Recent Updates on Three FTSE Stocks: SXX, INDV & MNZS

  • Dec 03, 2019 GMT
  • Team Kalkine
Recent Updates on Three FTSE Stocks: SXX, INDV & MNZS

Sirius Minerals Plc

Sirius Minerals Plc (LON: SXX) is a UK based fertilizer development company which focuses on the development and operation of Polyhalite project, located in North Yorkshire. The company believes that it will become a world-leading producer of Polyhalite through the Polyhalite project, which involves the construction of Woodsmith Mine in the south of Whitby, extract Polyhalite in North Yorkshire, and a tunnel system to transport all the fertilizer product to a materials handling facility and harbour at Teesside.

 

News Update

As of 29th November 2019, the company's released details of its share capital, which consists of 7,020,196,560 ordinary shares of 0.25 pence with the voting rights.

On 11th October 2019, the company entered into a ten-year supply and distribution agreement through its subsidiary York Potash Ltd with Qatar Chemical, Petrochemical Marketing and Distribution Company (“Muntajat") for the sale of POLY4 into Africa (except Nigeria and Egypt), Australia, New Zealand & Middle Eastern and Asian territories.

 

Strategic Review Update

On 11th November 2019, the company announced the strategic review updates which revealed robust project values ranging from US$11 billion to US$13 billion and IRR (“Internal Rates of Return”) ranging from 29% to 35%.

The strategic review analysed the two-stage development plan that helps to achieve the critical de-risking milestone of first Polyhalite. The additional works required to reach an installed and ramped up production capacity of 10 Million Tonnes per Annum contemplates up to US$2.5 billion of capital expenditure.

 

Financial Performance

On 17th September 2019, the company published a press release to announce Interim Results for the six months ended 30th June 2019. As per the report, the operating loss stood at £14.3 million in H1 FY2019 as compared to £10.8 million in H1 FY2018, an increase in loss of 32.4%. The net interest income stood to £0.3 million in H1 FY2019 in comparison £0.8 million in H1 FY2018, a decrease of 62.5%. Additionally, the loss for the financial year period stood at £3.1million in H1 FY2019 as against £95.3 million in H1 FY2018, a decrease in loss of 96.7%.

The capital expenditure increased by 36.6% in H1 FY2019 to £171.8 million as compared to £125.7 million in H1 FY2018, and financing cost stood at £37.2 million in H1 FY2019 as compared to £11.4 million in H1 FY2018, an increase of 226.3%.

 (Source: company website)

Share Price performance

As of 2nd December 2019, SXX shares closed trading at a market price of GBX 3.47 per share; down by 5.90% as compared to the last traded price of the previous day. The company’s market capitalisation was at £259.16 million at the time of writing.

On 9th April 2019, the shares of SXX had touched a new peak of GBX 26.84 and reached the lowest price level of GBX 2.10 on 17th September 2019 in the last 52 weeks range. The company’s shares were trading at 87.07 per cent lower from the 52-week high price mark and 65.23 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 2.01 at the time of writing which shows the volatility is higher as compared with the index taken as the benchmark.

Outlook

As per the company information, the significant progress made to across construction sites, this year. In June, the company announced to sign a substantial agreement with Indian Farmers Fertilisers Cooperative Limited ("IFFCO") for supply of POLY4 with up to one million tonnes per annum in an eight-year period.

Indivior PLC

Indivior Plc (LON: INDV) is a global speciality pharmaceutical company. The company has been working to treat addiction and severe mental health illnesses by developing medicines. The company’s medicines play an essential role in treating opioid use disorder and addressing the opioid crisis. The company is manufacturing the drug in over 40 countries. It is also selling its medicine for the treatment of schizophrenia in adults in the USA and has a licensing agreement for the treatment of patients who are suffering from schizophrenia in Canada.

News Update

On 2nd December 2019, the company has announced the result of a 12-month analysis of SUBLOCADE injection. The patients exhibited improved outcome from the same. The company declares that SUBLOCADE injection should be a part of a complete treatment program.

On 12th November 2019, the company announced launch of a new direct-to-consumer campaign which aimed to enhance awareness of treatment with SUBLOCADE injection for severe opioid use disorder in patients.

Financial Performance

On 31st October 2019, the company published a press release to announce nine-month and third-quarter results for the period ended 30th September 2019. As per the report, the net revenue stood at $199 million in third-quarter of FY2019 as compared to $245 million in third quarter of FY2018, a decrease of 18.77% (Actual) whereas the net revenue stood at $652 million for nine months of FY2019 as compared to $768 million in the prior corresponding period of FY2018, a decrease of 15.10% (Actual).

The net income stood at $189 million in nine months of FY2019 in comparison $251 million for nine months of FY2018, a decrease of 24.7% (Actual). Additionally, the adjusted basic earnings per share stood at 29 cents for nine months of FY2019 as against 28 cents for the corresponding nine months of FY2018, an increase of 3.5% (Actual).

The adjusted operating profit decreased by 2.4% (Actual) for nine months of FY2019 to $248 million as compared to $254 million for the corresponding nine months of FY2018.

(Source: LSE)

Share Price performance

As on 2nd December 2019, INDV shares closed trading at a market price of GBX 38.91 per share; down by 4.04% as compared to the last traded price of the previous day. The company’s market capitalisation was at £296.31 million at the time of writing.

On 7th January 2019, the shares of INDV had touched a new peak of GBX 131.04 and reached the lowest price level of GBX 20.98 on 10th April 2019 in the last 52 weeks range. The company’s shares were trading at 70.30 per cent lower from the 52-week high price mark and 85.24 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 0.813 at the time of writing which shows the volatility is lower as compared with the index taken as the benchmark.

Outlook

As per the company information, during the first half-year 2019, changes to the group's environment impacted the Principal Risks of Economic and Financial & Legal and Intellectual Property.

John Menzies PLC

John Menzies plc (LON: MNZS) is a logistics specialist serving the airline industry. The company is serving in more than 200 locations in 37 countries. The company supports customers with services such as Ground Handling, Fuelling, Cargo Handling, Executive Services and Offline Services.

Trading Updates

On 28th November 2019, the company announced that its cost reduction programme delivered at least £10 million of savings which are executed with benefits provided during the current year and into 2020.

The company also announced that it completed a legacy legal case which helped with the inflow of £10 million, which will have a positive impact on net debt.

Financial Performance

On 13th August 2019, the company published a press release to announce Interim Results for the six months ended 30th June 2019. As per the report, the revenue stood at £649.9 million in H1 FY2019 as compared to £627.2 million in H1 FY2018, an increase of 3.6%. The operating profit stood to £5.4 million in H1 FY2019 in comparison £14.1 million in H1 FY2018, a decrease of 61.7%. Additionally, underlying earnings per share stood at 6.8p in H1 FY2019 as against 13.0p in H1 FY2018, a decrease of 47.7%.

The operating cash flow increased by 39.2% in H1 FY2019 to £58.9 million as compared to £42.3 million in H1 FY2018, and there were no changes in dividend per share which stood at 6.0p in both H1 FY2019 and H1 FY2018. 

(Source: LSE) 

Share Price performance

As on 2nd December 2019, MNZS shares closed trading at a market price of GBX 450.00 per share; down by 0.66% as compared to the last traded price of the previous day. The company’s market capitalisation was at £381.74 million at the time of writing.

On 28th February 2019, the shares of MNZS had touched a new peak of GBX 575.00 and reached the lowest price level of GBX 353.50 on 05th July 2019 in the last 52 weeks range. The company’s shares were trading at 21.7 per cent lower from the 52-week high price mark and 27.3 per cent higher than the 52-week low price mark at the current trading level.

The Beta was 0.70 at the time of writing which shows the volatility is lower as compared with the index taken as the benchmark.

Outlook

As per the company information, the company's performance in 1H FY19 impacted due to the loss of exclusive licences in the second half of 2018 and a weaker market. The company is focusing on cost reduction, customer engagement and operational discipline with profitable growth in the second half of 2019. It renewed the largest cargo contract globally with Cathay Pacific Airways in Australia and New Zealand for a further five years. Also, then company commenced to execute new contracts in the UK with EasyJet and British Airways for cabin cleaning as well as signed an extension for five years to its licence at Sint Maarten.

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