Recent Business Performance Update Of Two Stocks: JUST, SIR

About Just Group PLC

Just Group PLC (JUST) is a UK based financial services company specialising in products related to income post retirement, catering to individual and corporate customers. The company not only serves a social purpose but also helps people to achieve peace of mind, sense of security, planning for uncertainties by providing them guidance, advice, products and services based on their expertise. The companies within JUST group are licensed and governed by UK’s regulatory authorities. The company caters to individuals by providing them with retirement income options. As property is a less liquid asset, homeowners can access their wealth locked in their properties by leveraging the expertise of this company. The company was formerly known as JRP Group Plc.

JUST-Recent News

The company announced its interim results for FY19 on 4th September 2019.

JUST- Financial highlights for H1 FY19 period ended 30th June 2019

The company’s net premium revenue plunged by 35 per cent to £1,016.0 million in H1 FY19 as against £1,554.1 million in H1 FY18, which can be attributed to the combined impact of reinsurance premiums ceded and reinsurance recaptured. The investment income of the company comes from the interest earned on the corporate bonds, mortgages and other fixed income securities in the portfolio of the company. In H1 FY19, the company’s net investment income stood at £1,014.5 million as against an expense of £104.5 million in H1 FY18. The company’s fee and commission-based income was recorded at £6.1 million in H1 FY19 as against £3.2 million in H1 FY18. The company’s total revenue was recorded at £2,036.6 million in H1 FY19 as against £1,452.8 million in H1 FY18. The company’s paid net claims surged by £62.8 million to £416.7 million in H1 FY19 as against £353.9 million in H1 FY18. The company’s acquisition costs decreased by £13.2 million to £14.1 million in H1 FY19 as against £27.3 million in H1 FY18. Other operating expenses of the company were reduced by £18.3 million to £110.5 million in H1 FY19 as against £128.8 million in H1 FY18, which can be attributed to company’s focus on optimisation of processes and decrease in project expenditure. The company’s finance costs plunged by £11.2 million to £93.9 million in H1 FY19 as against £105.1 million in H1 FY18. The company’s financial investments increased from £19.3 billion as at 31st December 2018 to £20.7 billion as at 30th June 2019. The company invested in fixed income securities due to declining risk-free rates during the period.

JUST-Share price performance

Daily Chart as at 04-September-19, before the market closed (Source: Thomson Reuters)

On 4th September 2019, at 12:00 PM GMT while writing, JUST shares were trading at GBX 45.00 per share; which were down by 2.84 per cent as compared to the closing price level of the previous day. The company’s M-cap (market capitalisation) was recorded at £478.73 million at the time of writing.

On 4th March 2019, the shares of JUST have touched a new peak of GBX 110.30 and reached the lowest price level of GBX 35.29 on 16th August 2019 in the last 52 weeks. The company’s shares were trading at 59.20 per cent lower from the 52-week high price mark and 27.51 per cent higher the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 4,685,283 at the time of writing before the market close. The company’s 5-day stock’s average traded volume was 2,030,361.20; 30 days average traded volume- 2,995,576.90 and 90 days average traded volume – 3,702,318.43. The beta of the stock stood at 1.26, the stock has higher volatility in comparison with the index considered as the benchmark.

The shares of the company have delivered a positive return of 13.25 per cent in the last month. The company’s stock plunged by 49.51 per cent from start of the year to till date. The company’s stock has generated a negative return of 47.96 per cent in the last year.

 

About Secure Income REIT

Secure Income REIT Plc (SIR) is a real estate investment trust company based out of United Kingdom. The company has designed its investment strategy to fulfil the investors’ growing needs for inflation, safe and high-quality returns. The company owns 164 real estate assets with the unexpired lease period of 21.5 years as at June 30th, 2019. On pro forma basis the company sold eight hospitals after most recent balance sheet date. The company’s property portfolio mainly consists of leisure assets, Travelodge and healthcare. Pinehill hospital, Warwick Castle, West Midlands hospital, Woodlands hospital, Fitzwilliam hospital, Nightingale hospital, Springfield hospital, Yorkshire clinic, Rivers hospital, Duchy hospital, Heide Park theme park, Thorpe Park theme park and Alton Towers theme park are also part of company’s portfolio.

SIR- Recent developments

On 25th July 2019, the company announced quarterly dividend for financial year 2019. The company declared a dividend of 4.2 pence per share (6.8 per cent more than the previous quarter), payable on 30 August 2019 to shareholders. On 4th September 2019, the company announced interim results.

SIR- Financial highlights for H1 FY19 period ended 30th June 2019

The company’s NAV per share surged by 3.4 per cent to 411.9 pence per share at 30th June 2019 from 398.5 pence per share at 31st December 2018. The company’s focus is on return generated for shareholders including capital and income appreciation with a total accounting return of 7 per cent recorded during the six-month period ended June 2019. As the hospitals were disposed from the company’s portfolio, the company’s net loan to value ratio was 42.2 per cent at 30th June 2019 and plunged to 33 per cent (on pro forma basis). The company’s EPRA EPS (adjusted) surged by 31 per cent to 8.1 pence in H1 FY19 as against 6.2 pence in H1 FY18, which captures the positive impact of couple of portfolio acquisitions made during 2018 and increase in passing rents on LFL basis (Like-for-Like). The company’s earnings per share (EPS) excluding EPRA adjustments, in accordance with IFRS standards stood at 23.1 pence in H1 FY19 as against 23 pence in H1 FY18, which also captures the impact of increased rental proceeds and the increased property valuations during the period. The company’s net assets surged by 4.9 per cent to £1,344.6 million on pro forma basis at 30th June 2019 as against £1,281.6 million at 31st December 2018. The company’s dividend per share stood at 7.9 pence per share in H1 FY19 as against 6 pence per share in H1 FY18.

SIR-Share price commentary

Daily Chart as at 04-September-19, before the market closed (Source: Thomson Reuters)

On 4th September 2019, at 12:10 PM GMT while writing, SIR shares were trading at GBX 434.50 per share; these shares surged by 0.81 per cent as compared to the closing price level of the previous day. The company’s M-cap (market capitalisation) was recorded at £1.39 billion at the time of writing.

On 22nd August 2019, the shares of SIR have touched a new peak of GBX 440.00 and reached the lowest price level of GBX 369.00 on 12th October 2018 in the last 52 weeks. The company’s shares were trading at 1.25 per cent lower from the 52-week high price mark and 17.75 per cent higher the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 52,032 at the time of writing before the market close. The company’s 5-day stock’s average traded volume was 223,770.20; 30 days average traded volume- 202,433.70 and 90 days average traded volume – 201,907.40. The company’s stock is less volatile in comparison with the index considered as the benchmark as the beta of the company’s stock was recorded at 0.49.

The shares of the company have delivered a positive return of 2.86 per cent in the last month. The company’s stock surged by 14.32 per cent from start of the year to till date. The company’s stock has generated a positive return of 13.72 per cent in the last year. Dividend yield of the stock stood at 3.71 per cent.

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