AUS
NZ
UK
CA
USA
IND
Highlights
- The UK’s supply chain challenge is expected to deepen further and might continue next year, signalled by the lower inventory position at the manufacturer level in December.
- Output in the manufacturing sector grew by 29% for the quarter to December period, which is the fastest pace of growth since July 2021.
The UK’s supply chain challenge is expected to deepen further and might continue in the next year, signalled by the lower inventory position at the manufacturer level in December 2021. According to the new industrial trend survey conducted by the Confederation of British Industry (CBI), the stock of finished goods at the UK-based manufacturing firms was at the record-low position for the second consecutive month. In December, the inventory position declined to -24% from -16% in November 2021.
However, the survey showed that for the quarter to December period, output in the manufacturing sector grew by 29%, which is the fastest pace of growth since July 2021. Also, 15 out of 17 sub-sector reported output growth, including motor vehicles, food, drink & tobacco. The total order book also grew during the period.
Let us look at three FTSE listed manufacturing stocks that should be on investors radar for 2022 and beyond:
Rolls-Royce Holdings Plc (LON: RR.)
FTSE100 listed company provides its expertise to different industries in the UK and other countries. It has a diversified operation across the aerospace, defence, power sector. The company has agreed to an investment by Qatar Investment Authority (QIA) in its subsidiary Rolls-Royce SMR Limited. QIA, a sovereign wealth fund, will invest £85 million for a 10% stake in the company.
Rolls-Royce SMR is engaged in developing new-age nuclear power stations that are one-tenth the size of conventional nuclear power plants and can provide electricity to nearly one million homes in the UK. Moreover, these nuclear power plants will help Britain with the energy transition and meet its goal of zero carbon emission.
Rolls-Royce Holdings Plc’s current market cap stands at £9,564.1 million as of 20 December 2021.
Chemring Group Plc (LON: CHG)
The company develops and manufactures different equipment that is used in the defence and security industry. It has operations in the US, Norway, Australia, and many other countries.
The company’s total order book stands at £500.8 million. It reported a revenue of £393.3 million with an underlying EBITDA of £76.4 million for the financial year ended 31 October 2021. In addition, the company completed the acquisition of Cubica Group in June 2021.
Chemring Group Plc’s current market cap stands at £833.8 million as of 20 December 2021.
Senior Plc (LON: SNR)
The engineering solutions company design and manufactures components for the defence, automotive, power and energy sector. The company’s business growth was in line with the expectation in the first nine months of 2021.
However, the group revenue was lower by 7% at £496 million on a constant currency basis, mainly due to the Covid-19 led pandemic impacting the sales. The company was able to bring down its net debt to £94 million, a reduction of £35 million compared to December 2020.
The company’s current market cap stands at £509.1 million as of 20 December 2021.
