Latest Updates From Two FTSE Stocks- Cranswick PLC & Severfield PLC

Latest Updates From Two FTSE Stocks- Cranswick PLC & Severfield PLC

Cranswick PLC

Cranswick Plc (LON: CWK) is the UK based company, which is a leading food producer and supplier of premium, fresh and added-value food products. The company delivers various products such as fresh pork, gourmet sausages, cooked meats, gourmet bacon & gammon, raw & cooked chicken, continental foods, ingredients and gourmet pastry products. The company is currently operating 15 production facilities which are some of the best invested and most efficient in the UK food sector. The company is also engaged in pig breeding and rearing activities, and fully integrated chicken operations which includes feed mills, hatchery and broiler farms.

Trading Updates

As on 29th July 2019, the company has announced its acquisition of Katsouris Brothers Limited that deals with food products business. Also, the company reported about an investment of £75 million has been made for new poultry primary processing facility at Eye in Suffolk and the company expects to complete the entire work as well as commissioning of the same by the end of the financial year.

Financial Highlights

On 26th November 2019, the company published its interim results for the six-month ended 30th September 2019. The company has announced that the export revenue increased by 65%, which includes Far East export revenue which moved up by 94%. The reported revenue rose to £770.0 million in six-month ended 30th September 2019 as compared to £719.2 million in six-month ended 30th September 2018, an increase of 7.06%. The adjusted operating profit increased to £47.4 million in the first six-month of the fiscal year 2019 in contrast to £44.9 million in first six-month of the fiscal year 2018, an increase of 5.56%. Additionally, the adjusted profit before tax increased to £46.4 million in the first six-month of 2019 as against £44.8 million in the first six-month of 2018, an increase of 3.57%. The statutory profit before tax increased by 11.3% in H1 FY2019 to £47.4 million as compared to £42.6 million in H1 FY2018, whereas the statutory earnings per share increased by 10.2% to 73.2p in H1 FY2019 as compared to 66.4p in H1 FY2018.

The company further announced that Interim dividend has increased by 5.0% to 16.7p in H1 FY2019 as a compared to 15.9p in H1 FY2018.

(Source: LSE)

 

Share price performance

On 26th November 2019, while writing at 14.08 PM GMT, CWK shares were clocking a current market price of GBX 3244.00 per share; which was higher by 1.12 per cent in comparison to the last traded price of the previous day. The company's market capitalisation was at £1.67 billion at the time of writing.

On 21st October 2019, the shares of CWK have touched a new peak of GBX 3420.00 and reached the lowest price level of GBX 2340.00 on 07th February 2019 in the last 52 weeks range. The company's shares were trading at 5.14 per cent lower from the 52-week high price mark and 38.63 per cent higher than the 52-week low price mark at the current trading level.

The annual dividend yield of the company is 1.73%, and the Beta was 0.92 at the time of writing which shows the volatility is less as compared with the index taken as the benchmark. The stock's traded volume was hovering around 59,883 at the time of writing.

Outlook

The company reported a strong revenue growth which includes a solid performance in Far East export markets. However, the company is facing some headwinds, in the form of commercial landscape and start-up & commissioning costs associated with the new Eye facility. Though, its Katsouris Brothers business acquisition is now successfully integrated and is performing in line with expectations.

Severfield PLC

Severfield Plc (LON: SFR) is the UK based structural steel company which is engaged in world-class engineering and design excellence. Previously, it was named as Severfield-Rowen Plc, but in June 2014, the company changed its name to Severfield Plc. It has different service offering like Supply Chain& Partnering, Manufacturing, Contract Management and Design. Its construction service consists of commercial offices, industrial and distribution, stadia and leisure, retail, and data centres. The company has the largest steel business in the UK as well as in Europe, which operates across four sites providing enough capacity and capability. Company has also extended its operation to India.

Trading Highlights 

As on 1st October 2019, the company has announced the issue of new ordinary shares of 2.5p each from its block listing facility.

The company also announced that it would be acquiring 100% share capital of Harry Peers & Company Ltd. which is into structural steelwork business, with the net initial payment of £18.0 million. The payment for acquisition will be made in cash on completion.

Financial Highlights 

As on 26th November 2019, the company published its interim results for the six-month ended 30th September 2019. The revenue has declined to £131.7 million in six-month ended 30th September 2019 in contrast to £149.1 million in six-month ended 30th September 2018, a decrease of 13.2%. The underlying profit before tax reduced to £8.2 million in the first six-month of 2019 as compared to £13.1 million in the first six-month of 2018, a decrease of 37.4%. The earnings per share also decreased by 35.87% to 2.27p in H1 FY2019 as compared to 3.54p in H1 FY2018, whereas the interim dividend per share increased by 9.09% to 1.1p in H1 FY2019 as compared to 1.0p in H1 FY2018.

As per the company information, the share profit from the Indian joint venture (JSSL) increased to £1.3 million (H1 FY2019: £0.4 million).

(Source: LSE)

Share price performance

On 26th November 2019, while writing at 16:26 PM GMT, SFR shares were clocking a current market price of GBX 75.00 per share; down by 1.32 per cent in comparison to the last traded price of the previous day. The company's market capitalisation was at £232.50 million at the time of writing.

On 11th November 2019, the shares of SFR touched a new peak of GBX 78.00 and reached the lowest price level of GBX 60.26 on 14th August 2019 in the last 52 weeks range. The company's shares were trading 3.8 per cent lower from the 52-week high price mark and 93.89 per cent higher than the 52-week low price mark at the current trading level.

The annual dividend yield of the company is 3.68%, and the Beta is 0.50 at the time of writing which shows the volatility is less as compared with the index taken as the benchmark. The stock's traded volume was hovering around 27,564 at the time of writing.

Outlook

The company has made some strategic and operational progress in the first half of the year. The company’s cash position remains robust, helping it to make the right long-term decision. The company is optimistic about its Indian operation.

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