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HIGHLIGHTS
- Resumption of travel activities, relaxation in COVID-19 restrictions, reopening of the economy, growing employment and vaccination rates have guided new developments across industries and aided business recovery.
- Royal Mail, Lloyds Banking Group Plc, Sareum Holdings Plc, Greggs Plc, & Centrica Plc are the stocks in focus.
Resumption of travel activities, relaxation in COVID-19 restrictions, reopening of the economy, growing employment rates and rising vaccination rates have guided new developments across industries and aided business recovery.
Even during the pandemic, the UK government aided businesses impacted by the crisis by the introduction of various schemes. One such initiative was the furlough scheme that aided over 1 million small businesses to survive the brutal impacts of the pandemic. Since July 2020, HM Revenue and Customs (HMRC) received back a furlough amount of £1.3 billion from UK-based businesses.
Here we take a detailed look at five stocks and review the investment potential in them.
Royal Mail Plc (LON: RMG)
Royal Mail is a UK-based postal service and courier firm. Recently, Royal Mail announced trialling two types of micro electric vehicles (EVs) to reduce carbon emissions over the next six months. The shares of Royal Mail last traded at GBX 482.40, up by 0.08% at the close of trade on Wednesday 22 September 2021. The market cap of the company is £4,820.00 million.
Royal Mail’s group revenue rose by 12.5% for the quarter ended 30 June 2021 compared to Q1 2020-21.
In the last one year, the shares of the company returned 100.17% to shareholders.
Lloyds Banking Group Plc (LON: LLOY)
Lloyds Banking Group is a leading financial services company in the UK. In July 2021, Lloyds announced the takeover of Embark Group, an investment and retirement platform. The shares of Lloyds Banking Group last traded at GBX 43.98, up by 3.54% at the close of trade on Wednesday 22 September 2021. The market cap of the company is £30,151.64 million.
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For half-year ended 30 June 2021, Lloyds Banking Group’s profit before tax was £193 million compared to £7 million H1 2020.
In the last one year, the shares of the company returned 81.06% to shareholders.
Sareum Holdings Plc (LON: SAR)
Sareum is a drug discovery, and development firm focused on cancer and autoimmune diseases. In April 2021, the company announced the successful completion of the UKRI-funded Covid-19 research project for SDC-1801, a novel, TYK2/JAK1 inhibitor, for treatment of COVID-19. In June 2021, Sareum raised £2.37 million funding through two subscription programs to a high-net-worth-individual (HNWI).
The shares of Sareum Holdings last traded at GBX 6.35 at the close of trade on Wednesday 22 September 2021. The market cap of the company is £213.72 million.
Sareum’s cash balance as of 30 June 2021 is estimated to be £2.7 million (£1.3 million as of 31 December 2020 and £1.8 million as of 30 June 2020).
In the last one year, the shares of the company returned 761.02% to shareholders.
Greggs Plc (LON: GRG)
Greggs plc is a UK-based bakery chain and food-on-the-go retailer that specialises in sweet items, sausage rolls, sandwiches and bakes. The company operates over 2,100 retail outlets across the UK. The shares of Greggs last traded flat at GBX 3,099.00 at the close of trade on Wednesday 22 September 2021. The market cap of the company is £3,156.72 million.
For H1 2021 ended 3 July 2021, Greggs recorded total sales of £546.2 million compared to £300.6 million in H1 2020. Its pre-tax profit for the half-year year stood at £55.5 million. In H1 2021, the company recorded opening of 48 new shops and 11 closures, totalling 2,115 shops.
In the last one year, the shares of the company returned 176.94% to shareholders.
Centrica Plc (LON: CNA)
Centrica is an electric services and solutions firm. Recently, its British Gas division approved to take on the customers of People's Energy (after it ceased trading) to ensure they receive uninterrupted electricity and gas supply. The shares of Centrica last traded at GBX 53.74 at the close of trade on Wednesday 22 September 2021. The market cap of the company is £3,160.25 million.
Centrica recorded an EBITDA of £682 million for H1 2021 compared to £750 million in H1 2020. Its adjusted pre-tax profit registered a year-on-year growth of 19% to £166 million in H1 2021 compared to £140 million in H1 2020.
In the last one year, the shares of the company returned 36.40% to shareholders.
