Business Performance Updates Of Two AIM-listed Stocks: COG and SFE

  • Sep 23, 2019 BST
  • Team Kalkine
Business Performance Updates Of Two AIM-listed Stocks: COG and SFE
Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC (COG) and its subsidiaries build and commercialise computerised neuropsychological tests for sale, mainly in the United States, the United Kingdom, and Europe. The operations of the group are differentiated in three core operating segments, namely Academic Research, Healthcare Technology, and Pharmaceutical Clinical Trials. The group is a supplier of substantiated touchscreen cognitive evaluations for clinical trials. The company also provides Cantab Insight for dementia evaluation in secondary care.

COG-Financial Highlights for H1 FY19

On 19th September 2019, the company released its interim results. In the first half of 2019, the company’s revenue reduced by 21.1 per cent to £2.17 million as compared with the corresponding period of the last year, due to a decrease in total software and services revenue of 21.7 per cent but increase in hardware revenue of 33.3 per cent. The decrease in revenue and accelerated planned research and development spending were the main contributors to a lower EBITDA performance. Reported EBITDA loss increased to £1.66 million against the loss of £0.99 million in H1 FY18. Losses before tax stood at £1.74 million against the loss of £1.02 million in H1 FY18. The reported loss per share increased to 7.7 pence as compared to a loss of 5 pence in H1 FY18. As on 30th June 2019, company’s cash balance was £2.06 millionNet cash outflow from operations stood at £1.29 million.

Trading in other segments of the business remained tough, leading to a decrease in the overall revenues. The management expects the revenues for the year ending 31 December 2019 to be around £5.50 million.

The group has now turned its focus to different drug classes for safety testing, however it will take time for revenues from these new segments followed by various high-profile clinical trial failures.

The company’s revenue declined in the first half of 2019, and the profitability margins remained stagnant or declined. The company’s bottom-line performance has remained in the negative zone for the current period. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors.

COG-Share price performance

Daily Chart as on 23-September-19, before the market closed (Source: Thomson Reuters)

On 23rd September 2019, while writing at 03:11 PM GMT, Cambridge Cognition Holdings PLC shares were clocking a current market price of GBX 28.90 per share; which was more by 9.05 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £6.41 million at the time of writing.

On 21st September 2018, the shares of COG have touched a new peak of GBX 137 and reached the lowest price level of GBX 23.92 on 12th September 2019 in the last 52 weeks. The company’s shares were trading at 78.90 per cent lower from the 52-week high price mark and 20.81 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 10,993 at the time of writing before the market close. The company’s 5-day stock's average traded volume was 47,169.00; 30 days average traded volume- 71,234.50 and 90 days average traded volume – 45,284.02. The volatility of the company’s stock was 5 per cent higher as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 1.05.

The shares of the company have delivered a negative return of 61.87 per cent in the last quarter. The company’s stock plunged by 68.07 per cent from the start of the year to till date. The company’s stock has given investors 80.73 per cent of a negative return in the last year. 

Safestyle UK PLC

United Kingdom-based Safestyle UK Plc (SFE) is involved in the business of retailing and manufacturing PVCu. The company is dealing in windows and doors PVCu to the homeowner replacement market. The company was incorporated in the year 1992 and has become the UK’s largest company in window and door replacement market. The company carried over 59,500 installations and manufactured over 265,000 frames in the year 2017.

SFE-Financial Highlights for H1 FY2019

On 19th September 2019, the company released its interim results. In the first half of 2019, the company’s revenue increased by 6.4 per cent to £64.41 million as compared with the corresponding period of the last year, due to the rise in average frame price, partly offset by marginally higher consumer finance subsidy costs and lower volumes. Gross profit surged by 14.2 per cent to £16.64 million against the £14.57 million in H1 FY18, driven by the surge in revenue along with decreased costs over access solutions, commissions, and installation‐related materials. While gross margin increased by 177 bps to 25.8 per cent as compared to 24.1 per cent in H1 FY18. Underlying loss before taxation decreased by 75.7 per cent to £0.83 million against the loss of £3.41 million in H1 FY18. Reported loss before taxation stood at £2.48 million against the loss of £5.65 million in H1 FY18. Basic loss per share decreased by 50.9 per cent to 2.8 pence against the loss of 5.7 pence in H1 FY18. Net Debt/ cash was negative £0.64 million in H1 FY19 versus positive £4.58 million in H1 FY18. In the current period, net cash inflow was £1.2 million (H1 FY18: outflow of £6.4 million).

The company continues to improve its operational key performance indicators (KPIs) and margins as compared with the previous year and has delivered good growth in H1 FY19. The company anticipates an additional surge in profitability in Q3 and Q4 of the financial year 2019. The company anticipates a slight underlying loss before taxation of £0.5 million for the financial year 2019.

The company announced that its forecasted profits would be below the current expectations due to a surge in legal expenses and labour cost.

The company operates in a competitive market and is exposed to the UK’s economic performance. The company operates in an industry with low barriers to entry and exit for new competitors, which can disrupt the market locally.

The company’s operations are impacted by the uncertainty created by the Brexit, which will affect the company’s supply chain and increase input costs. The company operates in a highly regulated market and with breach of regulations, the business could face financial or existential consequences.

SFE-Share price performance

Daily Chart as on 23-September-19, before the market closed (Source: Thomson Reuters)

On 23rd September 2019, while writing at 03:18 PM GMT, Safestyle UK Plc shares were clocking a current market price of GBX 50.2 per share; which was less by 8.22 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £45.46 million at the time of writing.

On 7th November 2018, the shares of SFE have touched a new peak of GBX 97.64 and reached the lowest price level of GBX 46.69 on 15th August 2019 in the last 52 weeks. The company’s shares were trading at 48.58 per cent lower from the 52-week high price mark and 7.51 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 103,760 at the time of writing before the market close. The company’s 5-day stock's average traded volume was 70,001.60; 30 days average traded volume- 52,164.03 and 90 days average traded volume – 128,578.96. The beta of the stock was negatively correlated in comparison to the market index.

The shares of the company have delivered a negative return of 18.72 per cent in the last quarter. The company’s stock plunged by 35.87 per cent from the start of the year to till date. The company’s stock has given investors 9.40 per cent of a positive return in the last year. 

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