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Last month, Financial Conduct Authority (FCA) of UK had requested all listed companies to adhere a freeze on the publication of preliminary financial statements for at least 2 weeks. However, lots of companies have announced their final results. Here, we are going to discuss the financial highlights, impact of COVID-19 and share price performance of three companies. SDL Plc, Silence Therapeutics Plc and MHP SE, these three companies belong to Software & Computer Services, Pharmaceuticals & Biotechnology and Food Producers sectors, respectively.
Overview of SDL Plc
SDL Plc (LON:SDL) has been providing language and content management solutions for over the last twenty-five Years to various international Brands. SDL supports businesses to create essential content by leveraging digital technology and human expertise. The company prides to have ninety out of 100 top global brands working with it.
SDL – Financial Highlights
On 14th April 2020, the company announced its final result for the year ended 31st December 2019.
(Source: Company website)
- During the year 2019, Group revenue increased by 16.4 per cent to £376.3 million. The increase was of 13.8 per cent on a constant currency basis and 5.3 per cent on a pro forma basis. The growth in revenue was primarily due to the DLS acquisition and constant progress within the primary business. All segments in the company delivered strong improvement in revenues on a year-on-year basis.
- Adjusted operating profit increased to £37.2 million. On a like-for-like basis, the Adjusted operating profit pre-IFRS 16 increased to £35.6 million during the year 2019.
- During the year 2019, the cost-saving programme contributed £5.9 million saving, while yearly savings was of £8.5 million.
- The profit after tax increased by 32.4 per cent to £19.6 million due to progress in the Language Services business, which consists of yearly contribution of the DLS acquisition.
- As at 31st December 2019, the Group’s cash increased to £26.3 million with no borrowings.
- The group has in place a five-year £120 million revolving credit facility which will expire on 19th July 2023, out of which £70 million is committed, and rest is uncommitted.
- During the year 2019, basic earnings per share increased by 25.6 per cent to 21.6 pence. Whereas, adjusted basic earnings per share increased by 13.8 per cent to 28.1 pence.
- The weighted average number of shares increased to 90.8 million, due to the equity introduction to funding the DLS acquisition through the year 2018.
Impact of COVID- 19
The company has stated that it is taking the necessary steps to control short-term cost. It is also working on improving working capital so that it will continue to operate normally for the long term. This initiative consists of reducing operational and capital expenditures and enhancing cash flows. However, the company is facing operational uncertainty due to the novel coronavirus epidemic, and in view of this, the company has decided not to recommend a final dividend for the year 2019.
SDL – Share Price Performance
On 14th April 2020, around 11:10 AM GMT, SDL Plc’s stock was trading at a price of GBX 457.04 on the London Stock Exchange, up by GBX 34.04 or 8.05 per cent as compared to GBX 423.0, the previous closing price on 09th April 2020.
The stock’s one-year high price was recorded on 03rd February 2020 at GBX 640.00 per share while its one-year lowest price was reported on 06th April 2020 at a price of GBX 367.00 per share.
Silence Therapeutics Plc
Silence Therapeutics Plc (LON:SLN) is a prominent medicine company engaged in the innovation, growth and distribution of new generation RNA therapeutics to cure serious diseases. The company’s management team is exceptionally knowledgeable coming from varied sectors, ranging from molecular biology and genetics to finance and investment banking.
SLN – Financial Highlighted
On 14th April 2020, the company published its final results for the year ended 31st December 2019.
- During the year 2019, the net cash inflow increased by £1.7 million as compared to £16.8 million outflows during the year 2018. The improvement was due to earnings from Mallinckrodt totalling $22 million, though was counterbalanced by increased expenses on SLN360 and SLN124.
- The company’s loss increased to £19.6 million (2018: £18.4 million) due to additional development and research expenditure with regards to SLN360 and SLN124. However, it was counterbalanced by a reduction in general and admin expenditures.
- On 25th March 2020, the company declared a partnership with AstraZeneca to develop and discover siRNA therapeutics. For this, AstraZeneca invested an amount of $20 million in the equity of the company with an additional $60 million of cash.
- For the year 2019, the company reported a loss of £0.1 million because of foreign exchange activities on Euro cash balances.
- Due to increased payables and accruals with regards to contract research organisation expenses, the other payables and current trade improved to £6.9 million as at 31st December 2019 as compared to £3.8 million as at 31st December 2018.
- During January 2020, the company established a subsidiary in the United States of America “Silence Therapeutics Inc.” which will help its operation by increased attention on the United States.
Impact of COVID-19
The company has informed that the group is aware of the impact of novel coronavirus on operations and is continuously taking necessary action to maintain the company’s assets and is looking after the fitness & safety of the staffs.
SLN – Share Price Performance
On 14th April 2020, around 11:10 AM GMT, Silence Therapeutics Plc’s stock was trading at a price of GBX 451.68 on the London Stock Exchange, up by GBX 9.68 or 2.19 per cent as compared to GBX 442.0, its previous closing price on 09th April 2020.
The stock’s one-year highest price was recorded on 25th March 2020 it GBX 646.50 per share while its one-year lowest price was reported on 07th June 2019 at a price of GBX 41.18 per share.
MHP SE
MHP SE (LON:MHPC) is a leader in agro-industrial group with major operational focus on Ukraine. It is the world leader in the field of poultry farming as well as a prominent producer of the Ukrainian meat market. The company’s aim is to generate robust, strong growth throughout all business segments.
MHPC – Financial Highlights
On 14th April 2020, the company released its financial results for the Q4 and year ended 31st December 2019.
(Source: company websites)
- For the fourth quarter of 2019, the revenue of the company increased by 43 per cent to US$ 551 million year-on-year basis.
- Export revenue was 57 per cent of total revenue, i.e. US$ 316 million as compared to US$ 263 million, i.e. 68 per cent of total revenue in the Q4 2018.
- The annual revenue increased by 32 per cent to US$ 2,056 million year-on-year, because of the surge in vegetable oils, poultry meat sales, and convenience food, Perutnina Ptuj also supported the growth.
- During the full year 2019, the operating profit decreased by 31 per cent to US$ 216 million year-on-year, whereas operating margin dropped from 20 per cent to 11 per cent.
- For the year 2019, the Net profit increased to US$ 215 million, compared to a profit of US$ 128 million during the year 2018.
- Poultry production volumes improved by 18 per cent to 728,917 tonnes during the year 2019. However, the average chicken meat price fell by 5 per cent year-on-year to UAH 38.06 per kilogram, without Value Added Tax.
Impact of COVID-19
During the first quarter of the year 2020, the novel coronavirus Pandemic as well as an epidemic of H5N1 avian influenza in the Vinnytsia region of Ukraine, caused a short-term termination of exports from Ukraine to the Saudi Arabia, European Union, and other MENA markets and CIS countries, which likely to show negative effect MHP’s financial results for the year 2020.
MHPC – Share Price Performance
On 14th April 2020, around 11:15 AM GMT, MHP SE’s stock was trading at a price of USD 6.30 on the London Stock Exchange, down by USD 0.10 or 1.56 per cent as compared to USD 6.40, its previous closing price on 09th April 2020.
The one-year highest price of the stock’s was recorded on 25th April 2019 with USD 11.95 per share while its one-year lowest price was reported on 17th March 2020 at a price of USD 5.44 per share. As on 14th April 2020, the company’s annual dividend yield stood at 11.68 per cent.
Disclaimer
The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.
