Two FTSE AIM 100 Index Stocks to Ponder On: Global Data Plc & Renew Holdings Plc

  • Dec 07, 2019 GMT
  • Team Kalkine
Two FTSE AIM 100 Index Stocks to Ponder On: Global Data Plc & Renew Holdings Plc

Global Data Plc

Global Data Plc (LON: DATA) is a holding company which provides standard gold data to some of the world’s largest industries. The company supports the client in a complex issue, which is delivered through a single integrated online platform. It employs a global expert group of 3,500 employees in 25 countries to convert the raw data into intelligence information for the company. The company covers various industries such as Aerospace, Defence & Security, Automotive, Banking & payments, Construction, Consumer, food services, Insurance, Medical Devices, Mining, Oil & Gas, Packaging, Pharmaceutical, Power, Retail, Technology and travel & tourism. Four core strategic priorities of the company are; World Class Products, Sales Excellence, Operational Agility and Client Centric. The company has a team of around 50 trusted journalists, which focus on publishing many sector-specific stories on daily basis to keep client and investors up to date.

News Update

On 3rd October 2019, the company announced about Sally Johnson who was appointed as Chief Financial Officer. She will join the company in the first quarter of the year 2020. Sally is the Deputy Chief Financial Officer of Pearson Plc, since 2015. She has been working at Pearson since 2000 with various operational and finance role and has experience in international finance, change management and leadership. Before Pearson, she has worked in one of the big four company i.e. PricewaterhouseCoopers' in the Assurance practice.

On 23rd May 2019, the company hosted a Capital Markets Day for institutional investors which include presentations from several executives from the Company and focus on company products, the market opportunity and sales execution.

On 26th April 2019, the company announced that Mike Danson (CEO) and Wayne Lloyd (Managing Director) sold 3.34 million ordinary shares in the company for a price of 600 pence per share.

Financial Performance

On 29th July 2019, the company announced its financial results for the half-year period ended 30th June 2019. As per the report, the revenue stood at £88.5 million in H1 FY2019 as compared to £74.9 million in H1 FY2018, an increase of 18%. The statutory profit/ (loss) before tax increased to £5.2 million in H1 FY2019 as compared to a loss of £4.2 million in H1 FY2018. The EBITDA stood at £17.5 million in H1 FY2019 as against £7.4 million in H1 FY2018, an increase of 134.72%.

The cash from flow generated operation stood at £34.1 million in H1 FY2019 as against £17.3 million in H1 FY2018, an increase of 97.2%.  The Adjusted EBITDA margin increased to 25.2% in H1 FY2019 as compared to 19.4% in H1 FY2018.

The one-time charge, i.e. restructuring costs decreased to £581 million in H1 FY2019 as against £1,033 million in H1 FY2018. The M&A costs also reduced to £59 million in H1 FY2019 as against £1,672 million in H1 FY2018.

(Sources: LSE)

Share Price-performance

On 6th December 2019, while writing at 09:10 AM GMT, DATA shares were clocking a current market price of GBX 1,155.00 per share on the London Stock Exchange; higher by 0.43% as compared to the last traded price of the previous day. The company’s market capitalisation was at £1.36 Billion at the time of writing.

On 2nd December 2019, the shares of DATA had touched a new peak of GBX 1,209.60 and reached the lowest price level of GBX 550.0 on 15th February 2019 in the last 52 weeks range. The company’s shares were trading at 4.51 per cent lower from the 52-week high price mark and 110.0 per cent higher than the 52-week low price mark at the current trading level.

The beta was 0.14 at the time of writing which shows the volatility is very low as compared with the index taken as the benchmark. The annual dividend yield was 1.08% and share outstanding was 118.11 million at the time of writing.

Outlook

In the previous year, the company had agreed to acquire the entire share capital of Research Views Limited, which proved beneficial for the company this year. The company began FY 2019, with a positive result, and expects that it will progress further. The company is looking forward in the second half of the year 2019 and hopes to leverage the Global Data platform further. The continued product investment boosted user interface and integration tools within a multi-industry platform which helped the clients with a more productive experience with greater insight. 

Renew Holdings Plc

Renew Holding Plc (LON: RNWH) is a holding company which allows independence to the operating subsidiaries for enabling them more competitive and effective in their respective markets. The company’s engineering services are delivered through the UK subsidiary businesses, which support the everyday running infrastructure networks. The company renew permits to its operating branded subsidiaries which enable it to be competitive and effective in their markets. The expert knowledge of subsidiary businesses delivers engineering services as per the clients need, and many are responsible for the long-term maintenance and renewal of national infrastructure networks. The company’s main AIM is to focus on a direct delivery model through strategically located brands and to support customers in the entire UK.

News Update

On 18th October 2019, the company announced that the chief executive officer, Paul Scott (Chief Executive) and Andries Liebenberg (Executive Director) purchased 5,450 ordinary shares of 10p nominal value in the company at a price of 367p per share or 0.007 per cent. Due to this, Paul Scott's holding increased to 52,862, indicating 0.070 per cent in the company and Andries Liebenberg's holdings increased to 38,821 indicating 0.052 per cent in the company.

On the same date, Wyndham-Quin (Chief Financial Officer) too purchased 2,725 ordinary shares of 10p nominal value in the company at a price of 367p per share or 0.004 per cent. Due to this, Wyndham-Quin's holding increased to 13,993 or 0.019 per cent in the company.

On 9th May 2019, the company announced to acquire QTS Group Limited’s (a leading independent rail contractor, located at Scotland) 100% of the issued share capital for a cash consideration of £80 million. The company also announced to raise £45 million to part-fund the Acquisition.

Financial Highlights

On 26th November 2019, the company published a press release to announce results for the year ended 30th September 2019. As per the report, the Group revenue stood at £600.6 million in FY2019 as compared to £541.5 million in FY2018, an increase of 10.9%. The adjusted operating profit stood at £38.3 million in FY2019 as compared to £31.1 million in FY2018, an increase of 23.2%. Additionally, the profit before tax increased by 83.67% and stood at £27.0 million in FY2019 in contrast to £14.7 million in FY2018.

The adjusted earning per share increased to 40.4p in FY2019 as compared to 35.5p in FY2018, whereas full-year dividend per share stood at 11.5p in FY2019 as compared to 10.0p in FY2018, an increase of 15%. 

Share price performance

On 6th December 2019, at 12:28 PM GMT, while writing, RNWH share price was reported to be at GBX 431.00 per share on the London Stock Exchange, a decline of 2.27 per cent or GBX 10.00 per share, as compared to the previous day’s closing price. The company’s market capitalisation (M-Cap) was reportedly valued to be at GBP 332.20 million with respect to the share’s current market price.

On 6th December 2019, the shares of RNWH had touched a new peak of GBX 444.0 and reached the lowest price level of GBX 330.0 on 2nd January 2019 in the last 52 weeks range. The company’s shares were trading at 2.9 per cent lower from the 52-week high price mark and 30.6 per cent higher than the 52-week low price mark at the current trading level.

At the time of writing, the beta of the RNWH share was 0.62 which basically implies that the volatility in the price of the company’s stock is less than the volatility in the movement of the comparative benchmark index.

Outlook

The company’s positive results demonstrated a very strong financial position due to falling net debt and outstanding profitability. The company's growing revenue and cash generation helped to deliver earnings growth. The company's appointment to several vital frameworks provides a scope for continued organic growth.

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