Latest Trading Update Of Three AIM Stocks: HOTC, ECSC and ASC

Hotel Chocolat Group PLC (AIM: HOTC): United Kingdom-headquartered HOTC is a £473.9m market-cap food producing company. The group’s operational interest lies in manufacturing and retailing of chocolate in the UK market and overseas as well. Its geographical areas of operations are divided into three segments: the UK, Europe and Rest of the world. As on May 10, 2016, its stocks got admitted to the AIM-segment of the London Stock Exchange for trading.

As on January 23, 2020, the group released its trading update for the 13-week and 26-week period ended as on December 29, 2019. During the 13-week under consideration, the group’s revenue surged by 11% on a YoY basis and in the 26-weeks under consideration, revenue soared up by 14% on a year-over period.

During the 26-week under review, it opened 9 new locations and ended the period with 125 locations. Internationally, the group opened three new joint-venture locations in Japan and two new locations in the United States of America.

The group’s new openings contributed 3ppt in the 26-week revenue growth of 14 per cent.

It also reported that trading for next 13-weeks and since December is broadly in line with the group's expectations, however, cost to deliver this growth was modestly higher due to inefficiencies in the supply chain which the group will continue addressing in 2020.

As on February 2020, the group is scheduled to report its half year results for the period ended December 29, 2019.

Stock Performance

Shares of AIM: HOTC is down-trending since a moth over the period, as it tanked approximately 6% in a month time and tumbled approximately 18% in the past five trading session.

However, on a YoY basis, its shares have delivered a strong return of approximately 51% and surged approximately 11% in the past six-month time.

At the time of writing (as on January 24, 2020, at 02:10 PM GMT), its shares traded approximately 4.0 points or 0.98% higher at GBX 414.0 and during the day trading hours, its shares registered an intraday high of GBX 414 and a low of GBX 391.50 respectively.

Also, after five consecutive days of fall, its shares are hovering in green territory as of today (before the market close).

In a year-over period, its shares have registered a 52w high of GBX 527.0 and a 52w low of GBX 294, and at the current price level, the stock is quoting approximately 21% below its 52w high price level and around 41% above its 52w low price level, respectively.

ECSC Group PLC (AIM: ECSC): £10.69m market-cap, ECSC Group PLC is a London Stock Exchange-traded software and computer services provider. It offers a range of cybersecurity solution to different sectors including education, retail, legal, financial and local authorities. It also renders its services to e-commerce, start-ups, and global organisations. As on December 14, 2016, its shares got admitted to the Alternative Investment Market segment of the London Stock Exchange for trading.

As on January 23, 2020, the group reported its trading update for the financial year ended as on December 31, 2019 (FY19). During the full year under consideration, the group’s revenue surged by 10% to circa £5.9m, its managed services recurring revenue was above 25% in the same period.

On the balance sheet front, the group's reported cash balance at the end of FY19 as on December 31, 2019, stood at £0.35m, with an unutilised bank facility of £0.5m and debtors stood at £1m respectively.

In the FY19, the group’s clientele improved by 24% to 118, with 17 per cent acquired through the partner programme.

The group’s R&D investment stood at circa 13% of the revenue.

The chief executive, Ian Mann said that "H2 resulted in double-digit organic annual revenue growth, and a return to adjusted EBITDA profitability, with growth in recurring revenue of over 25% shows the effectiveness of our strategy of winning consulting clients. He also added that “the surge in new clientele in 2019 would help to build a solid foundation for future growth."

Stock Performance

Shares of AIM: ECSC leapt up more than 62% in the past three months, however, on a YoY basis, its share was up by approximately 4% and tumbled approximately 19% in the past three months and shed 22% in a month over the period, respectively.

In a year-over period, its shares have recorded a 52w high of GBX 167.50, and a 52w low of GBX 61.0 and at the current trading level of GBX 115.0 (as of January 24, 2020), its shares traded 31% below its 52w high level and around 89% above its 52w low price level, respectively.

ASOS PLC (AIM: ASC): Alternative Investment Market-traded ASOS PLC is the United Kingdom-headquartered apparel retailer. The £2.7bn market-cap company’s offerings include a range of fashion and related accessories on ASOS.com. The group offers approximately 85k branded and own-label products via localised mobile and web experiences. Its geographical operating segment is divided into three segments: The United Kingdom, the United States, Europe and Rest of the world. As on October 03, 2011, its shares were admitted to the AIM-segment of the London Stock Exchange for trading.

In the exchange filing made by the company as on January 23, 2020, the group posted its trading update for the four-month ended to December 31, 2019. During the period under consideration, the group’s revenue surged by 20% on a reported basis to £1,106m against £917.9m reported in the same period of the corresponding financial year. Also, on a constant currency basis, its revenue increased by 20%. This primarily was driven by a 22% surge in its international retail revenue to £666.0m against £547.m reported in the year-ago period and 18% surge in the UK retail revenue to £408.9m against £347.8m reported in the same period of the previous financial year, respectively.

In the international segment, the United States reported retail sales revenue nudged up by 23% to £139.3m against £113.5m reported in the year-over period, 23% increased in ROW retail sales revenue to £194.2m against £157.8m reported in 2018 and 21% surge in the EU retail revenue to £332.5m against £275.9m reported a year ago, respectively.

This reflects the group’s performance was decent both domestically and internationally as well in the four-month to December 31, 2020.

Stock Performance

Shares of AIM: ASOS delivered a price return of approximately 7% on a YoY basis, up approximately 2.5% in a month-over period and bagged approximately 5% in the past five trading session. However, on a 3-month basis, shares have plummeted approximately 7%.

In a year-over period, its shares have registered a 52w high of GBX 4,090.0 and a 52w low of GBX 2,033.0 respectively. While writing (as on January 24, 2020), its shares traded approximately 48.0 points or 1.46% lower at GBX 3,252.0.

At the current traded level, its shares traded approximately 20% lower against its 52w high price level and around 60% above its 52w low traded level, which reflects that price is more tilted towards the 52w high price level.