Earnings Synopsis Of Two FTSE AIM All-Share Index Stocks – JIM And SIR

In this earnings season, we are going to discuss two FTSE AIM All-Share index stocks, i.e. Jarvis Securities Plc and Secure Income REIT Plc. These two stocks belong to Real Estate Investment Trusts and Investment Banking & Brokerage Services sectors, respectively.Â

Jarvis Securities Plc

Jarvis Securities Plc (LON:JIM) has been delivering outsourced and retail financial services since the year 1984. The company incorporated in Wales and England mainly operates in the UK through various retail stockbroking brands. It is listed on London Stock Exchange and trades on the FTSE AIM All-Share index.

JIM - Financial Highlights

On 12th March 2020, the company announced financial results for the full year ended 31st December 2019.

The company’s gross revenue increased to £10.5 million in the year 2019 as compared to the prior year. Components of the gross revenue, Gross interest earned from treasury deposits, cash at bank and overdrawn client, commissions and fees were reported at £4.2 million, £3.3 million and 2.96 million, respectively during the year 2019.

The profit before tax increased by 11.63 per cent to £4.8 million versus £4.3 million in the year 2018. The interest income increased by 4 per cent on year on year basis.

The profit of the company increased to £3.9 million in the year 2019 as compared to £3.5 million in the year 2018. Basic and diluted earnings per share increased to 35.82 pence versus 31.79 pence in the year 2018.

During the year 2019, the company paid Additional special dividend of 15 pence per share. The company’s dividend per ordinary share increased to 41.25 pence per share versus 24.5 pence per share in the year 2018.

During the year the company charged £3.8 million to Jarvis Investment Management Limited for the use of intellectual properties (2018: £3.7 million).

JIM – Outlook

The company has presented robust midyear results and now a record-breaking year in 2019, even though there was uncertainty during the year due to the political environment. The management has stated that the group has adequate resources to continue in operational existence for the foreseeable future, even though the trade volumes declined in year on year basis to 31st Dec 2019.

JIM – Share Price Performance

 (Source: Thomson Reuters)

On 13th March 2020, at around 11:16 AM (GMT), by the time of writing this report, the stock of Jarvis Securities Plc traded at a price of GBX 438.12 per share on the London Stock Exchange, a decrease in the value of around 1.32 per cent or GBX 5.88 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 444.0 per share.

The share price of Jarvis Securities Plc recorded at GBX 502.62 as on 28^th November 2019 was its 1-year peak price, whereas the share price recorded at GBX 416.70 as on 28^th Jun 2019 was the 1-year low share price. The current share price was lower by 12.83 per cent from the 1-year high price, whereas it was higher by 5.14 per cent from the 1-year low price.

The beta of the company’s stock has been reported at a value of 0.27, which shows that movement of the share price is less volatile against the movement in the comparative benchmark index.

The annual dividend of the company was reported at GBX 27.0 per share, and the annual dividend yield was reported to be 6.08 per cent at the time of writing.

At the time of writing, the company’s market capitalisation was reported at GBP 48.52 million with respect to the stock’s current market price. The free float and outstanding shares of Jarvis Securities Plc stood at 3.98 million and 10.93 million, respectively.

Secure Income REIT Plc

Secure Income REIT Plc (LON:SIR) is the UK based Real Estate Investment Trust. The company has designed its investment strategy to fulfil the inflation protected, safe and high-quality income return. The Group's portfolio includes vital operating holdings let to strong businesses in more stable sectors with high entry barriers.

SIR - Financial Highlights

On 12th March 2020, the company announced the financial result for the year ended 31st December 2019.

The company reported a 7.6 per cent of growth in EPRA Net Asset Value per share. The dividend per share also increased by 17.3 per cent to 16.3 pence as compared to the prior year.

The profit increased to £153.4 million in the year 2019 as compared to £147.5 million in the year 2018. In contrast, the basic and diluted earnings per share decreased to 47.5 pence in the year 2019 as compared to 48.9 pence in the year 2018.

The company’s Net Loan to Value ratio decreased by 26.0 per cent to 31.9 per cent from 43.0 per cent in the year 2018. The Net assets increased by 8.0 per cent to £1,384.5 million as compared to £1,281.6 million in the year 2018.

The uncommitted cash increased significantly by 350 per cent to £234.2 million during the year as compared to £66.4 million in the year 2018. Annualised passing rent (like for like) increased to £110.7 million versus £108.5 million on like for like basis.

The total accounting return decreased by 1.7 per cent to 11.7 per cent during the year as compared to the prior year. In contrast, total shareholder return increased significantly by 134 per cent to 19.4 per cent during the year as compared to the prior year.

SIR – Impact of coronavirus

The company posted another strong set of numbers, with robust uncommitted cash, the company’s net leverage was at its lowest ever level. The company stated that it is still not clear how long the coronavirus effect will persist. Though, the company expects that robust branded businesses are creating tenant base, together with the key operating assets, though the company has expressed its confidence that it will turn out just as attractive to investors once the virus has gone, as they were before.

SIR – Share Price Performance Â

On 13th March 2020, at around 11:39 PM (GMT), by the time of writing this report, the stock of Secure Income REIT Plc traded at a price of GBX 381.0 per share on the London Stock Exchange, an increase in the value of around 8.86 per cent or GBX 31.0 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 350.0 per share.

The share price of Secure Income REIT Plc recorded at GBX 476.0 as on 10^th February 2020 was its 1-year peak price, whereas the share price recorded at GBX 348.0 as on 12^th March 2020 was the 1-year low share price. The current share price was lower by 19.95 per cent from the 1-year high price, whereas the current share price was higher by 9.48 per cent from the 1-year low price.

The beta of the company’s stock has been reported at a value of 0.78, which shows that movement of the share price is less volatile against the movement in the comparative benchmark index.

The annual dividend of the company was reported at GBX 16.53 per share, and the annual dividend yield was reported to be 3.98 per cent at the time of writing.

At the time of writing, the company’s market capitalisation was reported at GBP 1.34 billion with respects to the stock’s current market price. The total expense ratio and outstanding shares of Secure Income REIT Plc stood at 1.27 per cent and 322.85 million, respectively.