Earnings announcement of three LSE stocks - Burberry Group Plc, Future Plc and United Utilities Group Plc

The Novel coronavirus is still increasing at a steady rate in the United Kingdom and the rest of the world. However, as per the media report, the UK’s bodily distancing guidance to stay 2 meters from other persons is a protective method. It could change to allow closer contact, according to Public Health England’s top official. Nevertheless, the fight against novel coronavirus is the biggest challenges for the world despite that the London Stock Exchange is showing some optimistic results now a day. Meanwhile, there has been a slew of earnings announcements from different companies, let us discuss the latest earning of three London Stock Exchange-listed companies Burberry Group Plc, Future Plc and United Utilities Group Plc.

Overview of Burberry Group Plc

Burberry Group Plc (LON:BRBY) is an international superfluity goods producers, merchant and retailer. The company has more than 10K staffs globally. The company designs and trades products under the brand of Burberry. The company’s design process starts at the head office in London, and creative teams work throughout accessories menswear, womenswear and children wear.

BRBY – Financial Highlights

On 22^nd May 2020, the company declared preliminary results for the 52 weeks ended 28th March 2020.

(Source: Company Website)

• Comparable sales decreased by 27 per cent in the fourth quarter of FY2020, with about 60 per cent of retail stores shut at the end of March 2020.
• The company’s sales (year to date) in Korea and Mainland China are already ahead as compared to the previous year and continue to show an improving trend.
• Before the novel coronavirus epidemic, the company has seen robust momentum in brand, product and sales provided. However, the performance of the company has been ahead of the prior anticipations.
• Free cash flow decreased to £66 million during the FY2020 (2019: £301 million) because of lower profit, improved capital investments, faster timing of UK tax payments due to new HMRC rules and working capital expenditures.
• For sheltering the future cash position, the Full-year dividend decreased by 73 per cent to 11.3 pence (2019: 42.5 pence).
• In March 2020, the company withdrew revolving credit facility. Since the year-end, under the UK Government-sponsored COVID Corporate Finance Facility (CCFF), the company have also secured finance of £300 million to mid-March 2021.

BRBY – Share Price Performance

(source: Thomson Reuters)

On 22^nd May 2020 at around 00:54 PM GMT, the stock price of Burberry Group Plc is trading at GBX 1,426.50, increased by 3.75 per cent or 51.50 points as compared to the previous day closed price of GBX 1,375.0.

At the time of writing, the average volume, share outstanding and Free float have been reported at 1.26 million, 404.71 million and 401.63 million respectively. The beta was reported at 1.49, which shows the higher volatility of the stock versus the benchmark.

Overview of Future Plc

Future Plc (LON:FUTR) is the international multi-stage media company. The company connects with more than 260 million audiences globally via its expert content, cutting-edge proprietary technology and world-class events. It has more than 1,200 staffs throughout seven offices globally. Its stock trade under the FTSE 250 index on the London Stock Exchange.

FUTR – Financial Highlights

On 22^nd May 2020, the company declared results for the six months ended 31st March 2020.

(source: Company Website)

• As per the company information, the Group achieved a solid first half with adjusted operating profit increased by 77 per cent to £39.9 million (2019: £22.6 million).
• The company's total organic revenue increased by 11 per cent due to continued movement in Media revenues with organic progress of 21 per cent.
• The company remains hugely cash reproductive with the robust adjusted free cash flow of £40.0 million (2019: £27.5 million), which signifies the full percentage of adjusted operating profit (2019: 122 per cent). The novel coronavirus has not impacted the working capital of the company to date.
• The company's acquisition with TI Media finished on 20th April 2020, however incorporation is ongoing.
• The company achieved substantial operating leverage due to the strong growth in adjusted operating profit margin, which has improved from 21 per cent as at 31 March 2019 to 28 per cent this year despite a substantial upsurge in headcount of 27 per cent for year-on-year basis.
• During the period of FY2020, 3.8 million shares (31 March 2019: 353.3K) with a nominal value of £563.3K (31 March 2019: £53,003) were issued by the company to distribute scheme exercises across the period.
• The share premium improved by £99.8 million during the FY2020 to £103.0 million.
• The merger reserve also improved in the period of FY2020 by £30.5 million, with regards to the premium on shares issued as consideration for the acquisition of Barcroft Studios of £9.0 million, and the premium on shares issued to part settle the Mobile Nations contingent consideration of £21.5 million.

FUTR – Share Price Performance

(Source: Thomson Reuters)

On 22^nd May 2020 at around 00:56 PM GMT, the stock price of Future Plc is trading at GBX 1,192.03, increased by 9.16 per cent or 100.03 points as compared to the previous day closed price of GBX 1,092.0.

At the time of writing, the average volume, share outstanding and Free float have been reported at 277.86K, 98.01 million and 93.36 million respectively. The beta was reported at 1.15, which shows the higher volatility of the stock versus the benchmark.

Overview of United Utilities Group Plc

United Utilities Group Plc (LON: UU.) is accountable for wastewater services and water in the North West of the United Kingdom. The company’s objective is to provide excellent water for the North West region. The company offers the water of 200 million litres per day to over 3 million households and industries in the North West. It is handling wastewater which vanishes about the U-bend.

1. – Financial Highlights

On 22^nd May 2020, the company declared full year results for the year ended 31st March 2020.

(source: Company Website)

• The company’s financial support schemes are helping 120K consumers during the period of the novel coronavirus crisis.
• During the FY2020, the company’s revenue increased by £41 million to £1.9 billion, due to permitted regulatory revenue changes.
• Underlying operating profit increased by £59 million to £744 million during the FY2020 due to a £22 million reduction in underlying IRE, the £41 million upsurge in revenue, and a £4 million decline in operating expenses, which was counterbalanced by a £7 million upsurge in underlying depreciation.
• For the year FY2020, the company’s share of Water Plus losses reported to £51 million. Out of which £46 million has been published in the Profit & Loss Account, which consists of £14 million share of Water Plus fundamental losses and £32 million share of Water Plus losses increased due to novel coronavirus.
• As at 31st March 2020, the group has a robust capital structure with a gearing ratio of 62 per cent.
• The board of the company has planned to reward a final dividend of 28.40 pence per ordinary share. The dividend has increased by 3.2 per cent during the FY2020.
• The company set the target to decrease carbon impression by 50 per cent until the year 2020 as compared with a 2005/06 baseline and achieved this target in the year 2019.

1. – Share Price Performance

(Source: Thomson Reuters)

On 22^nd May 2020 at around 00:59 PM GMT, the stock price of United Utilities Group Plc’s is trading at GBX 876.20, declined by 4.97 per cent or 45.80 points as compared to the previous day closed price of GBX 922.0.

At the time of writing, the average volume, share outstanding and Free float have been reported at 1.77 million, 681.89 million and 680.40 million respectively. The beta was reported at 0.53, which shows the lower volatility of the stock versus the benchmark.