Recent Updates On Three FTSE Stocks: MAB, CNS, and TSG

Here, we are going to discuss the latest result announcements of three diverse sector stocks listed on the London Stock Exchange (LSE). The stocks include Mitchells & Butlers PLC (MAB) from Travel and Leisure Sector, Corero Network Security PLC (CNS) from Software and Computer Services sector, and Trans-Siberian Gold PLC (TSG) from the Precious Metals and Mining sector.

Mitchells & Butlers PLC

Mitchells & Butlers PLC (MAB) owns, manages and operates restaurants, bars, and pubs in the United Kingdom and Germany. The company’s properties operate under the brands Vintage Inns, Toby Carvery, Castle, Nicholson’s, O’Neil’s, Miller & Carter, Innkeeper’s Lodge, Orchid Pubs, Stonehouse Pizza & Carvery, Harvester, All Bar One, Browns, Premium Country Pubs, Ember Inns, ALEX, Oak Tree, and Sizzling Pubs.

Pre-Close Trading Update (51 weeks ended 21st September 2019)

Since the previous update sales of the company have been outperforming the market. In the 8 weeks to 21 September like-for-like (LfL) sales increased by 2.1 per cent in Food and 4 per cent in Drink. The total LfL sales rose by 3.3 per cent in 8 weeks to 21st September 2019. In the year-to-date, total sales surged by 3.6 per cent, while food LfL sales increased by 3.5 per cent and drink LfL sales surged by 3.3 per cent. Despite cost headwinds, the company anticipate the full year 2019 operating profit margin to be almost the same from the last year. The company is hopeful of making decent growth on the investment programme, premiumising offers where potential and decreasing the remodel lifecycle. The company had completed 239 conversions and opened seven new sites and remodels in the financial year to date.  On the 2019 triennial valuations, the company is showing a £239 million of deficit and is having an unchanged schedule of future contributions.

CEO Statement

The Chief Executive, Phil Urban, said that the company’s sales progress has stayed consistent ahead of the market expectations and also carry this momentum ahead into the new fiscal year. The company is confident of the effect of the Ignite initiatives, which will be constantly reviewed and recharged as the firm’s business moves ahead.

Share Price Performance

Daily Chart as at 26-September-19, before the market close (Source: Thomson Reuters)

On 26 September 2019, at the time of writing before the market close (at 3:05 pm GMT), Mitchells & Butlers PLC shares were trading at GBX 374.90, lower by 0.29 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 384/GBX 236.50. The company’s stock beta was 0.66, reflecting the lower volatility as compared to the benchmark index. The stock’s outstanding market capitalisation was around £1.63 billion.

Corero Network Security PLC

Corero Network Security PLC (CNS), a supplier of Distributed Denial of Service (DDoS) defense solutions. The company is having its presence in the North America, United Kingdom and other countries. The company manages Corero Network Security segment.

Financial Highlights (for the six months ended 30 June 2019)

In the first half of 2019, the company reported a revenue decrease to $4.2 million as compared with the corresponding period of the last year. Revenue from DDoS protection surged by 57.1 per cent to $0.5 million against the $0.3 million in H1 FY18. The company’s recurring revenue rose to 66.9 per cent of total revenue in H1 FY19. Gross margin for the first half of 2019 increased to 79 per cent against the 77 per cent in H1 FY18. The company reported an EBITDA loss of $2 million in H1 FY19, $0.6 million higher from the loss of $1.4 million reported in H1 FY18. Loss before tax surged to $3.9 million in H1 FY19 as compared with the same period of the last year. In the first half of 2019, loss per share was 1 cent against the loss of 0.9 cents in H1 FY18. As on 30th June 2019, the net cash of the company was reported at $3.6 million.

Outlook

In the medium-term period, the group’s board stays positive about the company’s prospects, through the DDoS mitigation market fundamentals staying robust, market analysts predict double-digit progress in the near-term. Corero Network Security PLC will keep implementing its growth plan and optimising routes to market and stay well-positioned to capitalise on the market prospects and generate future progress. Before the end of the current financial year, the group intends to undertake equity fundraising of around £3 million. The group’s Chairman and major shareholder have given their affirmation for this equity fundraise.

Share Price Performance

Daily Chart as at 26-September-19, before the market closed (Source: Thomson Reuters)

On 26 September 2019, at the time of writing before the market close (at 3:20 pm GMT), Corero Network Security PLC shares were trading at GBX 2.535, up by 1.40 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 13.60/GBX 2.35. The company’s stock beta was negative 0.97, reflecting negative volatility as compared to the benchmark index. The outstanding m-cap (market capitalisation) of the stock was around £10.16 million.

Trans-Siberian Gold PLC

Trans-Siberian Gold PLC (TSG) is a resource company based out of the United Kingdom-based which is involved in acquisition and development of a portfolio of gold mining assets in the Russian Federation. The group is a low cost and high-grade gold producer; its subsidiary includes TZ (ZAO Trevozhnoye Zarevo).

Financial Highlights (for the period ended 30 June 2019)

In the first half of 2019, the company’s reported revenue increased by 8.7 per cent to $30 million as compared with the corresponding period of the last year. Profit before tax stood at $8.5 million in H1 FY19, an increase of 169.7 per cent from the previous year same period data. EBITDA rose by 62.2 per cent to $14.4 million in H1 FY19 against the $8.9 million in H1 FY18. The board during the current period declared and paid a special interim dividend of $0.051 per share. The company had completed the share buyback programme of 20.8 per cent and raising the free float to 24.3 per cent. The interim dividend of $2 million, resulted in the payment of $0.023 per share against the payment of $0.009 per share in H1 FY18.

In H1 FY19, Gold dore production increased by 26.1 per cent to 21,889 oz as compared to 17,361 oz in H1 FY18. Refined gold production surged by 11.9 per cent to 23,155 oz against the 20,698 oz in H1 FY18. Average gold grades rose by 38.7 per cent to 8.6g/t as compared with the corresponding period of the last year. Average selling price for gold stood at $1,312/oz in H1 FY19. The total cash cost per oz. gold reduced by 24.6 per cent to $672/oz in H1 FY19 against the same period of the last year. AISC per oz. gold decreased by 38 per cent to $850/oz in H1 FY19. The company strengthened Senior Management with appointments of new Mine Manager and Chief Financial Officer. The company also reinforced the asset portfolio with the acquisition of an exploration licence and development for Rodnikova.

Outlook

The group plans to become a premier mid-tier gold developer and producer. The company targeting to attain this by enhancing the current operations, pursuing selective accretive M&A prospects to support the robust investment case, and utilising the stable platform for upcoming growth prospects. For the year 2019, the group’s total gold production will be in the range of 40-44 thousand oz. and stays inline to the expectations. On a year-on-year basis, the upper end of the range signifies a surge of around 4.5 per cent in total gold production.

Share Price Performance

Daily Chart as at 26-September-19, before the market close (Source: Thomson Reuters)

On 26 September 2019, at the time of writing before the market close (at 3:35 pm GMT), Trans-Siberian Gold PLC shares were trading at GBX 98.14, lower by 6.07 per cent against the closing price of the previous day. Stock’s 52 weeks High and Low is GBX 133/GBX 29.43. The company’s stock beta was 0.77, reflecting the lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £92.11 million, with a dividend yield of 2.45%.