Performance Review Of Two FTSE Stocks: Ted Baker Plc & Bunzl Plc

  • Dec 30, 2019 GMT
  • Team Kalkine
Performance Review Of Two FTSE Stocks: Ted Baker Plc & Bunzl Plc
Ted Baker Plc

Ted Baker Plc (LON: TED) is an international lifestyle company based on the United Kingdom which offers accessories, womenswear, menswear and everything in between. The brand's modern style for fashion, bold idea entices style-aware men and women who rely on the brand to provide that specific something out of the ordinary. The company distribute all the collections through three main channels: wholesale, retail and licensing. The company is running 560 stores, which consist of Nine stores in Australasia, 122 stores in Europe, 130 stores in North America, 201 stores in the UK and 98 stores in Asia, Africa and Middle East.

TED – News Updates

On 19th December 2019, the company announced that Ron Stewart stepped down from Non-Executive Director position of the company. Stewart's directorship ended on 17th December 2019. Stewart will be getting a payment for notice period three-month which has been calculated by as per his annual fee (£80,000).

TED – Trading Updates

On 10th December 2019, the company announced the trading updates for the 17 weeks from 11th August 2019 to 7th December 2019.

The company announced that gross margin was below anticipations because of an increase in promotional activity and taking a more positive approach to stock management and inventory sell-through.

The wholesale revenue increased by 1.9 per cent on an organic basis with an increase of 0.6 per cent in constant currency due to the execution of new monthly product drops, with sales which would have previously fallen in the first half of the year but now dropping within the current reporting period.

E-commerce sales fell by 0.7 per cent with 1.4 per cent in continual currency and embodied 31.0 per cent of total retail sales as compared to 29.4 per cent in 2019. In contrast, the company saw strong performance in North America, with the company’s own site sales increasing by 28.9 per cent in constant currency.

On an organic basis, total retail sales fell to 4.8 per cent for the period with 5.5 per cent decrease in constant currency and average square footage increasing by 5.2 per cent to 424,916 square feet. However, September 2019 sales were negatively affected by abnormally warm weather in Europe and the UK.

TED - Independent Review of Inventory

On 2nd December 2019, the company reported that it has figured out that the value of inventory which was held in the balance sheet had been overstated. The company estimated an impact of £20 million to £25 million on value. However, the company’s Board thinks that any adjustment to the value of inventory will not give any effect on cash correlating to the previous years.

TED – Share Price Performance

On 30th December 2019 as at 08:03 AM GMT, while writing the report TED share price was trading at GBX 426.64 per share on the London Stock Exchange, which was a rise of 1.63 per cent or GBX 6.84 per share, as compared to the GBX 419.80 per share, the previous day closing price.

The 52-week highest share price was GBX 2,129.94, which was reported on 09th January 2019, whereas the 52-week lowest share price was GBX 257.60, which was reported on 10th December 2019. The current share price was lower by 79.96 per cent from the 52-week highest price, whereas it was higher by 65.62 per cent from the 52-week lowest price.

The market capitalisation of the company was GBP 187.09 Million at the time of writing. The free float was reported of the TED at 28.60 million and, the share outstanding was reported at 44.57 million.

At the time of writing, the beta of the TED share was reported at 0.96, which means its volatility is slightly lower as compared to the benchmark market index’s movement.

Bunzl Plc

Bunzl Plc (LON: BNZL) was incorporated in the year 1940 and was listed on the London Stock Exchange in the year of 1957. It is a dedicated and successful international service and distribution company for customers of B2B segment with operations across Europe, Asia Pacific and Americas. The company helps other businesses globally with a varied product range that are essential for customers in the successful process of their business.

BNZL - News Updates

On 23rd December 2019, the company announced that rank van Zanten had been nominated to take charge as a non-executive director for Supervisory Board of Koninklijke Ahold Delhaize from 8th April 2020. He will step down from the post of non-executive director of Grafton Group Plc on 29th April 2020.

BNZL - Trading Updates

On 17th December 2019, the company announced trading updates for the year ending 31st December 2019.

The company announced that its hope remains the same with overall trade remaining steady with the slowing underlying revenue growth because of mixed market and macroeconomic conditions across the globe and sectors in which the company operates.

The company expecting an increase of 2 per cent to 3 per cent in the revenue at actual exchange rates, the revenue is expected to increase by roughly 1 per cent in the year at constant exchange rates because of the effect of a net of disposals and acquisitions with underlying income broadly unchanged from the last year. The company operates from five locations throughout Australia, and its yearly sale revenue is approximately AUS $37 million (£19 million).

The company has agreed to purchase three businesses in the current year for a total dedicated spend of nearly £120 million.

BNZL – Financial Highlights

On 27th August 2019, the company announced its interim financial report for the six months ended 30th June 2019 through a press release.

The company’s total revenue (IAS17 basis) increased to £4,528.4 million in H1 FY2019 as compared to £4,343.7 million in H1 FY2018, a change of 4.3 per cent on AER basis. The company’s Adjusted operating profit (IAS17 basis) increased to £291.8 million in H1 FY2019 as compared to £285.0 million in H1 FY2018, a change of 2.4 per cent on AER basis. The company’s adjusted profit before income tax (IAS17 basis) increased to £264.9 million in H1 FY2019 as compared to £257.9 million in H1 FY2018, a change of 2.7 per cent on actual basis.

The company’s adjusted earnings per share (IAS17 basis) increased to 60.6 pence in H1 FY2019 as compared to 59.4 pence in H1 FY2018. The Interim dividend (IAS17 basis) increased to 15.5 pence in H1 FY2019 as compared to 15.2 pence in H1 FY2018.

BNZL – Share Price Performance

On 30th December 2019 as at 08:31 AM GMT, while writing the report BNZL share price was trading at GBX 2,122.0 per share on the London Stock Exchange, which was a rise of 0.24 per cent or GBX 5.00 per share, as compared to the GBX 2,117.0 per share which was previous day closing price.

The share’s 52-week highest price was GBX 2,554.60, which was reported on 05th April 2019, whereas the 52-week lowest share price was GBX 1,891.50, which was reported on 22nd October 2019.

The market capitalisation of the company was GBP 7.13 billion at the time of writing. The free float was reported of the BNZL at 333.36 million and, the share outstanding was reported at 336.79 million.

At the time of writing, the beta of the BNZL share was reported at 0.78, which means its volatility is low as compared to the benchmark market index’s movement.

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