Insights On Two FTSE Stocks – BEG and RSG

Begbies Traynor Group Plc

Begbies Traynor Group Plc (BEG) is the United Kingdom based company that provides professional, recovery and restructuring services as well as Property risk consulting in the UK. The company has two divisions which are insolvency, restructuring and property. The Begbies Traynor segment of the company helps businesses, that are in the process of liquidation or insolvency, providing them with administration services, as well as any closure options and processes post-administration. The Eddisons division is primarily engaged in providing transaction and advisory services to businesses, which includes services like Corporate Finance, Restructuring, Financial Consulting, etc. The company also serves individual clients with services such as Personal Insolvency options. Some of the company’s target clients include Accounting Firms, Directors and Business Owners, Asset Based Lenders, Banks, Solicitors, etc. The Eddisons division of the company is also engaged in providing Property consulting services like Auctions, Valuations, Management, Lease Advise, etc. to commercial property owners across the United Kingdom. The company operates through its 75 regional offices in the UK.

BEG Latest News

On 24 September 2019, the company made a press release in which it announced the acquisition of Regeneratus Consulting 1 limited by the purchase of all of its issued share capital. The company is Exeter based, turnaround and management consulting firm that specialises in Restructuring and Turnaround services, Capital Raising advisory, Project Management advisory as well as the provision of other legal services. The acquisition has been made to enhance BEG’s existing South West region services, where Regeneratus is currently located. As per the announcement, the purchase was made for an initial price of £0.5 million, which would be paid from the company’s cash resources. There is also a subsequent contingent consideration which will be paid on the achievement of certain financial targets by the acquired business across a four year time period post completion of the deal. The initial price for this contingent consideration will be  £1.1 million. As per the company’s Executive Chairman’s statement, the acquisition will enhance the volume and quality of services, across a broader geographic location and will have a deep penetration of the services in the market, which has been the company’s top strategy to grow their business.

BEG Financial Performance (Final results for the year ended 30 April 2019)

On 9 July 2019, the company had announced its final results for the year ended 30 April 2019. The company reported revenue growth of 14.69 per cent year on year from £52.4 million in 2018 to £60.1 million in 2019. The company announced that 9 per cent of this growth was organic in nature. This was in line with the expectations in a trading update made on 7th May 2019. The company reported the adjusted profit before tax (aPBT) at £7.1 million in 2019, a 26.79 per cent increase from the 2018 adjusted profit before tax at £5.6 million. The profit before tax also increased from £2.3 million in 2018 to £3.5 million in 2019, a 52.1 per cent growth year on year. The company reported the basic EPS at GBX 2.2 per share in 2019, as compared to an EPS of GBX 1.3 per share in 2018. In reflection of this excellent performance and continued growth in 2018-19, the board recommended a total dividend of GBX 2.6 per share, an 8 per cent year on year increase from the proposed dividend in 2018 at GBX 2.4 per share. Contingent to the shareholder approval, the dividend will be paid on 7th November 2019, with the ex-dividend date of 10th October 2019.

BEG Share Performance

On 30th September 2019, at 08:05 AM GMT, while writing, BEG stock traded at GBX 80.80 per share; an increase of 9.56 per cent or GBX 7.05 per share in comparison with the previous day’s closing price at GBX 73.75 per share. While writing, Begbies Traynor Group Plc traded 5.50 per cent below its 52-week high price of GBX 85.50, set on August 20, 2019. The company’s Market Capitalisation was GBP 92.60 million.

110,750 stocks of the company have been traded by the time of writing. The average volume trading per day for last one year has been 69,810. The stock has surged by 9.93 per cent in the previous one year from the price of GBX 74.05 per share.

The beta of the stock was at -0.1323, showing that the share price movement inversely correlated to the benchmark market index.

Resolute Mining Limited

Resolute Mining Limited (RSG) is an Australia based company that is into mining of precious metal gold as well as the exploration of other minerals. The company’s portfolio has four gold mines which are Syama Gold Mine in Mali, Mako Gold Mine in Senegal, Ravenswood Gold Mine in Australia and Bibiani Gold Mine in Ghana. The Syama Gold Mine, which is owned by Société des mines de Syama S.A. (SOMISY), is set in the South of Mali and contains two processing plants, 2.4 metric tonnes per annum sulphide plant and a 1.4 metric tonnes per annum oxide plant. Resolute Mining Limited has an 80 per cent ownership interest in SOMISY while the rest is controlled by the government of Mali. The company targets annual production of 300,000 oz of gold from this mine. The Mako gold mine in Senegal is controlled by Petowal Mining Company SA, which is the Senegal based subsidiary of Resolute Mining, which holds a 90 per cent interest, while the rest is owned by the government of Senegal. The company targets annual production of 140,000 oz of gold from this mine. The company’s Queensland, Australia based Ravenswood goldmine, which is owned by its wholly-owned subsidiary, Carpentaria Gold Pty Limited has a processing capacity of 2.8 metric tonnes per annum. The company also controls the Bibiani Gold Mine in Ghana through its subsidiary Mensin Gold Bibiani Limited, having a production capacity of 100,000 oz per annum.

RSG Latest News

On 28 August 2019, through a press release, the company announced that the upgradation of the Ravenwood Gold Mine project, which would increase the processing capacity of the mine to 5 metric tonnes per annum from the current capacity of 2.8 metric tonnes per annum had been commenced. The expansion has also been made to target a total production of 80,000 oz of gold at an All-in Sustained cost of around Australian $1,600 per oz in the year 2020. There is an ongoing strategic and technical review, as a part of the Ravenswood Expansion project, identifying improvements in scales of production, as well as the efficiency, targets the production of this goldmine at around 200,000 oz per annum over the 15 years of this mine’s life. As per the announcement, the targeted processing capacity to 5 MPTA will be increased by the end of 2019 and the final decisions regarding the entire expansion as a part of the project is anticipated to be taken in the latter part of 2019, with a deadline of completion of the project to be 24 months post the final decision of the expansion would be made.

RSG Financial Performance (Interim results for six months ended 30 June 2019)

On 30 August 2019, the company announced its interim results for six months ended 30 June 2019, in which reported the revenue from ordinary activities at Australian $324.01 million, an increase of more than 33 per cent year on year from the revenue reported in H1 2018 at Australian $242.91 million. The company announced Earnings Before Interest, taxes, Depreciation and Amortisation (EBITDA) at Australian $78.18 million in H1 2019, a year on year growth of 171 per cent from Australian $28.82 million in H1 2018. Despite an excellent operating performance, the company reported a decline in the Profit After Tax (PAT) of 1 per cent year on year from Australian $39.42 million in H1 2018 to Australian $38.86 million in H1 2019. No Interim dividends were recommended by the board for the reported period.

RSG Share Performance

On 30th September 2019, at 09:10 AM GMT, while writing, RSG stock traded at GBX 79.20 per share; showing no change in comparison with the previous day’s closing price. While writing, Resolute Mining Limited traded 20.92 per cent above its 52-week low price of GBX 65.50, set on June 21, 2019. The company’s Market Capitalisation was GBP 600.41 million.

13,180 stocks of the company have been traded by the time of writing. The average volume of trading per day for last one year has been 96,180. The stock was listed on June 20, 2019, since then it has surged by 19.54 per cent from the price of GBX 66.25 per share.

The beta of the stock was at -0.0903, showing that the share price movement is inversely correlated to the benchmark market index.