Two FTSE Stocks Under Focus – Essensys Plc and Anglo American Plc

Two FTSE Stocks Under Focus – Essensys Plc and Anglo American Plc
Essensys Plc

Essensys Plc (ESYS) is a London, the United Kingdom based company that is engaged in the provision of Software as a Service (SaaS) based solutions as well as cloud-based computing services to the workspace and related industries. Essensys’ proprietary technology enables workspace managers or operators to provide a vast array of unique and tailored to client products and services to a wide base of their leaseholders or tenants around multiple locations and supports these workspace managers to manage operational and technical difficulties. The company has two major products – Connect and Operate. Connect is an enterprise-grade platform that provides infrastructure solutions enabled by software. This product allows the company in the provision of, management, and monitoring the entire Information Technology, critical infrastructure and technology-based solutions that the customers can depend upon, in real-time and with the simplified proprietary software that is easy to understand and use. This is supported by the essensysCloud, which acts as a private cloud in the coworking space, that makes sure of the network security as well as compliance. Additionally, there is Marketplace, which allows the client’s customers to have on-demand marketplace schemes ascendable, depend worthy solutions at competitive prices. Operate is the end to end service for multi-site workspace managers and operators. This includes a workspace management software which allows the operator a real-time control and insight into the workspace portfolio with inbuilt integrations, an on demand marketplace which is similar to the marketplace feature provided in connect as well as an open application programme interface that reduces the complexities in managing the workspace. Both these products have 3 different price points with features entailing the requirements of the clients. These clients include operators like Coworking spaces, serviced offices, Science parks, agents and brokers, commercial real estate properties, business centres as well as Executive Suits. Some of these clients include Uncommon, Carr Workplaces, The Landmark group, etc.

ESYS Latest News

On 29th May 2019, the company announced the admission of its 18,543,046 new and existing Ordinary Shares at a price point of £1.51 per Share and of its entire share capital, being 48,107,567 Ordinary Shares to trading on the Alternative Investment Market (AIM) of the London Stock Exchange. This allowed the board to raise £14 million in financing for the company as well as £14 million for the selling shareholders. Upon admission on the AIM, the company’s market capitalisation will be around £72.6 million.

ESYS Financial Performance (Full-year results for the year ended 31st July 2019)

The company announced its full-year results for the year ended 31st July 2019 on 22nd October 2019. The company reported a 26 per cent year on year increase in the revenue from £16.4 million in FY 2018 to 20.6 million in FY 2019. This was majorly driven by a 26 per cent increase in the recurring revenue from £12.9 million in FY 2018 to £16.3 million in FY 2019. The company also highlighted the adjusted EBITDA margin at 20.4 per cent for the reporting period as compared to 19.5 per cent in FY 2018, an increase of 31 per cent year on year. Albeit, this did not translate into the Statutory profit before tax, as the company reported a Statutory loss before tax in FY 2019 at £1.4 million as compared to a Profit before Tax of £400,000 in FY 2018. The company also reported a significant year on year increase of 175 per cent in Profit before tax and pre-exceptional items from £400,000 in FY 2018 to £1.1 million in FY 2019. The company did not announce any dividend for the year and reported Net Cash balance of £2.7 million as on 31st July 2019. The company announced that the revenue performance was the strongest in the United States of America with an approximate year on year increase of 71 per cent in the recurring revenues from the region. The company also highlighted that at the year-end, their product connect was at 358 live sites, an increase of 38 per cent year on year reflecting an excellent overall financial and operational performance by the company during the year.

ESYS Share Price Performance

On 22nd October 2019, at 08:05 A.M., while writing, Essensys Plc’s stock’s current market price was at GBX 167.40 per share, an increase of 5.95 per cent or GBX 9.40 per share as compared to the previous day’s reported closing price at GBX 158.00 per share. At the current market price, the company’s shares were trading 21.30 per cent above the 52-week low price of GBX 138.00 per share, which was set on October 08, 2019. This was also 22.5 per cent below the 52-week high price of GBX 216.00 per share, which the company’s shares set on June 12, 2019. The company’s market capitalisation (M-Cap) was currently reported at £76.01 million.

By the time of writing, 15,370 of company’s stocks had been traded for the day. The average volume of trade, per day, in the last one year was at 58,140 stocks. The company’s stock has gained 3.79 per cent from 29th May 2019, on the day which the company’s stock was admitted into the exchange, from the price of £179.00.

Anglo American Plc

Anglo American Plc (AAL) is a London, the United Kingdom based mining company that is engaged in the development of various mining assets with a significant focus on diamonds, copper, platinum group metals and other bulk commodities. The company is involved in the finding, planning and building, mining, processing, moving and marketing a high-quality range of the above-mentioned products to its customers. These products are used in some of the major industries as raw materials such as Smartphones, Pharmaceutical and medicines, hybrid vehicles, jewelleries, as well as thermal electricity generation industry. The company has assets and operations worldwide in resource-rich countries like Australia, Brazil, Chile, China, Finland, Peru and South Africa. Two of the company’s flagship assets include the Sishen Mine, an Iron ore mine near Kathu in the Northern Cape Province, which is owned by the Sishen Iron Ore Company Proprietary Limited, in which the company has a 76.3 per cent interest and Kolomela Mine, which is a new mine located near Postmasburg in the Northern Cape Province, also rich in Lump Iron ore.

AAL Production Update

On 22nd October 2019, the company announced a production update for the third quarter ended 30th September 2019. The company reported that the total production for the quarter has increased by 4 per cent year on year majorly due to the continued expansion at Minas-Rio and a robust production period at metallurgical coal. The diamond production was down by 14 per cent year on year at 7.4 million carats for Q3 2019 as compared to 8.7 million carats in Q3 2018. Copper production was also down by 8 per cent year on year. Metallurgical coal production was at a significant increase of 22 per cent year on year from 5.4 Mt in Q3 2018 to 6.6 Mt in Q3 2019.

AAL Financial Performance (Interim results for the six months ended 30th June 2019)

On 25th July 2019, the company announced its interim results for the six months ended 30th June 2019. The company reported a year on year increase of 8 per cent in the revenue from US $13.69 billion in H1 2018 to US $14.77 billion in H1 2019. Underlying EBITDA grew at 19 per cent year on year from US $4.57 billion in H1 2018 to US $5.45 billion in H1 2019. The company reported the profit for the year to have increased by 46 per cent year on year from US $1.29 billion in H1 2018 to US $1.88 billion in H1 2019. Earnings per share (EPS) was highlighted to have increased by 45 per cent year on year from US $1.02 per share in H1 2018 to US $1.48 per share in the first half of 2019. The company proposed a dividend of US $0.62 per share in H1 2019, which was an increase of 27 per cent year on year from the H1 2018 dividend at US $0.49 per share, reflecting the robust performance during the first half of the year.

AAL Share Price Performance

On 22nd October 2019, at 08:58 A.M., while writing, Anglo American Plc’s stock’s current market price was at GBX 1939.60 per share, a decrease of 0.01 per cent or GBX 0.20 per share as compared to the previous day’s reported closing price at GBX 1939.80 per share. At the current market price, the company’s shares were trading 26.78 per cent above the 52-week low price of GBX 1529.80 per share, which was set on November 27, 2018. This was also 15.45 per cent below the 52-week high price of GBX 2294.00 per share, which the company’s shares set on July 01, 2019. The company’s market capitalisation (M-Cap) was currently reported at £26.697 billion.

By the time of writing, 600,660 of company’s stocks had been traded for the day. The average volume of trade, per day, in the last one year was at 4.54 million stocks. The company’s stock has gained 16.62 per cent in the last one year, from the price of £1663.20.

The Beta of the stock has been reported to be at 1.5370, from which it can be inferred that the stock’s price movement, is more volatile as compared to the movement of the comparative benchmark index.