- Key economic indicators are giving signs of economic expansion in the UK after most of the restrictions were lifted in July 2021.
- Lower coronavirus cases and positive economic data could boost the earnings and profitability of companies in the future.
The economic activity in the United Kingdom is bouncing back following the lifting of complete restrictions in July month. Key economic parameter like Inflation rate and manufacturing purchasing managers index (PMI) is giving positive signs, while unemployment rate in the UK continues to be lower. UK stock market has also given upbeat returns in the last one month. However, Britain has not entirely overcome the coronavirus pandemic. The country continues to report coronavirus cases; however the hospitalisation and number of deaths have not shown any spike mainly due to the effective vaccination program of the UK government.
Going forward, lower coronavirus cases and positive economic data could help boost the company’s revenue and profitability and benefit the stock price and stock market return.
Let us look at 4 FTSE listed stocks, Avacta Group, Barclays, Amigo and Vela, that are in focus today:
Avacta Group Plc (LON: AVCT)
FTSE AIM-listed company operates through two divisions: therapeutics and diagnostics. Over the years, the company has done researched and developed powerful anti-cancer treatments and has built a pipeline of novel cancer therapies.
The company has operations in the niche segment of cancer treatment, and hence the successful development of cancer therapies could boost the company’s revenue. In addition, the company has also begun the shipment of a 20-minute antigen test using a nasal swab, SARS-CoV-2 antigen lateral flow test. The test has been successful in detecting all the key variants of the virus, even the delta variant.
Avacta Group Plc trades at GBX 130.50, down by 6.79% on 26 August 2021 at 8.45 am GMT+1 with a market cap of £355.11 million.
Barclays Plc (LON: BARC)
FTSE 100 listed company is a major player in the financial segment, providing various financial products and services in the United Kingdom and globally.
The company is currently undertaking its share buyback program, which it announced at the start of this month. The lender plans to buyback £500 million worth of ordinary shares. Barclays Plc also plans to invest over USD 400 million in its India’s operations to grow its presence in the country.
Barclays Plc trades at GBX 184.74, down by 0.22% on 26 August 2021 at 8.45 am GMT+1 with a market cap of £31,363.58 million.
Amigo Holdings Plc (LON: AMGO)
The company is one of the leading providers of guarantor loans to individuals in the United Kingdom and has operations in the trading business.
The company reported revenue of £170.8 million and a net loan book of £340.9 million in the year ended 31 March 2021. The revenue was down mainly due to minimal new lending by the company to reduce loan defaults.
Amigo Holdings Plc trades at GBX 7.70, down by 3.75% on 26 August 2021 at 8.45 am GMT+1 with a market cap of £38.03 million.
Vela Technologies Plc (LON: VELA)
The company operates a venture capital (VC) fund. The VC fund invests in small and medium-sized companies located in Europe and the UK. It specialises in technology and hi-tech engineering solution investment.
Vela Technologies Plc provides good investment opportunities to investors who want to invest in early growth-stage companies that are yet to list on the exchange. It makes a per-IPO investment in the company. It has completed an investment of £750,000 in the Northcoders Group plc, which got recently listed on the AIM market. At present, Vela Technologies holds a 6% stake in the Northcoders Group plc.
Vela Technologies Plc trades at GBX 0.09, down by 2.78% on 26 August 2021 at 8.45 am GMT+1 with a market cap of £12.64 million.