Key Updates on Two FTSE Stocks: Foxtons Group Plc, and SIMEC Atlantis Energy

Key Updates on Two FTSE Stocks: Foxtons Group Plc, and SIMEC Atlantis Energy
Foxtons Group Plc

London Stock Exchange-traded Foxtons Group Plc (LON: FOXT) is a real estate services company, headquartered in London, the UK. The group is a real estate agent company, and its areas of operations are divided into segments like Sales, Letting and Mortgage Broking. As on September 25, 2013, shares of the company were admitted to the main market of the London Stock Exchange for trading. The outstanding market capitalisation of the group stood at £184.3m with 275.10m shares are in issue and ranks it among the small-cap companies listed on the London bourse.

Recent Update

On October 31, 2019, the real estate agent group reported its trading update for the third quarter of the financial year 2019 ended as on September 30, 2019. During the quarter under consideration, the group's revenue narrowed by 7% to £32.5m from £35.1m reported in the year-over period, and nine-month revenue declined 5% to £83.6m against £88.1m reported in the year-over period.

In the Q3FY19, the group’s letting business revenue was down 4% to £22.1m against £23.1m reported in the corresponding period of the previous financial year, driven by tenant fee ban which came into existence from June 01, 2019.

Sales segment revenue plummeted 15% to £8.4m from £9.9m, led by lower volume, falling prices and lower higher ticket sales. Also, the group reported that ongoing political turmoil in the UK continued to weigh on volumes and prices in the London residential sales market.

In the quarter under review, the Mortgage business segment of the company performed at par with the previous comparable period of the FY18, with revenue remaining flat at £2.1m, same as recorded in the year-ago period.

In the trading statement, the group also reported that they are working on cost control to minimise the effect of the lower revenue and profitability. However, its cash flow remained healthy during the quarter under consideration.

Stock Performance

The stock of the FOXT has delivered a price return of 38% in the year-over period, up approximately 26% on a YTD basis and bagged approximately 19.64% in the past three months. At the time of writing (as on October 31, 2019 at 10:40 AM GMT), shares of the FOXT were trading at GBX 65.0 and plummeted 2.98% against the previous day’s traded level and in the year-ago period, its shares have registered a 52w high of GBX 71.20 and a 52w low of GBX 45.0 respectively.

Also, at the current trading level, shares of the FOXT traded substantially above its short-term and long-term support levels of 50-day and 200-day Simple Moving Averages (SMA), which generally reflects a favourable trend in the stock. The Moving Average Convergence Divergence is rising, with 12-day EMV (Exponential Moving Average) quoted above the 26-day EMV.

SIMEC Atlantis Energy Ltd

Alternative Investment Market-listed SIMEC Atlantis Energy Ltd (SAE) is a renewable energy equipment company, headquartered in Singapore. As on February 20, 2014, shares of the SAE were admitted to the Alternative Investment Market segment of the London Stock Exchange for trading. The outstanding market capitalization of the company stood at £43.55m, which ranks it among the small-cap businesses listed on the LSE.

Recent Update

On October 31, 2019, the company which has made an earlier announcement towards the end of the June this year, reported that it has acquired the Green Highland Renewables (GHR) project development, asset management, operation and maintenance business from SIMEC Energy at a nominal cash sum of £1.00.

GHR is a business with profit and has the potential of high growth. It delivers a complete range of operation and care solutions, management and services to hydro generation asset owners across Britain.  The target company is expected to produce instant, net income to Atlantis through asset management of long term, operations and maintenance agreements on hydro assets across the UK.

On October 31, 2019, the group updated about its Uskmouth operations and said that it has given MHPS (Mitsubishi Hitachi Power Systems Europe GmbH) the contract after a competitive process. The project showcases the world's first adaptation of a power station from coal to 100 per cent waste resultant fuel, and after successful trials with Mitsubishi Hitachi Power Systems Europe GmbH it will seek to achieve financial closure in the third quarter of 2020, while the generation will begin the next year after that.

Mitsubishi Hitachi Power Systems Europe GmbH has bagged the contract for the work of planning, designing and developing the combustion system for the flagship project of the company.  It will cover achieving the industrial-scale combustion tests on the fuel; industrial-scale milling tests on the fuel pellets and design of the flagship projects’ furnace burner system.

The results of these final authentication tests are required before the negotiation and award of the major EPC (Engineering, Procurement and Construction) contract to source the full combustion system to the project under the terms and conditions required for the project to get project finance.

Stock Performance

SAE shares have tumbled more than 34% in the past one year, plunged approximately 58% on a year-to-date basis and declined around 23.48% in the past three months. At the time of writing (as on October 31, 2019, before the market close at 11:34 AM GMT), shares of the SAE were trading 18.23% higher at GBX 12.0 and in the year-over period shares of the SAE have registered a 52w high of GBX 24.50 and a low of GBX 9.0, respectively.

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