FTSE Stocks in Focus: BWNG, DLAR & TPK

  • Dec 03, 2019 GMT
  • Team Kalkine
FTSE Stocks in Focus: BWNG, DLAR & TPK

N Brown Group PLC

N Brown Group Plc (LON: BWNG) is the UK clothing & footwear digital retailing company which is considered among the top 10 retail companies. It offers a wide variety clothing, footwear and homewares, and Financial Services. The company headquarters is in Manchester and it employs over 2,400 people across the UK. The company helps the customers with financing solutions through a range of convenient delivery options.

News Update

On 17th October 2019, the company-sponsored “Women in Data UK’s Twenty” in Data & Technology 2019 campaign. This campaign helped the female and gender diverse data professionals to contribute their technical knowledge and experiences and to encourage more diverse participation in the industry.

Financial Performance

On 10th October 2019, the company published a press release to announce its half-year results for the six months ended 31st August 2019; the group revenue stood at £432.9 million in H1 FY2019 as compared to £457.8 million in H1 FY2018, a decrease of 5.4%. The statutory operating profit increased to £14.7 million in H1 FY2019 in comparison to the loss of £28.3 million in H1 FY2018, an increase of 151.9%. Additionally, the adjusted EBITDA increased by 4.0% to £54.1 million in H1 FY2019 as against £52.0 million in H1 FY2018.

The adjusted EPS increased by 6.0% in H1 FY2019 to 8.87p as compared to 8.37p in H1 FY2018. The overall net debt stood at £481.6 million as on 31 August 2019 as compared to £420.5 million as on 1 September 2018, an increase of 14.5%.

(Sources: LSE

Share price performance

On 3rd December 2019, while writing at 09:40 AM GMT, BWNG shares were clocking a current market price of GBX 122.91 per share; which was down by 0.56% as compared to the last traded price of the previous day. The company’s market capitalisation was at £352.45 million at the time of writing.

On 3rd June 2019, the shares of BWNG had touched a new peak of GBX 153.0 and reached the lowest price level of GBX 81.65 on 27th December 2018 in the last 52 weeks range. The company’s shares were trading at 19.6 per cent lower from the 52-week high price mark and 50.53 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 0.78 at the time of writing which shows the volatility is low as compared with the index taken as the benchmark.

Outlook

In the last six months, the company delivered digital growth of 5.0% in Womenswear as well as Menswear brands with adjusted EBITDA growth of 4.0%. The company closed the international division and exited marketing directly to USA. Removing this an unprofitable part of the business, will help to support the UK business in future.

 

De La Rue PLC

De La Rue Plc (LON: DLAR) manufactures and designs banknotes. It also delivers banknotes to customers. The company works with governments, central banks and commercial organisations globally in three core areas: Cash Supply Chain for producing banknotes; Product Authentication for fighting illicit trade & counterfeiting; and lastly protecting brands and reputations. It is working in 20 locations with more than 2000 employees worldwide. 68% of the world’s countries are in partnership with the company.

News Update

On 2nd December 2019, the company has announced that issued share capital consists of 103,957,586 ordinary shares with voting rights as at 30th November 2019.

Financial Performance

On 26th November 2019, the company published a press release to announce its half-year results for the six months ended 28th September 2019; the Adjusted revenue stood at £205.9 million in H1 FY2020 as compared to £242.0 million in H1 FY2019, a decrease of 14.9%. The IFRS revenue stood at £232.3 million in H1 FY2020 in comparison to the revenue of £257.6 million in H1 FY2019, a decrease of 9.8%. Additionally, the adjusted operating profit decreased by 87.1% to £2.2 million in H1 FY2020 as against £17.0 million in H1 FY2019.

The adjusted EPS declined to a loss of 1.5p in H1 FY2020 as compared to earnings of 11.2p in H1 FY2019. The dividend per share fell to 0.00p in H1 FY2020 as compared to 8.3p in H1 FY2019.

(Sources: LSE)

Share price performance

On 3rd December 2019, while writing at 10:20 AM GMT, DLAR shares were clocking a current market price of GBX 144.00 per share; which was higher by 2.13% as compared to the last traded price of the previous day. The company’s market capitalisation was at £146.58 million at the time of writing.

On 5th December 2018, the shares of DLAR had touched a new peak of GBX 492.50 and reached the lowest price level of GBX 128.40 on 26th November 2019 in the last 52 weeks range. The company’s shares were trading at 70.7 per cent lower from the 52-week high price mark and 12.14 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 1.0 at the time of writing which shows the volatility is inline as compared with the index taken as the benchmark.

Outlook

The company took few actions to reshape and reorient it, which includes divesting Cash Processing Solutions, Paper and International Identity Solutions businesses. The company expects that its cost reduction measures, which were implemented in H1 2019/20, will give benefits in the long term.

 

Travis Perkins Plc

Travis Perkins Plc (LON: TPK) is the UK's largest distributor of building materials, construction and home improvement markets. The company is helping Britain for over 200 years. There are 30,000 employees in the company. They operate from more than 2000 branches and sites in the UK.

Trading Updates

On 22nd October 2019, the company announced the third-quarter 2019 trading updates. The company informed that total Group revenue increased by 3.8% in the third quarter, and by 3.4% on a like-for-like basis.

The company delivered merchanting businesses growth of 1.6% on a like for like basis, even though the wider building materials distribution market weakening since mid-year 2019. However, the Toolstation growth segment was the highest among all product segments with 15.4% on like-for- like sales basis. 

Financial Performance

On 31st July 2019, the company published a press release to announce its half-year results for the six months ended 30th June 2019; the revenue stood at £2,771 million in H1 FY2019 as compared to £2,591 million in H1 FY2018, an increase of 6.9%. The adjusted operating profit stood at £195 million in H1 FY2019 in comparison to £156 million in H1 FY2018, an increase of 25%. In contrast, the operating profit increased to £64 million in H1 FY2019 as against a loss of £104 million in H1 FY2018.

The adjusted EPS stood at 50.1p in H1 FY2019 as compared to 46.3p in H1 FY2018, an increase of 8.2%. The dividend per share remained the same at 15.5p in both H1 FY2019 and H1 FY2018.

(Sources: LSE)

Share price performance

On 3rd December 2019, while writing at 10:22 AM GMT, TPK shares were clocking a current market price of GBX 1525.50 per share; which was down by 0.03% as compared to the last traded price of the previous day. The company’s market capitalisation was at £3.85 billion at the time of writing.

On 29th November 2019, the shares of TPK had touched a new peak of GBX 1,618.50 and reached the lowest price level of GBX 1,012.00 on 27th December 2018 in the last 52 weeks range. The company’s shares were trading at 5.74 per cent lower from the 52-week high price mark and 50.7 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 1.0 at the time of writing which shows the volatility is inline as compared with the index taken as the benchmark.

Outlook

As per the company information, it announced the intention to demerge Wickes as a separate business for focusing on advantaged trade businesses and the simplification for the company structure. The strategic progress has been aided by improved financial performance in 1HFY2019.

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