3 FTSE 250 Stocks Showing Resilient Financial Performance

Summary

• The FTSE 250 components, Royal Mail, Ashmore, and Lancashire Holdings have reported an increase in their earnings, despite the uncertainties.
• The investors’ mood has remained optimistic mostly after the vaccine rollout.

The FTSE 250 began trading in the new year on a positive note, with the index adding around a per cent and closing at 20,688.13 on the very first day. The gains came amid the vaccine roll out, with investors remaining optimistic about the UK’s economic growth.

However, the investor’s confidence on the share markets is still not that firm while we are halfway through February. The two major indices of the London Stock Exchange (FTSE 100 and FTSE 250) are yet to make any remarkable progress in the year to date.

The investors remain cautious with companies releasing their earnings. Let’s turn the spotlight towards the major FTSE 250 stocks that have revealed their earnings recently:

Royal Mail PLC (LON: RMG)

The British multinational courier and delivery service company posted its trading update for the nine months ended on 31 December 2020. The company witnessed its busiest day during this period, delivering around 11.7 million parcels, which was 32 per cent higher when compared to its activities during the initial lockdown.

Royal Mail observed a 9.3 per cent growth in its revenue for Q3 the Y-O-Y growth was 16.5 per cent, which exceeded the anticipated figures. The total volumes of the Parcels segment surged 31 per cent, while its revenue increased by 37.0 per cent, driven by positive price/mix.

However, the Letters’ segment saw a decrease in the revenue of 16.0 per cent, in the Q3 the decline was 8.5 per cent and the addressed letter volumes also dipped by 23 per cent, because of the lockdown restrictions in place across the nation.

Also Read: Royal Mail’s (LON:RMG) Parcel Revenue Surpasses Letters in First Half Of 2021

The company believes that revenue growth for the full year 2020-21 will be well below the £580 million level. Also, the introduction of the third lockdown in January add to additional costs.

The RMG’s shares ended at GBX 450.80 on 11 February 2021, up by 4.91 per cent.

(Source: Company’s RNS, LSE)

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Ashmore Group PLC (LON:ASHM)

Ashmore released its half-yearly results for the six months ended on 31 December 2020, posting significant growth in its business. The London, United Kingdom headquartered asset management company recorded an 11 per cent increase in its Assets Under Management (AuM) to US$ 93.0 billion, as a result of its excellent investment performance.

The investment performance also boosted the profit before tax, which saw a 14 per cent rise to £150.6 million. However, the adjusted net revenue and adjusted EBIDTA, both recorded a 12 per cent decline year on year to £156.8 million and £107.2 million respectively. Moreover, the FTSE 250 stock maintained its interim dividend of 4.80 pence per share for the period.

The ASHM’s shares closed at GBX 475.40 on 11 February 2021, up by 0.59 per cent.

(Source: Company’s RNS, LSE)

Lancashire Holdings Ltd (LON:LRE)

The 2005 established Bermuda-based insurance company disclosed its full year results for the period ending on 31 December 2020. Despite the business being affected by the deadly health crisis, the company managed to successfully achieve a 15.2 per cent YoY increase in the gross premiums written to $814.1 million and also witnessed a surge in gross premiums written under management from $934.8 million in 2019 to $1,067.1 million in 2020, driven by strategic planning.

The Group’s Renewal Price Index (RPI) stood at 112 per cent during the year, as a result of the market pricing. The company made an overall profit after tax of $4.2 million and also declared a final ordinary dividend of $0.10 per share.

The LRE’s shares closed at GBX 698.50 on 11 February 2021, up by 0.43 per cent.

(Source: Company’s RNS, LSE)