Three FTSE 250 Top Gainers Of August 21: Capita PLC, Victrex PLC, and Tullow Oil PLC

  • Aug 22, 2019 BST
  • Team Kalkine
Three FTSE 250 Top Gainers Of August 21: Capita PLC, Victrex PLC, and Tullow Oil PLC

In this article, we are discussing three top-performing stocks from the FTSE 250 Index on August 21, 2019. These companies released various updates related to their respective businesses, which led to the surge in their share prices. Below is a performance comparison of the three companies on the London Stock Exchange over the past one month along with that of FTSE 250 index.

(Source: Thomson Reuters)

Capita PLC

Capita Plc (CPI) is a London, the United Kingdom-based company, which delivers and provides support services to clients in the public and private sectors. The company’s business is differentiated in nine segments: Integrated Services, Property & Health, IT Enterprise Services, Insurance & Benefits Services, Local Government, Capita Europe, Digital & Software Solutions, Customer Management, and Workplace Services. The group operates in Northern Europe, India, Dubai, the United States, the United Kingdom, South Africa, and Ireland.

Recent News

On 16th August 2019, the Capita Plc announced the selection of Georgina Harvey as Director Non-Executive and Remuneration Committee’s Chair effective from October 1st, 2019.

Financial Highlights (H1 FY2019, £ million)

(Source: Interim Reports, Company Website)

In H1 FY19, the company’s reported revenue decreased to £1,852 million as compared with the corresponding period of the last year. Adjusted revenue declined by 6.3 per cent to £1,851.6 million against the £1,976.8 million in H1 FY18. Operating profit reduced to £60.8 million as compared to £66.7 million in H1 FY18, while adjusted operating profit stood at £142.1 million, a decrease of 10.3 per cent from the same period in 2018. Adjusted profit before tax declined by 3.6 per cent to £126.1 million as compared to £130.8 million in H1 FY18. Adjusted earnings per share reduced by 42.7 per cent to 5.86 pence against the 10.22 pence in H1 FY18, while reported earnings per share stood at 1.36 pence. Free cash flow was negative £85.9 million in H1 FY19. In H1 FY19, order intake stood at £830 million, and the order book was £6,650.6 million.

Outlook

In 2019, the company expect adjusted profit before tax (PBT) to be in the range of £265-£295 million and adjusted net finance costs of £40 million. Net debt to EBITDA ratio expects to be in the range of 1.0x- 2.0x.

In FY2020, initial cost savings was £175 million, sustainable annual free cash flow (before exceptional and restructuring charges) is likely to be at least £200 million and double-digit adjusted EBIT margins have been forecasted.

In the future, environmental regulations, foreign exchange risks and expansion by competitors could affect its business operations. The group is well placed to maximise opportunities and manage the challenges through improved programme execution and maintaining the strategy and capital allocation policy.

Share Price Performance

Daily Chart as at 22-August-19, before the market close (Source: Thomson Reuters)

On 22 August 2019, at the time of writing (before the market close, at 1:51 pm GMT), Capita PLC shares were trading at GBX 124.04, down by 0.073 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 152.15/GBX 98.66. Stock’s average traded volume for 5 days was 3,396,873.40; 30 days – 5,349,268.70 and 90 days – 4,439,456.80. The average traded volume for 5 days was down by 36.50 per cent as compared to 30 days average traded volume. The company’s stock beta as on date was 1.27, reflecting the higher volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £2.08 billion.

Victrex PLC

Victrex PLC (VCT) is a Lancashire-headquartered provider of high-performance polymer solutions, with 98% of revenue coming from sales outside the UK. The company is focused on the markets of medical, electronics, energy, aerospace and automotive. The polymer solutions of the group are based around PAEK (polyaryletherketones) and PEEK (polyetheretherketone), which was developed typically as a metal replacement. The operations are differentiated in two operating segments: Industrial and Medical.

On 5th December 2019, the company will announce Preliminary results of 2019.

Q3 FY2019 Trading Update (as on 25th July 2019)

In Q3 FY, the company’s sales volume declined by 21 per cent to 912 tonnes as compared with the corresponding period of the last year. Group’s revenue reduced by 14 per cent to £72 million against the £84 million in Q3 FY18. Excluding the large Consumer Electronics order, Group volume reduced by 18 per cent and Group revenue declined by 12 per cent in Q3 FY19Year to date (to the end of Q3) the company sales volume decreased by 18 per cent to 2,811 tonnes from the prior year (2018 YTD: 3,417 tonnes), year to date the company’s revenue (to the end of Q3) reduced by 13 per cent to £217.8 million (2018 YTD: £250.6 million).

In the Industrial division, the company had very robust performance, due to the excellent growth in Aerospace and Energy. In Medical division, the company continued to see steady growth. During Q3 FY19, the company’s in line with macro-indicators and reflecting broader market performance, Electronics, Automotive, and Value-Added-Resellers saw several deteriorations. In the third quarter of 2019, the company also saw the final quarterly comparative from the large Consumer Electronics order, with no volumes sold in Q3 2019.

The company has now successfully secured the contract from a major United States Automotive manufacturer for the supply of PEEK Gears beginning in the financial year 2020, building on the current supply to a main European Automotive manufacturer, with more than ten other development programmes also in place.

Since 31st March 2019, the company saw no material change to its financial position. The currency remains broadly flat for the H2 FY19, with a small tailwind for the financial year 2020 at the basis of a current rate and with nearly 50 per cent of currency hedges in place.

Outlook

The company remain cautious on the Automotive and Electronics markets and in line with the latest macro-indicators. During the final quarter of 2019, the company do not expect a recovery in these market segments. The sales and innovation activity, together with slightly improved comparatives, offers the prospect to deliver a more constant performance for the remainder of the FY19.

In the medium to long term, the company remains in a decent position. With the Polymer & Parts strategy, the company could drive progress in the core business; further growth can be expected with the differentiation through the robust pipeline of new products.

Share Price Performance

Daily Chart as at 22-August-19, before the market close (Source: Thomson Reuters)

On 22 August 2019, at the time of writing (before the market close, at 2:30 pm GMT), Victrex PLC shares were trading at GBX 2,019, up by 1.05 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 3,320.01/GBX 1,813.68. Stock’s average traded volume for 5 days was 222,357.80; 30 days – 263,234.70 and 90 days – 309,339.50. The average traded volume for 5 days was down by 15.53 per cent as compared to 30 days average traded volume. The company’s stock beta as on date was 1.26, reflecting the higher volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £1.73 billion, with a dividend yield of 2.98 per cent.

Tullow Oil PLC

Tullow Oil PLC (TLW) is a London, United Kingdom-headquartered, Africa’s leading independent oil and gas company which works across all stages of the oil life cycle from exploration to production. The group is an Africa-focused oil group with operations across 15 countries and interests in 80 exploration and production licences. The group’s operations are differentiated in three operating segments: East Africa, West Africa and New Ventures.

On 13th November 2019, the company will announce the trading Update.

Recent News

On 12th August 2019, the company released the results of its Jethro-1 exploration well, which is drilled on the Orinduik licence offshore Guyana, through its fully owned subsidiary Tullow Guyana B.V. The company said the “Jethro-1” exploration well, the first detection on the Orinduik licence and includes high-quality oil-bearing sandstone reservoirs of Lesser Tertiary age. This resulted in a “substantial and high-value oil discovery”.  The company owns a 60 per cent holdings in the licence that covers Jethro, with France’s total holding 25% and Eco Atlantic, which is listed in both the Canada and UK, holding the remaining 15%.

Financial Highlights (H1 FY2019, US$ million)

(Source: Interim Reports, Company Website)

Total group working interest production during the period surged by 9.1% for the period to average 86,300 boepd (1H FY 2018: 79,100 boepd), while the working interest production was 89,000 boepd (1H FY 2018: 91,000 boepd) if the impact of production-equivalent insurance payments from the Jubilee field is included. As strong market prices led to a loss on the realisation of hedges, the realised oil price after hedging declined to $64.3/bbl (1H FY 2018: $67.5/bbl). Revenue of $872 million was reported during the reporting period, against $905 million in H1 FY 2018, as the company had to experience losses due to hedging programme. As a result of the phasing of non-routine activity in the second half of FY 2019, underlying cash operating costs during the first half of the year was $145 million or $9.0/boe (1H FY 2018: $181million; $10.9/boe). The company reported a gross profit of $527 million and operating profit of $388 million. Net financing costs during the period were $120 million and profit before tax amounted to $268.4 million. The profit from continuing activities rose to $103.2 million in 1 H FY2019 (1H FY 2018: $54.5 million), and the company reported free cash flow of $181 million, down from $390 million in H1 FY 2018. Basic earnings per share were 7.4 cents (1H FY 2018: 3.9 cents), and the company declared an interim dividend of 2.35 cents/share (c. $33 million). In the first half of FY 2019, capex stood at $248 million and net debt reduced to $2.9 billion, with gearing declining to 1.8x.

Outlook

Due to mechanical issues experienced during the completion of the Enyenra-14 production, full-year working interest oil production forecast was revised down to 89-93,000 bopd, a target which had already been reduced from its outlook of 93,000-101,000 bopd in January. However, the company has continued to pay a dividend, reduce debt and invest in future operations as its portfolio of low-cost West African production has continued to provide a decent financial base.

Share Price Performance

Daily Chart as at 22-August-19, before the market close (Source: Thomson Reuters)

On 22 August 2019, at the time of writing (before the market close, at 3:00 pm GMT), Tullow Oil PLC shares were trading at GBX 213.15, down by 1.14 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 273.90/GBX 163.30. Stock’s average traded volume for 5 days was 6,971,192.80; 30 days – 6,362,004.93 and 90 days – 5,630,912.74. The average traded volume for 5 days was up by 9.58 per cent as compared to 30 days average traded volume. The company’s stock beta as on date was 1.72, reflecting the higher volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £3.04 billion, with a dividend yield of 1.76 per cent.

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