Recent Earnings Updates Of LSE Listed Stocks: ACSO, AFX, And MGNT

Amid the Coronavirus outbreak, the focus of the companies through 2020 would be towards building their recurring revenue streams as early as possible, along with further development of products and supporting all their stakeholders in an undoubtedly uncertain and challenging environment.

Here we would be discussing financial highlights of three stocks from different sectors listed on the London Stock Exchange (LSE). The stocks include Accesso Technology Group from the Software and Computer Services sector, Alpha FX Group Plc from the Investment Services sector and Magnit PAO from the Retail sector.

Accesso Technology Group - Preliminary results for the year ended 31st December 2019

With overall results falling short of the expectations, the company claimed 2019 was a challenging year. The company faced challenges in realising the full potential of the product lines and the cost overheads ran out of proportion in comparison to revenue growth.

Due to lower than anticipated new customer wins and a reduction in non-repeatable revenue, the Group’s revenue was recorded at $117.2 million for the fiscal year 2019, which was lower than the previous guidance and as compared to $118.7 million in the fiscal year 2018. The net cash of the company stood at $0.4 million in 2019, which was lower than the prior year. The company’s adjusted EBITDA was down to $28.2 million in 2019 as against $34.8 million in 2018. The company’s Adjusted basic EPS was down to 30.78 cents per share in 2019 as compared to 66.27 cents per share in 2018.

Furthermore, considering typical seasonal activity during the European and North American winter months, the trading was in line with management's expectations for the first two months of 2020. However, from mid-March, the company’s transactional based revenue has been impacted due to COVID-19 crisis. The company has taken immediate steps to reduce its cost base.

(Source: Company’s filings, London Stock Exchange)

Business overview: Accesso Technology Group Plc

Accesso Technology Group (LON: ACSO) provides patented and award-winning technology to enhance the guest experience. The company has a customer base of more than 1,000 in 30 plus nations across the world. These solutions also help clients in streamlining operations, cutting inefficiencies and generating increased revenues along with data insights to make better marketing and business decisions. The company’s solutions empower its clients to manage high volume throughput, ticketing and point of sale transactions, and virtual queues. The company invests in research and development to continuously enhance the guest experience. The company is the market leader in this space. The company is listed on the AIM market of the London Stock Exchange.

ACSO-Stock price performance

(Source: Thomson Reuters) Daily Chart as on 19-March-20 before the market close

On 19th March 2020, at the time of writing (before market close, GMT 01:13 PM), Accesso Technology Group’s shares were 0.68 per cent down against its previous day closing price, trading at GBX 145. Stock's 52 weeks High and Low is GBX 1,375.00 /GBX 82.51. At the time of writing, the share was trading 75.74% higher than its 52w low and 89.45% lower than its 52w High. The beta of the company stood at 1.66, reflecting higher volatility as compared to the benchmark index. The total M-Cap (market capitalisation) of the company while writing stood at £40.38 million.

Alpha FX Group Plc – Full-year results for the period ended 31st December 2019

The company saw great momentum, delivering strong revenues and had an excellent year. The company’s revenue was up by 51 per cent to £35.4 million in the fiscal year 2019 as against £23.5 million in the fiscal year 2018.

The company’s underlying operating profit was up by 47 per cent to £14.7 million in the fiscal year 2019 as against £10.0 million in the fiscal year 2018. The company’s reported operating profit was up by 41 per cent to £13.7 million in the fiscal year 2019 as against £9.7m in the fiscal year 2018.

The company’s underlying operating profit margin plunged to 42 per cent in 2019 from 43 per cent in 2018. The company’s underlying basic earnings per share was up by 33 per cent to 30.1 pence in 2019 from 22.7 pence in 2018. The company declared a final dividend of 5.4 pence per share during the period.

(Source: Company’s filings, London Stock Exchange)

Business Overview: Alpha FX Group Plc

London Stock Exchange-traded Alpha FX Group Plc (LON: AFX) is a corporate foreign exchange services provider and helps its clientele to control the impact of currency volatility of their businesses. The £308.13 million market-cap company develops Alpha FX tailored hedging programmes, that facilitate businesses balance when, how much, and how far forward to buy currency.

AFX-Stock price performance

(Source: Thomson Reuters) Daily Chart as on 19-March-20 before the market close

On 19th March 2020, at the time of writing (before market close, GMT 01:18 PM), Alpha FX Group Plc’s shares were 4.82 per cent down against its previous day closing price, trading at GBX 790. Stock's 52 weeks High and Low is GBX 1,370.00 /GBX 635.52. At the time of writing, the share was trading 24.31% higher than its 52w low and 42.34% lower than its 52w High. Along with an annual dividend yield of 0.92 per cent, the beta of the company stood at 1.41, reflecting higher volatility as compared to the benchmark index. The total M-Cap (market capitalisation) of the company while writing stood at £308.13 million.

 Magnit PJSC - Audited FY 2019 Results

(Source: Company’s filings, London Stock Exchange)

The Total revenue of the company increased by 10.6 per cent and stood at RUB 1,368.7 billion in FY 2019. Driven by a combination of (+12.7%) selling space growth (2,377 store additions) and (+0.4%) LFL sales growth, the Net retail sales of the company grew by 9.5 per cent year-on-year and amounted to RUB 1,332.9 billion in FY 2019.

Due to the significant distribution of pharmaceutical products, the company’s wholesale revenue increased by 77.4 per cent up to RUB 35.8 billion in the fiscal year 2019. The company’s Gross Profit stood at RUB 312.0 billion in the fiscal year 2019 with a margin of 22.8 per cent down by 114 basis points year-on-year. The operating profit for the Group was down by 31.5 per cent to RUB 36.3 billion in the fiscal year 2019.

The company’s net income decreased by 49 per cent year-on-year and stood at RUB 17.1 billion in FY 2019. The company’s net income margin decreased by 146 basis points year-on-year to 1.2 per cent.

Business overview: Magnit PAO

Russia-based holding company, Magnit PAO (LON: MGNT) is into the business of selling and distribution of consumer goods under the Magnit brand. The Company operates through four types of stores such as Convenience stores; Hypermarkets; Magnit Family and pharmacy cum Drogerie stores in the Russian Federation. The Company offers a wide range of products, from hygiene & cleaning products to cosmetics and personal care along with food & tobacco products, and clothing & accessories. The company also has a logistics system developed in-house that consists of 35 plus distribution centres.

MGNT-Stock price performance

Source: Thomson Reuters, Daily Chart as on 19-March-20 before the market close

On 19th March 2020, at the time of writing (before market close, GMT 01:22 PM), Magnit’s shares were 2.46 per cent up against its previous day closing price, trading at USD 7.90. Stock's 52 weeks High and Low is USD 15.54 /GBX 6.47. At the time of writing, the share was trading 22.10% higher than its 52w low and 49.16% lower than its 52w High. Along with an annual dividend yield of 12.94 per cent, the beta of the company stood at 1.17, reflecting higher volatility as compared to the benchmark index. The total M-Cap (market capitalisation) of the company while writing stood at £3,337.99 million.

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