Three FTSE Stocks In Focus: TT Electronics PLC, Workspace Group PLC and Consort Medical PLC

Three FTSE Stocks In Focus: TT Electronics PLC, Workspace Group PLC and Consort Medical PLC
TT Electronics PLC

TT Electronics plc (TTG) is a supplier of designed gadgets used in critical applications. The Company works with clients in the manufacturing, medicinal, aviation and defence, and transportation divisions. The Company’s structured and fabricated items encompass sensors, electric gadgets and network connectivity solutions. The company strives to improve the accuracy, speed and dependability and criticalities of client’s applications. The Power and Connectivity division plans and makes control application items and network connectivity gadgets. The company work together with its clients to innovate and create to enhance their electronic systems. The company fabricate complex integrated items which are used to assemble parts for clients and give solutions related to engineering, including testing products.

TTG-Trading update

On 19th November 2019, the company released a trading update, stating that it continues to generate strong revenue growth. The company has given solid growth, with revenue of 12 per cent in the previous year on a constant currency basis and 5 per cent organically.

In Power and Connectivity, the group keeps on delivering huge development and reap margins with solid demand for the company’s electrical solutions with aviation and defence clients. The company has stretched out activities to control the Group’s cost base, considering the factors prevailing in this sector which influence Sensors and Specialist Components specifically, and thus the Group’s 2019 cash costs will see an increment of around £2 million.

The advancement of the Group’s portfolio is in process, and the company has decided to procure the aviation and defence electrical supply business of Excelitas Technologies Corp, for $17.7 million on a cash and obligation-free basis, subject to working capital management.

The company is driven by design-led solutions on major aerospace and defence platforms and therefore, it has strong margins and a robust growth business model. For the last 12 months to June 2019, the company’s sales were $9.3 million, and adjusted EBITDA was $1.7 million. The company looks forward to expanding its horizon and develop its engineering capability.

TTG-Share price performance

(Source: Thomson Reuters)

While writing (as on 20th November 2019, at 12:38 PM GMT), TT Electronics Plc shares were trading at GBX 235.00 per share. The company’s total market capitalisation was approximately £381.87 million.

TTG shares have made a high of GBX 268.00 (as on 20th September 2019) and a low of GBX 176.00 (as on 01st March 2019) in the past one year.

At the time of writing, the stock’s volume before the market close stood at 15,254. The company’s stock beta (5Y monthly) was 0.73, which makes it less volatile as against the benchmark index.

In the past 1 month, TTG shares have delivered a positive return of 9.91 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 19.00 per cent and was up by 2.64 per cent in the last three months.

Workspace Group PLC

London, United Kingdom-based Workspace Group PLC (WKP) is a real estate investment trust which offers flexible office, co-working and meeting room solutions in London.

WKP-Financial Highlights (for the six months ended 30 September 2019, £million)

(Source: London Stock Exchange)

In the first half of 2020, the net rental income was up by 11 per cent to £60.1 million as compared to the corresponding period of the last year. The trading profit after interest increased by 13 per cent to £40.1 million in H1 FY20 against the £35.4 million in H1 FY19. In the six months of 2020, the underlying CBRE property valuation surged by £59 million or 2.2 per cent to £2,682 millionProfit before tax stood at £99.1 million, a decrease of 3 per cent from the previous year (H1 FY19: £101.6 million). EPRA (European Public Real Estate Association) net asset value per share rose by 2.7 per cent to £11.15 in H1 FY20. On 30 September 2019, loan to value stood at 22 per centThe interim dividend per share increased by 10 per cent to 11.67 pence against the 10.61 pence in H1 FY19.

The company had robust client demand with lettings averaging 127 per month and enquiries averaging 1,109 per month. In the six months of 2020, the total rent roll was up by 2.3% to £130.4 million, while Like-for-like rent roll increased by 1 per cent to £94 million, with rent per sq. ft. decreasing by 0.2 per cent to £41.01.

In the current period, the company reported a decent performanceThe company has completed four projects in the current period, with another new building in Hackney to be opened in the second half of the current period. The company has a decent pipeline of project activity which will continue to provide high-quality space across the fuel income and portfolio progress.

WKP-Share price performance

Daily Chart as on Mar-20-19, before the market close (Source: Thomson Reuters)

On 20th March 2019, at the time of writing (before market close, GMT 12:43 PM), Workspace Group PLC was trading at GBX 1,108. Stock’s 52 weeks High and Low is GBX 1,126.00/GBX 778.00. The average daily traded volume for 5 days was up by 32.68% as compared to 30 days average traded volume. The company’s stock beta was 1.03, reflecting slightly higher volatility as compared to the benchmark index. The outstanding market capitalisation was around £2.01 billion.

Consort Medical PLC (CSRT)

Alternative Investment Market-listed Consort Medical Plc is a Health Care Equipment & Services group, with operational interests in designing, development and manufacturing of medical drug delivery and services for the pharmaceutical services.

CSRT-Recent Development

In the exchange filing made by the group as on November 18, 2019, the group reported that the boards of Recipharm AB and Consort Medical Plc have agreed on the terms of a recommended cash offered by Recipharm, for the acquisition of entire issued and to be issued shares of the Consort Medical PLC.
Under the arrangement, each shareholder of the group will receive GBX 1,010/share in cash, which was approximately 39.1% premium against the November 19, 2019 closing price of GBX 723/share that implies an enterprise value of £627m. The acquisition is expected to be completed in the first quarter of 2020.

CSRT-Financial highlights for FY19

(Source: London Stock Exchange)

During the FY19, which ended on April 30, 2019, the group’s underlying revenue declined marginally by 1.9% on a reported basis to £305.1m from £311.1m reported in the FY18 and underlying EBIT reduced by 3.3% on a reported basis to £41.3m. However, the group’s underlying PBT remained flat at £38.2m. Underlying adjusted basic EPS decreased marginally by 1.7% on a reported basis to 63.4p.

However, the group’s statutory pre-tax profit slumped by 27.7% to £12.5m against £17.3m reported in the previous corresponding financial year and statutory basic EPS declined 35.3% on YoY basis to 21.3p. The board of the group proposed a final dividend of 13.8p/share against the final dividend of 13.6p/share, which made a full-year dividend for the year of 21.4p against 21.0p recorded last year.

CSRT-Share price performance

Daily Chart as on Mar-20-19, before the market close (Source: Thomson Reuters)

On 20th March 2019, at the time of writing (before market close, GMT 3:54 PM), Consort Medical Plc were trading at GBX 1,055. Stock’s 52 weeks High and Low is GBX 1,084/GBX 700.00. The average daily traded volume for 5 days was up by 278.14% as compared to 30 days average traded volume. The company’s stock beta was 0.53, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £519.53 million.