The year 2020 is going to be the year of possibilities for the London Stock Exchange. The new year is not only coming in the aftermath of the 12 December 2019 general elections but is also in the eve of 31 January 2020 Brexit date. The new political and economic scenario is going to dramatically affect the prospects of most of the listed companies of the London Stock Exchange. Below is a list of 10 Listed companies on the exchange which might remain under spotlight in 2020:
- AstraZeneca Plc – AstraZeneca PLC (LON: AZN) is a Cambridge, United Kingdom-headquartered international, science-led biopharmaceutical company. The group focuses on discovering, developing, manufacturing and commercializing prescription medicines and has operations all over the world with business in over 100 countries., with its medicines being consumed by millions of patients across the globe. Though the Company selectively pursue therapies in autoimmunity, neuroscience and infection, its three focus areas are: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory. Its teams work alongside the world's leading academic and biotech research institutions and have a clinical collaboration with Immunomedics. The Company's geographic segments are grouped as the UK, Continental Europe, the Americas, and Asia, Africa & Australasia.
- The Company had some significant successes in its drug trials, which are in the field of heart diseases and lung cancer with each of them having immense revenue generation potential. The Company would be able to monetise on these opportunities in 2020.
- BT Plc – BT Group (LON: BT.A) is a fixed-line telecommunication company, which manages as a single business, made up of distinct organisational units. This business is built around the clients – delivering value and serving their needs to them. For the investors, the Company create value by services and developing and selling products that are an essential part of modern life. The group are differentiated into four customer-facing lines of business: Enterprise, Openreach, Consumer, and Global. It is serving clients in over 180 countries. British Telecommunications PLC encompasses virtually all assets and businesses of the BT Group and is a wholly-owned subsidiary of BT Group PLC. The Company was incorporated in 1846, and is the world's hoariest communications group, tracking all the path back to the Electric Telegraph Company. BT was the first group to build a countrywide communications network.
- The Company is on the brink of a transformation, currently it has one of the highest employee forces per unit of revenue, among its contemporaries, and as part of its strategic plan for 2020-21, it will streamline its operations while investing heavily on 5G futuristic communication infrastructures.
- Just Eat Plc – Just Eat Plc (LON: JE) is a high-tech company based in United Kingdom which operates as a leading global marketplace for online food delivery. With brands across 13 countries, the international footprint of the Company helps it in generating a diversified revenue base. The Company operates through two subsidiaries, namely, Just Eat Holding Limited and Just Eat Central Holdings Limited and has around 100,000 restaurant partners connected to approximately 24 million active customers. The Company's operations are differentiated in four geographical segments: United Kingdom, Canada, Australia & New Zealand and International.
- The Company is merging with Takeaway.com of Netherlands, which is another contemporary in the same filed as Just Eat Plc, The joining of both of these online food delivery company is all set to create one of gargantuan online food delivery company in the world and backed with industry-leading capabilities, attractive market share in the concerned geographies, strategic vision and a diversified geographical footprint could emerge as one the largest value creators of 2020.
- Halfords Group PLC- Halfords Group Plc (LON: HFD) is a Worcestershire, United Kingdom-headquartered retailer of motoring, cycling and leisure products and services, with leading market shares in some areas while also having significant headroom to grow further. Through Halfords Autocentres, it is also one of the leading independent operators in the vehicle, servicing, maintenance and repairs in the country, which seeks to use technological advancements for effective delivery through investments in the most up-to-date equipment. The operations of the Company are differentiated in two segments, namely retail and Autocentres.
- The Company is one of the leaders in vehicle parts and accessories, in the post Brexit era when there will be a higher impetus on domestic manufacture of these components and the industry could see rapid growth in the short term to medium term, the United Kingdom department of treasury is also planning significant sops to aid this industry.
- Travis Perkins Plc - Travis Perkins PLC (LON: TPK) is a Northampton, United Kingdom-headquartered distributor of building materials to the building, construction and home improvement markets, which operates more than 20 businesses across the UK and owns 19 product brands within these businesses, along with a national network of more than 645 branches. With products such as building materials, plumbing and heating, landscaping materials, timber and sheet materials, more than 100,000 product lines are available to trade professionals and self-builders, and the group is one of the largest suppliers to the UK's building and construction industry. The operations of the group are differentiated in four segments, namely Merchanting, Retail, Toolstation and Plumbing & Heating.
- The Company could be a big beneficiary of the post-Brexit era. The housing sector is showing signs of recovery in the post-December 2019 general election era, with signs of further improvements into the new year. The Company is one of the leading companies in home furnishing and fittings could see significant volume growth in its business in the new year.
- Tullow Oil Plc – Tullow Oil Plc (LON: TLW) is an Africa focused oil & gas exploration and production company registered on the London Stock Exchange. The Company has its business across 15 countries. The West Africa team manages production activities and developments in West Africa and Europe while the East Africa team manages the exploration activities in Kenya. The New Ventures team focuses on its exploration activities across Africa and South America.
- The Company has been able to bring down its debt levels significantly till the end of 2019, other than that, the company’s assets in Guyana have been performing well. The Company also announced significant discoveries off the coast of Guyana last year which is proving to be a new growth platform of the Company. Given the above, the Company could become one of the significant value creators of 2020.
- Micro Focus International PLC– Micro Focus International PLC (LON: MCRO) is a Berkshire, United Kingdom-headquartered is a leading infrastructure software company with global scale, which specialises in managing predominantly mature infrastructure software assets to help organisation bridge the old and the new. The group delivers value to approximately 40,000 customers and is the largest technology company listed on the London Stock Exchange and is the seventh-largest software company in the world. The Company helps organisations preserve and protect their data and business logic and gain incremental and sustainable returns on investments.
- The Company had last year acquired the enterprise software business of Hewlett Packard and was having problems integrating it with its own platform. The acquired business is a highly successful one and will put the Company in a high growth gear when the integration issues are resolved.
- Imperial Brands Plc - Imperial Brands PLC (LON: IMB) is a Bristol-headquartered fast-moving consumer goods company with a core business built around a tobacco portfolio. The Company offers a comprehensive range of cigarettes, fine cut and smokeless tobaccos, papers and cigars and is increasingly focusing its attention on developing and expanding its Next Generation Products (NGP) portfolio. The Company's operations are differentiated in two segments: Tobacco & NGP and Distribution. Within Tobacco & NGP, the activities are further divided into Returns Markets North and Returns Markets South.
- The Company is in a transition process and is trying to become leaner as an organisation with an increased focus on consumers, in this regard the Company had launched a new generation products (NGP) programme which has yielded its excellent results. In all probability, the Company will continue to gain in this regard in the new year as well.
- Centrica Plc - Centrica Plc (LSE: CNA) is a United Kingdom-based energy utilities and trading company. It is in the business of distribution of electricity and gas in the United Kingdom, Ireland, United States of America and Canada. The Company is the largest supplier of domestic gas in the United Kingdom with operations in Scotland being led under the brand name Scottish Gas, in England & Wales under the brand name British Gas and in Ireland, its gas supplying entity is known as Bord Gais Energy. The Company is also one among the largest suppliers of electricity to households in the United Kingdom, while also providing minor utility services like plumbing to its consumers.
- The Company had the successful financial year of 2019 and is poised well to enter into 2020. The Company has entered into a strategic understanding with Ford motor company for the setup of charging stations for electric vehicles. As the number of electric vehicles increases in the United Kingdom, the companies new venture will yield excellent returns.
- Ted Baker Plc -Ted Baker Plc (LON: TED) is a global lifestyle company and offers a range of menswear, womenswear and accessories under its brand. The Company split its business into three segments being Retail, wholesale and Licensing.
- The Company is one of the leading retail clothing companies in the United Kingdom. In the post Brexit era the merchandising companies will be benefiting the most on account of stoppage of the cheap flow from other European countries. The Company will witness decent volumes swell on this account in the new year.
With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities.
Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?
Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.
We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.