Update on two LSE listed stocks Arrow Global Group Plc and DCC Plc

  • Nov 12, 2019 GMT
  • Team Kalkine
Update on two LSE listed stocks Arrow Global Group Plc and DCC Plc
Arrow Global Group Plc

Arrow Global Group Plc (ARW) is a United Kingdom based Debt refinancing company, it is in the business of buying defaulted secured and non-secured debt from banks, credit card companies, telecommunication and communication companies and utility companies at a discount and using its specialized services to offer customers modified repayment plans on suitable terms or alternative resolutions. The entire business of the company is sub-divided into three group Origination and underwriting, Asset management and Repayment-Hybrid collections mode.

The shares of the company are listed on the London Stock Exchange in the main market segment. There the shares of the company trade with the ticker name ARW.

Trading Update

The company on 12 November 2019 came out with the results for the third quarter period ended on 30 September 2019

  • The profit before tax of the company for the period increased by 65.6 per cent to stand at £42.4 million, for the third quarter of 2018 the profit before tax of the company stood at £25.6 million.
  • The underlying profit before tax of the company for the period decreased 5.4 per cent to stand at £50.4 million, whereas for the third quarter of 2018 the Underlying profit before tax of the company stood at £53.3 million.
  • The free cashflow generated by the company during the period grew by 14.7 per cent to stand at £174.4 million, whereas in third quarter of 2018 free cashflow generated by the company was £152.0 million.
Performance at the London Stock Exchange

Price Chart as on 12 November 2019, before the market close (Source: Thomson Reuters)

On 12 November 2019, at the time of writing the report (before market close, GMT 2.55 PM), ARW shares were trading on the London Stock Exchange at GBX 210.20.

The stock of the company has a 52-week High of GBX 284.58 and a 52-week low of GBX 166.20. The total market capitalization of the company at the time of writing this report was £408.54 million.

Outlook

The company’s return on Investment business for the third quarter remained robust despite of this quarter traditionally remaining subdued with both the company’s cash generation and cash collection verticals performing well during the period. The company’s ultimate aim is to become a high impact fund management business, and, in this regard, it had announced the formation of AGG capital Management during the publication of its interim results. The company is a strong cash generating business and is firmly geared to allocation of funds between growth, deleveraging and dividends.

The management of the company is confident that it will be able to deliver on its expectations for this year and lower its leverage to the range of 3.0x-3.5x.

 

DCC Plc

DCC Plc (DCC) is a United Kingdom domiciled specialised sales, marketing and distribution company. The company has four business verticals; DCC Energy, DCC Environment, DCC Technology and DCC healthcare. The energy business deals with LPG, Fuel Oils and their distribution and retailing in United Kingdom, Sweden, Austrian Denmark and Ireland. The technology division is engaged in selling consumer and business technology products in Europe. The healthcare division is engaged in providing products and services to different healthcare providers in Europe and the Environment business vertical of the company is engaged in the waste management, recycling and recovery business, providing its services to clients in industrial, commercial and public sectors.

The shares of the company have their listing on the London Stock Exchange on the Main Market Segment, there they trade with the ticker name DCC. The shares of the company also form part of the FTSE 100 Index.

Trading Update

The company on 12 November 2019 came out with the results for the six-month period ended on 30 September 2019.

  • The company for the first half of the year has registered a strong performance with the adjusted operating profit increasing by 14.5 per cent, which is up by 13.7 per cent on a constant currency basis, to stand at £162.6 million. The figure is in line with the management’s expectations.
  • The Adjusted earnings per share of the company for the six-month period is up by 3.0 per cent to stand at 110.2 pence per share
  • The net debt in the books of the company as on 30 September 2019 stood at £245.3 million, excluding lease creditors.
Performance at the London Stock Exchange

Price Chart as on 12 November 2019, before the market close (Source: Thomson Reuters)

On 12 November 2019, at the time of writing the report (before market close, GMT 3.01 PM), DCC shares were trading on the London Stock Exchange at GBX 6,986.00.

The stock of the company has a 52-week High of GBX 7,548.00 and a 52-week low of GBX 5,555.00. The total market capitalization of the company at the time of writing this report was £7.25 billion.

Outlook

The company has delivered a strong revenue performance for the six-month period and most of its results figures are well ahead of the corresponding previous years figures. The company’s acquisition of Ion Laboratories Inc of the United States last year is proving to be a material step in scaling up the company’s healthcare vertical in the world’s largest market, the United States of America. The company is open to further acquisitions in that market and it believes that there is scope for massive scaling up in that market.

Despite the continuing deterioration economic conditions in the United Kingdom the company believes that it will be able to deliver on the market expectations for 2020 and also scale up its global ambitions in the not so distant future.

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