Functioning of AIM and Earnings of Three Stocks Listed on It- VNET, SPGA and WHR

The Alternative Investment Market is a London Stock Exchange, sub-market, which is considered to support low market cap businesses to gain capital. Alternative Investment Market permits these businesses to raise money by registering on an open exchange with much bigger regulatory flexibility linked with the primary market. The Alternative Investment Market (AIM) was incorporated in the year 1995 and since then has been considered as an additional investment opportunity because of its intact regulations versus superior exchange regulations. For the companies quoted on AIM exchange is frequently termed to be having light regulation, as it is basically an autonomous market. However, AIM has also been decried of being a financial wild west where majorly those companies go who are having doubtful ethics and that too, just for money-making intentions, and in some cases the criticism has even turned true in some cases as well. Nevertheless, Alternative Investment Market has also revealed the significance of having market where there is still demand and risk-savvy investors can in turn support the businesses who are in need of capital. Today, we are going to discuss earnings of three Alternative Investment Market listed stocks, i.e. Vianet Group Plc, SEC Newgate SpA and Warehouse REIT Plc.

Overview of Vianet Group Plc

Vianet Group Plc (LON: VNET), is the global supplier of business vision and actionable data via devices linked with its IoT’s platform (Internet of Things). The company was incorporated twenty-two years ago and is quoted on the London Stock Exchange under Alternative Investment Market.

VNET – Financial Highlights

On 2nd June 2020, the company released its results for the year ended 31st March 2020.

  • The company’s revenue increased by 3.8 per cent to £16.28 million for the year ended 31st March 2020 (2019: £15.68 million).
  • The gross margin of the company remained consistent with the previous year at 68 per cent (2019: 68 per cent).
  • Adjusted operating income, pre-exceptional expenses, amortization and share-based payments increased by 4.5 per cent to £4.03 million during the FY2020 (2019: £3.86 million).
  • Smart Machines adjusted operating profit increased by 8.5 per cent to £1.53 million in FY2020 (2019: £1.41 million).
  • Smart Machines added around 12.1K new connected devices during the FY2020 (2019: 10.3K).
  • The Board decided to revoke final dividend because of the outbreak of novel coronavirus, which amounted to around £1.16 million. The total dividend for the FY2020 decreased to 1.70 pence (2019: 5.70 pence).

VNET – Share Price Performance

(Source: Thomson Reuters)

(Source: Thomson Reuters)

At around 03:25 PM GMT, on 02nd June 2020, the stock price of Vianet Group Plc was trading at GBX 95.0, higher by 15.15 per cent or 12.50 points as compared to the previous day’s closing price of GBX 82.50. The company’s one year high/low price is GBX 169.75 / GBX 54.50, which were reported on 16th December 2019 and 26th March 2020, respectively. The beta was reported at 1.27, reflecting higher volatility of the stock compared to the benchmark.

Overview of SEC Newgate SpA

SEC Newgate SpA (LON: SPGA) is the global communications, support and research group, which creates many upright skills accessible to businesses, objects and foundations. It offers customers a collection of research-backed prepared communications and support services throughout its network.

SECG – Financial Highlights

On 02nd June 2020, the company released its results for the year ended 31st December 2019.

  • The company’s revenue for the combined Group increased to €47.55 million (FY2018: €28.97 million).
  • Gross profit of the company increased to €37.6 million for the FY2019 (FY2018: €22.2 million).
  • Profit Before Tax of the company decreased to €1.27 million during the FY2019 (FY2018: €2.21 million).
  • Net debt of the company decreased to €8.7 million during the FY2019 (FY 2018: €1.7 million).
  • In post reporting period event, the company managed to secure convertible bonds worth €2.5 million with Inveready, the Spanish institutional investor.
  • The company acquired an additional 5 per cent of the equity in Newgate Greater China.
  • In September 2019, the company completed a merger with Porta Communications Plc.

SECG – Share Price Performance

(Source: Thomson Reuters)

(Source: Thomson Reuters)

As at 16:01 PM GMT, on 02nd June 2020, the stock price of SEC Newgate SpA was trading at GBX 32.70, higher by 7.21 per cent or 2.20 points as compared to the previous day’s closing price of GBX 30.50. The company’s one year high/low price is GBX 78.0 / GBX 20.0, which were reported on 11th June 2019 and 24th June 2020, respectively. The beta was reported at 0.13, reflecting lower volatility of the stock compared to the benchmark.

Overview of Warehouse REIT Plc

Warehouse REIT Plc (LON: WHR) is a closed-ended investment company of the United Kingdom. The company has its urban warehouse assets in major locations around the United Kingdom. Catering tenants from local businesses to household names.

WHR – Financial Highlights

On 2nd June 2020, the company released its results for the year ended 31st March 2020.

  • Revenue of the company increased to £1 million for the year ended 31st March 2020 as compared to £22.0 million in the year 2019.
  • As at 31st March 2020, the cash and cash equivalents increased to £5 million as compared to £4.9 million as at 31st March 2019.
  • At the reported period end, investment property increased to £1 million as compared to £311.8 million as at 31st March 2019.
  • As at 31st March 2020, Trade and other receivables increased to £4 million as compared to £4.4 million as at 31st March 2019.
  • Being a REIT, the Group is obliged to pay PIDs for at least 90 per cent of the property rental business proceeds of the Group.

WHR – Share Price Performance

(Source: Thomson Reuters)

(Source: Thomson Reuters)

As at 03:35 PM GMT, on 02nd June 2020, the stock price of Warehouse REIT Plc was trading at GBX 111.50, higher by 0.45 per cent or 0.50 points as compared to the previous day’s closing price of GBX 111.0. The company’s one year high/low price is GBX 122.0 / GBX 69.0, which were reported on 28th May 2020 and 19th March 2020, respectively. As on 02nd June 2020, the Market Capitalization and share outstanding of the company were reported to be at GBP 270.29 million and 320.34 million, respectively.


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