Updates On Three LSE Stocks: DPH, PHTM and CNIC

 Dechra Pharmaceuticals Plc

Dechra Pharmaceuticals Plc (DPH) is a United Kingdom based Pharmaceuticals company with a focus on drugs for pet animals. The company mainly focuses on Cats, Dogs, equine, milk-producing animals and meat-producing livestock. The most prominent of the company’s drugs are Vetoryl® for Cushing’s disease in dogs and Felimazole® for hyperthyroidism in cats.

The company headquartered in Northwich; the United Kingdom was founded in 1997. Its shares were first listed on the London Stock Exchange for trading in the year 2000, where they trade with the ticker name DPH. The shares of the company are also constituents of the FTSE 250 index.

Recent News Update.

The company on 2 September 2019, came out with its annual results for the financial year 2018-19, ending on 30 June 2019. The company’s revenues are up 17.5 percent, underlying operating profit is up 27.3 per cent, reported operating profit is up 13.5 per cent and underlying diluted EPS is up 16.6 per cent for FY 2018-19 over what they were for FY 2017-18.

In other news, on 29 August 2019 the company declared, that it has acquired Ampharmco LLC, a Texas, United states-based pharmaceuticals manufacturer for $30.00 million in an all-cash deal. The latter is a manufacturer of Veterinary drugs, and its facility is approved by the Food & Drug Administration (FDA) of the United States of America. With this acquisition Dechra Pharmaceuticals Plc now has in its fold an FDA approved manufacturing facility, where it can manufacture its baseline products and market it in the Unites States.

Financial Updates from company’s Annual Result Statement

The company for the twelve-month period ended 30 June 2019 came out with a decent set of numbers. It declared revenue of £481.8 million for the financial year ending 30 June 2019, as against a revenue of £407.1 million for the financial year ending 30 June 2018. The gross profit for the twelve-month period ended 30 June 2019 was £273.1 million, while for the twelve-month period ended 30 June 2018 was £222.40 million. The operating profit of the company for the financial year ending 30 June 2019 was £39.0 million, while for the financial year ending 30 June 2018 the operating profit was £34.1 million. The profit for the twelve-month period ended 30 June 2019 was £30.9 million whereas the profit for the twelve-month period ended 30 June 2018 was £36.1 million. The diluted earnings per share for the financial year ending 30 June 2019 was 30.07 pence, while for the financial year ending 30 June 2018 earnings per share was 37.04 pence.

Source – Company Annual report published on 02 September 2019.

Stock Price performance at the London stock exchange (YTD)

(Comparative chart of DPH with the FTSE 250 index, Source – Thomson Reuters)

The shares of Dechra Pharmaceuticals Plc have been outperforming the FTSE 250 index since the beginning of this year 1 January 2019 till the time of writing of this report on 2 September 2019.

Stock performance at the London stock exchange over the past 5 days till 02 September 2019

Price Chart as on 02 September 2019, before the market close (Source: Thomson Reuters)

On 02 September 2019, at the time of writing of the report (before the market close, GMT 10.45 AM), DPH shares were trading on the London Stock Exchange at GBX 3012.00. Between 27 August 2019 and 29 August 2019, the prices of the stock have witnessed a sideward movement with minor dips on 28 August 2019, while on 29 August 2019 there was a spike in the share prices after the acquisition of Ampharmco LLC was announced and the prices have been consolidating since then till the time of writing of this report on 02 September 2019.

The stock has a 52-week High of GBX 3080.40, and a 52-week low of GBX 1992.00. The total market capitalization of the company was around £3.09 billion.

Outlook

The company’s financial results are sterling except for the profit for the year figures, which is lower compared to last year on account of higher finance costs incurred this year. However, the acquisition made by it in the United States of America of Ampharmco LLC will give the company strategic depth. This acquisition will not only open up the doors of the massive North American country for its drugs, but the research facilities will also help it make new drugs and finetune existing ones.

Photo-Me International Plc

Photo-Me International Plc (PHTM) is a British photobooth operator company. After it became a public company in 1963, it expanded its operations to France, Germany, Japan, Philippines and Indonesia. Other than operating photo booths, the company sells and services a range of instant photographic equipment.

The company, headquartered in Epsom Surrey England has been listed on the London Stock Exchange since 1963, there the shares of the company trade with the ticker name PHTM.

Recent News Update.

The company on 27 August 2019 came out with an announcement that it had granted share options in lieu of company’s ordinary shares of 0.5 pence each to directors Serge Crasnianski and Eric Mergui. The award has been in accordance with the agreement of the company with them to achieve certain pre-determined performance criteria which the company has set out till 2022.

In other news, the company came out with its annual results on 18 July 2019 for the year ended 30 April 2019. The company’s revenues for FY 2018-19 are down 0.7 per cent, EBITDA is down 1.8 per cent, Profit after tax is down 23.3 per cent and earnings per share is down 22.1 per cent over what they were for FY 2017-18.

Financial Updates from company’s Annual Result Statement

The revenues declared by the company for the financial year ended 30 April 2019, was £228.118 million, while for the corresponding financial year ended 30 April 2018 revenues were £229.814 million. The gross profit for the full year period ending 30 April 2019 was £63.481 million against a gross profit of £61.744 million for the financial year ended 30 April 2018. The operating profit for the financial year ended 30 April 2019 was £42.739 million while operating profit for the financial year ended 30 April 2018 was £46.106 million. The profit for the year of the company for the financial year ended 30 April 2019 was £31.279 million while for the corresponding financial year ended 30 April 2018 the profit was £40.286 million. The diluted earnings per share for the full-year period ending 30 April 2019 was 8.26 pence whereas the diluted earnings per share for the full-year period ending 30 April 2018 was 10.60 pence per share.

Source – Company’s Annual report published on 18 July 2019.

Stock Price performance at the London stock exchange (YTD).

(Comparative chart of PHTM with the FTSE 250 index, Source – Thomson Reuters)

The shares of Photo-Me International Plc started the year trading in consonance with the FTSE 250 index, but after a fortnight it started underperforming the index till the mid of July 2019 and once again has moved to perform in consonance with the index ever since August till the time of writing of this report on 02 September 2019.

Stock performance at the London stock exchange over the past 5 days till 02 September 2019

Price Chart as on 02 September 2019, before the market close (Source: Thomson Reuters)

On 02 September 2019, at the time of writing of the report (before the market close, GMT 10.15 AM), PHTM shares were trading on the London Stock Exchange at GBX 101.20. Between 27 August 2019 and 29 August 2019, the prices of the stock witnessed a sideward movement with minor dips on 28 August 2019, while on 30 August 2019 there was a  fall in the share prices after the news of grant of share options to directors Serge Crasnianski and Eric Mergui was announced and the prices have been consolidating since then with a spike in price just before the time of writing of this report on 02 September 2019.

The stock has a 52- week High of GBX 130.00, and a 52-week low of GBX 75.00. The total market capitalization of the company was £377.11 million.

Outlook

The company’s results for the financial year 2018-19 has been less than expected. Its administrative expenses have increased significantly while its finance income is down, and finance expenses are up. Not only does the company is required to increase its revenues, but it also has to work towards controlling its operational expenses, which seem to be deteriorating.

CentralNic Group Plc

CentralNic Group Plc (CNIC) is a United Kingdom based internet commerce company, operating in the field of domain name registry. It manages a host of new gTLDs, ccTLDs and SLDs extensions. There are several other companies with the group, some of them being moniker.com, Brandshelter.com, 1api.com, dominic.de and rrpproxy.net.

The company is registered on the AIM market within the London Stock Exchange, where its shares trade with the ticker name CNIC.

Recent News Updates

The company on 2 September 2019 came out with the interim results for the half-year period ended 30 June 2019 of the financial year 2019. The revenues of the company increased by 225 per cent, gross profit increased by 127 per cent, adjusted EBITDA increased by 203 per cent, operating profit increased by 266 per cent, while net debt decreased 47 per cent.

Financial Updates from company’s Half-yearly Result Statement published on 02 September 2019

The revenue of the company for the six-month period ended 30 June 2019 was $49.693 million while for the six-month period ended 30 June 2018 the revenues were $15.304 million. The gross profit of the company for the half-year period ending 30 June 2019 was $19.731 million while the gross profit of the company for the half-year period ending 30 June 2018 was $8.703 million. The operating profit for the six-month period ended 30 June 2019 was $2.4 million, and for the corresponding six-month period ended 30 June 2018 the operating loss was $1.442 million. The total comprehensive loss for the six-month period ended 30 June 2019 was $3.266 million while for the six-month period ended 30 June 2018 the total comprehensive loss was $2.998 million. The Diluted loss per share for the half-year period ending 30 June 2019 was 1.75 cents whereas for the half-year period ending 30 June 2018 Diluted loss per share was 1.55 cents.

Source – Company Half-yearly report published on 02 September 2019.

Stock Price performance at the London stock exchange (YTD)

(Comparative chart of CNIC with the AIM 100 index, Source – Thomson Reuters)

The share prices of CentralNic Group Plc have been outperforming the AIM 100 index since 1 January 2019 with a spike in May 2019 and it continues to outperform the index till the time of writing of this report on 02 September 2019.

Stock performance at the London stock exchange over the past 5 days till 02 September 2019

Price Chart as on 02 September 2019, before the market close (Source: Thomson Reuters)

On 02 September 2019, at the time of writing of the report (before the market close, GMT 10.50 AM), CNIC shares were trading on the London Stock Exchange at GBX 56.00. Between 27 August 2019 and 30 August 2019, the prices of the stock have been witnessing a sideward movement, while on 02 September 2019 there was a spike in the share prices after the sterling results of the company were announced, since then till the time of writing of this report on 02 September 2019 the prices are showing an upward swing  after a correction in early trade.

The stock has a 52- week High of GBX 68.50, and a 52-week low of GBX 45.00. The total market capitalization of the company was £98.43 million.

Outlook

The company’s half-yearly results have exceeded its own performance expectations. Its recent acquisitions have contributed significantly towards these better than expected results, its net debts are within comfortable levels, and cash conversion is excellent. The company is well poised to continue on its path of high organic growth coupled with meaningful acquisitions that have been contributing to its revenues and taking it on the path where it will be competing with world leaders in this industry.

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