10 Stocks Under Spotlight For This Month – AZN, BAE, BEG, BOO, CEY, FGP, HIK, SXS, TEP, UVLR

AstraZeneca PLC

AstraZeneca PLC (AZN) is a Cambridge, United Kingdom-headquartered international, science-led biopharmaceutical company. The group focuses on discovering, developing, manufacturing and commercialising prescription medicines and has operations all over the world with business in over 100 countries.

Recent news

Lynparza got approval for maintenance therapy for the treatment of cancer (ovarian) in Japan.

Key Financial Highlights (Q1 FY 2019, in $m)

In the first quarter of the year, driven by the sustained performance of new medicines and Emerging Markets, the company reported product sales growth of 10% on the actual exchange rate basis to $5,465 million. Reflecting the growth in product sales, core gross profit increased by 7% (13% at CER) to $4,425m, while reported gross profit increased by 8% in the quarter (13% at CER) to $4,362 million.

The core gross margin rose by two percentage points to 80.5%and reported gross margin rose by two percentage points (three at CER) to 79.3%. Reported operating profit grew by 58% in the year (68% at CER) to $1,097m, and core operating profit surged by 84% (96% at CER) to $1,650m. The core operating margin rose by 13 percentage points to 30.0%, while the reported operating margin grew by seven percentage points to 20.0%. The reported earnings per share were up by 75 per cent (AER basis) to $0.47 in Q1 FY2019. The Core EPS was $0.89 in Q1 FY2019 and surged by 85 per cent (AER basis).

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 12:41 PM), AstraZeneca PLC shares were trading at GBX 6,399; down by 0.17 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 6,540.00/GBX 5,110.00.

BAE Systems Plc (BA)

London Stock Exchange-listed BAE System Plc is a leading defence, aerospace and security company with operations spread across the world. The group delivers a broad range of advanced defence technology that covers air, land, naval forces and cyber domain, including critical infrastructure and information security.

Recent developments

The group announced that Half-year results for period ending (H1) June 30, 2019 will be released on July 31, 2019

Financial Highlights – FY18

During the year under review, the order backlog increased by £9.7bn to £48.4bn, driven by this year’s record order intake of £28,280m. Order intake surged by £8.0bn in FY18 as compared to £20,257m reported in 2017. Due to a reduction in Typhoon production activity, sales declined by £0.1 billion to £18,407m in FY18 from £18,487m in FY17. Revenue on IFRS basis decreased by £0.4 billion to £16,821m from £17,224m in 2017. Due to an unfavourable foreign exchange rate impact of £34 million, the group reported a decline of £46 million in underlying EBITA to £1,928 million, while operating profit increased by £186 million to £1,605 million in FY18. Underlying EPS rose by 2% to 42.9 pence, while basic EPS increased to 31.3 pence. Compared to last year, net debt at the end of the year increased by £152 million, while operating business cash flow decreased by £759m to £993m in FY18. With a final dividend of 13.2p per share, the total dividend for the year was 22.2p per share, reflecting an increase of 2% over 2017.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 12:41 PM), BAE System Plc shares were trading at GBX 494.20, up by 0.44 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 680.60/GBX 439.40.

BEGBIES TRAYNOR GROUP PLC (BEG)

Begbies Traynor Group plc is a leading business recovery, financial advisory and property services consultancy, providing services nationally spanned across multiple locations in UK through two complementary operating divisions namely – Begbies Traynor and BTG Advisory.

Trading Update FY19

The Group performed exceptionally well in the final quarter of FY19. Consequently, the management expects the revenues and profits for the financial year to be ahead of market expectations. This was driven by several successful fee-based inflows in combination with a continued strong performance from both the divisions.

 Cash collection during the period was considerably higher than projections, as a result in the year end, net debt position stood at £6 million.

Financial Highlights for FY18 (£, m)

The revenue stood at £52.4m in FY18 as against £49.7m in FY17. The proposed total dividend stood at 2.4 pence in FY18 as against 2.2 pence in FY17. The Profit before tax stood at £2.3m in FY18 as against £0.6m in FY17. The Net debt stood at £7.5m in FY18 as against £10.3m in FY17. The Basic EPS stood at 1.3 pence in FY18 as against 0.2 pence in FY17.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 03:58 PM), BEGBIES TRAYNOR GROUP PLC shares were trading at GBX 75.91, up by 0.21 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 77.00/GBX 56.00.

Boohoo Group PLC (BOO)

Boohoo Group PLC (BOO) is a Manchester, United Kingdom-based top online fashion retail company which sells its own-branded clothes alongside its low-cost ranges Pretty Little Thing and Nasty Gal. Its products are targeted at the age group of 16-30 years and have a customer base of more than 5 million.

Trading update Q1 FY20

The revenue stood at £254.3 million, which is up by 39 per cent (as per translation on basis of Constant Exchange rate). The gross margin stood at 55 per cent as against 55.2 per cent in Q1 FY19. The balance sheet remained strong with net cash of £194 million as against £151 million in Q1 FY19.

Financial Highlights (FY 2019, in £m)

Revenue growth across all territories and brands was strong, with revenue for the year increased by 48% in FY 2019 (47% CER) to £856.9 million, helped by celebrity influencers and social media marketing which continued to drive consumers to its fast fashion. Gross profit rose by 53% to £469m, while the gross profit margin increased by 190 basis points to 54.7%. Driven by improved gross margin across the group, adjusted EBITDA rose to £84.5 million, representing an increase of 49%, while adjusted EBITDA margin reported a slight improvement to 9.9%. While adjusted profit before tax rose by 49% to £76.3 millionadjusted diluted earnings per share was 4.15p, up by 29% on the prior year.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

 On 19th June 2019, at the time of writing (before the market close, GMT 01:08 PM), Boohoo Group PLC shares were trading at GBX 221.90; down by 0.67 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 249.50/GBX 146.39.

Centamin PLC (CEY)

Centamin Plc (CEY) is the UK based mining company that specialises into exploration and development of minerals. The company is having a dual listing and is listed on exchanges of London and Toronto.

Trading Update – Q1 FY2019

In Q1 FY2019, the company generated a free cash flow of US$13.9 million. The company had a robust balance sheet with no debt and US$331.6 million of cash and liquid assets. The company is on track as per the guidance set for FY2019. The company is focusing on exploration from its major projects and set a budget of US$40 million.

Financial Highlights – FY 2018 (US$, thousand)

For the Financial year 2018 ending December 31st, the company’s reported revenue was $603,248 thousand as compared to $675,510 thousand for the same period of last year. There was a decline of 11 per cent due to a decrease in sales of gold and silver in the current financial year. The company was able to sell 484,322 ounces of gold in the current financial yearGross profit dipped by $64,459 thousand to $196,710 thousand in FY2018 from $261,169 thousand in FY2017. The Profit for the year before taxation was $152,702 thousand for FY2018 against $207,365 thousand in FY2017. The profit for the period was $152,649 thousand in FY2018 against $205,302 thousand in FY2017. The company’s Basic Earnings per share was 6.497 cents for FY2018 against 8.377 cents in FY2017.

Share Price Performance

(Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 01:21 PM), Centamin Plc shares were trading at GBX 105.15; down by 1.08 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 136.75/GBX 79.14.

FirstGroup PLC (FGP)

FirstGroup Plc (FGP) is a diversified transport operator and provides services across the UK and North America. It provides home-to-school transportation; scheduled intercity coach transportation; intercity rail network; commuter rail network; and tram link operations.

Recent news

There is an update on the General meeting. The objective of this meeting is to consider the resolutions wished-for by Coast Capital to get rid of current directors (six) of the Company and substitute them with Coast Capital’s own nominees (seven).

Financial Highlights for FY19 (£, million)

The revenue surged to £7,126.9 million this year from £6,398.4 million in FY18. The company’s net debt was down by 15.6 per cent to £903.4 million this year as against £1,070.3 million in FY18. The Statutory EPS was (5.5) pence this year as against (24.6) pence in FY18.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 02:18 PM), FirstGroup Plc shares were trading at GBX 99.03; up by 0.48 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 125.00 /GBX 77.95.

Hikma Pharmaceuticals Plc (HIK)

Hikma Pharmaceuticals Plc (HIK) is engaged in the development, manufacturing, and marketing of pharmaceutical products in all forms. The company has three reporting segments being Injectables, Generics and Branded. The group has more than 650 products selling in over 50 countries.

Trading statement

The global Injectables business is doing good across the US, further bolstered by new product launches. They will announce the interim results for H1 ending 30 June 2019 on 9 August 2019.

Financial Highlights – FY2018 (US$, million)

The Group’s revenue grew by around 7 per cent to $2,070 million in Financial year ending December 2018, and the core revenue surged by 7 per cent to $2,076 million in FY18 as compared to $1,936 million in FY17, reflecting good demand for in-market products and new product launches. In FY18, the Gross profit stood at $1,050 million as compared to $967 million in FY17. There was an increase of 9 per cent due to the restructuring of the Columbus facility and the consolidation of Generics manufacturing and US distribution facilities.

Excluding the impact of amortisation other than software and exceptional items, Group’s core operating profit surged by 19 per cent to $460 million in FY18 against $386 million in FY17. Reported Profit attributable to shareholders stood at $282 million in FY18 as compared to a loss of $843 million in FY17. The basic EPS for FY2018 stood at 117 cents against a loss per share of 351.3 cents.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 01:26 PM), Hikma Pharmaceuticals Plc shares were trading at GBX 1,736; down by 0.28 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 2,089.00/GBX 1,368.00.

Spectris PLC (SXS)

Spectris is a leading supplier of productivity-enhancing instrumentation and controls combining hardware, software and related services for some of the most technically demanding applications for industrial use.

Trading update (1st Jan 2019 to 30th April 2019)

The Group appears to be cash strong, with a conversion ratio greater than 1 for the period and maintains sound financial strength. The Net debt at the end of April was £265 million, there was a decrease of £32 million since the year end, after capturing Capex of £28 million in the period.

Financial Highlights for FY18 (£, m)

The revenue surged by 5 per cent to £1,604.2 million this year as against £1,525.6 million in FY17. The operating profit (Adj.) surged by £9.0 million to £248.3 million in FY18. The profit before tax (statutory) plunged from £278.4 million in FY17 to £218.0 million in FY18.

The Board had proposed a final dividend of 40.5 pence per share (2017: 37.5 pence) which, combined with the interim dividend of 20.5 pence per share (2017: 19.0 pence), gives a total dividend of 61.0 pence per share for the year 2018 (2017: 56.5 pence), an increase of 8 per cent from previous year. The earnings per share (Adj.) surged by 7 per cent to 164.9 pence in FY18 against 154.6 pence recorded last year in FY17.

Share price performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 03:27 PM), Spectris shares were trading at GBX 2,678; up by 0.41 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 2,830.00 /GBX 1,924.50.

Telecom Plus PLC (TEP)

Telecom Plus Plc (TEP) is a provider of IT infrastructure to the Industrial and Enterprise customers. The company design and install the network infrastructure for their clients. The company provides services related to IT consulting, Infrastructure and Architecture, Network Integration, Network rollout and Managed services etc.

Final Highlights for FY2019 (£, m)

The Profit before tax (adj.) was amplified by 3.7% to £56.3m this year as against £54.3m in FY18. The revenue stood at £804.4m this year as against £792.9m in FY18. The Distribution expenses surged to £26.0m this year which were on a lower side as against £21.9m in FY18, primarily due to more commissions and an increased cost structure for Partners arising from higher levels of activity. The Administrative expenses surged during this year by £4.7 m to £67.9m due to higher remuneration costs. In FY2018 these expenses stood at £63.2m. The overall gross margin for the year was 18.6 per cent (2018: 17.6 per cent). The total dividend announced by the group is 52 pence per share for the year 2018.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 02:52 PM) Telecom Plus Plc shares were trading at GBX 1,517; up by 2.36 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 1,542.00 /GBX 995.00.

Unilever PLC (ULVR)

Unilever Plc (ULVR) is a global company selling fast-moving consumer goods, with two home countries: the Netherlands and the United Kingdom. The company produces and markets range products such as food, beverages, home care, health and wellbeing products. On 4 June 2019, Unilever proclaimed the pricing of Fixed Rate Notes, which are to be issued and guaranteed by Unilever PLC and the Unilever United States, Inc respectively.

Q1 Trading Update

Q1 Underlying Sales Growth (USG) stood at 3.1%, driven by the emerging market’s underlying sales growth which climbed by 5%. Volume/mix was ahead 1.2% and pricing was ahead 1.9%. ULVR is characterising Q1 as a ‘solid’ start, with’ accelerating growth and will keep the group on track for full-year expectations. Emerging Markets underlying sales increased by 5.0% in Q1 FY19Global market growth (Unilever markets) was 3% as compared with the Q4 data, driven by Brazil and South East Asia. Beauty & Personal Care segment increased by 3.1% in Q1 FY2019. Home Care segment surged by 6%. In Q1 FY19, food & refreshment segment climbed by 1.5%. FY19 guidance of underlying sales growth is in the lower half of the medium term 3-5% range and ‘continued improvement’ in the underlying margins has been reaffirmed at Q1.

Financial Highlights (FY 2018, € million)

The company had to face challenging market conditions, especially in the second half due to rising commodity costs which put pressure on consumer demand and currency devaluation. Underlying sales excluding spreads grew by 3.1%, while turnover, due to unfavourable currency impact, decreased by 5.1% to €51.0 billion. Underlying operating profit for the year was €9,359 million, while the underlying operating margin surged by 90bps to 18.4%. Reported net income climbed by 51.2% to €9.8 billion. Underlying earnings per share climbed by 5.2% to €2.36 per share.

Share Price Performance

Daily Chart as at June-19-19, before the market close (Source: Thomson Reuters)

On 19th June 2019, at the time of writing (before the market close, GMT 01:35 PM), Unilever Plc shares were trading at GBX 4,950; down by 0.67 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 5,038.00 /GBX 3,904.94.