3 LSE Stocks That Outperformed FTSE 100 Index: Ocado Group PLC, JD Sports Fashion PLC and AVEVA Group PLC

3 LSE Stocks That Outperformed FTSE 100 Index: Ocado Group PLC, JD Sports Fashion PLC and AVEVA Group PLC

Ocado Group PLC

Ocado Group PLC (OCDO) is one of the largest online grocery retailers in the UK, which does not own any chain of stores as all home deliveries are done from its warehouses, as it has developed and operates a unique business model which positions it strongly as more consumers choose to shop online. Its business is based on proprietary technology and intellectual patent, which serves the unique end-to-end operating solution for online grocery retail operations and positions the group well to take advantage of these long-term structural trends, driven by different shopping habits and ever more advanced technology for the consumer.

OCDO-Trading Update

(Source: LSE)

Led by successful results of joint venture between the Ocado Group Plc and Marks and Spencer Group Plc, which was completed on August 05, 2019, the group’s retail sales increased by 11.4% to £386.3m from £346.9m recorded in the year-ago period, driven by solid average orders per week whose growth was of 12.1% recorded in the third quarter of FY19. Average orders per week during the quarter under consideration surged to 314,000 from 280,000 recorded in the year-ago period. However, average order size marginally reduced to £105.42 against £106.26 recorded in the same quarter of the corresponding financial year.

OCDO-Financial Highlights for H1 FY19

(Source: LSE filings)

The company’s adjusted revenue increased by 10.5 per cent to £874 million as compared to £791.2 million in H1 FY18, driven by other fees earned from Morrisons, a surge in the average number of orders per week and despite capacity limitations following the fire at CFC Andover. Adjusted EBITDA stood at £18.7 million, a decrease of 46.3 per cent against the £34.8 million in H1 FY18, due to the investment surge in developing the head office teams required to support the international growth, higher share incentive costs in the period and annualised costs of the Erith CFC. Adjusted loss before tax was £43 million, an increase from the corresponding period of the last year. Cash and cash equivalents stood at £360.1 million, a decrease of £87.5 million against the previous year same period data. Average orders per week had solid underlying growth, with a slight decrease in the average order size. The company signed a 50/50 joint venture with M&S to transform its online grocery shopping in the United Kingdom.

OCDO-Share price performance

Share price performance as on 15th November after the market closed (source: Thomson Reuters)

On November 15th, 2019, Ocado Group Plc shares closed at GBX 1,152.00. Stock's 52 weeks High and Low are GBX 1,440.50/GBX 733.74.

The stock has outperformed the FTSE 100 index, with a YTD return of 45.82% as compared to FTSE100’s YTD return of 8.54%. (Source: Thomson Reuters).

 

JD Sports Fashion PLC

JD Sports Fashion PLC (JD.) is a multichannel retailer of branded sports and casual wear, which combines the best of physical and digital retail to give a compelling consumer proposition and helping it to establish an industry-leading retail business. Ongoing investment in its international multichannel capability complements the continuing international growth in physical store space, and it uses its own brands to present them as complementary to third party brands. It has over 700 stores in 19 territories across the globe, with strong own brand labels such as Pink Soda and Supply & Demand, along with globally recognised brands such as Nike, Adidas, Puma and The North Face. The operations of the group are differentiated in two operating segments, namely Sports Fashion and Outdoor.

JD-Financial highlights for H1 FY19

(Source: LSE filings)

During the first half under consideration, the group’s revenue surged by 47% to £2,721.2m against £1,846.3m reported in the H1FY18, driven by 12% Like-for-like sales growth in its global Sports Fashion fascias. Reflecting the inclusion of the lower margin Finish Line business for the whole period, total gross margin in the period was of 46.9%, 1.3% lower than the previous year (H1 2018: 48.2%). The proforma headline profit before tax and exceptional items to 3 August 2019 under IAS 17 ‘Leases’ was £166.2 million and profit before tax and exceptional items for the year increased by 30.1% to £158.6 million (H1 2018: £121.9 million), while group profit before tax increased by 6.6% to £129.9 million (H1 2018: £121.9 million). The adjusted earnings per ordinary share increased by 25.1% to 12.57p (H1 2018: 10.05p) and reflected the higher participation of profits from the United States, the basic earnings per ordinary share decreased slightly to 9.67p (H1 2018: 10.05p).

JD-Share price performance

Share price performance as on 15th November after the market closed (source: Thomson Reuters)

On November 15th, 2019, JD Sports Fashion Plc shares closed at GBX 757.00. Stock's 52 weeks High and Low are GBX 795.40/GBX 318.50.

 

The stock has outperformed the FTSE 100 index, with a YTD return of 117.02% as compared to FTSE100’s YTD return of 8.54%. (Source: Thomson Reuters)

AVEVA Group PLC

The software and computer service provider AVEVA Group Plc (AVV) was incorporated in 1967 and is headquartered in Cambridge, the United Kingdom. The company is engaged in providing engineering, design and information management software with geographical presence in the Asia Pacific, Americas and Europe and EMEA.

AVV-Financial highlights for H1 FY20

(Source: LSE filings)

In the first half of the financial year 2020, the company’s reported revenue surged by 16.5 per cent to £391.9 million as compared with the corresponding period of the last year, while recurring revenue surged by 42.1 per cent to £242.5 million in H1 FY20 (H1 FY19: £170.7 million). On a constant currency basis, the organic revenue growth was of 11.9 per cent reflected robust sales execution and benefited from initial contract renewals. The increase in revenue was because of the good growth across all geographic areas with the Asia Pacific showing strength. Each of the Business Units also increased, with particularly robust growth in Engineering. In H1 FY20, the adjusted EBIT surged by 66.5 per cent to £90.6 million against the £54.4 million in H1 FY19, driven by the revenue growth, higher gross margin and operational leverage. Adjusted EBIT margin was reported at 23.1 per cent, an increase of 690bps from the corresponding period of the last year. The profit before tax was £24 million in H1 FY20 versus a loss of £5.5 million in H1 FY19. The adjusted diluted earnings per share surged by 65 per cent to 43.31 pence against the 26.25 pence in H1 FY19, while reported diluted earnings per share stood at 11.13 pence in H1 FY20Interim dividend per share was up by 10.7 per cent to 15.5 pence in H1 FY20.

AVV-Share price performance

Share price performance as on 15th November after the market closed (source: Thomson Reuters)

On November 15th, 2019, AVEVA Group Plc shares closed at GBX 4,374.00. Stock's 52 weeks High and Low are GBX 4,490.00/GBX 2,264.00.

The stock has outperformed the FTSE 100 index, with a YTD return of 80.74% as compared to FTSE100’s YTD return of 8.54%. (Source: Thomson Reuters)

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