st December 2018: £0.5 million).
The share price performance of Getech Group Plc - On 05th June 2020, the stock price of GTC is trading at GBX 14.50, lower by 19.44 per cent or 3.50 points as compared to the previous day’s closing price of GBX 18.00. The company’s one year high/low price is GBX 27.70 / GBX 8.00, which were reported on 31st October 2019 and 28th April 2020, respectively.