Tracking The Spurt In Chemring Group PLC And Sports Direct International PLC Stocks

  • Dec 17, 2019 GMT
  • Team Kalkine
Tracking The Spurt In Chemring Group PLC And Sports Direct International PLC Stocks
Chemring Group PLC (LON: CHG)

Chemring Group PLC offers global solutions by manufacturing high-end technology products and providing services to the aerospace and defence sector. The company employs around 2,500 people across the globe and has a presence in four countries where its production takes place. The company services in fifty-plus nations. The company has highly reliable solutions in its portfolio to secure people, missions, data and platforms against potential threats.

The company has the agility to rapidly react to constantly changing requirements of the customers, as they have the experience of working in the niche markets, well supported by their research and development unit. The company has organised its set of operations into various subdivisions, namely, Sensors & Information and Countermeasures & Energetics.

The improvised explosive device (IED) detection equipment, network protection technologies and chemical & biological threat detection equipment and other ordnance disposal equipment are developed and manufactured by Sensors & Electronics division. The manufacture & development of expendable countermeasures for air, land and water platforms, and other electronic warfare equipment is taken care of by the Countermeasures division.

The manufacturing of illumination and signalling devices used in payloads, propellers, launching of satellites, missile deployment, warheads and other energetic materials are under the supervision of the Energetics division.

CHG-Recent News

The non-executive director of the company, Nigel Young expressed his intention to retire on 30th April 2020.

CHG-Business performance for FY19 period ended 31st October 2019

(Source: Company’s filings, London Stock Exchange)

The company declared its results for the year ended 31st October 2019 on 16th December 2019. The company’s reported revenue surged by 13 per cent to £335.2 million in the financial year 2019 from £297.4 million in the financial year 2018, as a result of robust performance from the Sensors and Information business division of the company. The company reported a growth in the Underlying EBITDA of 22 per cent (as reported) to £61.2 million in the financial year 2019 from £50.0 million in the financial year 2018.  The company reported a growth in the operating profit of 42 per cent (as reported) to £44.0 million in the financial year 2019 from £31.0 million in the financial year 2018.

The company’s underlying Earnings per share increased by 62 per cent (as reported) to GBX 11.2 per share in the financial year 2019 from GBX 6.9 per share in the financial year 2018. The company proposed a dividend of GBX 3.6 per share during the period.

CHG-Stock price performance

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

At the time of writing at 09:34 AM Greenwich Mean Time, on 17th December 2019, the shares of Chemring Group PLC were trading at a current market price of GBX 214.00 per share, which were up by 1.90 per cent from the last closing price on the previous day. While writing, the group’s market capitalisation was approximately £589.33 million.

The shares of Chemring Group PLC touched a fresh high-price mark on 17th December 2019, while its low-price mark was of GBX 134.00 on 28th March 2019 in the last twelve-month period. The company’s shares were trading at 59.70 per cent higher than the last twelve-month low-price mark as can be seen in the price chart at the current trading level.

While writing, the stock’s traded volume stood at 91,056. The stock’s 5-day daily average traded volume of the company was 424,738.80; 30 days daily average traded volume- 466,357.37 - and 90-days daily average traded volume – 268,647.78. The beta of the company’s stock was recorded at 0.46, which indicates higher volatility with reference to the benchmark index along with a dividend yield of 1.71 per cent.

The company’s shares have generated a positive return of 6.06 per cent in the last quarter. From the start of the year to date, the company’s stock was up by 30.27 per cent. Since last month, the company’s stock has given investors a positive return of 7.58 per cent. 

Sports Direct International PLC (LON: SPD)

Incepted in 1982 and headquartered in London, the United Kingdom, Sports Direct International PLC is a well-known supplier of retails sports, footwear, leisure clothing, apparel and equipment products through a network of retail stores and online channels.

The company operates in five divisions: European Retail, Wholesale & Licensing, UK Sports Retail, Rest of World Retail, and Premium Lifestyle. The company’s business operations span across 20 nations and have the total representative base of nearly 27,000 people. The company has around 400 plus stores in the United Kingdom and Northern Ireland, 200 plus stores in Europe, around 30 stores in Malaysia, 40 plus stores in the United States and 30 plus premium stores.

SPD-Change of Name

The company at its General Meeting held on 16th December 2019, announced that the name of the company would be changed to Frasers Group Plc from Sports Direct International Plc. The company's stock shall now trade under ticker symbol “FRAS” from the very next trading day, and its ISIN of the shares will remain the same as earlier.

The name change will be effective once the company receives a certificate of incorporation on change of name from Companies House.

The name change will not impact existing share certificates, and any rights of shareholders should be retained as they will remain valid and no new share certificates shall be issued.

SPD- Business performance H1 FY20

(Source: Company’s filings, London Stock Exchange)

The company’s revenue surged by 14 per cent to £2,043.50 million in the first half of the financial year 2020 from £1,791.80 million in the first half of financial year 2019. Though the company’s revenue on a currency neutral basis plunged by 6.4 per cent owing to the continued elevation strategy, excluding acquisitions. Due to acquisitions during the period, the revenue from UK Sports Retail surged by 6.2 per cent. Due to new Flannels stores and a full period contribution from House of Fraser, the revenue from Premium Lifestyle revenue rose by 79.2 per cent.

The company acquired Game Digital Plc on 27th July 2019. Since the acquisition, the revenue was £133.9 million. Due to the acquisitions during the period, the revenue from European Retail surged by 16.7 per cent. The company’s Underlying EBITDA was up by 21.8 per cent to £181.2 million in H1 FY20.

Due to upturn in the European Retail divisions as well as the Premium Lifestyle, the Underlying EBITDA of the company was up by 15.1 per cent in the period.

Owing to increased underlying EBITDA and the £84.9 million gain (on basis of pre-IFRS 16) arising from the Shirebrook distribution centre’s sale and leaseback, the company’s reported profit before taxation surged by 160.0 per cent to £193.4 million in the period.

 As a result of improved underlying EBITDA, the company’s Underlying profit before taxation was up by 58.1 per cent to £101.8 million in the period. The company’s profit after taxation was up by 214.7 per cent to £150.1 million in H1 FY20 in contrast to £47.7 million in H1 FY19. The company’s underlying free cash generation was recorded at £162.3 million in the period. 

The increase in underlying EBITDA and earnings from the Shirebrook distribution centre’s disposal resulted in a lower Net debt to £254.4 million by the end of the reported period as compared to £505.5 million by the end of H1 FY19.

SPD-Stock price performance

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

At the time of writing at 09:40 AM Greenwich Mean Time, on 17th December 2019, the shares of Sports Direct International PLC were trading at a current market price of GBX 478.00 per share, which were up by 1.23 per cent from the last closing price on the previous day. While writing, the group’s market capitalisation was approximately £2.46 billion.

The shares of Sports Direct International PLC touched a fresh high-price mark of on 17th December 2019 and had a low-price mark of GBX 166.60 on 29th July 2019 in the last twelve-month period. The company’s shares were trading at 186.91 per cent higher than the last twelve-month low-price mark as can be seen in the price chart at the current trading level.

While writing, the stock’s traded volume stood at 554,091. The stock’s 5-day daily average traded volume of the company was 1,220,218.60; 30 days daily average traded volume- 558,002.70 - and 90-days daily average traded volume – 671,344.74. The beta of the company’s stock was recorded at 0.71, which indicates lesser volatility.

The company’s shares have generated a positive return of 69.98 per cent in the last quarter. From the start of the year to date, the company’s stock was up by 98.57 per cent. Since last month, the company’s stock has given investors a positive return of 46.83 per cent. 

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