A Lens On The Earnings Updates Of 3 Stocks: Cls Holdings Plc, Share Plc and TT Electronics Plc

A Lens On The Earnings Updates Of 3 Stocks: Cls Holdings Plc, Share Plc and TT Electronics Plc

There lies uncertainty with respect to global markets with continued low-interest rates. While talking about the UK, the full extent of Brexit is yet to be determined and implemented. The companies with sound financial position, clear focus and a long-term strategy shall help them withstand any economic challenges and will also allow them to capitalise on the opportunities which may arise.

This article talks about recent business performance updates of three diverse sector stocks quoted on the London Stock Exchange (LSE). The stocks include Cls Holdings Plc from the Real Estate Investment & Services Sector, Share Plc from the Financial Services sector and TT Electronics Plc from the Electronic & Electrical Equipment sector.

Cls Holdings Plc announces its annual results for the year ended 31st December 2019

The Group’s revenue increased to £138.3 million in the fiscal year 2019 from £133 million in the fiscal year 2018. Driven by acquisitions and rental growth, with estimated rental values growing at 2.5 per cent, the Company’s Net rental income increased by 3.1 per cent to £110.6 million in the fiscal year 2019 as against £107.3 million in the fiscal year 2018.

The company’s Profit before taxation from continuing operations surged to £159.0 million in the fiscal year 2019 as against £144.9 million in the fiscal year 2018. With EPRA earnings of the company declining to £48.9 million in the fiscal year 2019 from £53.5 million in the fiscal year 2018, the company generated £48.9 million of net cash from operating activities in the fiscal year 2019.

The company’s annual dividend increased by 7.2 per cent to 7.4 pence per share in the fiscal year 2019 as against 6.9 pence per share in the fiscal year 2018.

(Source: Company’s filings, London Stock Exchange)

Business overview: Cls Holdings Plc

FTSE 250 listed CLS Holdings Plc (LON: CLI) is a British-based real estate investment & services company and makes investments in commercial property. The company holds its assets in Germany, France and the UK. In the major European cities, the group develops stable cash flows through investment in office space with high-quality in non-prime locations.

Cls Holdings Plc -Stock price performance

Daily Chart as at Mar-05-20, before the market close (Source: Thomson Reuters)

On 05th March 2020, at the time of writing (before market close, GMT 01:57 PM), Cls Holdings Plc’s shares were trading at GBX 266, up by 2.50 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 322.50 /GBX 209.10. At the time of writing, the share was trading 27.21% higher than its 52w low and 17.52% lower than its 52w High. Along with an annual dividend yield of 2.72 per cent, the beta of the company stood at 0.76, reflecting slightly lesser volatility as compared to the benchmark index. The total market capitalisation of the company was recorded at £1.05 billion.

Share Plc - Preliminary Results for the year ended 31 December 2019

The company was benefitted by acquisitions of customer accounts, which led to a rise in Revenue by 7 per cent to £22.6 million in the fiscal year 2019 as against £21 million in the fiscal year 2018. The company’s Reported loss before taxation surged to £133,000 in 2019, which included £0.6 million of one-off corporate costs in contrast to a loss of £22,000 in 2018. The company’s Reported EBITDA was up by 83 per cent to £0.9 million in 2019 as against £0.5 million in 2018. The company’s Underlying basic earnings per share surged to 0.8 pence in 2019 as against 0.4 pence in 2018.

However, the company’s Balance sheet remained strong. The cash balances of the company surged to £12.7 million in 2019 from £9 million in 2018. The company did not propose any dividend during the period.

(Source: Company’s filings, London Stock Exchange)

Business overview: Share Plc

Share Plc (LON: SHRE) the parent company of The Share Centre Limited, is an Investment Banking and Brokerage Services company and its shares are traded on the AIM market on the London Stock Exchange. The Share Centre Limited provides a range of account-based services to enable retail investors with access to stock markets, and it commenced trading in 1991. The different variants of the offering provided by the company include Child Trust Funds, SIPPs, Junior ISAs, ISAs with a wide range of investments and investment guidance.

Share Plc -Stock price performance

Daily Chart as at Mar-05-20, before the market close (Source: Thomson Reuters)

On 05th March 2020, at the time of writing (before market close, GMT 02:01 PM), Share Plc’s shares were trading at GBX 32.26, down by 3.70 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 38.00 /GBX 24.50. At the time of writing, the share was trading 31.67% higher than its 52w low and 15.11% lower than its 52w High. The total market capitalisation of the company was recorded at £47.90 million. 

TT Electronics Plc - Results for the year ended 31 December 2019

(Source: Company’s filings, London Stock Exchange)

The company’s strategy continues to derive enhanced margins and growth for the company and improve the quality of business. The company’s revenue achieved 9 per cent growth at constant currency to £478.2 million in the fiscal year 2019 from £429.5 million in the fiscal year 2018.

The company’s underlying operating profit and PBT both materially increased by 17% and 12% respectively at constant currency. The company has a healthy, strong cash conversion ratio of 0.98. The company’s annual dividend was up by 8 per cent to 7 pence per share in 2019.

Business overview: TT Electronics Plc

Supplier of designed gadgets used in critical applications, TT Electronics Plc (LON: TTG) fabricates complex integrated solutions related to engineering and assembly lines in manufacturing facilities along with testing solutions. The controlling applications related to the network connectivity gadgets are taken care of by the Power and Connectivity division. The Group also deals in sensors, and electrical gadgets with consistent efforts made in the direction to improve speed, accuracy, reliability and criticalities of client’s applications. The Group, together with its clients, focuses on innovating and upgrading their existing systems. The Group caters to its customers in the manufacturing, medical science, defence & aviation, and transportation divisions. 

TT Electronics Plc -Stock price performance

Daily Chart as at Mar-05-20, before the market close (Source: Thomson Reuters)

On 05th March 2020, at the time of writing (before market close, GMT 02:05 PM), TT Electronics Plc’s shares were trading at GBX 206.99, down by 2.82 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 268.00 /GBX 190.00. At the time of writing, the share was trading 8.94% higher than its 52w low and 22.76% lower than its 52w High. Along with an annual dividend yield of 3.29 per cent, the beta of the company stood at 0.85, reflecting slightly lesser volatility as compared to the benchmark index. The total market capitalisation of the company was recorded at £347.83 million.

 

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK