A Closer Look At The Performance Of IOM, DSCV, CRST, And TOM

  • Jun 27, 2020 BST
  • Team Kalkine
A Closer Look At The Performance Of IOM, DSCV, CRST, And TOM

Summary

  • Iomart claims to have a vigorous business model providing support during the tough times of Covid-19
  • The Discoverie group performed well, securing a strong financial position
  • Crest Nicholso started resuming operations and re-opening the company sites from May 18, 2020
  • Tomco Energy is in the process of undertaking measure to reduce its costs

The outbreak of Covid-19 has disrupted the political, social, financial and economic scenario globally. Economies are collapsing, the stock market is ambiguous, oil prices have been falling off the cliff and millions of people have applied for unemployment. In order to carry out the operation effectively and efficiently, businesses need to plan strategically.

Below are select listed companies namely IOM, DSCV, CRST and TOM, whichthat announced their financial results recently. Let's have a look at how efficient they have been in handling their respective business, during the pandemic times.

Iomart Group PLC (LON: IOM)

Iomart Group PLC is a 20-year-old cloud computing company with over 400 employees contributing to the workforce. It provides securely managed hosting and cloud services. Since its inception, security has been the primary motive of the company. Easyspace and Cloud Services are the two segments of Iomart. Easyspace provides hosting and domain registrations to SMEs (small and medium enterprise) and Cloud Services provides cloud computing facilities.

On June 24, 2020, Iomart declared its financial results for the year ending 31March 2020. Despite the onset of Covid-19 outbreak, the company has shown a good financial position with revenue moving up by 9 percent to GBP 112.6 million (2019: GBP 103.7 million). From the time the business has transformed to cloud services, the company has consistently grown in the last 12 years since 2008. The EBITDA of the company increased to GBP 43.5 million and basic earnings per share to 12.5p, but the adjusted profit before tax declined by 10.6 percent to GBP 22.8 million. The cash position of the company remained unaffected from Covid-19,realizing a cash of GBP 15.5 million by the end of 2020.

The company claims to have a vigorous business model providing support during the tough times of Covid-19. The business continues to develop well, although there are some uncertainties regarding the timing of new projects - said the Iomart CEO, Angus McSween.

Stock Performance

Iomart Group PLC (LON: IOM) on June 26, 2020, at 3:26 PM GMT, was trading at GBX 358.50, up by 2.43 per cent from its previous close of GBX 350.00. The current stock price was reported to be 36.12 per cent higher than the 52-week low price, which was GBX 229.00 and 5.06 per cent lower than the 52-week high price, which was GBX 405.00. It was having a market capitalisation (Mcap) of GBP 381.78 million. The volume traded at the time of reporting was 84,188. The company recorded a negative return on price which was 9.33 per cent on YTD (Year to Date) basis.

Discoverie Group PLC (LON: DSCV)

Discoverie Group PLC designs and manufactures innovative components of electronic appliances, supplying to 25,000 customers globally. It operates in 23 countries, including the UK, Europe, Sri Lanka, China, India, North America, etc. with approximately 4,400 employees.

The company has taken actions to ensure safe working conditions for its employees while carrying out the operations, with regards to Covid-19.

On June 24, Discoverie Group came out with its preliminary results for the year ended 31 March 2020. The group performed well, securing a strong financial position. Growth of 6 per cent was recorded for the revenue, which totaled at GBP 466.4 million due to an increase in sales by 2 percent and organic orders by 1 percent. An increase of 21 percent each was seen in case of underlying operational profits and profit before tax, which summed up to be GBP 37.1 and GBP 32.8 respectively. EPS also increased to 30.2p.The final dividend was not proposed by the company. Maintenance of cost to protect the cash reserves were also kept in mind.

Stock Performance

Discoverie Group PLC (LON: DSCV) was trading at GBX 496.00on June 26, 2020, at 3:32 PM GMT, up by 0.41 per cent from its previous close of GBX 494.00. The current stock price was reported to be 23.80 per cent higher than the 52-week low price, which was GBX 378.00 and 18.14 per cent lower than the 52-week high price, which was GBX 586.00. It was having a market capitalisation (Mcap) of GBP 441.91 million. The volume traded at the time of reporting was 21,177. The company recorded a negative return on price which was 12.10 per cent on YTD (Year to Date) basis.

Crest Nicholso Holdings PLC (LON: CRST)

Crest Nicholson is a residential developing company with an experience of over 50 years. It aims at improving people’s way of life of by providing them with a good quality house, offices and retail spaces.

On June 24, the company released its half yearly results for the period ending 30 April 2020. The revenue decreased by 52.2 percent to GBP 240 million. Loss before tax was recorded at GBP 51.2 million, while the company made a profit of GBP 64.4 million during HY19. The company also delivered negative basic earnings per share of 15.8p. The sales were down during the months of November and December 2019 due to political uncertainty arising out of the General Elections. The company did not announce any dividend during HY20.

The company announced closure of its sites & sales and management offices beginning April 9, 2020, to safeguard the health and safety of its employees, to contain spread of coronavirus infections. Actions were taken to cut cost for maintenance of cash reserves, including furloughing 75 percent of its employees under the Job Retention Scheme, and controlling the expenditure of work-in-progress.It started resuming operations and re-opening the company sites from May 18, 2020, by undertaking new safety measures.

Stock Performance

Crest Nicholso Holdings PLC (LON: CRST) stock was trading at GBX 215.00on June 26, 2020, at 3:38 PM GMT, down by 2.18 per cent from its previous close of GBX 219.80. The current stock price was reported to be 23.49 per cent higher than the 52-week low price, which was GBX 164.50 and 141.40 per cent lower than the 52-week high price, which was GBX 519.00. It had a market capitalisation (Mcap) of GBP 564.71 million. The volume traded at the time of reporting was 1,307,365. The company recorded a negative return on price which was 49.84 per cent on YTD (Year to Date) basis.

Tomco Energy PLC (LON: TOM)

Tomco Energy PLC is a UK based technology company associated with oil & gas exploration and production. It consists of two subsidiary companies- The Oil Mining Company, in which it owns 100% share capital and TurboShale Inc. in which it owns 80% share capital. The company holds nine mineral leases. It was incorporated in 1987.

The company released its final results on March 27, 2020 for the year FY2019. By that time, the company knew that the effects of Covid-19 crisis will impact its balance sheets significantly in times to come. Future funding of projects has been tough because of the slowdown in the economic conditions and sharply falling oil prices, which has affected the exploration operations. The Company Board is in the process of undertaking measure to reduce its costs in the meantime. The company had enough funds to meet its operational requirements on 26 March 2020 which was reflected by the cash available with the company worth GBP 745,000. The operating loss accounted for GBP 778,000.

Stock Performance

Tomco Energy PLC (LON: TOM) stock traded at GBX 0.73 on June 26, 2020 at 3:26 PM GMT, down by 12.12 per cent from its previous close of GBX 0.83. The current stock price was reported to be 47.50 per cent higher than the 52-week low price, which was GBX 0.38 and 797.26 per cent lower than the 52-week high price, which was GBX 6.55. It was having a market capitalisation (Mcap) of GBP 5.37 million. The volume traded at the time of reporting was 10,221,873. The company recorded a positive return on price which was 22.22 per cent on YTD (Year to Date) basis.

Finally, while businesses across sectors are in the process of taking control of their financial positions and ensuring measures to combat the corona-led pandemic, only time will tell their future as the world witnesses a huge crisis, like never before.

 


Disclaimer
The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd, Company Number 12643132. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

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