A Quick Review of the Financials of 3 FTSE 250 Stocks- Derwent London, Domino’s and Petrofac

Summary

  • FTSE 250 index represents the performance of mid-cap stocks listed on the LSE
  • Derwent London Plc’s gross rents increased by 5.0 per cent from £93.1 million to £97.8 million in H1 2020
  • Domino's Pizza Group PLC recorded a decline in the UK and Ireland underlying EBIT of 5.6 per cent during the H1 2020
  • Petrofac Limited reported a net loss of US$78 million in the first half of 2020

Launched in the year 1992, the FTSE 250 Index is a capitalisation-weighted index consisting of 250 mid-capitalised companies listed on the London Stock Exchange, which are not covered under FTSE 100 index. The index represents the performance of mid-cap stocks listed on the LSE. The largest company of the index is B&M European Value Retail PLC (LON: BME) with a market capitalisation (Mcap) of GBX 4,838.82 million, and the smallest company is Finablr PLC (LON: FIN) with Mcap of GBX 77.18 million.

The FTSE 250 index traded at GBX 17,690.53 on 14 August 2020 at 09:51 AM, down by 1.31 per cent from its previous close of GBX 17,924.59. The 52 weeks low/high range was reported at GBX 12,829.70/22,108.29. It was having a net market capitalisation (Mcap) of £308,194 million.

Let's have a look at the financial updates of three FTSE 250 stocks: Derwent London PLC, Domino's Pizza Group PLC and Petrofac Limited.

Derwent London PLC

Based in the United Kingdom, Derwent London PLC is a real estate investment trust (REIT) operating in central London region. The Company is involved in managing a portfolio of commercial real estate, predominantly in central London, includes investment property, owner-occupied property and trading property.

Financial Highlights

Derwent London PLC had released its half-yearly results for the period ending on 30 June 2020 on 11 August 2020. The gross rents increased by 5.0 per cent from £93.1 million to £97.8 million in H1 2020, due to the new lettings at Brunel Building (completed in 2019) and 80 Charlotte Street.

EPRA NTA per share declined by 1.4 per cent in H1 2020 to 3,900 pence from 3,957 pence per share in December 2019, with a negative revaluation movement of £65.7 million or 59 pence per share in H1 2020. The company recorded the EPRA earnings, excluding fair value movements and property disposal profits, as £54.7 million in H1 2020, decreasing slightly from £57.3 million in H1 2019, due to the impact of Covid-19. EPRA earnings per share were down to 48.90 pence per share for the period (51.34 pence in H1 2019).

The company raised the 2020 interim dividend by 4.8 per cent to 22.0 pence per share, all to be paid as a PID on 16 October 2020 to shareholders on the register as at 11 September 2020. It recorded an increase in EPRA Cost Ratio of 28.9 per cent due to the Covid-19 costs.

Stock Performance

Derwent London PLC (LON: DLN) stock was trading at GBX 2,796.00 on 14 August 2020, at 9:58 AM, down by 0.78 per cent from its previous close of GBX 2,818.00. The 52-week low/high price was GBX 2,690.00/4,282.00. It was having a market capitalisation (Mcap) of £3,154.66 million. The volume traded at the time of reporting was 40,177. The company recorded a negative return on price, which was 29.51 per cent on a YTD (Year to Date) basis.

Domino’s Pizza Group PLC

Domino's Pizza Group PLC is a United Kingdom-based pizza delivery company, holding the franchise rights for the Domino's brand in the United Kingdom, Republic of Ireland, Switzerland, Liechtenstein and Luxembourg.

Financial Highlights

Domino's Pizza Group PLC released its half-yearly results for the period ending on 28 June 2020 on 11 August 2020. The company recorded a decline in the UK and Ireland underlying EBIT of 5.6 per cent from the prior year to £49.5 million, which was primarily due to Covid-19 related costs of £6.2 million to ensure safe operations. It also reported an underlying profit of £1.9 million from the minority stake in the German associate (H1 2019: £1.3 million). The Group’s discontinued International businesses generated £37.5 million of system sales (H1 2019: £49.8 million) and recorded a trading loss of £7.3 million (H1 2019: loss of £7.6 million). A trading loss of £3.3 million was incurred in Norway before its disposal on 22 May 2020. The disposal of Norway incurred costs of £10.8 million, including transaction costs, with cash costs of £6.4 million.

The Group’s statutory profit after tax, including discontinued and continued activities, was £19.0 million, resulting from the loss on disposal of Norway. The underlying basic EPS decreased slightly from 8.8 pence to 8.7 pence because of the underlying EBIT decline. Statutory EPS from continuing and discontinued operations recorded a decline to 4.4 pence from 5.3 pence, which was driven by losses from the discontinued International operations and the loss on the disposal of Norway. The company witnessed free cash flow of £46.9 million (H1 2019: £20.7 million), and there was a decrease in the net debt by 15.4 per cent from £238.8 million to £202.1 million, driven by both the reversal of the working capital outflow experienced at the end of 2019.

Stock Performance

Domino’s Pizza Group PLC (LON: DOM) stock was trading at GBX 340.20 on 14 August 2020, at 10:01 AM, down by 5.20 per cent from its previous close of GBX 357.60. The 52-week low/high price was GBX 221.20/367.00. It was having a market capitalisation (Mcap) of £1,652.93 million. The volume traded at the time of reporting was 360,229. The company recorded a positive return on price, which was 9.93 per cent on a YTD (Year to Date) basis.

Petrofac Limited

Incorporated in 2002, Petrofac Limited is a service provider to the oil and gas production and processing industry. The Company is involved in designing and building oil and gas facilities; operating, maintaining and managing facilities and trains personnel; enhancing production, and developing and co-investing in upstream and infrastructure projects.

Financial Highlights

Petrofac Limited released its half-yearly results for the period ending on 30 June 2020 on 11 August 2020. The company was impacted by the Covid-19 pandemic, disrupting its project schedules and increasing costs, inserting pressure on its financial performance. The revenue of the company was down to US$ 2,103 million, in comparison to the previous year of US$ 2,821 million. The decline in oil prices led to a decrease in capital spending by clients in the period, resulting in delays in tender awards, the termination of Dalma contracts and a tighter commercial environment.

The reported net loss of the company of US$78 million (H1 2019: US$139 million net profit) as a result of exceptional items and certain re-measurements of US$99 million. The Group was liable to net debt of US$29 million at 30 June 2020 (31 December 2019: US$15 million net cash), reflecting the anticipated reversal of temporary favourable working capital movements at the end of 2019. The company did not announce any interim dividend for the year 2020 (2019: 12.7 US cents per share).

Stock Performance

Petrofac Limited (LON: PFC) stock was trading at GBX 174.25 on 14 August 2020, at 10:08 AM, up by 7.31 per cent from its previous close of GBX 188.00. The 52-week low/high price was GBX 140.00/455.90. It was having a market capitalisation (Mcap) of £650.32 million. The volume traded at the time of reporting was 377,869. The company recorded a negative return on price, which was 50.90 per cent on a YTD (Year to Date) basis.

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