Three Stocks Under Focus: XPS Pensions Group PLC, Lamprell PLC and Euromoney Institutional Investor PLC

  • Nov 04, 2019 GMT
  • Team Kalkine
Three Stocks Under Focus: XPS Pensions Group PLC, Lamprell PLC and Euromoney Institutional Investor PLC

XPS Pensions Group PLC

XPS Pensions Group plc (XPS) is the United Kingdom-based holding company. The group is involved in pensions actuarial, administration and consulting business. The group is involved in offering a variety of compliance and advisory services to across 1000 pension schemes. It also provides solutions for sponsoring companies and pension trustees. The company advises, administers, and acts as an investment consultant to its DC (defined contribution) Master Trust platform called the NPT (National Pension Trust). The company offers, administers and operates SIPP (Self-Invested Personal Pensions) and SSAS (Small Self-Administered Schemes). The company was earlier known as Xafinity plc.

XPS-Pre close trading update for six months ended 30th September 2019

The performance of the company in the first half of the year was in line with the Board's expectations with total revenues growing 8% year on year.  Also, the Pensions Administration business grew by 19%, and the Pensions Investment business grew by 11%.  Revenues for the Pensions Actuarial & Consulting business were flat year on year.

The board is content with the company's first-half performance and expects that the results for the fiscal year will be in accordance with the current market scenario.

XPS-Financial Highlights for FY19

In the financial year 2019, the company’s reported total revenue from continuing operations increased by 75 per cent to £109.9 million as compared with the financial year 2018 of £62.7 million, due to a favourable increase in all the businesses. Adjusted EBITDA from continuing operations surged by 51 per cent to £27.4 million against the £18.1 million in FY18. Total profit before tax stood from continuing operations at £11.4 million, an increase of 245 per cent as compared with the previous year data. The Basic earnings per share for 2019 was 5.7 pence, an increase from the financial year 2018 of 7.7 pence. In FY19, adjusted earnings per share stood at 9.8 pence, an increase of 18 per cent against the 8.3 pence in FY18. The board proposed a final dividend per share of 4.3 pence, an increase from the previous year data.

On March 31, 2019, the company had £5.5 million of cash balances and created £15.5 million of cash from the group operating activities. The company had net cash outflows from financing at £11.4 million. The company also incurred the one-off expenses of £3.1 million in relation to the addition of the Punter Southall pensions business, with a combination of dual-running and restructuring costs.

XPS-Share price performance

On November-04-2019, XPS Pensions Group plc shares were trading at GBX 118.00 at the time of writing before the market close (at 2:15 PM GMT), remained flat against the previous day closing price. Stock's 52 weeks High and Low are GBX 172.00/GBX 90.72.

Lamprell PLC

Lamprell PLC (LAM) is a Dubai, United Arab Emirates-headquartered key player in the oil & gas and renewable energy markets, which provides fabrication, engineering, and contracting services. The company holds leading market positions in jack up rig and liftboat projects and builds high-quality complex onshore and offshore process modules, wind farm foundations and platforms for oil & gas and renewable energy industries. The operations of the group are differentiated in three operating segments, namely Contracting Services, Engineering, Procurement, Construction & Installation, and Rigs.

LAM-Financial highlights for H1 FY19

On 19th September 2019, the company released interim results for the period ended 30th June 2019. The company’s revenue was recorded at US$ 106.4 million in the first half of the fiscal year 2019. The company’s net cash was recorded at US$ 50.2 million in the first half of the current fiscal and is expected to improve by second half of the fiscal year 2019. The company’s gross loss margin was around 12.2 per cent in H1 FY19. The company incurred a net loss of US$ 51.9 million in H1 FY19. The company maintained its revenue guidance at US$ 275-350 million for the fiscal year 2019. The company focuses on oil and gas opportunities in the Middle East and offshore wind farm projects in Europe.

LAM-Share price performance

On November-04-2019, Lamprell PLC shares were trading at GBX 41.80 at the time of writing before the market close (at 2:17 PM GMT), down by 1.18 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 70.00/GBX 41.00.

Euromoney Institutional Investor PLC

Euromoney Institutional Investor PLC (ERM) is a London-headquartered multi-brand information group and is one of the largest business and financial information companies in Europe which assists financial services, commodities, telecoms and legal markets by providing critical data, price reporting, insight, analysis and must-attend events. The group is a constituent of the FTSE 250 share index. The operations of the group are differentiated in four segments, namely Asset Management, Pricing, Data & Market Intelligence, Banking & Finance, and Commodity Events.

ERM-Trading Update

As Banking & Finance segment revenues grew 1% in the quarter compared while the Pricing, Data & Market Intelligence segment were up by 6% in the quarter, reported revenues for the three months to 30 June 2019 increased to £110.9 million (2018: £107.9 million), while underlying revenues were flat year on year. This was impacted by current fundamental and cyclical issues faced within the Asset Management segment, with underlying revenues in the quarter down by 9%. Due to £8.7 million of final proceeds from the disposal of Mining Indaba and strong underlying cash conversion, net cash rose from £29.3 million at 31 March 2019 to £41.2 million at 30 June 2019. On 19th September 2019, the company announced Jan Babiak would take charge as the company's Senior Independent Director.

ERM-Financial Highlights for H1 FY19

Due to the end of the five-year contract to run the SFIG event and the sale of Mining Indaba, statutory and adjusted revenue decreased by 2% to £184.9 million in the first half of 2019, while underlying revenue grew by 1%. The fall in revenue also impacted the adjusted operating profit which decreased by 2% to £46.2 million, while statutory operating profit declined by 60% to £49.6 million due to the significant profit in the prior year on disposal resulting from the sale of Dealogic. Underlying operating profit margin rose by 1 percentage point to 25%, and the adjusted operating profit margin was flat at 25%. Statutory profit before tax was down by 59% to £49.3 million, while due to the reduction in net finance costs, adjusted profit before tax increased by 1% to £46.1 million. Statutory earnings per share declined by 68% 32.9 pence and adjusted diluted earnings per share rose by 2% to 34.3 pence.

ERM-Share price performance

On November-04-2019, Euromoney Institutional Investor PLC shares were trading at GBX 1,352 at the time of writing before the market close (at 2:18 PM GMT), down by 0.44 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 1,510.00/GBX 1,118.00.

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