Two FTSE 350 Stocks Under Spotlight: Senior PLC and M&G PLC

Two FTSE 350 Stocks Under Spotlight: Senior PLC and M&G PLC

Senior PLC (LON: SNR)

The United Kingdom, Hertfordshire-based Senior PLC is a provider of engineering and manufacturing solutions with 30 plus operating businesses in over 10 nations. The group serves original equipment producers in the power & energy, land vehicle, defence and aerospace markets by designing, manufacturing and marketing high-technology components and systems. The business divisions of the group can be segregated in two operating segments, namely Aerospace and Flexonics.

SNR-Trading performance update for 10M FY19

In the last 4 months, the Flexonics’ truck, off-highway and passenger vehicle markets in Europe, Asia, and North America have softened. In the ten months of 2019, the group had seen year-on-year aerospace sales growth as compared to the prior year. In the last four months, the aerospace revenue was down from the prior assumptions, driven by the additional effect of the 737 MAX situation and vulnerability in wide-body commercial aircraft engine demand.

The group released the trading statement for the 10 months ended in October 2019 on 7th November 2019. In the reported period, the Flexonics division had been widely in line with the company’s anticipations despite markets deteriorating in the last four months. The company will announce the 2019 full-year results on 2nd March 2020.

SNR-Business performance for H1 FY19 period ended 30th June 2019

The group is dealing with several challenges in some of the Aerospace and Flexonics markets.

Despite the ongoing uncertainty around the current geopolitical and macro-economic backdrop and 737 MAX production rate cuts, which would hit margins at its aerospace business as Boeing is one of its top customers, the group continues to meet current expectations for 2019.

Many industry experts predict the air traffic growth in excess of 4 per cent per annum over the next 20 years, indicating robust demand for new aircraft, with financial stability and operations in attractive end markets, the group seems to be in a strong position.

The group’s revenue was up by 6.4 per cent on a constant currency basis, which did not factor the favourable impact of the exchange rate to the tune of £22.4 million. The revenue of the group was up by 11 per cent to GBP 580.4 million in the first half of the fiscal year 2019 as compared to GBP 523.3 million in the first half of the fiscal year 2018. The adjusted EPS of the company surged by 7 per cent to 7.84 pence in the first half of the fiscal year 2019 as compared to 7.36 pence in the first half of the fiscal year 2018. The basic earnings per share of the group were recorded at 4.81 pence in the first half of the fiscal year 2019 as compared to 5.90 pence in the first half of the fiscal year 2018. The group approved an interim dividend of 2.28 pence per share in the first half of the fiscal year 2019 as against 2.19 pence per share in the first half of the fiscal year 2018.

SNR-Stock price performance

(Source: Thomson Reuters) Daily Chart as on Jan-03-20, before the LSE market close

While writing on 03rd January 2020, at 10:14 AM Greenwich Mean Time, the market capitalisation of the group was hovering around £786.64 million.

While writing Senior PLC’s shares were trading at GBX 184.14 per share; which were down by 1.00 per cent in comparison to the previous day closing price level.

The shares of the Senior PLC have struck a low of GBX 163.60 (as on 07th November 2019) and a high of GBX 241.80 (as on 18th February 2019) in the last twelve months. At the current price point, as quoted in the price chart, the company’s shares were trading 12.56 per cent above the low price point attained in the last twelve months and were trading 23.85 per cent below the high price point attained in the last twelve months.

At the time of writing, the stock's average daily traded volume for 5 days was 324,003.00; 30 days- 963,856.93 and 90 days – 860,023.23. The stock’s 5-day daily average traded volume plunged by 66.38 per cent in contrast to stock’s 30-day daily average traded volume. At the time of writing, the shares of the company fared above the 30-days and 60-days simple moving averages.

On a YTD (Year-to-Date) time interval, the shares of Senior PLC surged by approximately 7.58 per cent and were up by 2.48 per cent in the last quarter. In the last one-month period, Senior PLC’s shares have generated a positive return of 1.64 per cent.

M&G PLC (LON: MNG)

London, the United Kingdom-based, M&G Plc is a financial services group, which is engaged in the business of providing investment management services as well as saving schemes. The group operates as a leader in the savings management as well as the investments management space and helps its clients by managing investments for both individuals and institutional investors, using various products and instruments.

The group launched a new product called the M&G Positive Impact Fund in the year 2018, which broadened the availability to impact investing for retail or individual customers who would like to invest in companies or securities that have something to offer for the society, its people and environment. The group also launched the M&G Credit Income Investment Trust, which allows the United Kingdom retail investors with combined access to the asset base of both public and private debt securities. The group carries out its activities under two brands- Prudential and M&G Investments. The services offered by the group also include the Asset Management business and long-term savings business.

MNG-Business performance highlights for H1 FY19

The company’s AuMA increased by 6 per cent to £341 billion in the first half of 2019 (at the end of June) as compared with the financial year-end 2018, due to the robust market performance. The adjusted operating profit of the company was lower in the first half of 2018 as against the first half of 2019. The pro forma group Solvency II ratio stood at 170 per cent in the first half of 2019.

The company’s business is conducted in a highly competitive environment with a developing demographic trend, and continued profitability depends upon management’s ability to respond to these pressures and trends. The implementation of complex strategic initiatives gives rise to significant execution risks, which may affect the operational capacity of the company and may adversely impact the Group if these initiatives fail to meet their objectives.

MNG-Stock price performance

(Source: Thomson Reuters)

While writing on 3rd January 2020, at 10:28 AM Greenwich Mean Time), M&G PLC’s shares were trading at GBX 243.90 per share; up by 0.04 per cent in comparison to previous day price level. The market capitalisation of the group was hovering around £6.39 billion.

M&G PLC’s shares have clocked a high of GBX 249.80 (as on 16 December 2019) and a low of GBX 201.20 (as on 22 October 2019) in the past year. At the current price point, as quoted in the price chart, the company’s shares were trading 21.22 per cent above the 52-week low price point and were trading 2.36 per cent below the 52-week high price point.

The stock’s volume, while writing, stood at 723,051 before the market close. Stock's average daily traded volume for 5 days was 2,777,398.60 and 30 days- 13,104,080.83.

The stock’s average daily traded volume for 5 days plunged by 78.81 per cent as against 30 days average traded volume. At the time of writing, the shares of the company were trading above the 30-days SMA.

M&G PLC’s shares have delivered a positive return of 3.83 per cent in the last month. Furthermore, on a YTD basis (Year-to-Date), the stock was up by approximately 2.78 per cent. In addition, in the last five days, the stock was up by 2.61 per cent.

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