Two FTSE Listed Stocks Under Spotlight: Nichols PLC And Cobham PLC

  • Dec 23, 2019 GMT
  • Team Kalkine
Two FTSE Listed Stocks Under Spotlight: Nichols PLC And Cobham PLC
Nichols PLC (LON: NICL)

Nichols PLC is a Merseyside, United Kingdom-headquartered international soft drinks company with sales in 85 plus countries with a portfolio of branded still, cordial and carbonated drinks which can be found in cash and carries, discount retailers, supermarkets, restaurants, bars, clubs, pubs, and leisure outlets. The brands of the group reach its customers through four key routes to market, namely UK Retail, International, Out of Home and Brand Licensing.

NICL-Trading Update for FY19

The company released the trading update for the fiscal year 2019 period ended 31st December 2019. In 2019, the sales figures of the company are expected to exceed by 4 per cent in contrast to the previous year. The company had seen the challenging broader consumer environment and the slowdown in the UK soft drinks market based on this performance.

The company performed well in comparison to the fiscal year 2018 as far as the United Kingdom and International businesses are concerned.

The Vimto brand continues to help the company in gaining market share and robust momentum during the period in the UK business in comparison to the previous year.

As far as international markets are concerned, the Ramadan (2019) had been one of the brand's most successful campaigns across the Middle East region. The company is expecting Profit Before Taxation to be in line with market anticipations in the fiscal year 2019.

NICL-Business performance for H1 2019

(Source: Interim report, Company’s website)

The total Group revenue for the period surged by 10.2 per cent to £71.6 million in the first half of the fiscal year 2019 from £64.98 million in the first half of the fiscal year 2018. During the period, the company invested in its infrastructure to support the trading growth, as Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) surged by 9.7 per cent to £15.3 million from £14.0 million in the first half of the fiscal year 2018. The operating profit of the company improved marginally by 2.1 per cent to £13.3 million against £13.1 million in the prior year. The Profit Before Taxation of the company was £13.3 million in the first half of the fiscal year 2019, up by 2.0 per cent from the prior period. The company recommended an interim dividend of 12.4 pence per share in the first half of the fiscal year 2019.

NICL-Stock price performance

(Source: Thomson Reuters) Daily Chart as on Dec-23-19, before the LSE market close

While writing (as on 23rd December 2019, at 11:42 AM GMT), Nichols PLC’s shares were trading at GBX 1,427.00 per share; which were 16.06 per cent down in comparison to the previous day closing price level. Total market capitalisation of the group at the time of writing was hovering around £627.53 million.

The shares of the Nichols PLC have struck a high of GBX 1,880.00 (as on August 14, 2019) and a low of GBX 1,350.00 (as on January 02, 2019) in the last twelve months. At the current price point, as quoted in the price chart, the company’s shares were trading 24.10 per cent below the high price point attained in the last twelve months and 5.70 per cent above the low price point attained in the last twelve months.

At the time of writing, the stock's average daily traded volume for 5 days was 10,565.40; 30 days- 14,817.43 and 90 days – 14,239.38. The company’s stock beta (5Y monthly) stood at 0.45, which implies that the company’s stock is less volatile in comparison to the benchmark index along with a dividend yield of 2.31 per cent.

The shares of the company were trading above the 30-days and 60-days SMA while writing. The stock’s daily average traded volume for 5 days plunged by 28.70 per cent in contrast to 30 days daily average traded volume.

On a YTD (Year-to-Date) time interval, the shares of Nichols PLC surged by approximately 23.86 per cent and were up by 8.28 per cent in the last quarter. However, Nichols PLC’s shares have delivered 9.50 per cent positive return in the last one-month period.

Cobham PLC (LON: COB)

Cobham Plc focuses on creating products and services concerning the Aerospace & Defence sector, which can be used in remote and challenging environments to secure human lives and assets. The company’s USP lies in AV(Audio/Video) communications, data and satellite communications, defence gadgets, refuelling systems (Air-to-Air), life support equipment and aviation services. The company has a headcount of more than 10,000 people and presence in more than 100 countries.

COB - Business performance for H1 FY19

(Source: Interim results, Company’s website)

The company’s revenue stood at £1,028.9 million in the first half of the H1 FY19 as against £924.5 million in H1 FY18. This improvement was due to a rise in demand for various products. The company’s profit from operations (reported) stood at £68.7 million in H1 FY19 as against £213.9 million in H1 FY18. The company’s profit from operations (adjusted) stood at £107.1 million in H1 FY19 as against £95.5 million in H1 FY18. The company’s operating margin (adjusted) stood at 10.4 per cent in H1 FY19 as against 10.3 per cent in H1 FY18.

The company’s net finance cost incurred was recorded at £8.2 million in H1 FY19 as against £32.9 million in H1 FY18. The company’s overall tax cost was recorded at £12.6 million as against £14.3 million in H1 FY18. The company’s basic EPS stood at 2.0 pence per share in H1 FY19 as against 7.0 pence in H1 FY18. The company’s cash from operations (adjusted) stood at £64.2 million in H1 FY19 as against £37.7 million in H1 FY18.

COB-Stock price performance

(Source: Thomson Reuters) Daily Chart as on Dec-23-19, before the LSE market close

While writing (as on 23rd December 2019, at 11:48 AM GMT), Cobham PLC’s shares were trading at GBX 164.35 per share; which were 0.40 per cent up in comparison to the previous day closing price level. Total market capitalisation of the group at the time of writing was hovering around £3.91 billion.

The shares of the Cobham PLC have struck a high of GBX 171.20 (as on July 29, 2019) and a low of GBX 96.38 (as on January 02, 2019) in the last twelve months. At the current price point, as quoted in the price chart, the company’s shares were trading 4.00 per cent below the high price point attained in the last twelve months and 70.52 per cent above the low price point attained in the last twelve months.

At the time of writing, the stock's average daily traded volume for 5 days was 14,433,085.40; 30 days- 17,654,130.07 and 90 days – 12,573,319.80. The company’s stock beta (5Y monthly) stood at 0.77, which implies that the company’s stock is less volatile in comparison to the benchmark index.

The shares of the company were trading above the 30-days and 60-days SMA while writing. The stock’s daily average traded volume for 5 days plunged by 18.25 per cent in contrast to 30 days daily average traded volume.

On a YTD (Year-to-Date) time interval, the shares of Cobham PLC surged by approximately 67.52 per cent and were up by 2.44 per cent in the last quarter. However, Cobham PLC’s shares have delivered 2.63 per cent positive return in the last one-month period.

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