Stocks In Limelight: Greencoat UK Wind PLC & Directa Plus PLC

Stocks In Limelight: Greencoat UK Wind PLC & Directa Plus PLC

Greencoat UK Wind Plc

Greencoat UK Wind Plc (UKW) is a renewable infrastructure fund with the main objective to invest in operating the UK wind farms and preserve capital on a real basis. The company reinvest excessive cash flow in operating extra UK wind farms. The company invest in income-producing wind farms, both offshore and onshore in the UK.

Financial Highlights for H1 Financial Year 2019 ended June 30, 2019

On July 26, 2019, the company announced its interim results. In the first half of the financial year ending 30th June 2019, the company’s return on investments declined by 46.89 per cent to £40,077 thousand from £75,471 thousand in H1 FY2018. The company’s total income and gains for the H1 FY2019 were £40,528 thousand against £75,845 thousand in H1 FY2018.

The company’s operating profit stood at £28,572 thousand in H1 FY2019 against £67,426 thousand in H1 FY2018. The company’s PBT (Profit before tax) declined by £ 45,183 thousand to £16,658 thousand from £61,841 thousand in H1 FY2018. The company’s PAT (Profit after income tax) stood at £16,658 thousand in H1 FY2019 against £62,000 thousand in H1 FY2018. The basic and diluted earnings per share stood at 1.34 pence in H1 FY2019 versus 5.90 pence in H1 FY2018.

The company paid 1.735 pence per share as a dividend with respect to the quarter ended June 30, 2019. The total dividend declared by the company was 3.47 pence per share with respect to period that ended June 30, 2019. The company’s NAV stood at £1,868.1 million (unaudited) at the end of H1 FY2019. The company’s NAV per share stood at 123.2 pence at the end of H1 FY2019.

The company’s financial performance for the first half of the financial year 2019 declined significantly. Both the top-line and bottom-line performance declined for the period. The company had made three significant investments, which includes wind farms in Dunmaglass and Stronelairg (£452 million) and in Tom nan Clach (£145 million). The company had raised funds of more than £500 million from its shareholders (existing and new).

The company’s new investment in Tom nan Clach had improved the company’s energy generation capacity. The company has a healthy pipeline of investment opportunities in the future. The company’s operations are not much impacted by the ongoing Brexit uncertainty.

The company invests heavily towards different projects to increase its capacity to generate more power, but sometimes these investments might not bring as expected returns or become unattractive. The company might not be able to find needed wind resources to boost its operations. As renewable energy is costly to produce, any decline in the market price of electricity will have a negative impact on the company’s profitability.

 

Greencoat UK Wind Plc Share price performance

Chart as on 30-July-19, before the market close (Source: Thomson Reuters)

While writing (as on 30th July 2019, at 11:16 AM GMT), Greencoat shares were trading at GBX 139.1 per share; surged by 0.21 per cent as compared to the previous day closing price level. The company’s market capitalisation was around £2.13 billion.

In the last 52-wks, Greencoat UK Wind Plc shares have registered a high of GBX 143.60 (as on 10th April 2019) and a low of GBX 122.45 (as on 16th August 2018). At the current trading level, as quoted in the price chart, its shares were trading 3.13 per cent below the 52-week high price level and 13.59 per cent above the 52-week low price level.

At the time of writing, the stock’s volume before the market close, stood at 662,236. Stock’s average traded volume for 5 days was 2,191,978.20; 30 days- 2,270,985.80 and 90 days – 2,219,302.06. The company’s stock beta was 0.27, which makes it less volatile as against the benchmark index. The average traded volume for 5 days plunged by 3.48 per cent as against 30 days average traded volume.

The shares of the company (at the time of writing) were trading below the 30-days and 60-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, Greencoat UK Wind Plc shares have delivered a positive return of 9.98 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 10.16 per cent and was down by 1.98 per cent in the last three months.

Share’s RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 47.15, 36.90 and 28.31 respectively. Also, the stock’s 3-days RSI was recorded at 18.24.

Directa Plus PLC

Directa Plus PLC (DCTA) produces and supplies graphene-based products for domestic and industrial purposes. The Company owns the G+ brand, which offers a variety of graphene-based products which are developed for a specific purpose and are ready-to-use in both domestic and industrial markets. There are various sub-categories of the G+ brand which are designed to cater to specific needs such as Basic G+, Ultra G+, Liquid G+, Pure G+, Zapp G+, Paste G+ and Dub-Masterplast G+. These requirements mainly come from textiles, tires, composite materials and environmental solutions such as treatment of contaminated water and soils.

Recent developments

The company focuses on developing and marketing its patented environmental solution known as Grafysorber technology for international oil and gas customers, which operate in the environmental sector.

Grafysorber technology which is based on graphene based chemical solution for the treatment of water contaminated by hydrocarbons, is believed to be multiple times far effective from conventional decontamination solutions. This technology is sustainable, can be reused, non-flammable, and the hydrocarbons can be separated from the water and reused.

The company was awarded a SS (supply & service) contract to extract and treat crude from oil- producing wells in the Europe onshore region. The contract commences on August 1, 2019, which includes treatment of sludges and by-products (crude) for a period of upcoming six months using the patented technology for €150,000. Through the mobile treatment units the company will provide full services including the extraction process to the customers.

The company and its clients believe that the patented technology will not just optimise the production and workflow, but also help in cost reduction by extracting best (crude oil) out of waste (sludge and water mix) used in extraction process and can be disposed as treated waste. Furthermore, this methodology will help the company in meeting environmental guidelines by reducing the superfluous usage of water resources and will stimulate the production process by improving the quality of water injection.

This contract is in line with the company’s strategy, according to which it provides full decontamination and recovery service in international oil and gas markets and create value for all the stakeholders.

Financial Highlights for Financial Year 2018 ended December 31, 2018

The revenue from sales and service stood at €2.25 million this year, which has doubled itself as against €0.95 million in FY17. The total income of the company (with grant included) was twice this year (stood at €2.50 million) as against €1.23 million in FY17. The loss after tax of the company stood at €3.96 million this year as against the loss of €3.95 million in FY17, which was nearly the same. The company was successful in raising funds of £3.45 million in December plus proceeds of £1.32 million received post-period through the successful placement of shares. The company’s cash and cash equivalents stood at €5.50 million in FY18 as against €6.93 million in FY17.

In FY18, the company has seen a lot of traction, signed agreements and received orders for the products to be delivered in the upcoming year. The company is ahead of its competition in terms of leads.

Plus PLC Share price performance

Chart as on 30-July-19, before the market close (Source: Thomson Reuters)

While writing (as on 30th July 2019, at 11:32 AM GMT), Directa Plus Plc shares were trading at GBX 82.5 per share; plunged by 0.60 per cent as compared to the previous day closing price level. The company’s market capitalisation was around £42.99 million.

In the last 52-wks, Directa Plus Plc shares have registered a high of GBX 90.00 (as on 21 May 2019) and a low of GBX 36.10 (as on 21 September 2018). At the current trading level, as quoted in the price chart, its shares were trading 8.33 per cent below the 52-week high price level and 128.53 per cent above the 52-week low price level.

At the time of writing, the stock’s volume before the market close, stood at 37,516. Stock’s average traded volume for 5 days was 106,520.60; 30 days- 131,648.93 and 90 days – 92,422.19. The company’s stock beta was 1.62, which makes it much more volatile as against the benchmark index.

The average traded volume for 5 days plunged by 19.09 per cent as against 30 days average traded volume.

The shares of the company (at the time of writing) were trading above the 60-days and 200-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

In the past 1 year, Directa Plus Plc shares have delivered a positive return of 90.80 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 71.13 per cent and was up by 30.71 per cent in the last three months.

Share’s RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 57.60, 50.57 and 46.44 respectively. Also, the stock’s 3-days RSI was recorded at 52.10.

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