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Coronavirus (COVID-19) is posing significant challenges for countries across the globe, with the situation aggravating every passing day. The businesses are closely observing the situation and taking the required steps if necessary. At this juncture, it is hard to assess the impact of this pandemic outbreak with most of the global markets bleeding.
However, the companies are ensuring minimal disruption in normal business operations and looking forward to implementing business continuity plans to mitigate the specific risks associated with Coronavirus.
This article talks about recent business performance updates of three diverse sector stocks quoted on the London Stock Exchange (LSE). The stocks include Eagle Eye Solutions Group Plc from the Software & Computer Services sector, Polypipe Group Plc from the Construction & Materials sector, SCS Group Plc from the General Retailers sector.
Eagle Eye Solutions Group Plc released Results for H1 FY20 period ended 31st December 2019
During the first half of the fiscal year 2020, the Groupâs revenue increased by 26 per cent to £10.1 million in comparison to £8.0 million in the first half of the fiscal year 2019. The companyâs Gross profit grew 27 per cent to £9.4 million in the first half of the fiscal year 2020 as against £7.4 million in the first half of the fiscal year 2019. The companyâs gross margin was recorded at 94 per cent during the period as against 93 per cent in the first half of the fiscal year 2019. The companyâs net assets were valued at £4.0 million at the end of the Period.
(Source: Companyâs filings, London Stock Exchange)
Business overview: Eagle Eye Solutions Group Plc (LON:EYE)
Leading SaaS technology company, Eagle Eye Solutions Group Plc enables personalised marketing in real-time by secure issuance and redemption of coupons, gift services, subscriptions, loyalty and applications digitally across multiple platforms establishing a network of merchants, products and target audiences for marketers. The company has some major names of the UK stores as clientele such as Loblaws, Shoppers Drug Mart, Mitchells & Butlers, Tesco, Asda, JD Sports and many others.
Eagle Eye Solutions Group Plc-Stock price performance
Daily Chart as at Mar-17-20, before the market close (Source: Thomson Reuters)
On 17th March 2020, at the time of writing (before market close, GMT 02:41 PM), Eagle Eye Solutions Group Plc shares were trading at GBX 129, which were 4.45 per cent higher than the previous day closing price. Â Stock's 52 weeks High and Low is GBX 246/GBX 122. At the current level of trading, as quoted in the price chart, shares traded around 47.56 per cent below the 52-week high and were 5.74 per cent above the 52-week low.
The beta of the company stood at 1.67, reflecting significantly higher volatility as compared to the benchmark index. The total market capitalisation of the company was recorded at £31.81 million.
Polypipe Group Plc -Audited results for the year ended 31st December 2019
(Source: Companyâs filings, London Stock Exchange)
Despite challenging trading conditions and market uncertainty, the companyâs revenue grew by 3.3 per cent to £447.6 million in the fiscal year 2019 from £433.2 million in the fiscal year 2018. The revenue growth in the United Kingdom was recorded at 3.6 per cent.
The companyâs underlying operating margin saw an increase of 30 basis points to 17.4 per cent in the fiscal year 2019 due to accretive acquisitions made throughout the year. The company recorded a growth of 2.7 per cent in operating profit, which stood at £67.6 million in the fiscal year 2019 as compared to £65.8 million in the fiscal year 2018.
The company recorded a growth of 5.5 per cent in underlying profit before tax, which stood at £70.8 million in the fiscal year 2019 as compared to £67.1 million in the fiscal year 2018. The companyâs Underlying basic earnings per share increased by 4.2 per cent to 29.6 pence in the fiscal year 2019. The company possesses a strong balance sheet and good operational cash generation. The company made a capital expenditure of £22.3 million during the period in the business. The companyâs annual dividend rose by 4.3 per cent to 12.1 pence in the fiscal year 2019.
Business overview: Polypipe Group Plc
Polypipe Group Plc (LON:PLP) is the largest manufacturer in the UK of plastic piping systems for commercial, residential, civil and infrastructure sectors by revenue and is a leading provider of sustainable water and climate management solutions. The company has more than 20 thousand product lines and 19 facilities in total. The company provides the widest range of plastic piping systems for drainage, plumbing, heating and ventilation in the United Kingdom. The company is also a leading manufacturer and designer of energy-efficient ventilation systems in the United Kingdom. Â The company has a presence in Ireland, the Middle East, Italy, Netherlands and in some other countries across the globe.
Polypipe Group Plc -Stock price performance
Daily Chart as at Mar-17-20, before the market close (Source: Thomson Reuters)
On 17th March 2020, at the time of writing (before market close, GMT 02:42 PM), Polypipe Group Plc shares were trading at GBX 482.40, which were 3.43 per cent higher than the previous day closing price. Stock's 52 weeks High and Low is GBX 620.00/GBX 365.00. At the current level of trading, as quoted in the price chart, shares traded around 22.19 per cent below the 52-week high and were 32.16 per cent above the 52-week low.
Along with an annual dividend yield of 2.55 per cent, the beta of the company stood at 0.54, reflecting lower volatility as compared to the benchmark index. The total market capitalisation of the company was recorded at £938.21 million.
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SCS Group Plc - Trading update for H1 FY20
(Source: Companyâs filings, London Stock Exchange)
The Gross sales of the company increased by 0.5 per cent to £160.1 million in the first half of the fiscal year 2020 as against £159.2 million in the first half of the fiscal year 2019. The companyâs Gross profit was up by 0.3 per cent to £71.7 million in the first half of the fiscal year 2020 as against £71.5 million in the first half of the fiscal year 2019.
On a comparable pre-IFRS 16 basis, the companyâs Underlying EBITDA from continuing operations improved by £0.4 million to £3.8 million in the first half of the fiscal year 2020 as against £3.4 million in the first half of the fiscal year 2019. The company has a sound balance sheet with cash balances of £61.5 million in the first half of the fiscal year 2020 along with unutilised access to £12 million committed revolving credit facility. Moreover, the company is expected to announce an interim dividend of 5.5 pence per share for the first half of the fiscal year 2020.
Business overview: SCS Group Plc
SCS Group Plc (LSE:SCS), the UK based consumer services company is involved in the business of furniture and carpets. The company started its operations as a general home furnishing store in 1894 and has now evolved as a market leader in sofa and carpets. The shares of the company are traded on the Premium Main Market Segment of the London Stock Exchange (LSE). The company is a constituent of FTSE Allsmall index and can be identified with a ticker symbol SCS. The companyâs product segments include furnishings for Dining Rooms and Living Rooms along with Sofa Fabrics, Flooring Products, Carpets and Curtains. The company has its home-grown brands such as La-z-boy for selling Sofas and recliner products, Sisitalia- premium Sofas with Italian design for comfort, G Plan-provider of both recliners as well as static sofas along with Luxe by Tetrad, a collection of the companyâs premium sofas.
SCS Group Plc-Stock price performance
Daily Chart as at Mar-17-20, before the market close (Source: Thomson Reuters)
On 17th March 2020, at the time of writing (before market close, GMT 02:45 PM), SCS Group Plc shares were trading at GBX 150, which were at 1.96 per cent lower than the previous day closing price. Stock's 52 weeks High and Low is GBX 265.00/GBX 142.95. At the current level of trading, as quoted in the price chart, shares traded around 43.40 per cent below the 52-week high and were 4.93 per cent above the 52-week low.
Along with an annual dividend yield of 10.92 per cent, the beta of the company stood at 0.93, reflecting almost similar volatility as compared to the benchmark index. The total market capitalisation of the company was recorded at £58.21 million.
