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Summary
- It is expected that investors will eventually gain confidence and trust in the market with the impact of pandemic subsiding gradually
- Hikma Pharmaceuticals PLC’s core revenue grew 9 per cent to $1,132 million for H12020
- Hargreaves Lansdown PLC announced a total ordinary dividend of 37.5 pence per share, 11 per cent ahead of the previous year.
- The revenue of RMV plunged 34 per cent to £94.8 million for H1 2020 from the same period last year
The spread of the COVID-19 disease, and the measures adopted to contain it, have had a significant impact on economic activity in the United Kingdom. Market volatility has redirected the attention of the investors. However, this challenging time can prove to be a catalyst for growth and innovations in future. It is expected that investors will also eventually gain confidence and trust in the market. The Bank of England in its latest economic outlook has said that the nation’s GDP is expected to shrink by 9.5 per cent in 2020 compared to the 14 per cent contraction it had forecast in May. If we talk about the market recovery, it is the fundamentally strong blue-chip companies who have better chances of recovery when compared to others.
Here we will talk about the FTSE 100 Index on the London Stock Exchange, which was launched in the year 1984 and consists of 100 listed companies having the highest market capitalisation (Mcap). The largest company of the index is AstraZeneca PLC (LON:AZN) with a market capitalisation of £110,480.77 million, and the smallest company is ITV PLC (LON:ITV) with Mcap £2,548.08 of million.
The FTSE 100 index was trading at GBX 6,020.12 on 7 August 2020 at 1:35 PM GMT, down by 0.11 per cent from its previous close of GBX 6,026.94. The 52 weeks low/high range was reported at GBX 4,993.89/7,674.56. It was having a net market capitalisation (Mcap) of £1,499,285 million. Hikma Pharmaceuticals PLC (LON:HIK), surging 10.99 per cent, was the top FTSE 100 gainer, whereas, Pearson PLC (LON:PSON) was the biggest loser, declining by 2.61 per cent, as on 7 August 2020 at 1:33 PM.
Let's have a look at the financial updates of three FTSE 100 stocks: Hikma Pharmaceuticals PLC, Hargreaves Lansdown PLC and Rightmove PLC.
Hikma Pharmaceuticals PLC
Hikma Pharmaceuticals PLC is a UK-based Group which is involved in developing, manufacturing, and marketing pharmaceutical products. The Group operates under three businesses, namely Injectables, Generics and Branded, across areas such as the US, Europe, and MENA (the Middle East and North Africa).
Financial Highlights
On 7 August 2020, the company released its half-yearly results for the period ending 30 June 2020. The Group's core revenue grew 9 per cent to $1,132 million (2019: $1,043 million), because of a growth in all of its three businesses. The core gross profit also increased by 11 per cent (AER basis) to $602 million (H1 2019: $544 million), reflecting growth in all three businesses and particularly the strong performance from Injectables. The core gross margin was recorded as 53.2 per cent (H1 2019: 52.2 per cent). The company witnessed an increase in core operating profit of 15 per cent (AER basis) to $284 million (H1 2019: $246 million). The company's cash position stood firm with a significant increase in cash flow from operating activities to $292 million, up 56 per cent. HIK announced an interim dividend of 16 cents per share, up from 14 cents per share in H1 2019.
Stock Performance
Hikma Pharmaceuticals PLC (LON:HIK) stock was trading at GBX 2,416.00 on 7 August 2020 at 2:35 PM, up by 12.01 per cent from its previous close of GBX 2,157.00. The 52-week low/high price was GBX 1,701.50/2,575.00. It was having a market capitalisation (Mcap) of £4,971.17 million.
Hargreaves Lansdown PLC
Hargreaves Lansdown Plc is a provider of investment management services and products to private investors in the United Kingdom. Its flagship service, Vantage, is a direct-to-private investor fund and wrap platform which enables clients to hold and manage their investments, including unit trusts, open-ended investment company, equities, bonds, investment trusts and cash irrespective of the tax vehicle.
Financial Highlights
On 7 August 2020, the company released its final results for the year ending 30 June 2020. The revenue for the year increased by 15 per cent to £550.9 million (2019: £480.5 million), as a result of higher asset levels and record share dealing volumes evident in the second half of the year. The Group continued to grow, reaching a new high of 39.5 per cent in terms of the market share of the UK execution-only stockbroking market. Growth of 24 per cent in profit before tax to £378.4 million (2019: £305.8m) was seen due to strong trading and a £38.8 million gain from the disposal of FundsLibrary, because of which the underlying profit before tax grew by 11 per cent to £339.5 million. The company recorded a surge in the underlying diluted EPS by 11 per cent from 52.0 pence to 57.8 pence, resulting from the growth in profit after tax. The company declared a total ordinary dividend of 37.5 pence per share (2019: 33.7p), which was 11 per cent ahead of the previous year.
Stock Performance
Hargreaves Lansdown PLC (LON: HL.) stock was trading at GBX 1,875.00 on 7 August 2020 at 2:38 PM, up by 2.74 per cent from its previous close of GBX 1,825.00. The 52-week low/high price was GBX 1,158.00/2,079.00. It was having a market capitalisation (Mcap) of £8,656.31 million.
Rightmove PLC
Rightmove PLC is a property portal and largest property marketplace in the United Kingdom, which provides online property search to primarily estate agents, lettings agents, and new homes developers. The operations of the Group are differentiated in two operating segments, namely Agency and New Homes.
Financial Highlights
On 7 August 2020, the company released its half-yearly results for the period ending 30 June 2020. The revenue plunged 34 per cent to £94.8 million (2019: £143.9 million) because of the impact of the 75 per cent discount support offered to its customers for the period April to June 2020. Operating profit declined by 43 per cent to £61.7 million (2019: £108.2 million) because of a decrease in the operating costs arising from the mitigating measures undertaken by the company to reduce operating costs and to preserve cash from April 2020. Basic EPS declined by 42 per cent to 5.7 pence (2019: 9.9 pence) reflecting the reduction in a year on year profit. The Group recorded the closing cash balance of £50.3 million (31 December 2019: cash and money market deposits balance of £36.3 million).
Stock Performance
Rightmove PLC (LON:RMV) stock was trading at GBX 629.40 on 7 August 2020 at 2:41 PM, up by 8.93 per cent from its previous close of GBX 577.80. The 52-week low/high price was GBX 400.10/701.20. It was having a market capitalisation (Mcap) of £5,044.78 million.
