AUS
NZ
UK
CA
USA
IND
Summary
- The total earnings per share of PCFT were recorded at (39.0p) in H1 2020
- In the first half of the year, the NAV increased by 6.1 per cent for GVP, but for the full financial year, the NAV declined from 137.9p per share to 101.9p
- The revenue return per ordinary share of ABD increased to 4.6p in H1 2020 (4.3p in H1 2019)
- The EBITDA for the year for HMLH was recorded at £2.7 million (£2.8 million in 2019), decreasing by 1 per cent over the last year
Equity investment can give good returns if investors keep an eye on the company fundamentals on a regular basis. It helps in growing our money, building wealth and staying ahead of inflation.
We will be looking at four investment stocks and analysing their earnings from the half-yearly or final results released by them.
Polar Capital Global Financials Trust PLC (LON:PCFT)
Polar Capital is an investment company providing financial services to its customers. It was incorporated on 1 July 2013. The company aims to provide regular dividend income and capital appreciation to its clients.
On 2 July 2020, the company declared its half-yearly results for the year ending on 31 May 2020. Its revenue return per ordinary share decreased to 1.6p in H1 2020 (H1 2019: 3.1p). The total earnings per share were recorded at (39.0p) in H1 2020 as compared to that of 2.7p in 2019. The NAV per ordinary share stood at (21.3) per cent.
The financial sector in which this company operates has been one of the sectors that have been badly affected by the outbreak of Covid-19. Hence, the earnings of the company have gone down drastically. PCFT plc underperformed for the first half of the year.
Stock Performance
Polar Capital Global Financials Trust PLC (LON:PCFT) stock traded at GBX 108.00 at 4.02 PM on 9 July 2020. The stock price was reported to be 18 per cent higher than the 52-week low price, which was GBX 89.00 and 23 per cent lower than the 52-week high price, which was GBX 150.5. It was having a market capitalisation (Mcap) of £133.7 million. The volume traded at the time of reporting was 161,698. The company recorded a negative return on price, which was 26.94 per cent on a YTD (Year to Date) basis.
Gabelli Value Plus+ Trust PLC (LON:GVP)
Gabelli Value Plus+ Trust PLC was established in February 2015. It primarily aims to provide capital appreciation to its investors through investments using a catalyst approach. Portfolio distribution of the company comprises of basic materials, consumer goods, financial healthcare, oil and gas industries, etc.
On 1 July 2020, the company declared its final results for the year ending on 31 March 2020. The revenue return per ordinary share increased to 1.09p in 2020 (2019: 0.76p). The NAV per ordinary share stood at to (25) per cent. In the first half of the year, the NAV increased by 6.1 per cent, but for the full financial year, the NAV declined from 137.9p per share to 101.9p, or by 26.1 per cent. The share price of the company declined by 32.7 per cent.
The performance of the company was not so encouraging for its shareholder. The pandemic played a vital role in the company’s poor performance during FY20, but efforts were definitely made to minimise the damaging effect. In order to overcome hardships being faced by companies, the UK Government has reduced its interest rates, which is expected to encourage corporate investments, thereby boosting the economy.
Stock Performance
Gabelli Value Plus Trust PLC (LON:GVP) stock traded at GBX 112.00 on 9 July at 4.02 PM. The stock price was reported to be 30 per cent higher than the 52-week low price, which was GBX 79.5 and 18 per cent lower than the 52-week high price, which was GBX 137.50. It was having a market capitalisation (Mcap) of £110.08 million. The volume traded at the time of reporting was 12,120. The company recorded a negative return on price, which was 14.83 per cent on a YTD (Year to Date) basis.
Aberdeen New Dawn Investment PLC (LON:ABD)
Aberdeen is an investment company, founded in 1989. It focuses on capital growth through equity investment in the Asia Pacific region. The company invests in a variety of sectors such as banks, aerospace & defence, insurance, real estate management & development, biotechnology, food products, internet software, and services.
On 2 July 2020, the company declared its final results for the year ending on 30 April 2020. The revenue return per ordinary share increased to 4.6p in H1 2020 (H1 2019: 4.3p). The dividend per share was recorded at 4.3p in 2020, which remained unchanged as compared to that in 2019. The NAV per ordinary share (excluding current year income) stood at 258p, which decreased by 7.1 per cent.
The performance of the company in the first nine months was satisfactory, but sharp sell-off across global markets in the New Year pulled down the Asia Pacific equities for the entire year. Share prices dropped drastically as the COVID-19 pandemic took a toll on the economic situation globally.
Stock Performance
Aberdeen New Dawn Investment PLC (LON:ABD) stock traded at GBX 258.00 at 4.01 PM on 9 July 2020. The stock price was reported to be 27 per cent higher than the 52-week low price, which was GBX 185.00 and 7 per cent lower than the 52-week high price, which was GBX 272.00. It was having a market capitalisation (Mcap) of £282.9 million. The volume traded at the time of reporting was 37,734. The company recorded a negative return on price, which was 0.78 per cent on a YTD (Year to Date) basis.
HML Holdings PLC (LON:HMLH)
HML Holdings is a real estate investment company, providing services such as residential property management, charted surveying services and insurance services. It was incorporated in the year 1991, with its headquarters in the United Kingdom.
On 1 July 2020, the company declared its preliminary results for the year ending 31 March 2020. Its revenue increased by 11 per cent, from £28.1 million in 2019 to £31.2 million in 2020. The EBITDA for the year was recorded at £2.7 million (2019: £2.8 million), decreasing by 1 per cent and the adjusted operating profit also fell to £2.35 million in 2020, down by 2 per cent (2019: GBP 7.5 million). Adjusted basic earnings per share were down by 4 per cent to 4.4p, and dividend per share of 0.52p was proposed by the company.
Despite the financial year being challenging, the company saw a decent growth in its revenue, despite being affected by the Covid-19 pandemic and the slow estimated integration of two acquisitions. HML also appointed Anand Verma as a non-executive director in March 2020 with the hope to speed up its digitalization initiative.
Stock Performance
HML Holdings PLC (LON:HMLH) stock traded at GBX 28.50 at 3.39 PM on 9 July 2020. The stock price was reported to be 27 per cent higher than the 52-week low price, which was GBX 24.00 and 7 per cent lower than the 52-week high price, which was GBX 34.70. It was having a market capitalisation (Mcap) of £13.09 million. The company recorded a negative return on price, which was 12.31 per cent on a YTD (Year to Date) basis.
It was a rough year for investment companies because the investors were skeptical about investing. Despite this, some companies have done well due to their strategic decisions and focused strategies. The onset of the outbreak of the Covid-19 has resulted in an increase in unemployment and fall in the purchasing power of the people, along with a sharp drop in demand for products and services, which has eventually led to an overall reduction in investments.
