A Scoop Of Updates From Key FTSE Listed Companies – GLI Finance Limited, Micro Focus International Plc And Glencore Plc

GLI Finance Limited

GLI Finance Limited (LON: GLIF) is a London, United Kingdom based financial services company that provide loans and funding to small and medium enterprises.

GLIF Trading Update

On 4th February 2020, the company announced a trading update for the year ended 31st December 2019. The company’s primary highlight was the continual growth of its asset-backed loan book, which displayed growth of around 19 per cent year on year and was reported at £199 million for the year ended 31st December 2019. The company also mentioned that the growth within the United Kingdom geographical segment has not been up to the mark, but the anticipation is that the growth, spurred by an increase in traction, will increase in 2020, as the company finds more and more adopters of its business model. The company also reported that the revenue for the year ended 31st December 2019 is expected to be somewhere around £13 million, almost in line with the revenue reported for the year ended 31st December 2018 at £13.3 million. The company highlighted that the growth in the loan book did not get converted into growth in the revenue for the period, because of the previously announced strategy of the company of selling down its on-balance sheet exposure of the loan, for the purpose of buying back the shares in ZDP, which in turn had reduced the interest income earned by the company during the period. The company also highlighted that they were able to deliver around £1 million in cost savings primarily due to a reduction in the headcount during the year ended 31st December 2019.

GLIF Stock Price Performance

On 4th February 2020, at around 1:00 P.M (GMT), by the time of writing this report, the stock of GLI Finance Limited was trading at a price of GBX 4.85 per share on the London Stock Exchange market, a decline in the value of around 11.01 per cent or GBX 0.60 per share, as opposed to the price of the stock on the previous trading day, which has been reported to be at GBX 5.45 per share. At the time of writing, the market capitalisation of GLI Finance Limited was GBP 32.69 million with regards to the current market price of the stock.

In the last one year, since February 04, 2019, when the price of the GLI Finance Limited stock was GBX 7.375 per share, the stock has lost 34.24 per cent. The stock has also gained 22.78 per cent in value in the last six months from the price of GBX 3.95 per share at the close of the market on August 05, 2019. The GLI Finance Limited stock had gained approximately 5.43 per cent in value in the last one month since the close of the market on January 03, 2020, when the price of the stock was reported to be at GBX 4.60 per share.

The beta of the stock has been reported at a value of 0.85, representing the fact that the movement of the share price of the company, is less volatile, as opposed to the movement in the comparative benchmark index.

Microfocus International Plc

Microfocus International Plc (LON: MCRO) is the UK based software company that provides software and digital transformation services to businesses across the globe.

MCRO Annual Results

On 4th February 2020, the company reported its annual results for the year ended 31st October 2019. The revenue for the period was reported at a decline of around 7.30 per cent year on year to US $3348.4 million as opposed to US $3613.90 million in FY 2018. Adjusted EBITDA was reported at a decline of 2.60 per cent year on year to US $1362.50 million in FY 2019, as opposed to US $1399.50 million. In terms of the statutory results, the company reported the operating profit for the period at a decline of 41.20 per cent as opposed to the 18 months period ended 31st October 2018. The profit for the period was reported a jump of 87.40 per cent during the period, but this could not be reflected in the calculation of the Basic and Diluted Earnings per share, both of which were reported at a decline of almost 103 per cent period on period to a loss per share of US Cents 4.87 per share, marking an end to a disappointing and difficult year for the company.

 12 months ended 31-10-2019 12 months ended 31-10-2018 Growth
Alternative performance measures from continuing operations1 Â
Revenue (versus CCY comparatives) $ 3,348.4 m $3,613.9m -7.30%
Adjusted EBITDA (versus CCY comparatives) $ 1,362.5 m $1,399.5m -2.60%
    % Adjusted EBITDA margin (versus CCY comparatives) 40.70 % 38.70% 2.0ppt
Adjusted Diluted Earnings per Share ("EPS") - continuing operations 195.89 cents 187.51 cents 4.50%
Net Debt $4,338.5m $4,253.5m 2.00%
Net Debt / Adjusted EBITDA ratio2 3.2x 2.8x (0.4)x
Â
 12 months ended 31-10-2019 18 months ended 31-10-2018 Growth
Statutory results Â
Revenue - continuing operations $3,348.4m $4,754.4m -29.60%
Operating profit - continuing operations $221.7m $376.8m -41.20%
Profit for the period $1,469.1m $784.1m 87.40%
Basic EPS - continuing operations (4.87) cents 181.91 cents -102.70%
Diluted EPS - continuing operations (4.87) cents 176.92 cents -102.80%

Source: Company Website

MCRO Stock Price Performance

On 4th February 2020, at around 1:10 P.M (GMT), by the time of writing this report, the stock of Microfocus International Plc was trading at a price of GBX 807.6 per share on the London Stock Exchange market, a fall in the value of around 18.14 per cent or GBX 178.90 per share, as opposed to the price of the stock on the previous trading day, which has been reported to be at GBX 986.50 per share. At the time of writing, the market capitalisation of Microfocus International Plc was GBP 3.288 billion with regards to the current market price of the stock.

In the last one year, since February 04, 2019, when the price of the Microfocus International Plc stock was GBX 1492.50 per share, the stock has lost 45.89 per cent. The stock has also lost 51.06 per cent in value in the last six months from the price of GBX 1650.20 per share at the close of the market on August 05, 2019. The Microfocus International Plc stock had lost approximately 26.65 per cent in value in the last one month since the close of the market on January 03, 2020, when the price of the stock was reported to be at GBX 1101.00 per share.

The beta of the stock has been reported at a value of 1.78, representing the fact that the movement of the share price of the company, is more volatile, as opposed to the movement in the comparative benchmark index.

Glencore Plc

Glencore Plc (LON: GLEN) is a mining company that engages in the exploration and extraction of various metals and oil products.

GLEN Production update and Board appointment

On 4th February 2020, the company announced a production update for the year 2019. The company mainly highlighted that its own sourced copper production of 1,371,200 tonnes was 82,500 tonnes or 6 per cent lesser than in 2018. The company also reported that its own sourced cobalt production of 46,300 tonnes was 4,100 tonnes or 10 per cent higher than the comparable prior period. The company also reported that the coal production of 139.5 million tonnes was 10.1 million tonnes or 8 per cent more than in 2018. The company also highlighted that during the period, the oil production stood at 139.5 million tonnes, which was approximately 8 per cent higher than in 2018.

On 4th February 2020, the company also announced the appointment of Kalidas Madhavpeddi as an Independent Non-Executive Director, effective as at the time of the announcement.

GLEN Stock Price Performance

On 4th February 2020, at around 1:20 P.M (GMT), by the time of writing this report, the stock of Glencore Plc was trading at a price of GBX 231.05 per share on the London Stock Exchange market, a jump in the value of around 4.26 per cent or GBX 9.45 per share, as opposed to the price of the stock on the previous trading day, which has been reported to be at GBX 221.60 per share. At the time of writing, the market capitalisation of Glencore Plc was GBP 29.526 billion with regards to the current market price of the stock.

In the last one year, since February 04, 2019, when the price of the Glencore Plc stock was GBX 301.75 per share, the stock has lost 23.43 per cent. The stock has also lost 1.68 per cent in value in the last six months from the price of GBX 235.00 per share at the close of the market on August 05, 2019. The Glencore Plc stock had lost approximately 4.39 per cent in value in the last one month since the close of the market on January 03, 2020, when the price of the stock was reported to be at GBX 241.65 per share.

The beta of the stock has been reported at a value of 2.01, representing the fact that the movement of the share price of the company, is more volatile, as opposed to the movement in the comparative benchmark index.

Comparative Share Price Chart of GLIF, MCRO and GLEN

Source: Thomson Reuters, on 03-Feb-2020, before the close of the London Stock Exchange market

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