Result Updates Of Two FTSE 100 Stocks: MRW and ADM

  • Sep 12, 2019 BST
  • Team Kalkine
Result Updates Of Two FTSE 100 Stocks: MRW and ADM
WM Morrison Supermarkets Plc

Based in Yorkshire, United Kingdom, WM Morrison Supermarkets Plc is a consumer services company, that is engaged in the operation of large scale retail supermarkets in the name of the Morrisons brand. The company has both brick and mortar stores as well as online presence to keep pace with the up and coming trends in the retail consumer services sector. Morrisons brand's product offerings include all kinds of groceries, such as Fresh and Frozen food, Drinks, Alcoholic drinks and other beverages, personal care offering such as toiletries and beauty care items as well as Kitchen & home appliances and home décor products. This range of products makes the company a market leader in the retail supermarkets business in the United Kingdom. The company also has manufacturing facilities through which they source the fresh food that they sell, which gives them control over provenance and quality. The company currently has a customer base of over 11 million passing through the brick and mortar stores each week while they serve around 11 million households through their website service.

News Updates

The company has a crucial partnership with Amazon for its online same-day delivery service, which has been recently extended, both, in time as well as scope to identify new techniques to improve the shopping experience for the customers of both Morrisons and Amazon.

 

MRW Interim Results (Interim results for half year ended 4 August 2019)

 

The company announced its interim results on 12 September 2019 for the half-year ended 4 August 2019. The company reported that the revenue remained flatlined at £8.83 billion in H1 2020, a marginal increase of 0.4 per cent from £8.80 billion in H1 2019. The sales growth in the reporting period was not good as there was an exceptional performance in 2018-19 sales due to the football world cup and the royal wedding, with no similar events to boost sale in the first half of the current year. Additionally, summer weather in the UK was mostly unfavourable and customer behaviour was impacted by these. Albeit, the Profit before Tax (PBT) and exceptional items stood at £198 million in H1 2020, a surge of 5.3 per cent from H1 2019 PBT and exceptional items at £188 million which represented a robust profit performance. The company believes that there are several cost-saving opportunities, and which will call for better FY performance. The company generated a free cash flow (FCF) of £244 million which was up by £15 million from the H1 2019 FCF of £229 million. The company also reported a Pre-IFRS net debt of £975 million as on 4th August 2019 plunging £22 million since the end of 2018/19. Indicating the growth opportunities, excellent profit performance and free cash flow generation and in line with its progressive dividend policy, the company also announced an interim ordinary dividend of GBX 1.93 per share which was an increase from the interim dividend declared in H1 2019 GBX 1.85 per share by 4.3 per cent. The company also announced a special interim dividend of GBX 2.0 per share taking the total interim dividend at GBX 3.93 per share. This was announced because of the EPS before exceptional items increased by 4.1 per cent year on year to GBX 6.38 per share in H1 2020 from GBX 6.13 per share in H1 2019.

The company also announced its financial expectations with a target of £1 billion annualised wholesale supply sales and £7 million additional profit collectively from all the segments.

MRW Share Price Performance 

On 12th September 2019, at 11:00 AM GMT, while writing, MRW shares were trading at GBX 201.80 per share; surging by 4.02 per cent or GBX 7.80 as compared to the previous day’s closing price at GBX 194.0 per share. As of last trade, WM Morrison Supermarkets Plc stock traded 14.08 per cent above its 52-week low of GBX 176.90, set on August 15, 2019, and 23.18 per cent or GBX 60.92 per share below its 52-week high price of GBX 262.72, set on September 12, 2018. The Market Capitalisation (M-Cap) of the company was around GBP 4656.20 million.

3.39 million shares of the company have been traded so far. Average volume traded has been 8.35 million. The stock has plunged 22.00 per cent in the last one year from the price of GBX 265.8 per share.

The beta of the stock was recorded at 0.7404, indicating that it is less volatile in its movement in comparison to the benchmark index.

 
Admiral Group Plc

Incorporated in 1999, and based in Cardiff, United Kingdom, Admiral Group Plc is a company actively engaged in the car insurance business. The company is one of the leading car insurance providers globally. In the UK, the company is known by its brands, such as Admiral, Elephant, Diamond and Bell, the price comparison listing, condused.com and the commercial vehicles insurance brand Gladiator. Alongside the major European states, the company operates in North America and Turkey and has offices in various locations in India as well. The company has around 6.5 million customers worldwide. The company currently offers household insurance, van and travel and leisure insurance, personal loans and car financing and insurance services. The company’s international car insurance segment's primary revenue stream is the fee from underwriting of car insurance outside of the United Kingdom. The company also generates revenue through the underwriting of car insurance as well as vehicle financing and underwriting of other products that can be used as a subordinate to car policy within the United Kingdom. The Admiral Group prides itself in the partnership that it forms with reinsurance partners and reduces its risk in this uncertain business by underpinning reliable underwriting results which have proved to be a robust capital employment strategy.

 

ADM  Financial Performance (Interim results for six months ended 30 June 2019)

The company announced its interim results for six months ended 30 June 2019. The company reported a 6 per cent surge in the group turnover at £1.76 billion in H1 2019 from £1.66 billion in H1 2018. This was because of a growth in the number of customers to 6.74 million, which was an increase of 8 per cent from H1 2018 figure of 6.23 million. There was modest growth in the motor segment but a robust performance in the household division, with an 18 per cent increase in the number of customer Year on Year. Group’s Statutory Profit Before Tax (PBT) was up 4 per cent year on year £218.2 million in H1 2019 from £210.7 million in H1 2018. The company had also reported a significant profit growth (before Ogden rate impact) of £41 million in UK insurance which was driven by a favourable development in previous year’s loss ratios for UK Motor division. The company reported that including the Ogden rate impact, the profit growth was at £7.7 million. The results for the International Insurance division reported losses totalling to £2.7 million, due to the higher claim costs in the United States of America, even though the turnover strongly grew by 23 per cent year on year to £319.5 million and the customer numbers grew by 21 per cent to 1.36 million.

Earnings per share (EPS) was reported an increase from the H1 2018 EPS by 2 per cent at GBX 63.0 per share in comparison to previous year's 1st half EPS at GBX 61.6. The EPS was in line with pre-tax profit growth. The Ogden rate impact reduced the EPS by GBX 10.0.

The company also announced a dividend in line with the policy of the group to pay 65 per cent of the Profit After Tax (PAT) as ordinary dividend and an additional special dividend to be paid with earnings which not to be held for buffers or solvency. The company declared an interim dividend of GBX 63.0 per share divided into GBX 41.8 per share as ordinary dividend and GBX 21.2 per share as a special dividend. The company announced that the payment date for the dividend would be 4 October 2019 and the Ex-dividend date was on 5 September 2019. 

ADM Share Price Performance 

On 12th September 2019, at 8:37 AM GMT, while writing, ADM shares were trading at GBX 2100 per share; surging by 0.05 per cent or GBX 1 as compared to the previous day’s closing price at GBX 2099 per share. As of last trade Admiral Group Plc stock traded 7.76 per cent below its 52-week high of GBX 2276.72, set on July 03, 2019 and 12.46 per cent or GBX 232.7 per share above its 52-week low price of GBX 1867.3, set on October 26, 2018. The Market Capitalisation (M-Cap) of the company is GBP 6116.20 million.

24,200 shares of the company have been traded so far. Average volume traded has been 581,210. The stock has surged 5.99 per cent in the last one year from the price of GBX 2017.0 per share.

The beta of the stock was recorded at 0.4826, indicating that it is less volatile in its movement in comparison to the benchmark index.

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