Result Updates For BRBY, NG And TCG

  • May 16, 2019 BST
  • Team Kalkine
Result Updates For BRBY, NG And TCG

Burberry Group

Burberry Group PLC (BRBY) is a London-headquartered luxury-wear company. The company designs, develops, makes and sells products under the Burberry brand, which are distributed through a diversified network of retail, wholesale and licensing channels worldwide, covering mainline stores, outlets and digital commerce platforms.

Key Financial Highlights (FY 2019, in £m)

(Source: Company Filings)

Total revenue was £2,720m, down by 1% on a CER basis and flat on a reported basis, while revenue ex beauty wholesale rose by 2% on CER and reported basis. Adjusted operating profit was flat on CER basis, while it fell by 6% on reported basis. While reported operating profit was £437m, reflecting an increase of 7%, adjusted operating margin rose by 10bps at CER to 16.1%. While reported profit before tax rose by 7% to £441m, adjusted profit before tax was £443m, down 6% at reported rates and stable at CER basis. Supported by 7m share repurchases and a reduction of 200 basis points in the effective tax rate, adjusted diluted EPS increased to 82.1p, surged by 7% on CER basis and flat on reported basis. Reported diluted EPS rose to 81.7p and increased by 19% (reported basis). Net cash was £837m at 31 March 2019 after making deductions for dividends and buybacks, and dividend for the year rose by 3% to 42.5p, in line with progressive dividend policy.

A weak sales growth was reported as the company pushes ahead with a turnaround plan. Weak sales growth in Asia-Pacific further exacerbated the situation as Chinese consumers are an important market for luxury groups. The group forecasted a stable revenue and adjusted operating margin at CER basis in the next financial year and raised its cumulative cost saving guidance to £135m by FY 2022. A share buyback worth £150m was also announced.

Share Price Commentary

Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)

On 16th May 2019, at the time of writing (before the market closed, GMT 1:45 pm), BRBY shares were trading at GBX 1,828.5, down by 4.83 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 2,347.24/GBX 1,618.50. The company’s stock beta was 1.37, reflecting higher volatility as compared to the benchmark index. Total outstanding market capitalisation was £7.94 billion with a dividend yield of 2.15 per cent.

National Grid Plc

National Grid PLC (NG) is a London-headquartered multinational electricity and gas company engaged in the distribution and transmission of gas and electricity. The company offers installation and maintenance services to suppliers and metering.

Key Financial Highlights (FY 2019, in £m)

(Source: Company Filings)

Statutory operating profit was down by 18% to £2.9bn, while underlying operating profit decreased by 2% to £3.4bn. Higher property profit and favourable US legal settlements could not offset decline caused by the expected return of Avonmouth allowances and US tax reform. Due to large impairment and exceptional charges, including a hit by a seven-month labour dispute in the US state of Massachusetts, statutory EPS decreased by 57% of 44.3p, while underlying EPS was up by 5% to 58.9p, reflecting a lower share count. The group recommended a full-year dividend per share of 47.34p, reflecting an increase of 3.07%.

For 2019/20, the company forecasts annual capital investment of almost £5bn each year for the next two years with asset growth of around 7%.

Share Price Commentary

 Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)

 

On 16th May 2019, at the time of writing (before the market closed, GMT 1:50 pm), NG shares were trading at GBX 812, down by 3.6 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 895.10/GBX 744.50. The company’s stock beta was 0.71, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was around £28.88 billion with a dividend yield of 5.52 per cent.

Thomas Cook

Thomas Cook Group PLC (TCG) is a British travel company. It is one of the world's leading travel groups, with operations in 16 countries supported by 21,000 colleagues.

Key Financial Highlights (1H FY 2019, in £m)

(Source: Company Filings)

In H1 FY19, the company’s revenue stood at £3,019m against £3,227m reported in H1 FY18, reflecting a challenging first half. Underlying Gross profit decreased by £54 million on like-for-like basis (LFL) to £599m, as margins were lower due to hotel cost inflation and higher fuel costs. Underlying Gross margin also declined by 180bps on LFL basis to 19.8%, reflecting lower margins in the Group Tour Operator. The group’s seasonal underlying EBIT loss rose by £65 million on LFL basis to £245 million, while a loss from operations of £1,386 million was reported. Loss before tax surged to £1,456 million and the group’s loss after tax stood at £1,474 million.

Share Price Commentary

Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)

 

On 16th May 2019, at the time of writing (before the market closed, GMT 1:55 Pm), TCG shares were trading at GBX 19.44, down by 15.44 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 143.50/GBX 17.77. The company’s stock beta was 0.74, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was around £354.63 million with a dividend yield of 2.61 per cent.

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