A Quick Update On Thomas Cook Group Plc, Taylor Whimpey Plc And Intertek Group Plc

A Quick Update On Thomas Cook Group Plc, Taylor Whimpey Plc And Intertek Group Plc

Thomas Cook Group Plc (LSE: TCG)

Thomas Cook Group PLC (TCG) is a UK based integrated travel and tourism company. It is amongst the top travel companies worldwide having operations in 16 countries. The company owns 105 aircraft, 200 hotels and resorts and has an employee base of 21,000 professionals who cater to the needs of 22 million customers. On June-19-2007, the group got listed on the main market of the London Stock Exchange. The company is a key constituent of the indices like FTSE Small-Cap and FTSE AllSmall. Jupiter Asset Management Ltd., Marathon Asset Management LLP, Orbis Investment Management Ltd., Capital Guardian Trust Co. and BlackRock Investment Management (UK) Ltd. are the major institutional investors in the company. (Source: TR)

Through an exchange filing made by the company as on July 12, 2019, the group reported that it is in advanced talks with its largest shareholder-Fosum Tourism Group and with its core bankers for substantial recapitalization of the company. Under the arrangement, the group is targeting to inject fresh capital of £750m to strengthen its liquidity position, to trade in the winter season of FY19-20 and to provide financial flexibility to invest in the business for the future.

Interim Performance – (H1FY10, for the period ended March 31, 2019)

In the first half of the FY19 ended 31st March 2019, the company's reported revenues were £3,019 million against £3,227 million in H1 2018. The revenues declined by £208 million due to the impact of currency movements and transition to IFRS 15. The underlying Gross profit stood at £599 million in H1 FY2019 versus £672 million in H1 FY2018 and underlying gross margin for the period was 19.8 per cent. The underlying EBIT loss was up by £76 million (£65 million on Like-for-like basis) to £245 million in H1 FY2019 from a loss of £170 million in H1 FY2018. The loss from operations stood at £1,386 million in H1 FY2019 versus a loss of £215 million in H1 FY2018. Loss before tax for H1 FY2019 increased by £1,153 million to £1,456 million from a loss of £303 million in H1 FY2018. In H1 FY2019, the company’s tax expenses were of £18 million against tax rebate of £48 million in H1 FY2018. The loss for the period for H1 FY2019 increased by £1,219 million from a loss of £255 million in H1 FY2018 to a loss of £1,474 million in H1 FY19. The net debt was up by £361 million to £1,247 million in H1 FY2019 from £886 million in H1 FY2018.

Stock Performance

Daily price chart (as on August 06, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (before the market close, at 09:29 AM GMT), shares of the TCG were quoting at GBX 12.96 and added 5.2% against the previous day closing price. Shares of the TCG have registered a 52-week high of GBX 91.85 and a 52-week low of GBX 4.29 respectively and at the current trading level, the stock was quoting at a steep discount against the 52-weeks highs reflecting a downtrend in stock price. Also, the stock was quoting substantially below its 200-day simple moving average price, which again is a bearish technical measure. On a Y-o-Y basis, the stock has delivered a negative price return of approximately 86.06% and was down by approximately 60% on a YTD basis. However, in the past five trading sessions, the stock has surged approximately 156.62% post announcement of its recapitalization plan.

Taylor Whimpey Plc (LSE: TW)

Taylor Wimpey PLC is a United Kingdom-based residential housing developer which operates at a regional level from 24 local offices across the country. It is one of the UK's largest residential developers and builds a wide range of properties, within a broad price range. The company's operations are differentiated in two geographical segments: The Housing United Kingdom and Housing Spain. As on March-07-1947, the company got listed on the main market of the London Stock Exchange. The company is a key constituent of the broader indices like FTSE 100 and FTSE 350.

Interim Results- (H1FY19)

In the First half of the financial year 2019, the company's revenue was up by 0.8 per cent to £1,732.7 million as against £1,719.8 million in H1 FY2018. In H1 FY2019, the company completed 6,541 homes versus 6,497 homes in H1 FY2018. The company's operating profit declined by 9.4 per cent from £344.3 million in H1 FY2018 to £311.9 million in H1 FY2019. The decline in operating profit was driven by an increase in build costs and geographic mix. The company's PBT (Profit before tax) stood at £299.8 million in H1 FY2019 versus £301.0 million in H1 FY2018. The Profit for the period was at £242 million in H1 FY2019 as against £244.5 million in H1 FY2018. The company's basic earnings per share was 7.4 pence in H1 FY2019 versus 7.5 pence in H1 FY2018.

Stock Performance

Daily price chart (as on August 06, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (before the market close, at 09:30 AM GMT), shares of the TW were quoting at GBX 147.20 and declined marginally against the previous day closing price. Shares of TW have registered a 52-week high of GBX 180.51 and a 52-week low of GBX 119.71 respectively, and at the current trading level, its shares were quoting approximately 18% below its 52-week high and approximately 23% above its 52-week low prices. On a YTD basis, the stock has delivered a price return of approximately 15.49%; however, plunged more than 15% in the past five trading sessions. Also, at the current trading level, shares were quoting considerably below its 30-day and 60-day simple moving average prices, which indicate a short-term downtrend in the stock. Also, at the current trading level, the dividend yield of the company stood at 5.18%, though higher dividend yield is partially on account of a steep plunge in the stock price in the past couple of trading sessions. The outstanding market capitalization of the company stood at £4.83 billion, which ranks it among the large-cap companies listed on the London bourse.

Intertek Group Plc (LSE: ITRK)

Intertek Group PLC (ITRK) is a London-headquartered Total Quality Assurance provider to industries worldwide. The company provides Assurance, Testing, Inspection and Certification services through industry-leading technologies and a global network of state-of-the-art facilities. The group has a presence in more than 100 countries, covering 1,000 locations which employ more than 44,000 personnel. The 'group's operations are organized into three business segments: Products, Trade and Resources. As on May-29-2002, it got listed on the main market of the London Stock Exchange.

Interim Results – (H1 FY19)

During the period under consideration (H1 FY19), the group's revenue increased by 4.9% (at constant currency basis) to £1.442bn and recorded a growth of 7.0% on actual basis from the same period the previous year. The group's products segments recorded organic growth of 2.1% on a Y-o-Y basis, Trade segment revenue were up by 5.1% and its resources arm recorded organic growth of 3.5% on a Y-o-Y basis. The group's 1.9% revenue growth came from acquisitions made during the year. During the year under review, adjusted operating profit increased by 6.8% on a constant currency basis and was up by 7.9% on actual basis. Sequential adjusted operating margin improved by 30bps on a constant currency basis and by 7.2% on an actual basis. The group recorded robust diluted earnings per share growth of 6.0% at a constant rate and 7.2% at an actual basis. In the first half of 2019, the company announced an interim dividend of 34.2pence per share, which was 7.2% above the dividend announced in the year-ago period.

Stock Performance

Daily price chart (as on August 06, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing (before the market close, at 09:32 AM GMT), shares of the ITRK were quoting at GBX 5,372 and declined approximately 1.10% in day's session. The stock has registered a 52-week high price of GBX 5,9982 and a 52-week low price of GBX 4,323.0, respectively. On a YTD basis, its shares have delivered a price return of 13.2%, however, the stock was down by approximately 5.22% in the past five trading sessions. At the current trading level, the dividend yield of the company stood at 1.87%, and the outstanding market capitalization of the group stood at £8.77 billion respectively.

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