Today’s article talks about the earnings performance of two LSE listed companies, i.e. Eurocell Plc and Transglobe Energy Corporation, belonging to the Industrial and Oil & Gas sectors, respectively.
Eurocell Plc (LON: ECEL) is the distributor, recycler and the producer of building products. The company operates through over 190 branches, supplying a large range of window trim, PVC-U roofline, door products and conservatory roof. It provides a wide range of product as compared to its competitors. The shares of the company are listed on the main market of the London Stock Exchange.
ECEL – Financial Highlights
The company has announced its preliminary results for the year ended 31st Dec 2019.
The Pre-IFRS 16 gross margin increased by 170 bps to 51.2 per cent during the year 2019 due to 41 per cent increase in the use of recycled material and an improvement in the selling price. The company recorded strong sales growth by 10 per cent to £279.1 million during the year as compared to £253.7 million in the year 2018.
The overhead of the company also increased by 12 per cent on like for like basis, which includes the impact of extra warehousing/distribution costs and higher volumes. The EBITDA also increased by 5 per cent during the year 2019. Pre-IFRS 16 Adjusted profit before tax increased by 3 per cent to £23.1 million versus £22.5 million in the year 2018.
The Pre-IFRS 16 basic earnings per share increased to 19.7 pence as compared to 19.6 pence in the year 2018, an increase of 1 per cent. Pre-IFRS 16 total dividends per share increased by 3 per cent to 9.6 per share during the year 2019. Pre-IFRS 16 capital investments and Net debt also increased by 6.5 per cent and 11.1 per cent respectively to £15.2 million and £34.6 million in the year 2019.
ECEL – Share price performance
(Source: Thomson Reuters)
On 16th March 2020, at around 09:06 AM (GMT), by the time of writing this report, the stock of Eurocell Plc traded at a price of GBX 207.56 per share on the London Stock Exchange, a decrease in the value of around 3.46 per cent or GBX 7.44 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 215.0 per share.
The share price of Eurocell Plc recorded at GBX 280.0 as on 19th February 2020 was its 1-year peak price, whereas the share price recorded at GBX 196.0 as on 13th September 2019 was the 1-year low share price. The current share price was lower by 25.87 per cent from the 1-year high price, whereas the current share price was higher by 5.89 per cent from the 1-year low price.
The beta of the company’s stock has been reported at a value of 0.46, 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 9.60 per share, and the annual dividend yield was reported to be 4.47 per cent at the time of writing.
At the time of writing, the company’s market capitalisation was reported at GBP 215.72 million with respect to the stock’s current market price. The free float and outstanding shares of Eurocell Plc stood at 97.88 million and 100.34 million, respectively.
Transglobe Energy Corporation
Transglobe Energy Corporation (LON: TGL) is a global oil and gas production and exploration company which focuses on generating cash flow. The current activities of the company concentrate in Alberta, Canada and the Arab Republic of Egypt. It holds 100 per cent working interest in four Production Sharing Concessions in Egypt, i.e. South Ghazalat Concession, West Bakr Concession, North West Gharib Concession and West Gharib Concession. It is listed on London Stock Exchange under Alternative Investment Market.
TGL – Financial Highlights
The company has reported its financial results for the quarter and year ended 31st December 2019.
In the reported year, the company on an average produced 16,041 Boepd, while it sold 14,954 Boepd versus 15,013 Boepd produced and 14,439 Boepd sold in the previous year. It showed 11 per cent increase in production with sale remaining constant.
The Funds flow from operations reduced by 26 per cent to $46.9 million ($0.65 per share) versus $63.3 million ($0.87 per share) in the year 2018. The company reported a net loss of $4.0 million during the year 2019, which comprises a $1.6 million unrealised derivative loss on commodity contracts and non-cash impairment loss on evaluation & exploration assets of $7.9 million.
The company’s long-term debt declined to $37.0 million at the end of the year 2019 as compared to $52.3 million in the year 2018. On exploration and development activities, the company spent around $36.9 million, which were funded via cash flow from operations as well as cash on hand.
The company was able to garner a total proceed of $24 million through a sale of 440 Mbbls of inventoried entitlement crude oil to EGPC in February 2020. The average production was 15.2 Mboepd in January 2020, whereas, for February 2020 too, the average production was reported at 15.2 Mboepd.
TGL – Share Price Performance
(Source: Thomson Reuters)
On 16th March 2020, at around 09:10 AM (GMT), by the time of writing this report, the stock of Transglobe Energy Corporation traded at a price of GBX 52.50 per share on the London Stock Exchange, same as of the previous day closing.
The share price of Transglobe Energy Corporation recorded at GBX 170.0 as on 20th March 2019 was its 1-year peak price, whereas the share price recorded at GBX 52.50 as on 13th March 2020 was the 1-year low share price. The current share price was lower by 69.12 per cent from the 1-year high price.
The beta of the company’s stock has been reported at a value of 2.19, which shows that movement of the share price is highly volatile against the movement in the comparative benchmark index.
The annual dividend yield was reported to be 10.94 per cent at the time of writing.
At the time of writing, the company’s market capitalisation was reported at GBP 38.08 million with respects to the stock’s current market price. The free float and outstanding shares of Transglobe Energy Corporation stood at 55.73 million and 72.54 million, respectively.
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