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Summary
- Some encouraging signs of recovery in the businesses have been seen after four months under the lockdown
- Admiral Group PLC reported an increase in the net revenue of 6 per cent to £0.69 billion for H1 2020
- Avast Plc’s core Consumer Direct Desktop business contributed to an increase in the group's adjusted billings by $9.5 million to $469.1 million
- Just Eat Takeaway.com NV processed 257 million orders in H1 2020, representing a 32 per cent increase compared with H1 2019
The outbreak of the Covid-19 pandemic has caused disruptions in the activities of the businesses, taking a toll on the morale of the owners and the employees. There has been a reported surge in the stress levels of the employees, decrease in motivation, and decline in productivity. As the United Kingdom marks the four months since the imposition of the lockdown, some encouraging signs of recovery in the businesses can be seen. Prospects for some businesses are improving, as the nation looks forward to a full re-opening in the economy. Government backed schemes have helped the businesses in coping up with the disturbance caused by the pandemic. Despite the carnage, some FTSE 100 stocks are performing well and generating profits.
Based on the above backdrop, let’s cast an eye over the financial results of three of the FTSE 100 stocks which have shown signs of recovery, through an increase in their revenues. The stocks which we will be dealing here are- Admiral Group PLC, belonging to the financial sector, Avast PLC, a technology company, and Just Eat Takeaway.com NV, a consumer discretionary company.
Admiral Group PLC
Incorporated in 1999, Admiral Group PLC is a United Kingdom-based company, involved in the provision of car, van, household and travel insurance. The company’s business is divided into four segments- UK Car Insurance, International Car Insurance, Price Comparison and Other.
Financial Highlights
On 12 August 2020, the company released its half-yearly results for the period ending on 30 June 2020. The impact of Covid-19 and the Stay at Home premium refund led to a reduction in the Group’s turnover by 4 per cent to £1.69 billion (H1 2019: £1.76 billion). However, the company witnessed a growth in the customer numbers by 6 per cent at 7.17 million (30 June 2019: 6.74 million), and also a slight increase in the net revenue of 6 per cent to £0.69 billion was recorded (H1 2019: £0.64 billion). The pre-tax profits were recorded as £286.7 million (H1 2019: £220.2 million) and statutory profit before tax of £286.1 million (H1 2019: £218.2 million), witnessing an increase of 30 per cent and 31 per cent respectively, due to strong prior- year reserve releases in the UK and internationally and also some non-recurrence of negative items in 2019 including the £33 million Ogden discount rate impact.
There was a decline in the turnover of the UK Insurance segment of 7 per cent to £1.25 billion (H1 2019: £1.34 billion), because of the impact of the Stay at Home premium refund, but the customer numbers grew to 5.58 million (30 June 2019: 5.32 million). Though there was a negative impact of the reduced demand in the early Covid-19 lockdown period, the combined International insurance turnover surged to £329.5 million, growing by 3 per cent (H1 2019: £319.5 million) and customer numbers by 10 per cent to 1.49 million (30 June 2019: 1.36 million).
The Group’s Earnings per share was broadly consistent with the growth in pre-tax profit, increasing by 32 per cent at 82.9 pence in comparison with H1 2019, which was 70.5 pence. It also announced the total 2020 interim dividend of 63.0 pence per share, 12 per cent ahead of the 2019 interim dividend (63.0 pence per share).
Stock Performance
Admiral Group PLC (LON:ADM) stock was trading at GBX 2,661.00 on 12 August 2020, at 10:47 AM, up by 5.39 per cent from its previous close of GBX 2,525.00. The 52-week low/high price was GBX 1,887.00/2,536.00. It was having a market capitalisation (Mcap) of £7,424.45 million. The volume traded at the time of reporting was 239,390. The company recorded a positive return on price, which was 9.69 per cent on a YTD (Year to Date) basis.
Avast PLC
Based in the United Kingdom, Avast PLC is a technology company that provides security software. The company’s product ranges in two segments- consumer products and products for the small and medium business (SMB), offering consumer personal computer antivirus security software under the Avast and AVG brands.
Financial Highlights
On 12 August 2020, the company released its half-yearly results for the period ending on 30 June 2020. An increase in the Group's adjusted revenue was seen by $6.4 million to $433.1 million in H1 2020, representing a 1.5 per cent increase at actual rates and organic growth of 6.6 per cent. The core Consumer Direct Desktop business contributed to an increase in the Group's adjusted billings by $9.5 million to $469.1 million, in comparison to $459.6 million in the previous year. The adjusted EBITDA improved by 2.1 per cent to $241.4 million, resulting in adjusted EBITDA margin of 55.7 per cent, driven by the Group's scale and operating leverage. The Group's net cash flow from operating activities also saw an increase of $49.3 million primarily due to exceptional Dutch exit tax payment. The company recorded the fully diluted EPS at $0.08, on a statutory basis. On 11 August 2020, the Directors declared an interim dividend of 4.8 cents per share to be paid in October 2020.
Stock Performance
Avast PLC (LON:AVST) stock was trading at GBX 567.50 on 12 August 2020, at 11:20 AM, down by 5.42 per cent from its previous close of GBX 600.00. The 52-week low/high price was GBX 270.60/600.00. It was having a market capitalisation (Mcap) of £6,150.97 million. The volume traded at the time of reporting was 1,495,315. The company recorded a positive return on price, which was 26.42 per cent on a YTD (Year to Date) basis.
Just Eat Takeaway.com NV
Formerly known as Takeaway.com NV, Just Eat Takeaway.com NV, is a Netherlands-based company, operating an online food delivery marketplace. Focusing on connecting consumers and restaurants, the company allows users to order food from nearby restaurants and have the food delivered to their homes.
Financial Highlights
On 12 August 2020, the company released its half-yearly results. There was an increase in the revenue of 44 per cent to €1 billion in H1 2020, compared with €715 million in H1 2019. The company processed 257 million orders in H1 2020, representing a 32 per cent increase compared with H1 2019, driven by strong accelerated order growth in Q2 2020 compared with Q1 2020. The adjusted EBITDA also recorded an increase of 133 per cent to €177 million in H1 2020, compared with €76 million in H1 2019. This was mainly due to the growth in the gross margin. Ammortisation, advisory, transaction and integration related expenses connected to the combination of Just Eat and Takeaway.com and the proposed transaction with Grubhub, led to a loss for the period of €158 million in H1 2020, compared with a loss of €27 million in H1 2019.
Stock Performance
Just Eat Takeaway.com NV (LON:JET) stock was trading at GBX 9,034.00 on 12 August 2020, at 11:26 AM, up by 4.10 per cent from its previous close of GBX 8,678.00. The 52-week low/high price was GBX 5,505.00/9,036.00. It was having a market capitalisation (Mcap) of £12,905.95 million. The volume traded at the time of reporting was 143,177. The company recorded a positive return on price, which was 18.07 per cent on a YTD (Year to Date) basis.
