A Glance at Earnings of Four LSE Stocks – AGR, IHP, INVP and PETS

Amid the coronavirus pandemic’s devastating impact across the globe, the United Kingdom government in a historic event and joining the group of some other European countries along with Germany and Japan has sold bond with a negative yield for the first time. Gilts worth £3.75 billion, maturing in July 2023 were sold at an average yield of -0.003 per cent. The development is being said to have paved the way for the Bank of England to go for a negative interest rate. Though, the banks have already started coming up with a warning that any such decision would negatively impact their earnings and their ability to cope up with the expected loan loss. Meanwhile, there has been a slew of earnings announcements from different companies, let us discuss the latest earning of four London Stock Exchange-listed companies Assura Plc, Integrafin Holdings Plc, Investec Plc and Pets at Home Group Plc.

Overview of Assura Plc

Assura Plc (LON:AGR) is healthcare real estate investment trust, based in the United Kingdom. The company’s more than 570 GP surgery, diagnostic & treatment centre and primary care buildings across the nation, serves millions of the patients.

AGR – Financial Highlights

On 21^st May 2020, the company released its results for the year ended 31st March 2020.

(source: Company Website)

• During the FY2020, the EPRA earnings have improved by 6 per cent to £67.5 million (2019: £63.8 million). EPRA EPS also increased by 4 per cent to 2.8 pence per share (2019: 2.7 pence per share).
• Profit before tax decreased to £78.9 million during the FY2020, due to higher net rental income after the addition to the portfolio and lowered positive valuation change.
• The company’s dividend improved to 0.71 pence per share with effect from the July 2020 payment.
• The company’s gross debt reported at £847 million with undrawn facilities of £220 million as at 31st March 2020.
• The company’s portfolio value increased by 8 per cent to £2,139.0 million as at 31st March 2020 (2019: £1,978.8 million).
• The company’s portfolio net Initial Yield decreased marginally at 4.68 per cent during the FY2020 (2019: 4.74 per cent).
• The company issued 285.8K Ordinary Shares on 14th February 2019, a partial consideration for the purchase of a medical centre.

AGR – Share Price Performance

Assura Plc’s stock price is trading at GBX 74.50 as on 22nd May 2020 (at around 11:45 AM GMT). The stock price of the company has declined by 4.73 per cent or 3.70 points from the last day’s closing price. The company’s one year high/low price is GBX 88.0 / GBX 61.80, which were reported on 31^st March 2020 and 23^rd May 2019, respectively.

Overview of Integrafin Holdings Plc

Integrafin Holdings Plc (LON:IHP) is a holding company; the group also includes Transact. The company provides advisory professionals with infrastructure for investing customer assets in a tax-efficient way. The company is headquartered in London, and it has regional sales teams across the United Kingdom, and software developers team based in Melbourne (Australia) and London (UK).

IHP – Financial Highlights

On 21^st May 2020, the company released its results for the H1 ended 31st March 2020.

(source: Company Website)

• The company’s revenue increased by 13.0 per cent to £53.8 million (HY2019: £47.6 million) for six months’ period ended 31st March 2020.
• Interim dividend increased to 2.7 pence per share during HY2020 (HY2019: 2.6 pence per share). The dividend will be payable on 26th June 2020 to investors on the register on 5th June 2020.
• Gross inflows increased by 14.0 per cent for the six months to 31st March 2020 as compared with the previous year in the same period. However, the Gross outflows also increased by 14.1 per cent in the six months ended 31st March 2020, which shows yearly outflow of 6.2 per cent of opening FUD.
• Wrapper administration fee income increased by £0.4 million or 9.1 per cent, which shows the surge in the number of open tax wrappers.
• The operating margin increased to 50.6 per cent (March 2019: 46.6%) in the six months to 31st March 2020 due to higher revenue because of the increase in average FUD, and controlled expenses.

IHP – Share Price Performance

Integrafin Holdings Plc’s stock price is trading at GBX 497.50 as on 22^nd May 2020 (at around 11:54 AM GMT). The stock price of the company was up by 0.51 per cent or 2.50 points from the last day’s closing price. The company’s one year high/low price is GBX 530.0 / GBX 350.0, which were reported on 20^th February 2020 and 11^th October 2019, respectively.

Overview of Investec Plc

Investec Plc (LON:INVP) is one of the prominent global financial services company, which supports mid-market entrepreneurs, PE and corporates. The company delivers equity analysis, planning and implementation services for venture capitalist interested in Indian equities.

INVP – Financial Highlights

On 21^st May 2020, the company released its results for the year ended 31st March 2020.

(source: Company Website)

• The company’s adjusted operating profit decreased by 16.8 per cent (AER basis) to £608.9 million as compared to the prior year. The novel coronavirus effect on adjusted operating profit was reported to be of £105 million.
• Credit loss ratio increased to 0.52 per cent during the FY2020 (2019: 0.31 per cent) due to novel coronavirus expected credit losses.
• Return on equity generated by the group decreased to 11.0 per cent (2019: 14.2 per cent), and on a continuing operations basis, the Return on Equity dropped to 8.3 per cent (2019: 12.0 per cent).

INVP – Share Price Performance

Investec Plc’s stock price is trading at GBX 159.20 as on 22^nd May 2020 (at around 12:22 PM GMT). The stock price of the company has decreased by 1.65 per cent or 2.55 points from the last day’s closing price. The company’s one year high/low price is GBX 407.22 / GBX 122.55, which were reported on 01^st July 2019 and 19^th March 2020, respectively.

Overview of Pets at Home Group Plc

Pets at Home Group Plc (LON:PETS) is one of the prominent pet care business, which delivers the whole gamut of things that a pet owner requires to take care of their pets. The company provides various products such as toys & bedding, food and grooming services.

PETS – Financial Highlights

On 21^st May 2020, the company released its result (preliminary) for the 52-week period ended 26^th March 2020.

• During the FY2020, the company’s revenue surpassed £1 billion mark for the first time. The revenue increased by 10.2 per cent to £1,058.8 million with like-for-like revenue rise of 9.0 per cent.
• During the FY2020, Retail Like for like revenue increased by 9.4 per cent, or 15 per cent on a two-year basis.
• The Net debt of the company was reported at £85.9 million. Also, Net debt/EBITDA was at 0.6x as compared to leverage covenant of 3.25x.
• The company’s final dividend per share was reported to be 5.0 pence, which shows a robust performance of FY20.
• The number of subscription consumers in the company increased by 23 per cent to more than 865,000 on year on year basis.
• Number of VIPs who purchase both products and service from the company also increased by 24 per cent on a year-on-year basis, which accounts for around 16 per cent of all 5.6 million active members.

PETS – Share Price Performance

Pets at Home Group Plc’s stock price is trading at GBX 226.60 as on 22^nd May 2020 (at around 12:31 PM GMT). The stock price of the company was up by 2.73 per cent or 6.00 points from the last day’s closing price. The company’s one year high/low price is GBX 317.08 / GBX 146.46, which were reported on 12^th February 2020 and 21^st May 2019, respectively.