Review on Performance of 3 FTSE 250 Stocks- BEZ, BOY and GFS

Summary

  • Beazley achieved strong growth of 12 per cent with gross premiums increasing to $1,663.9 million in H1 2020 (H1 2019: $1,483.6 million)
  • Bodycote's revenue deteriorated by 16.3 per cent to £306.7 million in H1 2020 (H1 2019: £366.5 million)
  • The overall underlying revenue of G4S was recorded as £3.35 billion for H1 2020 (H1 2019: £3.40 billion).

The FTSE 250 Index is a capitalisation-weighted index consisting of 250 mid-capitalised companies listed on the London Stock Exchange, which are not covered under FTSE 100 index. It was launched in the year 1992. The largest company of the index is B&M European Value Retail PLC (LON: BME) with a market capitalisation (Mcap) of GBX 4,514.63 million, and the smallest company is Finablr PLC (LON: FIN) with Mcap of GBX 77.18 million.

Centrica PLC (LON: CNA), surging 22.39 per cent, was the top FTSE 250 gainer, whereas, Cineworld Group PLC (LON: CINE) was the biggest loser, declining by 5.70 per cent, as on 24 July 2020 at 8:44 AM.

The FTSE 250 index traded at GBX 17,311.11 on 24 July 2020 at 8:46 AM GMT, up by 1.02 per cent from its previous close of GBX 17,489.75. The 52 weeks low/high range was reported at GBX 12,829.70/22,108.29. It was having a net market capitalisation (Mcap) of £311,326 million.

Let's have a look at the financial updates of three FTSE 250 stocks: Beazley PLC, Bodycote PLC and G4S.

Beazley PLC

Beazley is an insurance company, providing financial services for the last 30 years. It is a member of the Lloyd's market, which is the largest and the oldest insurance syndicate globally. The services provided by the company are segmented into the divisions of cyber and executive risk, life, accident and health, marine, political risks & contingencies, and specialty services.

Financial Highlights

On 23 July 2020, Beazley released its interim results for the half-yearly period ending 30 June 2020. In H1 2020, the company achieved strong growth of 12 per cent with gross premiums increasing to $1,663.9 million (H1 2019: $1,483.6 million). The company recorded a loss before tax of $13.8 million (2019: profit before tax of $166.4 million) because of the high volumes of claims arising from the COVID-19 impacted lines, as well an investment return of 1.4 per cent. There was an increase in the combined ratio for the first half of 2020 to 107 per cent (2019: 100 per cent). The group saw an average rate increase on renewal portfolio of 11 per cent (2019: increase of 5%). A strong performance from the US insurance company resulted in significant growth in the gross premiums its specialty and cyber & executive risk divisions, increasing by 15 per cent and 21 per cent respectively. The group did not propose an interim dividend (2019: 4.1 pence).

Stock Performance

Beazley PLC (LON: BEZ) stock was trading at GBX 450.80 on 24 July 2020, at 8:55 AM, down by 1.23 per cent from its previous close of GBX 456.40. The 52-week low/high price was GBX 323.40/628.00. It was having a market capitalisation (Mcap) of £2,777.15 million. The volume traded at the time of reporting was 174,345. The company recorded a negative return on price, which was 19.29 per cent on a YTD (Year to Date) basis.

Bodycote PLC

Bodycote is the world's largest thermal processing service company, providing services like heat treatments, metal joining, hot isostatic pressing, and surface technology. It operates across 180 locations, including China, Dubai, Europe, and Singapore.

Financial Highlights

On 23 July 2020, Bodycote released its half-yearly report for the period ending 30 June 2020. The group's revenue deteriorated by 16.3 per cent to £306.7 million (H1 2019: £366.5 million). It achieved a headline operating profit of £37.8 million compared to £66.9 million during the same period in 2019. Impact of the shutdowns at the customers' locations was reflected in a decrease in the revenue for second quarter (April to June 2020) by 33 per cent. The net debt of the company was recorded as £23.6 million. The group's cash position stood at £69.7 million, demonstrating excellent free cash flow generation. Actions were undertaken to reduce cost, which resulted in the operating margins of 12.3 per cent of the total revenue. A decline in the statutory operating profit decline was seen, leading to a loss of £1.0 million (H1 2019: statutory operating profit was £64.4 million). The exceptional restructuring cost of the company amounted to £32.1 million, including the provision of £20.1 million of cash costs. The basic headline earnings per share were recorded as 14.2 pence.

Stock Performance

Bodycote PLC (LON: BOY) stock was trading at GBX 589.00 on 24 July 2020, at 8:58 AM, down by 2.24 per cent from its previous close of GBX 602.50. The 52-week low/high price was GBX 433.00/971.00. It was having a market capitalisation (Mcap) of £1,153.52 million. The volume traded at the time of reporting was 9,668. The company recorded a negative return on price, which was 36.88 per cent on a YTD (Year to Date) basis.

G4S PLC

G4S is a security specialised company which provides security solutions over a wide range of sectors like Government, oil and gas, transport and logistics, ports and airports, etc. with operations in regions such as Africa, Latin America, Ireland, and the United Kingdom. It offers manned security and facilities management services and cash solutions.

Financial Highlights

On 23 July 2020, G4S released its half-yearly report for the period ending 30 June 2020. The Covid-19 pandemic had an adverse impact on the revenues of the company, especially hampering the European and Middle East markets (£3.1 billion) and UK cash solution business (£0.22 billion). The overall underlying revenue was recorded as £3.35 billion (HI 2019: £3.40 billion). The company's overall adjusted PBITA declined to £187 million (H1 2019: £196 million). The underlying EPS remained unchanged at 6.3 pence per share. The group strengthen itself financially by getting rid of its conventional cash divisions, the sale of which is now more than 75 per cent concluded. It led to an increase in the underlying operating cash flow to £364 million in H1 2020 from £164 million during the same period in 2019.

Stock Performance

G4S PLC (LON: GFS) stock was trading at GBX 145.40 on 24 July 2020, at 9:01 AM, down by 0.92 per cent from its previous close of GBX 146.75. The 52-week low/high price was GBX 69.92/221.50. It was having a market capitalisation (Mcap) of £2,276.96 million. The volume traded at the time of reporting was 486,781. The company recorded a negative return on price, which was 31.84 per cent on a YTD (Year to Date) basis.

Conclusion

To conclude, it was a rough half-year 2020 for most non-essential traditional companies because of the Covid-19 impact. Despite this, some companies have done well due to their better decisions making abilities and focused strategies. While Bodycote and G4S saw a plunge in their half-yearly revenues for the year 2020, Beazley's recorded a growth in its insurance premiums for H1 2020.

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