Recent Updates From LSE-Listed Stocks: IXICO PLC And Safestore Holdings PLC

  • Aug 20, 2019 BST
  • Team Kalkine
Recent Updates From LSE-Listed Stocks: IXICO PLC And Safestore Holdings PLC

Companies’ latest development and the announcements related to them have a direct bearing on the momentum to their stocks on the stock exchanges, either an upside or downside, based on the significances they have on the company’s future performance. Here we are going to discuss two companies operating in diverse sectors, which came up with some announcements recently that impacted their stock movement.

Comparative share price performance (as on 20th August 2019)

IXICO PLC

IXICO Plc (IXI) is a London-Headquartered data analytics company engaged in delivering insights in neurosciences. The company offers analytics services to biopharmaceutical companies to analyse data from brain scans and digital scans and digital biosensor to facilitate better trial design, and provides technology-driven services across all phase of clinical evaluation. The group is partnering with associates to establish new analytical techniques and associated digital health products with improvising patient outcomes. On October-15-2013, the company got listed on the Alternative Investment segment of the London Stock Exchange and is a constituent of FTSE AIM All-Share- Healthcare.

Trading Update (as on 19th August 2019)

In the financial year 2019, the company’s revenue and EBITDA are projected to be ahead of market expectations. In the second half of the year 2019, the company continued to see robust growth in revenue. Growth had been accelerated by deployment of newly developed algorithms, new and expanded contracts coming online, and faster turnaround times in trial initiation. In future, the group expects that they will improve the revenue performance, driven by the additional operating leverage. The company’s Board is hoping to build on the breakeven position stated in the half-year.

Recent News

In the exchange filing made by the company as of August 09, 2019, the data analytics company came up with an update on contracts. The company said that two new biopharmaceutical contracts were secured from clients with an aggregate value of over £1 million. It also received a change order contract worth £0.9 million but notified that one of its clients had discontinued their study, which will reduce £3.5 million in contract value over the full terms of the agreements up to 2025.

Financial Highlights (H1 FY2019, £ million)

(Source: Interim Reports, Company Website)

In the recent half-yearly results released by the company as on April 25, 2019, the company’s reported revenues were estimated to be around £3.43 million for the six months ended March 31, 2019, 22 per cent above the reported revenue of £2.82 million recorded in the year-ago period. Gross margin increased by 610bps to 66.3 per cent as compared with the corresponding period of the last year. Operating profit stood at £0.1 million in the H1 FY19, against the operating loss of £0.5 million in H1 FY18. The income per head rose by 9 per cent to £113 thousand as compared with the same period in 2018. Earnings per share for the reporting period was 0.5 pence, an increase of 2 pence against the loss per share of 1.5 pence in the same period last year. Cash balance at the end of March 31, 2019, stood at £7.5mn and order book at the end of the period stood at £21.2mn as of 31 March 2019.

The company stated that taking into consideration of half-year revenue recorded by the company it expects revenue to be in line with their expectation on the full-year basis at £6.6 million and this would be 22 per cent higher against the previous year’s reported revenue of £5.4 million.

Share Price Performance

Daily Chart as at August-20-19, before the market close (Source: Thomson Reuters)

On August 20, 2019, at the time of writing (before the market close, at 8:30 AM GMT), IXICO PLC shares were trading at GBX 43, at the same level of the previous day closing price. Stock's 52 weeks-High is GBX 45, and 52-weeks Low is GBX 18.78. At the time of writing, the share was quoting 4.44 per cent lower than the 52 weeks High and 128.97 per cent higher than the 52 weeks low. Stock’s average traded volume for 5 days was 110,232.80; 30 days – 80,416.10 and 90 days – 424,937.42. The average traded volume for five days climbed by 37.08 per cent against thirty days average traded volume. The company’s stock beta as on date was 0.61, reflecting the lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £20.15 million.

At the current trading level, shares of the company were trading substantially above its 30-day, 60-day and 200-day simple moving average price levels.

Safestore Holdings PLC

Safestore PLC (SAFE) is the UK’s largest self-storage group. The group has 147 stores out of which 120 are in the UK. The company has a customer base of 64,000, spread globally as per the current interim report of 2019. The company was incorporated in the year 1998 and is headquartered in Hertfordshire, the United Kingdom.

On 12th September 2019, the company will release its Q3 trading update for the three months ended 31st July 2019.

Recent News

On 19th August 2019, Safestore Holdings PLC and the Carlyle Group reported the formation of a JV (Joint Venture) to acquire M3 (M3 Self Storage). M3 Self Storage currently has six stores in major locations in Haarlem and Amsterdam. The business will have 25.7 thousand sq metres (277000 sq ft) of lettable space.

In Europe, the Dutch self-storage market is the 4th largest with 9.6mn sq ft and 303 stores of maximum lettable space. Other than the acquisitions of past, the JV intends to increase its base by investing in further acquisition and development prospects.

In the joint venture, the Carlyle Group will have an 80 per cent shareholding via funds from CER (Carlyle Europe Realty), a EUR540 million pan-European real estate fund. Safestore Holdings PLC will contribute to the remaining of the early equity investment in the JV.

Marc-Antoine Bouyer, Managing Director of Carlyle Europe Realty stated that ‘the JV combines the wide international and regional visions, and investing experience of the Carlyle Europe Realty team, along with the expert industry knowledge of the Safestore Holdings PLC team, to make a scalable and a supple platform to explore prospects in the self-storage market.'

In Frederic Vecchioli, Chief Executive Officer of Safestore’s words 'Since 2016, Safestore has effectively invested or dedicated around £180 million in 38 stores, new developments and acquisitions in the central markets of Paris and the United Kingdom’.

The company has established a highly scalable multi-country platform with operational proficiency and important marketing and operational knowhow in self-storage. The acquisition of M3 signifies an outstanding platform for access into the striking Dutch self-storage market. The company assumes that the JV with Carlyle Europe Realty will help it to target further acquisition of selected development prospects.

Financial Highlights (H1 FY2019, £ million)

(Source: Interim Reports, Company Website)

In H1 FY19, the company’s underlying and operating metrics total revenue surged by 5.6 per cent to £73.1 million as compared with the corresponding period of the last year. The group’s like-for-like (LFL) revenue increased by 5.9 per cent at CER, with an increase of the revenues of the UK of 5.6 per cent and Paris of 6.3 per cent. Adjusted Diluted EPRA earnings per share rose by 7.1 per cent to 13.5 pence against the 12.6 pence in H1 FY18. Interim dividend stood at 5.5 pence, an increase of 7.8 per cent against the same period in 2018. Statutory Profit before tax decreased to £38.2 million against the £81.9 million in H1 FY18, due to a decrease in gain on investment properties of £7.9 million.

The company is into the third quarter of the financial year 2019. The company had a robust market presence in both Paris and the UK, which will be strengthened by acquisitions and new store developments. In late 2019 and 2020, the company is planning to open new store in Peterborough and central Paris at Boulevard Magenta. In future, the company have substantial but low-cost growth potential.

The company’s priority remains the improvement of the operational performance and leveraging the principal market positions to full effect. The company had shown good financial growth as compared with the same period of the previous year. There had been steady growth in the overseas operations and strong Euro to pound exchange rate. The group has strong growth prospects based on the surge in revenue from overseas operations and macro environment favouring the company’s growth. The company is projected to take benefit of further acquisition and selective development prospects in the main markets, subject to the hard investment criteria.

Share Price Performance

Daily Chart as at August-20-19, before the market close (Source: Thomson Reuters)

On August 20, 2019, at the time of writing (before the market close, at 8:40 AM GMT), Safestore Holdings PLC shares were hovering around GBX 644.50 and was up by 0.782 per cent against the previous day closing price. Stock's 52-weeks High is GBX 664.50 and 52-weeks Low is GBX 493. At the time of writing, the share was quoting 27.47 per cent lower than the 52 weeks High and 2.21 per cent higher than the 52 weeks low. Stock’s average traded volume for 5 days was 257,897.00; 30 days – 206,905.77 and 90 days – 264,007.41. The average traded volume for five days climbed by 24.64 per cent as compared to thirty days average traded volume. The company’s stock beta as on date was 0.87, reflecting the lower volatility against the benchmark index. The outstanding market capitalisation was around £1.35 billion, with a dividend yield of 2.60 per cent.

At the current trading level, shares of the company were trading slightly above its 30-day, 60-day and 200-day simple moving average price levels.

 

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