Two FTSE Stocks Under Focus – Capita Plc and UK Commercial Property REIT Limited

Two FTSE Stocks Under Focus – Capita Plc and UK Commercial Property REIT Limited
Capita Plc

Capita Plc (CPI) is a London, the United Kingdom based professional and support services company that engages in the business of Management of consulting and advisory processes or the delivery of Business Process Management. The company has six major segments in which it provides its services and solutions to its clients. These six segments include the likes of Software, in which the company is involved in the development and delivery of custom expertise application software and other broader services in the sectors of Education, Local Governments, Public Safety, Utility, Transport, Consulting, Legal and Compliance as well as payments. The second segment is People solutions through which, the company engages in the provision of Human Resource product offerings across an employee’s entire employment life cycle including the processes like recruitment outsourcing, learning outsourcing, HR Services as well as Pensions and Benefits management. The third important segment is the Customer Management segment, through which, the company is involved in the delivery of multi-channel customer engagement services most important for the perusal of the telecommunications sector, the retail sector as well as the utility and power services sectors. The company also engages in the supply of remediation, grievance redressal and complaints management as well as collections services including services like TV Licensing. Through its Government Services segment, the company engages in the business of delivery and transformation of business services that leverage high technology which would include the operation and execution of large and complex contracts. The company is also in the business of providing support in the execution of services like revenue management, benefits and back-end operations, Information Technology, Human Resources, Financial Management to local regulators and authorities as well as to organisations working in the healthcare and education spaces. The company’s other segments include IT and Networks, which basically provides cyber and network-based services and Specialist services that engage in the provision of a plethora of services from its sixteen separate businesses in this segment.

CPI Latest News

On 31st October 2019, the company made a press release to announce that it has done a renewal of its contract with The Co-operative Bank Plc to operate its mortgage and loan servicing functions in the United Kingdom and to continue to help the Bank to transform in a way that it becomes fully enabled with digital services so that it will be able to grow its focus towards its customers. The contract renewal is valued at £141 million over a period of 6 years, out of which, a £107 million is incremental or instalment payments to Capita’s contract that has been currently running with the Bank and begins on the 1st November 2019. Capita’s current contract that has been running with the Bank for its mortgage servicing function was signed in the month of August 2015 and was about to expire in the year 2020. The scope of the contract renewal includes that the company will continue running its full array of mortgage servicing functions– from initial enquiry and application processes to all the way to maturity of the mortgage.

CPI Financial Performance

On 1st August 2019, the company announced its half-year results for the six months ended 30th June 2019. The company reported that the half-year results were in line with the board and the market’s expectations. The company reported a revenue of £1,851.6 million for the reporting period, and the profit before tax for H1 2019 was reported to be at £126.1 million. The company also highlighted that the order intake for the period was around £830 million while the order book stood at £6,650.6 million. The company also announced that they would be maintaining their guidance for the FY 2019 with profit before tax expected to be somewhere between £265 million and £295 million. The company announced that it was on track to deliver a cumulative cost competitiveness savings (CCCS) of approximately £175 million by this year’s end. The company also reported of winning two major contract extensions, one worth £525 million Defence Fire & Rescue Project and the other one valued at £145 million, a DWP PIP extension.

Six months ended 30 June 2019

Source: Company Website

CPI Share Price Performance

On 1st November 2019, at 08:15 A.M. GMT, while writing, Capita Plc’s share price was trading at GBX 156.11 per share, an increase of 0.006 per cent or GBX 0.01 per share as compared to the previous day’s closing price, which was reported to be at GBX 156.10 per share. At the time of writing, the Capita Plc share price was trading 12.78 per cent below the 52-week high share price, which was at GBX 179.00 per share, set on October 17, 2019. This was also 58.23 per cent above the 52-week low price at GBX 98.66 per share, which the company’s share set on June 17, 2019. The market capitalisation (m-cap) of the Capita Plc has been reported at GBP 2.604 billion.

By the time of writing, 23,090 of the company’s shares had been traded in the market. The average volume of trading per day, for the last one year in the market, was 5.40 million shares. The share has reportedly shown a positive change of 20.92 per cent in value in the last one year, from the price of GBX 129.10 per share. There also has been a positive change in the last six months in the value of Capita Plc’s share of about 23.70 per cent from the price of GBX 126.20. The company’s share has also gained 6.59 per cent in value in the last one month from the price of GBX 146.45.

The beta of the company’s share has been reported to be at 1.2812. This implies that the movement in the company’s share is more volatile in nature, as compared to the movement of the benchmark market index.

UK Commercial Property REIT Limited

UK Commercial Property REIT Limited (UKCM) is a St. Peter Port, Guernsey-based closed-ended Real Estate investment trust company that operates as a part of the Aberdeen Standard Investments group. The company’s primary investment objective is to provide the ordinary shareholders of the company with an opportunity to generate an attractive income along with the possibility for the growth of their capital and incomes by making investments in a unique and Varied United Kingdom based commercial Real Estate portfolio.

UKCM Financial Performance

On 23rd September 2019, the company reported its half-year results for the six months ended 30th June 2019. The company reported a Net Asset Value total return of 1.9 per cent, which was achieved with a low relative net gearing of 16.2 per cent as the company’s real estate portfolio continued to perform better than the comparative benchmark. The company also reported a 19 per cent year on year growth in EPRA Earnings per share (EPS) which was reported at GBX 1.70 per share. The company reported a growth in the availability of the quantum debt by approximately £50 million. It was also highlighted that the cost decreased from 2.89 per cent to 2.78 per cent during the year.

UKCM Share Price Performance

On 1st November 2019, at 08:05 A.M. GMT, while writing, UK Commercial Property REIT Limited’s share price was trading at GBX 87.63 per share, a decrease of 0.08 per cent or GBX 0.071 per share as compared to the previous day’s closing price, which was reported to be at GBX 87.70 per share. At the time of writing, the UK Commercial Property REIT Limited share price was trading 5.67 per cent below the 52-week high share price, which was at GBX 92.90 per share, set on May 15, 2019. This was also 10.64 per cent above the 52-week low price at GBX 79.2 per share, which the company’s share set on August 05, 2019. The market capitalisation (m-cap) of the UK Commercial Property REIT Limited has been reported at GBP 1.139 billion.

By the time of writing, 1750 of the company’s shares had been traded in the market. The average volume of trading per day, for the last one year in the market, was 955,100 shares. The share has reportedly shown a negative change of 0.08 per cent in value in the last one year, from the price of GBX 87.70 per share. There also has been a negative change in the last six months in the value of UK Commercial Property REIT Limited’s share of about 0.98 per cent from the price of GBX 88.5. The company’s share has also reportedly gained 4.32 per cent in value in the last one month from the price of GBX 84.00.

The beta of the company’s share has been reported to be at -0.1027. This implies that the company’s share movement is less volatile and inverse in nature, as compared to the movement of the benchmark market index.

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