Two FTSE100 Stocks Under The Spotlight – Kingfisher Plc and Centrica Plc

Kingfisher PLC

Kingfisher Plc (KGF) was incorporated in the year 1982 and is headquartered in London, the United Kingdom. It is a well-known supplier of home improvement products and services through a network of retail stores and online channels. The company’s business operations are spread across ten countries, having a customer base of around 6 million users. Total established stores are more than 1,300, with a total headcount of more than 75,000 employees. The company’s business operations are spread across the United Kingdom, Ireland, France and Other International geographical segments.

KGF-Recent News

Bernard Bot will take charge as CFO on 21st October 2019. In addition, John Wartig will take charge as CTDO (Chief Transformation & Development Officer) along with Bernard Bot.

KGF-Financial Highlights H1 FY20

The company’s sales were down by 1.4 per cent (AER basis), recorded at £5,997 million in H1 FY20 as against £6,080 million in H1 FY19. The company’s gross margin was up by 60 basis points to 37 per cent in H1 FY20 as against 36.4 per cent in H1 FY19. The company’s retail profit reportedly dipped by 4.8 per cent (AER basis), stood at £466 million in H1 FY20 as against £490 million in H1 FY19. The company’s pre-tax profit (adjusted) surged by 3.7 per cent, at £337 million in H1 FY20 as against £325 million in H1 FY19. The company’s basic earnings per share (underlying) stood at 12.3 pence in H1 FY20 as against 12.8 pence in H1 FY19. The company’s basic earnings per share (adjusted) surged by 7.3 per cent, at 11.8 pence in H1 FY20 as against 11 pence in H1 FY19. The company’s interim dividend stood at 3.33 pence in H1 FY20, remained flatlined as compared to an interim dividend in H1 FY19. The company’s net debt declined to £2,384 million in H1 FY20 from £2,661 million in H1 FY19.

KGF-Share price performance

On 10th October 2019, while writing at 12:36 PM GMT, Kingfisher Plc shares were clocking a current market price of GBX 189.60 per share; which was higher by 1.99 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £3.93 billion at the time of writing.

On 20th April 2019, the shares of KGF have touched a new peak of GBX 268.20 and reached the lowest price level of GBX 185.90 on 09th October 2019 in the last 52 weeks. The company’s shares were trading at 29.30 per cent lower from the 52-week high price mark and 1.99 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 1,761,994 at the time of writing before the market close. The company’s 5-day stock’s daily average traded volume was 8,407,560.60; 30 days daily average traded volume- 8,862,509.63- and 90-days daily average traded volume – 8,726,353.10. The volatility of the company’s stock was 6 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.94 with a gross dividend yield of 5.82 per cent.

The shares of the company have delivered a negative return of 14.41 per cent in the last quarter. The company’s stock plunged by 10.41 per cent from the start of the year to till date. The company’s stock has given investors 26.20 per cent of a negative return in the last year.

Centrica PLC

British energy and services corporation, Centrica PLC (CNA) is primarily engaged in the supply of gas and power to consumers and businesses, and it targets global markets such as the United Kingdom, North America and Ireland. It is the owner of British Gas, which is one of the largest energy providers in the United Kingdom, and along with five other major energy supplying companies, it’s a constituent of ‘Big Six’ in Britain energy suppliers.

CNA-Recent News

The company made some recent appointments. Joan Gillman as a member of the Remuneration Committee, Pam Kaur as a member of the Safety, Health, Environment, Security & Ethics Committee, both with effect from 21st August 2019.

CNA-Financial highlights for H1 FY19

In H1 FY2019, the company’s adjusted revenue deteriorated by 2 per cent to £13.8 billion as against the corresponding period of the previous year, due to the weakening Centrica consumer revenue and the decline in the Centrica business revenue, however the production and exploration broadly remained unchanged. Adjusted gross margin reduced by 15 per cent against the same period in 2018. The company’s EBITDA plunged by 19 per cent to £1,075 million in H1 FY19 in comparison to H1 FY18. The company’s operating profit (adjusted) was down by 49 per cent to £399 million in H1 FY19 as against £782 million in H1 FY18. The company’s earnings attributable to shareholders for the period (adjusted) were down by 63 per cent, at £134 million in H1 FY19 as against £358 million in H1 FY18. The company’s basic earnings per share (adjusted) was down by 63 per cent to 2.4 pence in H1 FY19 in comparison to H1 FY18 data. The company’s operating cash flow (adjusted) was down by 32 per cent to £744 million in H1 FY19 in comparison to H1 FY18 data.

Group’s net debt surged by 17 per cent to £3,376 million against the £2,886 million in H1 FY18. The company’s interim dividend per share stood at 1.5 pence, and it will be paid on 21st November 2019. On a Statutory basis, the loss for the period attributable to shareholders stood at £550 million. Net cash flow from operating activities declined by 80 per cent to £177 million against the same period in 2018. Basic loss per share was 9.6 pence in H1 FY19. The company’s interim dividend was down by 58 per cent to 1.5 pence per share. The company faced some turbulence in H1 FY19, which affected the cash flows and earnings. Currently, the company is focussing on cost optimisations in both retail and business segments. By the end of the fiscal year 2019, the company expects the operating cash flow to be in the range of £1.8 to £2 billion and net debt to be in the range of £3 to £3.5 billion.

CNA-Share price performance

On 10th October 2019, while writing at 12:42 PM GMT, Centrica PLC shares were clocking a current market price of GBX 66.60 per share; which was less by 2.05 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £3.96 billion at the time of writing.

On 13th November 2018, the shares of CNA have touched a new peak of GBX 156.67 and reached the lowest price level of GBX 63.99 on 14th August 2019 in the last 52 weeks. The company’s shares were trading at 57.49 per cent lower from the 52-week high price mark and 4.07 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 4,218,185 at the time of writing before the market close. The company’s 5-day stock’s daily average traded volume was 24,998,058.20; 30 days daily average traded volume- 23,648,794.93- and 90-days daily average traded volume – 24,028,018.14. The volatility of the company’s stock was 33 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.67 with a dividend yield of 14.56 per cent.

The shares of the company have delivered a negative return of 22.52 per cent in the last quarter. The company’s stock plunged by 49.59 per cent from the start of the year to till date. The company’s stock has given investors 55.35 per cent of a negative return in the last year.