Three LSE Listed Diverse Stocks Trending Downward – SMS, SIS and DLG

Smart Metering Systems Plc

Smart Metering Systems Plc (SMS) incorporated in 2009, SMS is a United Kingdom based smart metering company that offers various smart utility services such as the smart metering system and other end to end energy solutions for UK homes. The company engages in 3 processes on behalf of the energy suppliers – Design, installation and management of utility connections, operation and maintenance meter assets and related data collection and providing solutions for reducing the carbon footprint. Currently, the company has no competitor in the United Kingdom to offer all these services simultaneously. Its business segments include Asset Management, which provides for controlled and periodic management of all kinds of meters and ADM units within the United Kingdom; Asset Installation, which consists of installation of domestic and industrial and commercial (I&C) gas meters and electricity meters throughout the UK, and Energy Management and consulting, which includes the provision of energy advice leveraging the technological expertise that the company has access to. The company also has a Smart home segment, wherein they are working with homeowners to install an energy system that will work as a smart grid with meters, and as a two-way communication between the network and the consumers.

SMS Financial Performance (Interim Results)

On 17th September 2019, the company announced its interim results for the half-year ended 30 June 2019. The company reported the group revenue at £54.2 million in H1 2019, an increase of 16.06 per cent year on year from H1 2018 group revenue at £46.7 million. The company also reported Long-term index-linked annualised recurring revenue (ILARR) growth of 14.1 per cent, which exceeded the expectations of the board. The company reported earnings before interest, taxes, Depreciation and Amortization (EBITDA) at £20.6 million in H1 2019, a decline of 11.9 per cent from the reported EBITDA in H1 2018 at £23.4 million. The company said that industry-wide technical issues forced the new installation to slow down. There was a significant decline in the underlying Profit before Tax (PBT) at £4.6 million in H1 2019 from £11.4 million in H1 2018. Despite this, the company announced an interim dividend of GBX 2.3 in H1 2019, an increase of 15 per cent compared to GBX 2.00 in H1 2018.

SMS Share Performance

On 17th September 2019, at 08:05 AM GMT, while writing, SMS traded at GBX 382.0 per share; a decline of 12.59 per cent or GBX 55.00 in comparison with the previous day’s closing price at GBX 437.00 per share. Smart metering systems Plc plummeted to its 52-week low of GBX 377.00, in day’s trading session. The company’s Market Capitalisation was around GBP 492.44 million.

305,800 shares of the company have been traded till the time of writing. The average volume of trading per day for last one year has been 315,930 shares. The stock has declined 37.43 per cent in the previous one year from the price of GBX 605.00 per share.

The beta of the stock was at 0.5319, showing that the share price movement is less volatile compared to the benchmark market index.

Science in Sport Plc

Science in Sport Plc (SIS) is engaged in the development, manufacturing and selling of sports nutrition products to professional athletes as well as fitness and sports enthusiasts. The company leverages its expertise in sports science and nutrition and manufacture products that let athletes push boundaries of performance. The company’s product categories include Energy and hydration, recovery, protein, supplements and Vitamins and Minerals. Their products are generally preferred by athletes who compete in stamina and agility based sports such as cycling, swimming, boxing, running and football. The products of SIS are sold to some of the top athletes and sporting teams in the world like Manchester United Football Club (Sponsor – Nutrition), Sir Chris Hoy (Ambassador), British Cycling (Customer for all the levels of cycling) etc. The company has three subsidiaries, namely – SIS (Science in Sport) Limited, SIS APAC Proprietary Limited and Science in Sport Inc. The company mostly sells its products from its online presence through a website and an application platform but also has Brick and Mortar stores across the United Kingdom.

SIS Latest News

On 11th September 2019, the company announced the appointment of Mr James Simpson as the Chief Financial Officer (CFO) of the group. The company announced that Mr Simpson would join this position and the board on 26th September 2019. The company mentioned that Mr Simpson’s experience in the consumer sectors and e-commerce would be an essential factor in this stage of the company’s development. This has been announced in the wake of the company’s previous announcement on 12 June 2019, mentioning that the company’s former Chief Financial Officer Ms Elizabeth Lake would leave the company on 10th September 2019.

On 9th July 2019, the company had announced a half-year trading update. SIS reported that the group revenue for the half-year ended 30th June 2019 was £24.9 million, a jump of 152 per cent compared with the H1 2018 figure at £9.9 million. This was due to the acquisition made by SIS of PhD Nutrition, in the month of December 2018 as well as the growth of the company’s own brand SIS. The group’s cash position as on 30th June 2019 was robust at £5 million.

The company expect to issue the final half-year results for six months ended 30 June 2019 on 18th September 2019.

SIS Share Performance

On 17th September 2019, at 09:10 AM GMT, while writing, SIS traded at GBX 52.30 per share; a decline of 2.24 per cent or GBX 1.20 in comparison with the previous day’s closing price at GBX 53.50 per share. Science in sports Plc, as of last trade, traded 4.60 per cent above its 52-week low of GBX 50.00, set on 29 March 2019. The company’s Market Capitalisation was around GBP 65.71 million.

1,240 shares of the company have been traded at the time of writing. The average volume of trading per day for last one year has been 65,900 shares. The stock has declined 24.96 per cent in the previous one year from the price of GBX 69.00 per share.

The beta of the stock was at 1.098, showing that the share price movement is more volatile compared to the benchmark market index.

Direct Line Insurance Group Plc

Direct Line Insurance Group Plc (DLG), incorporated in 1988 is a UK based insurance company. The primary activity of the business is to provide insurance cover to both retail customer and businesses through the right kind of product. The company’s product type for retail customers includes – Motor, Home and Rescue and other personal lines. The company also helps its commercial clients in raising funds, receipts and payments of dividend.

DLG Financial Performance

The company came up with its results for six months ended 30 June 2019 on 31 July 2019. The company reported a 10.8 per cent plunge in its pre-tax profit (PBT) of H1 2019 to £261.3 million. Gross written premium went down by 2.2% to £1.6 billion, while operating profit fell from £305.5 million in H1 2018 to £274.3 million.

DLG Share Performance

On 17th September 2019, at 11:23 AM GMT, while writing, DLG traded at GBX 297.7 per share; a decline of 0.70 per cent or GBX 2.10 in comparison with the previous day’s closing price at GBX 299.80 per share. Direct Line Insurance Group Plc, as of last trade, traded 6.78 per cent above its 52-week low of GBX 278.8, set on 05 September 2019. The company’s Market Capitalisation was around GBP 4122.25 million.

1.52 million shares of the company have been traded by the time of writing. The average volume of trading per day for last one year has been 4.81 million shares. The stock has plunged 5.32 per cent in the previous one year from the price of GBX 321.70 per share.

The beta of the stock was at 0.6508, showing that the share price movement is less volatile compared to the benchmark market index.

Why is the DLG (FTSE 100) stock gaining attention?

On 4th September 2019, FTSE Russel in a press release announced three changes in FTSE 100 after they conducted FTSE UK Index Series Quarterly Review September 2019. As per the review, the Direct Line Insurance Group’s stock (LSE: DLG), following a decline in value is being downgraded from the FTSE 100 index to the FTSE 250 Index along with two other blue-chip stocks (Marks & Spencer Group and Micro Focus International). As per news sources, this has come out as a shock to the investors as they have started leaving the stock, which was once viewed as a safe bet. Direct Line Insurance Group has suffered due to an industry investigation for allegedly ripping off of their customers.

As per FTSE Russel’s announcement, all the changes will be made at the close of the market on Friday, 20 September 2019, and will come into effect when the market opens for trade on 23 September 2019.