The equity markets are volatile in nature. They fluctuate every day with changes in political, economic, social and cultural factors related to the business or the market.
Below we have discussed four stocks- EQLS, GROW, WGB and OTB, out of which two stocks have shown positive changes in their earnings, while two have shown negative changes. Let's have a close look at the factors affecting these stocks.
Equals Group PLC (LON: EQLS)
Belonging to the financial sector, Equals is a leading provider of foreign exchange payment services. It serves its customers by providing products such as international payments, corporate expenses, current accounts, credit facilities, currency cards and travel cash.
On June 29, 2020, the company declared its preliminary results for the year ending March 31, 2020. The group's revenue increased by 19 percent from GBP 26.1 million in 2019 to GBP 30.9 million in 2020. Gross profit for the year was recorded at GBP 20.6 million (2019: GBP 17.5 million), increasing by 17.7 percent and the adjusted profit also rose to GBP 9.1 million in 2020, up by 21.3 percent (2019: GBP 7.5 million). Loss after tax was reported to be GBP 5.4 million.
Two significant companies, namely, Hermex and Casco, were acquired by the group in August and November 2019 respectively and integrated thereafter. Rebranding of the group took place from FairFX to Equals Group. B2B and retail banking segments proved to be reliable, while B2C segment was affected by the Covid-19 pandemic. Actions were taken to reduce the cost. Expenses worth GBP 15.6 million were incurred for the purpose of expansion. Cash position remained secured and stood at GBP 7.7 million as there were no bank borrowings. Investments were made to strengthen the technical infrastructure along with product improvements.
Equals Group PLC (LON: EQLS) stock was trading at GBX 30.00 on June 30, 2020, at 11:19 AM, down by 0.83 per cent from its previous close of GBX 30.25. The current stock price was reported to be 30.83 per cent higher than the 52-week low price, which was GBX 20.75 and 333.33 per cent lower than the 52-week high price, which was GBX 130.00. It was having a market capitalisation (Mcap) of GBP 54.03 million. The volume traded at the time of reporting was 2,340,759. The company recorded a negative return on price, which was 64.41 per cent on an YTD (Year to Date) basis.
Draper Esprit PLC (LON: GROW)
Draper Esprit is a venture capitalist firm in the UK, investing in technology companies across Europe. The key sectors in which the company invests into are consumer & enterprise technology, digital health & wellness, and hardware & deep tech sectors. The core portfolios of Draper are Aircall, Aiven, Finalcad, Graphcore, ICEYE, Ledger, M-Files, Peak, Perkbox, Ravenpack, Revolut, Smava, Thought Machine, TransferWise, TransferWise, and UiPath.
On June 29, 2020, the company declared its final results for the year ending March 31, 2020. The gross portfolio value of the group increased by 18 percent to GBP 703 million. NAV per share increased by 6 percent to 555p and cash realised was GBP 40 million with further exits amounting to approximately GBP 80 million announced post-year-end. Profit after tax amounted to GBP 40 million. The group depicted a robust financial position because steps to safeguard employees, investments and monitoring the liquidity of the company was taken quickly after the outbreak of Covid-19.
Draper Spirit PLC (LON: GROW) stock was trading at GBX 464.00 on June 30, 2020, at 11:21 AM, up by 3.34 per cent from its previous close of GBX 449.00. The current stock price was reported to be 42.03 per cent higher than the 52-week low price, which was GBX 269.00 and 29.74 per cent lower than the 52-week high price, which was GBX 602.00. It had a market capitalisation (Mcap) of GBP 533.94 million. The volume traded at the time of reporting was 289,941. The company recorded a negative return on price, which was 7.04 per cent on YTD (Year to Date) basis.
Walker Greenbank PLC (LON: WGB)
Walker Greenbank is a luxury interior furnishing company. The activities of the company involve designing, manufacturing, marketing and distribution of wall coverings and furnishing fabrics. The portfolio companies comprise of Zoffany, Sanderson, Morris & Co, Harlequin, Clarke & Clarke and Scion. Its products are sold to over 85 countries all over the world.
On June 30, 2020, the company declared its final result for the financial year ending on March 31, 2020. The revenue for the company decreased from GBP 113.3 million in 2019 to GBP 111.5 million 2020 because the Morris & Co. and Clarke & Clarke brands and digital fabric printing faced an offset by a problematic marketplace in the UK. Still, there was significant growth in the core licensing income rising by 13.9 percent. The adjusted profit tax was recorded at GBP 7.4 million (2019: GBP 9.5 million), as expected by the management. The adjusted underlying EPS of the company was 9.26 p.
There was a change in the management with the appointment of Michael Williamson as a chief financial officer. The covid-19 pandemic affected the fabric and wallpaper printing factories together with showrooms in the UK, New York and Paris remained closed, and the staffs were furloughed. Non-essential capex was suspended, and cost-cutting decisions were taken, including not to propose the final dividend.
Walker Greenbank PLC (LON: WGB) traded at GBX 38.00 on June 30, 2020, at 11:25 AM, up by 4.11 per cent from its previous close of GBX 36.50. The current stock price was reported to be 27.63 per cent higher than the 52-week low price, which was GBX 27.50 and 139.47 per cent lower than the 52-week high price, which was GBX 91.00. It was having a market capitalisation (Mcap) of GBP 25.91 million. The volume traded at the time of reporting was 339,112. The company recorded a negative return on price, which was 57.80 per cent on an YTD (Year to Date) basis.
On the Beach Group PLC (LON: OTB)
On the Beach Group is an online travel agent based in the UK. The company is divided into two segments - core segment operating through the United Kingdom Website and International segment operating through Swedish Website. The company works as an online platform, providing a range of flights and hotel products booking.
The company announced its results on 30 June 2020 for HY20 ending 31 March 2020. The total revenue of the group declined by 17 percent to £52.8 million due to cancellation of projects and reduction in demand because of the pandemic effect. Before the Covid-19 scenario, the group was doing well during the months of October 2019 to January 2020. Decline in consumer demand and increase in offline marketing led to a decrease in the adjusted profit before tax to GBP 2.3 million. The total exceptional cost recorded for the period was GBP 34.7 million, which represents the estimated cost of COVID-19 to trading. This includes cancellations or expected cancellations and associated administrative expenses.
On the Beach Group PLC (LON: OTB) on June 30, 2020, at 11:30 AM GMT, was trading at GBX 296.00, down by 1.99 per cent from its previous close of GBX 302.00. The current stock price was reported to be 52.70 per cent higher than the 52-week low price, which was GBX 140.00 and 68.72 per cent lower than the 52-week high price, which was GBX 499.40. It was having a market capitalisation (Mcap) of GBP 475.23 million. The volume traded at the time of reporting was 251,111. The company recorded a negative return on price, which was 38.27 per cent on YTD (Year to Date) basis.