A Deep Dive Into Three FTSE SmallCap Stocks – Mitie Group Plc, Brown (N.) Group Plc and Pendragon Plc

Mitie Group Plc

Mitie Group Plc (LON:MTO) is a London, the United Kingdom headquartered company that is engaged in the provision of Facility Management services. The company is also involved in the provision of venture management, consultancy services and a wide scope of professional services. Earlier, it was in the business to present the innovation of "Connected Workspace". The group provides a wide scope of services which incorporate mechanical, electrical building and upkeep, property services, cleaning, providing food, scene services, bug control, security, business services and non-value association in PFI plans.

MTO Financial Performance

On 21^st November 2019, the company announced its interim financial and operational results for the half-year ended 30^th September 2019. The company reported an 11 per cent increase in the revenue which was due to the acquisition of VSG as well as around 4 per cent growth in some of the strategic accounts of the company. The revenue for the period was reported at £1.078 billion. Operating profit before other items was reported by the company at a growth of 5.4 per cent year on year to £33.00 million, primarily driven by improved contributions from the Detention & Escorting Services contract and VSG, in part negatively affected by the lower renewal margins in some contracts. The profit before tax was reported at a growth of 21.7 per cent to £14.6 million while the Earning per share was reported at an increase of 5.8 per cent year on year. The dividend per share was reported the same as that for the same period in the last year at GBX 1.33 per share.

MTO Share Price Performance

Daily Chart as at 22-November-19, before the market close (Source: Thomson Reuters)

On 22^nd November 2019, at 10:40 A.M GMT, by the time of writing, Mitie Group Plc’s share price has been reported to be trading at GBX 129.90 per share, a decrease of 1.14 per cent or GBX 1.5 per share, as compared to the previous day’s closing price, which was reported to be at GBX 131.40 per share. By the time of writing, the Mitie Group Plc share was reported to have been trading 22.78 per cent above the 52-week low share price, which was at GBX 105.80 per share, that the company’s shares reached on December 27, 2018. At the present price, the share was also trading 23.63 per cent below the 52-week high price at GBX 170.10 per share, which the company’s share achieved on July 30, 2019. Mitie Group Plc’s Market capitalisation (M-Cap) has been reported to be at GBP 480.84 million.

At the time of writing, 42,210 of the company’s shares had been traded in the market. The company’s share has given a negative return of 15.26 per cent in value in the last one year, from the price of GBX 153.30 per share that the shares achieved on November 22, 2018.

The beta of the Mitie Group Plc’s share was reported to be at 1.0881. From this, it can be inferred that the company’s share price is more volatile, as compared to the benchmark market index’s movement.

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Brown (N.) Group Plc

Brown (N.) Group Plc (LON:BWNG) is a Manchester, the United Kingdom based general retailing company, which operates as a widely known online designer and retailer. The company obtains and creates its own line of fashion products. They offer customers a wide assortment of items, fundamentally garments, footwear and homewares. The company generally operates as a mail-order catalogue business, and now around 80 per cent of all of the group’s demand originates from the web business.

BWNG Financial Performance

On 10^th October 2019, the company published its interim results for the 26 weeks ended 31^st August 2019. The company reported that there was a 5.4 per cent decline in the Group revenue to £432.9 million. This was primarily driven by the Product segment revenue, which was reported to be a significant drop of 9.3 per cent year on year. Albeit, the company performed well in terms of the operating profit, which was reported at £14.7 million compared to a loss in the same period. The Adjusted EBITDA of the company was reported at an increase of 4.0 per cent year on year. It was also highlighted that the Adjusted Earnings per share of the company grew by 6.0per cent year on year to GBX 8.87 per share. In view of this financial and operational performance by the company, the management proposed an interim dividend of GBX 2.83 per share, same as compared to the interim dividend declared for the same period in the last year.

BWNG Share Price Performance

Daily Chart as at 22-November-19, before the market close (Source: Thomson Reuters)

On 22^nd November 2019, at 10:48 A.M GMT, by the time of writing, Brown (N.) Group Plc’s share price has been reported to be trading at GBX 124.70 per share, an increase of 2.21 per cent or GBX 2.70 per share, as compared to the previous day’s closing price, which was reported to be at GBX 122.00 per share. By the time of writing, the Brown (N.) Group Plc share was reported to be trading 52.73 per cent above the 52-week low share price, which was at GBX 81.65 per share, that the company’s shares reached on December 27, 2018. At the present price, the share was also trading 18.50 per cent below the 52-week high price at GBX 153.00 per share, which the company’s share achieved on June 03, 2019. Brown (N.) Group Plc’s Market capitalisation (M-Cap) has been reported to be at GBP 347.89 million.

At the time of writing, 4700 of the company’s shares had been traded in the market. The company’s share has given a negative return of 0.08 per cent in value in the last one year, from the price of GBX 124.80 per share that the shares achieved on November 22, 2018.

The beta of the Brown (N.) Group Plc’s share was reported to be at 0.71. From this, it can be inferred that the company’s share price is less volatile, as compared to the benchmark market index’s movement.

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Pendragon Plc

Pendragon Plc (LON:PDG) is a Nottingham, the United Kingdom based online automotive retailer, engaged in the sale of a range of new cars, light motor vehicles, used cars, commercial vans, trucks and other motor vehicles. There are four operating segments of the company viz; Software for the automotive business, UK Motor (Sales and service), leasing services with high Return on Investment due to a steady supply of used automobiles steering profitability, US Motor (Sales and Service).

PDG Interim Management Statement

On 22^nd October 2019, the company, through a press release, announced its interim management statement for the three months ended 30^th September 2019. The company reported a significant increase in the Underlying Profit before tax to £3.0 million during the period as compared to the third quarter in 2018. Albeit, the Like for Like revenue of the group, was down by 3.6 per cent year on year while the total revenue was reported at a decline of 8.0 per cent year on year. This was majorly driven by a decline of 19.6 per cent in the total used revenue, which put off the company’s revenue performance. The company highlighted that even after this improved performance in the third quarter of the year, the company anticipates the economic as well as market conditions to be difficult mostly because of the uncertainty around the Brexit, which might affect the consumer confidence. Due to this, the company reported that the underlying profit before tax for the whole year would stay in line with the company’s previous anticipations.

PDG Share Price Performance

Daily Chart as at 22-November-19, before the market close (Source: Thomson Reuters)

On 22^nd November 2019, at 10:56 A.M GMT, At the time of writing, Pendragon Plc’s share price has been reported to be trading at GBX 9.61 per share, an increase of 3.44 per cent or GBX 0.32 per share, as compared to the previous day’s closing price, which was reported to be at GBX 9.29 per share. By the time of writing, the Pendragon Plc share was reported to be trading 8.83 per cent above the 52-week low share price, which was at GBX 8.83 per share, that the company’s shares reached on October 03, 2019. At the present price, the share was also 66.40 per cent below the 52-week high price at GBX 28.60 per share, which the company’s share achieved on March 29, 2019. Pendragon Plc’s Market capitalisation (M-Cap) has been reported to be at GBP 129.78 million.

At the time of writing, 338,360 of the company’s shares had been traded in the market. The company’s share has given a negative return of 58.84 per cent in value in the last one year, from the price of GBX 23.35 per share that the shares achieved on November 22, 2018.

The beta of the Pendragon Plc’s share was reported to be at 0.19. From this, it can be inferred that the company’s share price is less volatile, as compared to the benchmark market index’s movement.