2 FTSE stocks for keeps: Royal Mail (RMG) & Frasers Group (FRAS)

3 min read | September 30, 2021 11:10 AM BST | By Nidhi Gupta

Highlights

  • Royal Mail’s board proposed a final dividend of 10 pence per share for shareholders for the year ended 28 March 2021.
  • Frasers Group trades through its brand - Sports Direct and operates online and physical outlets

The pandemic had a huge impact on the economy as the imposed lockdowns and restrictions brought business activities to a standstill. Delivery services such as postal and couriers and in-store retail sales were impacted by the restrictions on movement and lockdowns. Reopening of the economy, rising vaccination rates, relaxation of COVID-19 related restrictions and seasonal pent-up demand have all been instrumental in driving recovery across most sectors.

Royal Mail (RMG) & Frasers (FRAS): market cap and one year return

(Data source: EODHD/Others)

Below is a detailed review of the investment prospect vested in two FTSE stocks – Royal Mail & Frasers Group.

Royal Mail Plc (LON: RMG)

FTSE 100-listed Royal Mail is a UK-based postal and courier service company. Recently, Royal Mail announced plans to trial two new micro electric vehicles (MEVs), for small parcel and letter deliveries, as part of its initiative to lower carbon emissions.

The shares of Royal Mail traded at GBX 440.00, up by 0.92% in the early hours of trading at 8:02 AM BST on Thursday 30 September 2021.

For the year ended 28 March 2021, Royal Mail reported revenue of £12,638 million compared to £10,840 million representing an increase of 16.6% year-on-year. Its profit before tax rose to £726 million in 2021 compared to £180 million in 2020.

Royal Mail’s board proposed a final dividend payout of 10 pence per share for shareholders for the year ended 28 March 2021.

In the last one year, the shares of Royal Mail returned 85.43% to shareholders, and the market cap of the company is £4,370.00 million as of 30 September 2021.

Frasers Group Plc (LON: FRAS)

Frasers Group is UK-based retail and intellectual property company. The FTSE 250 listed company trades through its brand - Sports Direct and operates online and physical outlets.

The shares of Frasers Group traded at GBX 697.50, up by 1.53% in the early hours of trading at 8:03 AM BST on Thursday 30 September 2021.

For the year ended 25 April 2021, Frasers Group’s revenues declined by 8.4% year-on-year to £3,625.3 million compared to £3,957.4 million for the year ended 25 April 2020. Its underlying EBITDA rose by 29.4% year-on-year from £ 302.1 million in 2021 to £390.8 million in 2020. Its profit before taxes declined considerably from £143.5 million in 2020 to £8.5 million in 2020.

In the last one year, the shares of Frasers Group returned 105.61% to shareholders, and the market cap of the company is £3,498.60 million as of 30 September 2021.

Bottomline

Income investors keen on diversifying their portfolio and gaining stable returns from their investments should consider investing in these FTSE listed stocks. The performance of these companies is buoyed by their strong financial future growth prospects.


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