Reporting Season: Key Financial Highlights of BRW, LAM, CNCT, SGE & TEG

  • May 14, 2020 BST
  • Team Kalkine
Reporting Season: Key Financial Highlights of BRW, LAM, CNCT, SGE & TEG

Let’s have a look at the latest earnings and share price performance of five companies listed on the London Stock Exchange. These companies are Brewin Dolphin Holdings PlcLamprell Plc, Connect Group Plc, Sage Group Plc and Ten Entertainment Group Plc.  

Brewin Dolphin Holdings Plc (LON: BRW)  

Overview of the Company

Brewin Dolphin Holdings Plc is a provider of wealth management services in the United Kingdom and Ireland. The company concentrates on discretionary investment management and manages £35.7 billion of funds on a discretionary basis. It is listed on the London Stock Exchange (LSE) and trades under the FTSE 250 index. The company has thirty offices throughout the United Kingdom and Ireland.

Financial Highlights

On 13th May 2020, the company announced its half-yearly results for the period ended 31st March 2020.

  • The total fund of the company decreased by 8.0 per cent to £41.4 billion for the six month of FY2020 due to acquired funds from BDCIIL of £2.7 billion and robust total net fund flows of £0.6 billion.  
  • Income increased by 8.3 per cent to £175.8 million compared to the same period last year, which consists of £9.3 million from the latest acquisitions.
  • During the period, the finance costs of the company increased to £1.3 million as compared to £0.05 million in 1H2019, mainly due to the impact of the new IFRS 16 lease accounting standard.
  • The Group's financial position is robust with total net assets of £318.2 million and cash balances reported of £144.1 million as at 31st March 2020 (H1 2019: £138.8 million). 
  • Statutory profit before tax declined 5.1 percent to £28.2 million, lower than H1 2019.

Share price performance- BRW

(Source: Thomson Reuters)

BRW stock is trading at GBX 256.0 on the London Stock Exchange, down by GBX 3.00 or 1.16 per cent, on 14th May 2020 as at 09:00 AM GMT. At the time of writing, the annual dividend yield of the company was recorded at 6.10 per cent, while the average volume was recorded at 485.56K.

Lamprell Plc (LON: LAM)

Overview of the Company

United Arab Emirates-based, Lamprell Plc is a leading provider of engineering, manufacturing, and contracting services to the industries of gas, oil and renewable energy. The company is listed on the London Stock Exchange and operates through multiple facilities, with more than 4,000 people.

Financial Highlights

On 13th May 2020, Lamprell announced its financial results for the 12 months ended 31st December 2019.

(Source: company websites)

  • Revenues increased slightly to USD 260.4 million in the year 2019 as compared to USD 234.1 million in the year 2018.
  • Operational capital expenditure increased to USD 20.8 million, versus USD 10 million in the year 2018.
  • The net cash flow from operating activities decreased to USD 7.8 million (2018: net outflow of USD 125.1 million) due to working capital funding for the EA1, Moray East and further developments.
  • For the year ended 31st December 2019, the net cash position decreased to USD 42.5 million (2018: USD 80.0 million) due to commercial close-out of the EA1 project ongoing into the FY2020.
  • The group has withdrawn FY 2020 revenue guidance. However, the company expects a high quality bid pipeline at USD 6.2 billion although it predicts new major contracts awards could be further delayed due to the impact of COVID-19 coupled with ongoing oil and gas market turmoil.

Share price performance - LAM

(Source: Thomson Reuters)

LAM stock is trading at GBX 8.14 on the London Stock Exchange, down by GBX 0.62 or 7.08 per cent, on 14th May 2020 as at 09:07 AM GMT. At the time of writing, the share outstanding of the company was recorded at 341.73 million, and the average volume was recorded at 419.03K.

Connect Group Plc (LON: CNCT)

Overview of the Company

Connect Group Plc is a LSE-listed media company that is focused on print media. It is a UK’s award-winning distributor of magazines and newspapers with a daily reader base of over 27,000 people throughout England and Wales.

 

Financial highlights

On 13th May 2020, the company’s announced Unaudited Interim Financial Results for the 26 weeks ended 29th February 2020.

(Source: company website)

  • The revenue decreased during the period due to structural drop in newspaper and magazine print sales. The sales of magazines also declined by 4.5 per cent, and the sales of newspapers decreased by 2.1 per cent. 
  • The adjusted operating profit decreased to £19.9 million (H1 2019: £21.6 million).
  • The company confirmed a robust financial position throughout the period, with bank net debt standing at £68.0 million, lower than the prior year’s £77.5 million. The free cash flow of £9.1 million has increased during the period. The company's bank net debt to EBITDA ratio reported to 2.0x during the period, reflecting the ratio within the company’s main leverage covenant ratio of 2.75x. 
  • During the 26 weeks ended 29th February 2020, the capital expenditure increased by £3.2 million for year on year basis to £5.9 million as the company continued its focus on maintenance instead of growth capital expenditure spend. 
  • Chairman Gary Kennedy stepped down from his role with effect from 15 April 2020 and, as announced earlier, David Blackwood has assumed the role of Chairman at Connect with the immediate effect.
  • The company confirmed that although the business continues to operate on profitable and cash generative basis, the COVID-19 pandemic and subsequent restrictions imposed by the government ‘will of course’ adversely impact its performance in 2H 2020.

Share price performance- CNCT

(Source: Thomson Reuters)

CNCT stock is trading at GBX 18.88 on the London Stock Exchange, decreased by 0.345 points or 1.79 per cent, on 14th May 2020 as at 08:40 AM GMT. The share outstanding of the company was recorded at 247.66 million, and the average volume was recorded at 166.37K at the time of writing.

Sage Group Plc (LON: SGE)

Overview of the Company

Sage Group Plc is a software and computer services sector company. It is a market leader in payroll, invoicing, payment and accounting system services, with multiple facilities across twenty-three countries. The company has a cloud product portfolio that consist of immense range of products including Sage People, Sage Intelligence, Sage Accounting, Sage Intacct, and Sage Employee Benefits, among others.

Financial Highlights

On 13th May 2020, the company announced unaudited results for the six months ended 31st March 2020.

  • The total organic revenue increased by 5.7 per cent to £935 million during the six months of FY2020. 
  • The Group attained a statutory operating profit of £289 million in the first half of FY20, up 38 per cent, as compared to £210 million in the previous corresponding period. 
  • The organic operating profit margin decreased to 22.8 per cent as compared to the prior year due to investment to speed up strategic implementation, and inclusion of £13 million increased bad debt provision in connection with the novel coronavirus.
  • The Interim dividend increased by 2.5% to 5.93 pence, due to robust business performance and steady cash generation in the first half of FY2020.
  • As at 31st March 2020, the net debt to EBITDA ratio was reported to 0.5x. 
  • The company reaffirmed its forecast that organic recurring revenue growth would be below the prior guidance range of 8 per cent to 9 per cent and that the other revenues decline would accelerate in 2H 2020 with an associated impact on margin.

Share price performance - SGE

(Source: Thomson Reuters)

SGE stock is trading at GBX 644.84 on the London Stock Exchange, down by GBX 21.67 or 3.26 per cent, on 14th May 2020 as at 09:15 AM GMT. At the time of writing, the share outstanding of the company was recorded at 1.09 billion, and the average volume was recorded at 3.58 million.

Ten Entertainment Group Plc (LON: TEG)

Overview of the Company

Ten Entertainment Group Plc is a bowling operator in the United Kingdom that operates a total of 45 sites under the Tenpin Brand. It offers a wide range of entertainment product and services including laser games, bowling, amusement machines, soft play, table-tennis, and pool tables with bars and restaurants. The company has approximately 1.1K employees, which serves across the United Kingdom.

Financial Highlights

On 13th May 2020, the company announced the full-year result for the period ended 29th December 2019.

(Source: company website)

  • The EBITDA of the company increased by 14.7 % to £23.6 million during the FY2019, due to like for like sale improvement, with the decrease in cost created via Pins & Strings and rent re-gears.
  • Gross margin decreased marginally in the FY2019 to 87.7 per cent (FY18: 88.5 per cent) due to the margin rich nature of the bowling sales. 
  • Operating cost of the company increased by 5.0 per cent to £40.9 million as compared to the prior year, which is half of the +10.2 per cent growth rate in sales. 
  • Earnings per share increased by 11% to 13.9 pence, as compared to 12.5 pence in the prior year.
  • The Board did not announce the final dividend due to unprecedented coronavirus crisis. Thus the company’s total dividend for FY 2019 stood at 3.7 pence per share.
  • Ten reported strong trading in the first 11 weeks of 2020 to 15 March, with like-for-like sales growth of 9.3per cent and total sales growth of 12.7 per cent.

Share price performance - TEG

(Source: Thomson Reuters)

TEG stock is trading at GBX 150.0 on the London Stock Exchange, up by GBX 5.00 points or 3.84 per cent, on 14th May 2020 as at 09:07 AM GMT. The share outstanding of the company was recorded at 68.25 million, and the average volume was recorded at 272.91K at the time of writing.

 

 


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