Critical Updates On Cobham PLC, Anglo African Oil And Critical Metals PLC

Critical Updates On Cobham PLC, Anglo African Oil And Critical Metals PLC

About Cobham Plc 

Cobham Plc (COB) focuses on creating products and services concerning the Aerospace & Defence sector, which can be used in remote and challenging environments to secure human lives and assets. The company’s USP lies in AV(Audio/Video) communications, data and satellite communications, defence gadgets, refuelling systems (Air-to-Air), life support equipment and aviation services. The company has a headcount of more than 10000 people and presence in more than 100 countries.

 

Recent News

AI Convoy Bidco Limited, a subsidiary of US buyout group, acquired Cobham Plc. They have agreed upon terms of a recommended cash acquisition (under Part 26 of the UK Companies Act 2006) of the total share capital (issued/to be issued ordinary shares of Cobham PLC). Hence, the shareholders of the company are entitled to get 165 pence per share in cash.  The total share capital of Cobham Plc was valued at around £4.0 billion (fully diluted).

Bidco is an indirect subsidiary of US buyout group, Advent, which is a renowned private equity investor worldwide. Advent has recorded 345 plus buyout transactions in over 40 countries. The company manages funds and invests in high potential industrial and engineering companies across the globe to generate returns in the longer term.

Financial highlights for H1 FY19

The company’s revenue stood at £1,028.9 million in H1 FY19 as against £924.5 million in H1 FY18. This improvement was due to a rise in demand for various products. The company’s profit from operations (reported) stood at £68.7 million in H1 FY19 as against £213.9 million in H1 FY18. The company’s profit from operations (adjusted) stood at £107.1 million in H1 FY19 as against £95.5 million in H1 FY18. The company’s operating margin (adjusted) stood at 10.4 per cent in H1 FY19 as against 10.3 per cent in H1 FY18.

The company’s net finance cost incurred was recorded at £8.2 million in H1 FY19 as against £32.9 million in H1 FY18. The company’s overall tax cost was recorded at £12.6 million as against £14.3 million in H1 FY18. The company’s basic EPS stood at 2.0 pence per share in H1 FY19 as against 7.0 pence in H1 FY18. The company’s cash from operations (adjusted) stood at £64.2 million in H1 FY19 as against £37.7 million in H1 FY18. On July 25, 2019, Cobham Plc declared a dividend (interim) of 0.40 pence per share. 

 

Cobham Plc Share price performance

Daily Chart as at July-25-19, before the market close (Source: Thomson Reuters)

On July 25, 2019, at the time of writing (before the market close, at 12:17 PM GMT), Cobham Plc shares were trading at GBX 165.92, up by 35.16 per cent against the previous day closing price. Stock’s 52 weeks High and Low are GBX 166.70 /GBX 96.38. At the time of writing, the share was trading 0.46 per cent lower than the 52w High and 72.15 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 2,545,388.00; 30 days – 3,112,495.70 and 90 days – 3,037,998.14. The average traded volume for 5 days plunged by 18.22 per cent as against 30 days average traded volume. The company’s stock beta was 0.62, which means the stock is less volatile as compared to the benchmark index. The outstanding market capitalisation was around £2.92 billion.

In the past 1 year, shares of the Cobham Plc have delivered a negative price return of 6.65 per cent. However, on a year-to-date basis, the stock was up by approximately 25.61 per cent and surged by 6.32 per cent in the past three months.

Anglo African Oil & Gas PLC 

Anglo African Oil & Gas Plc (AAOG), is a London-based oil and gas and mining company. The company offers extraction, exploration, operations, production, management, and development of oil and gas natural resources. It owns and operates Petro Kouilou and holds interest in The Tilapia Field that is located to the offshore of the Republic of the Congo and located in the Lower Republic of the Congo Basin and produces oil and gas. AAOG also holds interests, owns, and operates onshore production and storage facilities producing oil and natural gas assets and resources. The company has its operations in the UK and the Republic of the Congo.

Recent News

The Republic of Congo is one of the oldest oils producing country in the African region with most of the market share held by the French Oil companies. The Tilapia oil field in Kuilou is controlled by state- owned SNPC with a working interest share of 44 per cent. The remaining working interest share of 56 per cent is held by Anglo African Oil & Gas Plc. Earlier, Tilapia was explored to the depth of around 2.7 km targeting shallow reserves as they are less risky and have a better success rate. Now the company is planning to go for a deeper extraction in the Djeno reservoir, adjacent to the Minsala field. The reports issued by the consultants are positive in terms of reservoir quality.

The £8.25 million of the fund raised is specifically dedicated for the company’s dark horse, the Djeno reservoir in its Tilapia project in the Republic of Congo.

Financial Highlights for FY18 (£)

The company’s reported revenue stood at £133.5 thousand, a decrease from the financial year 2017 of £226.7 thousand. In the financial year 2018, the company reported a loss from operating activities of £11.8 million. Basic and diluted loss per ordinary share stood at 9.26 pence, an increase of 3.51 pence against the loss per share of 5.75 pence in FY17. Total assets increased to £14.8 million as compared with the financial year 2017 of £13.6 million. Total equity stood at £6 million in FY18.

The company’s considerable growth had been attained on the operational front. In drilling TLP-103C, the group made a significant investment.

During the financial year 2018, the company invested a gross of £9.6 million into developing TLP-103C and will be helpful for the latter half of 2019.

The completion of £8.25 million (gross) fundraising is expected to support the group’s financial position and provide a decent growth platform for the business. For the long-term perspective, the group continues to deliver the strategy to grow Tilapia and enhance production from it. This strategy has been facilitated by the achievement of the drilling of TLP-103C and the detection of hydrocarbons at each level that was breached. The company was able to increase its production in the upcoming financial year 2019.

On the liquidity front, AAOG current ratio was lower than the industry median of 1.45, reflecting insufficient current assets to pay its short-term obligations. On leverage front, the company is debt-free currently.

 

Anglo African Oil & Gas Plc Share price performance

Daily Chart as at July-25-19, before the market close (Source: Thomson Reuters)

On July 25, 2019, at the time of writing (before the market close, at 12:03 PM GMT), Anglo African Oil Plc shares were trading at GBX 5.08, up by 3.67 per cent against the previous day closing price. Stock’s 52 weeks High and Low are GBX 19.00 /GBX 3.70. At the time of writing, the share was trading 73.26 per cent lower than the 52w High and 37.29 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 3,414,444.60; 30 days – 4,236,711.60 and 90 days – 3,369,273.61. The average traded volume for 5 days plunged by 19.41 per cent as against 30 days average traded volume. The outstanding market capitalisation was around £19.36 million.

In the past 1 year, shares of the Anglo African Oil Plc have delivered a negative price return of 57.39 per cent. Also, on a year-to-date basis, the stock was down by approximately 56.44 per cent and declined by 55.25 per cent in the past three months.

 

Critical Metals Plc to list on the LSE 

The company focuses on Antimony, Beryllium, Caesium and has a little inclination towards Copper. Copper is an important EV metal along with Tungsten, Vanadium and Tantalite. Since the deposits are rare and have a useful life of only 5-6 years, the company looks to invest in brownfield projects that have already commenced production with near-term cash flow. The company has a good record in handling brownfield projects. The company has a decent pipeline of projects in the African region and intends to own projects outright, mainly in southern Africa.

The clue lies in the name, the metals are important for an economy to prosper and lack of metals can really hurt the economy. For instance, China has major export markets in the US and Europe. If the supply of metals to China is turned off, then its economy will probably crash.

The company is looking forward to listing in London to raise capital. Since the company is focused on the African region, it chose London over New York as a capital base. London and the European investors are considered to understand Africa better than North Americans. The company is looking forward to raising £2 million. Recently, Donald Trump announced to create a repository and stockpile of 38 critical metals. Soon, other countries might follow this trend. Hence, the macro factors are in favour of the company.

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