Recent Business Updates of three FTSE AIM stocks: ITM, EQLS & NKTN

ITM Power Plc

ITM Power Plc (LON: ITM) produces unified hydrogen energy solutions which helps to augment the utility of renewable energy which otherwise would otherwise go waste. It designs products which are based on Proton Exchange Membrane (PEM) technology which produce hydrogen gas. This technology uses tap water and electricity (renewable) to create hydrogen gas on site. The company is an internationally accepted specialist in this technology that takes additional energy from the power network, then transforms to hydrogen and uses it in three wide market areas – Power-to-X, Mobility and Industry.

ITM – Financial report

On 27th Jan 2020, the company published results for the six-month period ended 31st Oct 2019.

The company’s revenue increased to £2.4 million in six months of the year 2019 as compared to £1.2 million in the corresponding six months of the year 2018. In contrast, the cost of sale also increased to £5.6 million in 1H FY20 as compared to £1.8 million in 1H FY19.

The distribution expenses increased to £6.2 million in the first six months of the financial year 2020 as compared to £5.1 million in the first six months of the financial year 2019. The loss from operations increased to £9.8 million in 1H FY20 as compared to a loss of £5.3 million in 1H FY19.

The loss before tax increased to £9.8 million in the first six months of the financial year 2020 as compared to a loss of £5.3 million in first six months of the financial year 2019. In contrast, the loss after tax increased to £9.8 million in 1H FY19 as compared to a loss of £5.3 million in 1H FY19.

The basic and diluted loss per share increased to 3.0 pence in the first six months of the financial year 2020 as compared to a loss of 1.8 pence per share in the first six months of the financial year 2019. The weighted average number of shares also increased to 331.1 million in 1H FY20 as compared to 287.3 million in 1H FY19.

(Sources: LSE)

ITM – Share Price Performance

At the time of writing, on 27th January 2020 as at 12:45 (GMT), the stock of ITM was trading at GBX 106.0 per share on the London Stock Exchange, a downside of 2.75 per cent or GBX 3.0 per share, versus previous day’s closing price of GBX 109.0 per share.

The company’s market capitalisation was reported at £513.74 million at the time of writing. The free float and shares outstanding of ITM were reported at 240.9 million and 471.32 million, respectively.

ITM’s share price of GBX 129.0 as on 17th January 2020 was its 1-year peak price, whereas the share price of GBX 18.44 as on 05th February 2019 was the 1-year low share price. The current share price was lower by 17.83 per cent from the 1-year high price, whereas it was higher by 474.84 per cent from the 1-year low price.

The beta of the stock of the company has been reported at a value of 0.4, which means that ITM stock has shown lower volatility in its movement, as compared to the volatility of the comparative index in the last twelve months.

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Equals Group Plc

Equals Group Plc (LON: EQLS) is a prominent provider of financial services for both retail and business consumers. The company is operating, under e-money licence and supplies high-quality products involving global payments, corporate expenses, travel cash, current accounts, credit facilities and currency cards.

EQLS – Trading Updates

On 27th Jan 2020, the company published results for trading update related to the full year 2019.

The full-year turnover for the group stood at £2.91 billion in the year 2019 as compared to £2.36 billion in FY 18, a rise of 23 per cent. The revenue increased by 20 per cent in the full year 2019 as compared to the year 2018. The revenues in the second six month of the year 2019 exceeded that in the first six months of the year 2019 due to the underlying growth of the business.

The adjusted earnings before income tax depreciation and amortisation are expected to be higher by 30 per cent in the year 2019 as compared to the year 2018 even though the company is investing in marketing, branding as well as hiring of senior management personnel to boost future growth. Cash at a bank after deducting customer liabilities was reported at £16.4 million as at 31st December 2019, which helped the group to be placed in a comfortable position.

The group’s strategy to focus on Corporate/B2B customers delivered results with 52 per cent of revenues sourced from B2B segment in the year 2019 as compared to 37 per cent in the year 2018. However, nearly 71 per cent of Group turnover derived from Corporate/B2B customers in the year 2019, increasing from 57 per cent in the year 2018, indicating stronger B2B revenue growth in the year 2020.

The acquisitions completed in the year 2019 have performed as per the management anticipation. However, the group has identified substantial cost-saving opportunities by developing current resources that take the lead to annual cost savings of roughly £1 million, which are expected to be realised during FY2020.

EQLS – Share Price Performance

At the time of writing, on 27th January 2020 as at 13:26 AM (GMT), the stock of EQLS was trading at GBX 65.40 per share on the London Stock Exchange, a downside of 15.50 per cent or GBX 12.20 per share, versus previous day’s closing price of GBX 77.40 per share.

The company’s market capitalisation was reported at £138.24 million at the time of writing. The free float and shares outstanding of EQLS were reported at 124.57 million and 178.60 million, respectively.

EQLS’s share price of GBX 132.0 as on 26th July 2019 was its 1-year peak price, whereas the share price of GBX 65.40 as on 27th January 2020 was the 1-year low share price. The current share price was lower by 50.45 per cent from the 1-year high price.

The beta of the stock of the company has been reported at a value of 0.6, which means that EQLS stock has shown lower volatility in its movement, as compared to the volatility of the comparative index in the last twelve months.

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Nektan Plc

Nektan Plc (LON: NKTN) is an International services and platform provider for the online gambling industry. The company provides global Business to Business gaming & label services and software throughout internationally in countries such as Asian countries, Europe countries and in the United States. The company was incorporated in the year 2014 and listed on the London Stock Exchange under AIM. The company is headquartered at Gibraltar and have offices in the United States, India and the UK.

NKTN – Trading Updates

On 27th Jan 2020, the company published a trading update for the six months ended 31st Dec 2019.

In the Business to Business segment, the group generated revenues of £787k in first six months of FY20 as compared £311k in first six months of FY19, an increase of 153.1 per cent. The second quarter of FY20 was a strong period of activity with a substantial number of sites either going live or entering beta phase.

Revenue grew by 102.7 per cent in December 2019 as compared to November 2019. The group is now live in many markets such as Africa, Europe and Asia with Latin America set to be launch in the third quarter of the year 2020.

The company launched an additional six sites in January 2020 which were in beta phase in December 2019. Another additional twenty-one verified sites are presently due but will be launched in the coming months.

NKTN – Share Price Performance

At the time of writing, on 27th January 2020 as at 13:26 AM (GMT), the share price of NKTN was trading at GBX 2.86 per share on the London Stock Exchange, an upside of 4.04 per cent or GBX 0.111 per share, versus previous day’s closing price of GBX 2.75 per share.

The company’s market capitalisation was reported at £6.65 million at the time of writing. The free float and shares outstanding of NKTN were reported at 177.83 million and 241.83 million, respectively.

NKTN’s share price of GBX 15.65 as on 30th Jan 2019 was its 1-year peak price, whereas the share price of GBX 2.75 as on 02nd January 2020 was the 1-year low share price. The current share price was lower by 81.72 per cent from the 1-year high price, whereas it was higher by 4.0 per cent from the 1-year low price.

The beta of the stock of the company has been reported at a value of -0.44, which means that NKTN stock has shown inverse volatility in its movement, as compared to the volatility of the comparative index in the last twelve months.

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