3 FTSE 350 Stocks in Focus - Compass Group PLC, Royal Mail PLC, and Tate & Lyle PLC

6 min read | February 07, 2020 07:16 AM EST | By Team Kalkine Media

Compass Group PLC

The Compass Group PLC (LSE:CPG) is a British multinational organisation situated in Chertsey, Surrey. It is the biggest contract foodservice organisation globally, providing nourishment and services to a wide spectrum of customers, from military to students, in 50 plus nations and provides meals to office labourers. The group was founded in 1987, under the name “Industrial facility Canteens Ltd” in the United Kingdom. The company’s stocks got listed on the main market of the London Stock Exchange on February 02, 2001.

Compass Group PLC issued a trading update for the three-month period ended 31st December 2019

Backed by good retention rates and strong levels of new business wins in the North American region, the Group’s organic revenue grew by 5.3 per cent for the three months to 31 December 2019. As expected, organic revenue for the group remained flat year on year due to volume softness in Business & Industry and a less favourable Sports & Leisure calendar in Europe. For an initial cash consideration of approximately €420 million, the company successfully completed the acquisition of Fazer Food Services on 31 January 2020, post-approval from the EU Competition Commission. The organic growth outlook of the company for 2020 remains unchanged, around mid of the 4-6% guidance range after an encouraging start to the year.

Compass Group PLC-Stock price performance

Daily Chart as at Feb-07-20, before the market close (Source: Thomson Reuters)

On 7th February 2020, at the time of writing (before market close, GMT 8:37 AM), Compass Group PLC shares were trading at GBX 1,961.00, up by 0.15 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 2,150.00/GBX 1,655.50. At the time of writing, the share was trading 8.79% lower than its 52w High and 18.45% higher than its 52w low. Stock’s average traded volume for 5 days was 2,945,803.00; 30 days - 2,071,787.03 and 90 days - 2,533,294.99. The average traded volume for 5 days was up by 42.19% as compared to 30 days average traded volume. The company’s stock beta was 0.78, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £31.27 billion.

Royal Mail Plc

Royal Mail Plc (LON:RMG) is a London, the United Kingdom based Industrial Transportation business that mainly provides postal services. The Group has a network of operations spread around the globe. Post the recent acquisitions made by the Group, it also has operations in the Western part of the United States of America and Canada. The Group has developed an efficient network of a wide range of postal services and solutions which include letters, parcels as well as other new products.

Royal Mail Plc issued a trading update for 9M FY20

Supported by strong performances in Germany, Belgium and Eastern European markets, the Group’s revenue grew by 3.7 per cent (reported) as compared to the same period last year in the nine months of the fiscal year 2020.

UKPIL revenue improved by 1 per cent during the reported period against the same period last year. Parcels volumes and parcels revenue grew by 3 per cent and 3.7 per cent respectively during the period.

Addressed letter volumes declined by 9 per cent, and the total letters revenue declined by 1.5 per cent during the period. GLS revenue surged by 11.1 per cent with volumes growth of 5 per cent in the nine-month period.

According to the management guidance for FY2019-20, before IFRS16, the expected Adjusted Group operating profit is supposed to be in the range of £300-340 million. The Addressed letter volume declines are expected to be in the range of 7-9 per cent. The guidance for GLS adjusted operating profit margin was in the range of 6-7 per cent.

Royal Mail Plc-Stock price performance

Daily Chart as at Feb-07-20, before the market close (Source: Thomson Reuters)

On 7th February 2020, at the time of writing (before market close, GMT 8:40 AM), Royal Mail Plc shares were trading at GBX 174.35, down by 2.54 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 295.50 /GBX 168.05. At the time of writing, the share was trading 41.00% lower than its 52w High and 3.75% higher than its 52w low. Stock’s average traded volume for 5 days was 6,533,502.80; 30 days - 3,177,795.83 and 90 days - 4,311,867.93. The average traded volume for 5 days was up by 105.60% as compared to 30 days average traded volume. The company’s stock beta was 0.79, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £1.80 billion.

Tate & Lyle Plc

Tate & Lyle PLC (LON:TATE) is a London, the United Kingdom-based manufacturer of food ingredients. The company primarily offers Sweeteners, Health and Wellness products and other bulk ingredients. It operates mainly in two industries: sweeteners and corn wet milling. The company has differentiated its operations in two operating segments: Bulk Ingredients and Speciality Food Ingredients. It operates across the Americas, Europe, the Middle East, Africa and South-East Asia.

Tate & Lyle PLC issued a trading update for the three-month period ended 31st December 2019

The Group’s underlying performance was in line with the management’s expectations and was consistent with the first half. The company’s guidance remains unchanged for the year ended 31st March 2020. In the three-month period ended 31st December 2019, the Group’s Adjusted operating profit performance continued to be strong.

The company was able to drive good price and mix management as sales were ahead of the comparative period in all regions, with volume broadly in line with the expectations. The company saw solid growth in Middle East and Africa, North America and Europe. However, the company saw slower sales growth in the Asia Pacific and Latin America. The company continue to expect earnings per share growth in constant currency to be in single digit, however, the guidance for the year ending 31 March 2020 remains unchanged.

Tate & Lyle Plc-Stock price performance

Daily Chart as at Feb-07-20, before the market close (Source: Thomson Reuters)

On 7th February 2020, at the time of writing (before market close, GMT 8:44 AM), Tate & Lyle Plc shares were trading at GBX 789.00, up by 0.08 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 811.40 /GBX 662.29. At the time of writing, the share was trading 2.76% lower than its 52w High and 19.13% higher than its 52w low. Stock’s average traded volume for 5 days was 1,713,628.00; 30 days - 1,214,776.27 and 90 days - 1,327,972.28. The average traded volume for 5 days was up by 41.07% as compared to 30 days average traded volume. The company’s stock beta was 0.98, reflecting slightly lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £3.71 billion.


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