The Buzz Around Three FTSE 250 Stocks – Mitchells And Butlers Plc, Pennon Group Plc And Balfour Beatty Plc

  • Dec 17, 2019 GMT
  • Team Kalkine
The Buzz Around Three FTSE 250 Stocks – Mitchells And Butlers Plc, Pennon Group Plc And Balfour Beatty Plc

FTSE 250 Performance

(Source: Thomson Reuters) Daily Chart as on 17-December-19, before the close of the market

The Financial Times Stock Exchange 250 (FTSE 250) index is a market capitalisation based index of the stocks trading on the London Stock Exchange, ranked from 101st to 350th on the basis of the market capitalisation of the company, which is reviewed quarterly by the classification made by the Financial Times Stock Exchange Russel (FTSE Russel). On 16th December 2019, the FTSE 250 closed at 21,920.69, an increase of 412.90 points or 1.92 per cent, in comparison with the previous trading session’s closing level of 21,507.79. The FTSE 250 index has performed exceedingly well in the last one month, amidst all the uncertainty around the elections in the United Kingdom and Brexit, which had been impacting business environment of the country. The Index was up by 7.24 per cent from the level of 20,440.50 points as on November 18, 2019 and has shown a rise of 5.48 per cent in the one week from December 10, 2019. These positive trends are expected to continue for as investor confidence seems to be boosting post the completion of the elections. As on 17th December 2019, at 08:25 A.M. GMT, while writing, the FTSE 250 Index was at 21,729.26.

Mitchells and Butlers Plc

Mitchells and Butlers Plc (LON: MAB) is a London, the United Kingdom based Travel and Leisure company that is primarily engaged in the management of bars, pubs and restaurants in the United Kingdom. The company is amongst the largest operator of bars, pubs and restaurants in the country. The company had many brands under its name such as Orchid Pubs, Oak Tree, Innkeeper’s Lodge, Browns, Miller & Carter, All Bar One, Alex, O’Neill’s, Premium Country Pubs, Nicholson’s, Castle, Crown Carveries, Toby Carvery, Ember Inns, Harvester, Vintage Inns and Sizzling Pubs. The company, through its 1,700 pubs and restaurants, offer a wide variety of eating choices and great drinking out experience.

MAB Annual Report-Risks and Mitigations

On 16th October 2019, the company produced its annual report, which also contained the risk factors and uncertainties that could impact the company. In terms of the sales risk, the company mentioned concerns around consumer confidence as being the primary reasons for the decline in sales. For the mitigation of this factor, the company has taken necessary steps towards brand alignment as well as daily, weekly and periodic sales reporting, which ensures the right research and consequent action. In terms of price increases, the company’s biggest threat has been considered to be Brexit, as a hard exit from the EU might create a trade difficulty, which could lead to price increases for various products. To mitigate this, the company has primarily thought about buying ahead, to hedge the prices of its resources.

MAB Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 17-December-19, before the close of the market

As on 17th December 2019, at 08:30 A.M Greenwich Mean Time, while writing, Mitchells and Butlers Plc’s price of the stock was reported to be trading at GBX 445.08 per stock on the London Stock Exchange, a decline in the value of 0.54 per cent or GBX 2.42 per stock, as opposed to the last day’s closing price, which was reported at GBX 447.50 per stock. The market capitalisation of the company was reported at GBP 1.920 billion in reference to the current stock price of the company.

Company’s stock beta was reported to be at a value of 0.69. By this, an inference can be drawn that movement of the stock of Mitchells and Butlers Plc, has been less volatile, in comparison with the movement of the comparative benchmark index in the last one year.

Pennon Group Plc

Pennon Group Plc (LON: PNN) is an Exeter, the United Kingdom based environmental utility infrastructure company which is one of the largest environmental infrastructure groups in the UK. The company owns and operates South West Water Limited and Viridor Limited and has a workforce of around 5,000 people and assets of around GBP 6.5 billion. The operations of the groups are differentiated in three operating divisions: Water and wastewater services, Waste Management, and Non-household retail business.

PNN Financial Performance

On 26th November 2019, the company released its half-yearly results for the period ended 30th September 2019. The company highlighted a decline of 4.6 per cent year on year (excluding IFRS 16 impact) in revenue from £746.7 million in H1 FY 2019 to £712.4 million in H1 FY 2020. This was in line with the management’s expectations due to the previously mentioned reason for decline in sales because of lower consumer confidence. Albeit, the EBITDA for the period was reported to have risen by 1.0 per cent (excluding IFRS 16 impact) from £274.0 million in H1 FY 2019 to £283.9 million in H1 FY 2020. There was also a slight increase in the Profit Before Tax of 0.8 per cent year on year to £142.90 million during the reporting period. The company reported a year on year growth of 4.3 per cent (excluding IFRS 16 impact) in Adjusted Earnings per share, which was reported to be at GBX 31.1 per share in H1 FY 2020. This also reflected in the management’s decision to increase the interim dividend, which was reported at a growth of 6.4 per cent to GBX 13.66 per share.

PNN Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 17-December-19, before the close of the market

As on 17th December 2019, at 08:35 A.M Greenwich Mean Time, while writing, Pennon Group Plc’s price of the stock was reported at GBX 1022.00 per stock on the London Stock Exchange, a decline in the value of 0.92 per cent or GBX 9.50 per stock, as opposed to the last day’s closing price, which was reported at GBX 1031.50 per stock. The market capitalisation of the company was reported at GBP 4.342 billion in reference to the current stock price of the company.

Company’s stock beta was reported to be at a value of 0.66. By this, an inference can be drawn that movement of the stock of Mitchells and Butlers Plc, has been less volatile, in comparison with the movement of the comparative benchmark index in the last one year.

Balfour Beatty Plc

Balfour Beatty Plc (LON: BBY) is a provider of infrastructure solutions related to management services, maintenance and upgradation in road and railways, utility infrastructure and power transmission. The company’s operations are divided into three reportable segments being Construction Services, Support Services and Infrastructure Investments. The Construction Services segment is engaged in the activities related to the asset’s physical construction. The company operates its construction business in the United States and the United Kingdom. The Support Services business is engaged in the activities related to support of existing assets, including refurbishment and maintenance. The company’s Support Services business is responsible for maintaining, upgrading and managing of national infrastructure. The company’s Infrastructure Investments business is into the activities related to acquisition and disposal of infrastructure properties which includes waste and biomass, offshore transmission networks, student accommodation, military housing, schools, roads, hospitals and other concessions. The company’s housing development division is also a part of Infrastructure Investments segment.

BBY Trading Update

On 12th December 2019, the company issued a trading update for the period ending 11th December 2019. The company reported maintaining an order book above £14 billion, which is significantly higher than the order book in the same period in the previous year of £12.6 billion. The company also reported that the management estimates a 5 per cent growth in the full-year revenue. In terms of the profit, the company reported that it will be ahead of the anticipations of the board, and all earnings-based business segments are expected to better Industry-standard profits. The company also estimated that at the year-end, the cash balance to stand at £310 million.

BBY Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 17-December-19, before the close of the market

As on 17th December 2019, at 08:40 A.M Greenwich Mean Time, while writing, Balfour Beatty Plc’s price of the stock was reported at GBX 266.20 per stock on the London Stock Exchange, a decline in the value of 1.55 per cent or GBX 4.20 per stock, as opposed to the last day’s closing price, which was reported at GBX 270.40 per stock. The market capitalisation of the company was reported at GBP 1.980 billion in reference to the current stock price of the company.

Company’s stock beta was reported to be at a value of 0.62. By this, an inference can be drawn that movement of the stock of Mitchells and Butlers Plc, has been less volatile, in comparison with the movement of the comparative benchmark index in the last one year.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK