Stocks To Watch:  BAE Systems Plc, Redrow PLC, Unilever Plc and JD Sports Fashion PLC

BAE Systems Plc

BAE Systems Plc (BA) is a United Kingdom-based leading defence, aerospace and security company with operations spread across the world. The group delivers a broad range of advanced defence technology that covers air, land, naval forces and cyber domain, including critical infrastructure and information security. The company has an employee base of 85,800 people spread across over 40 countries.

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

During the first half of 2019, the group’s order backlog increased by £7.7 billion to £47.4 billion, driven by order intake of £8,418 million in the H1 of the financial year 2019. Order intake declined by £1,283 million to £8,418 million in H1 FY2019 versus £9,701 million reported in H1 FY18. The company’s sales surged by 4 per cent on CER (constant exchange rate) basis to £9,416 million in H1 FY19 from £8,818 million in H1 FY18. Revenue on a CER basis increased by 4 per cent to £8,674 million in H1 FY19 from £8,161 million in H1 FY18. The company’s underlying EBITA was up by 9 per cent on a CER basis to £999 million in H1 FY2019 from £874 million in H1 FY18. The board of directors of the group declared an interim dividend of 9.4p/share in H1 FY19, reflecting an increase of 4.4% over H1 FY18 data.

During the Financial Year 2018, the group secured several crucial contracts which are going to strengthen the future performance of the company in terms of revenue growth and bottom-line growth. It has also made decent progress in improving the outlook and geographic base of the group, with established positions on the long-term programmes and a growing presence in other international markets. Research and development activities, diversified operations and growth in revenue are the company’s major strengths.

BA-Share price performance

While writing (post market close on 1st October 2019, BAE Systems Plc shares were placed at GBX 564.20 per share, down 1.01 per cent as compared to the previous day closing price level.

BA shares have registered a high of GBX 622.80 (as on 02 October 2018) and a low of GBX 439.40 (as on 31 May 2019) in the past one year.

In the past 1 year, BA shares have delivered a negative return of 9.50 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 24.13 per cent and was up by 15.06 per cent in the last three months.

Redrow PLC

Redrow PLC (RDW) is a United Kingdom-based company and is primarily focused on the development of housing spaces. The company has its footprint across Wales and England.

RDW-Financial highlights for FY19 period ended 30th June 2019

The company’s revenue surged 10 per cent to £2.1 billion in FY19 as against the £1.9 billion in FY18, mostly driven by homes revenue with the company completing 6,443 homes, up 13% over the previous year.  The company’s gross margin plunged by 50 bps to 23.9 per cent in FY19 as compared to 24.4 per cent in FY18The company’s profit before taxation stood at £406 million in FY19, a surge from £380 million in FY18. The company’s basic earnings per share rose by 8.2 per cent at 92.3 pence in FY19 against the 85.3 pence in FY18.

The company has proposed a final dividend of 20.5 pence per share for FY19, the dividend payment date being 13 November 2019. The company’s annual dividend stood at 30.5 pence per share in FY19 (excluding the ‘B share’ payment), an upside of 9 per cent as compared to 28 pence per share in FY18.

RDW-Share price performance

While writing (post market close on 1st October 2019, Redrow PLC shares were placed at GBX 615 per share, down 0.48 per cent as compared to the previous day closing price level.

RDW shares have registered a high of GBX 643.82 (as on 06 March 2019) and a low of GBX 455.32 (as on 17 December 2018) in the past year. The company’s stock beta is 0.93, which makes it less volatile compared to the benchmark index.

In the past 1 year, RDW shares have delivered a positive return of 6.02 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 25.90 per cent and was up by 13.60 per cent in the last three months.

Unilever Plc

Unilever Plc (ULVR) is a global company selling fast-moving consumer goods, with two home countries: the Netherlands and the United Kingdom. The company is engaged in the production and marketing of variety of products from different categories such as home care, food, health, beverages and wellbeing. The company has divided its operations into three reportable segments being Foods & Refreshment, Home Care and Beauty & Personal Care.

 

ULVR-Financial Highlights for H1 FY19

For the First half of the financial year 2019, the company’s turnover declined by 0.9 per cent (AER) to €26,126 million as against €26,352 million in H1 FY2018. The revenue declined by 0.7 per cent on the CER (constant exchange rate) basis. The company’s operating profit was up by 1.3 per cent (AER) from €4,529 million in H1 FY2018 to €4,589 million in H1 FY2019. The PBT (Profit before tax) increased by 0.6 per cent (AER) to €4,354 million in H1 FY2019 from €4,329 million in H1 FY2018. The Net Profit for the H1 FY2019 declined by 0.6 per cent (AER) to €3,209 million from €3,229 million in H1 FY2018. The company’s net profit attributable to the shareholders stood at €3,006 million in H1 FY2019 as against €3,031 million in H1 FY2018. The company’s Basic earnings per share increased by 3.4 per cent (AER) to 1.15 euros in H1 FY2019 from 1.11 euros in H1 FY2018. The Diluted earnings per share for H1 FY2019 stood at 1.14 euros versus 1.11 euros in H1 FY2018, up by 3.4 per cent and 2.3 per cent on AER and CER basis respectively.

ULVR-Share price performance

While writing (post market close on 1st October 2019, Unilever Plc shares were placed at GBX 4,892 per share, up 0.04 per cent as compared to the previous day closing price level.

ULVR shares have registered a high of GBX 5,333 (as on 04 September 2019) and a low of GBX 3,904.94 (as on 31 January 2019) in the past year. The company’s stock beta is 0.73, which makes it less volatile compared to the benchmark index.

 

JD Sports Fashion PLC

JD Sports Fashion PLC (JD.) is a General Retailers company selling branded leisurewear. The company, through its chain of retail stores, operates in two segments being Sports Fashion and Outdoor. The sports fashion business includes brands like Kooga, Cloggs, Tessuti, Sprinter, Source Lab, JD Gyms, Kukri Sports, Getthelabel.com, Nicholas Deakins, Scotts and Chausport. The outdoor business includes a portfolio of brands such as Ultimate Outdoors, Millets, Blacks and Tiso.

JD.-Financial Highlights for H1 FY20 

For the first half of the financial year 2020, the company’s revenue surged by 47 per cent in H1 FY2020 to £2,721.20 million as against £1,846.30 million in the H1 FY2019. The increase in the revenue was driven by an increase in global Sports Fashion fascias in the UK and Ireland markets. The company’s operating profit (before exceptional items) increased to £199.8 million in H1 FY2020 from £123.9 million in the H1 FY2019. The PBT (Profit before Tax and exceptional items) surged to £158.6 million in H1 FY2020 from £121.9 million in the H1 FY2019. The PBT (Profit before Tax) surged to £129.9 million in H1 FY2020 from £121.9 million in the H1 FY2019. The company’s profit for the period stood at £98 million in H1 FY2020 versus a profit for the period of £95.4 million in the H1 FY2019. The company’s basic and diluted earnings per share stood at 9.67 pence in H1 FY2020 versus basic and diluted earnings per share of 10.05 pence in H1 FY2019. The company’s adjusted earnings per share stood at 12.57 pence in H1 FY2020 versus adjusted earnings per share of 10.05 pence in H1 FY2019. The company’s interim dividend for H1 FY2020 was at 0.28 pence per share versus 0.27 pence per share in H1 FY2019.

The company had shown decent financial performance for the first half of the financial year 2020. The company’s top-line and the bottom-line performance for the period have improved resulting from an increase in global Sports Fashion fascias in the UK and Ireland markets. The company’s operation would likely be impacted by the uncertainty created due to ongoing Brexit negotiations as it negatively impacts the company’s supply chain. The company has a huge reliance on non-UK manufactured products and has to pay extra as exchange cost to procure such products.

JD.-Share price performance

While writing (post market close on 1st October 2019, JD Sports Fashion PLC shares were placed at GBX 752 per share, up 0.07 per cent as compared to the previous day closing price level.

JD.shares have registered a high of GBX 755 (as on 30 September 2019) and a low of GBX 318.50 (as on 20 December 2018) in the past year. The company’s stock beta is 0.85, which makes it less volatile compared to the benchmark index.

In the past 1 year, JD. shares have delivered a positive return of 63.67 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 115.42 per cent and was up by 28.14 per cent in the last three months.