0R15 9263.0 5.0108% 0R1E 8452.1602 1.1266% 0M69 17150.1406 36.2203% 0R2V 172.4 -2.4335% 0QYR 1461.5286 -0.4069% 0QYP 428.0701 1.1986% 0LCV 139.42 -2.0239% 0RUK 2966.5117 1.5233% 0RYA 1810.0 2.1445% 0RIH 148.0 0.339% 0RIH 148.44 0.6373% 0R1O 177.75 10071.6738% 0R1O None None% 0QFP 9346.083 85.4382% 0M2Z 284.6256 0.0529% 0VSO 25.39 -28.6898% 0R1I None None% 0QZI 511.0 2.8169% 0QZ0 220.0 0.0% 0NZF 839.5385 68.4467%
(Source: Refinitiv, Thomson Reuters)
ITV PLC – Financial position remained robust.
ITV PLC (LON: ITV) is FTSE 100 index listed Media Company, which operates as an integrated producer broadcaster that offers content with multiple platforms at a global level.
On 5 May 2021, ITV expects to release its Q1 FY21 trading update. Meanwhile, no dividend was recommended for FY20.
Investment Highlights – Hold at GBX 122.64
Financial Highlights for the year ended 31 Dec 2020 (as on 9 March 2021)
(Source: Company Website)
One Year Share Price Chart
(Source: Refinitiv, Thomson Reuters)
Key Risks
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Conclusion
The macroeconomic outlook remained uncertain; however, most programmes are back in production. Given the uncertainties in both the segments, the Company failed to provide clear guidance for FY21. Meanwhile, the Company is continuously monitoring the performance and taking adequate measures to manage costs and cash appropriately. Overall, ITV is well-positioned to capitalise on robust demand internationally. Stock 52 week High and Low were GBX 127.10 and GBX 54.16, respectively.
Considering the robust liquidity, reduced leverage, cost-savings, and investments for future, we are currently maintaining the “Hold” stance for ITV PLC at the current price of GBX 122.64 (as on 24 March 2021 at 8.05 AM GMT), while we look forward to reinvesting once the Company has an explicit guidance for FY21.
Next Fifteen Communications Group PLC – Seems optimistic about future growth.
Next Fifteen Communications Group PLC (LON: NFC) is a digital communications provider, which caters to different sectors and geographies. It works with some renowned brands, including Apple, Google, YouTube, among others.
On 13 April 2021, NFC expects to announce its preliminary results for the year ended 31 January 2021.
Rationale for Valuation – Hold at GBX 670.00
Key Risks
Recent News
2 March 2021: NFC continued a strong trading performance and maintained a solid state of balance sheet. It is also making the repayment of £1.4m of Furlough Money received from the UK Government.
Trading Update for the financial year ending 31 January 2021 (as on 29 January 2021)
One Year Share Price Chart
(Source: Refinitiv, Thomson Reuters)
Conclusion
During FY21, the Group carried a strong trading momentum and expects to report better financial results than the market expectations. The Company has scheduled the furlough payment to the UK Government in FY22. The strong performance was majorly supported by the B2B business lines, while B2C agencies also demonstrated a recovery during the fourth quarter. Moreover, the Group is highly cash generative, and has a strong balance sheet, which underpins its ability to pursue upcoming growth opportunities. Stock 52 week High and Low were GBX 749.86 and GBX 234.50, respectively.
Based on resilience, financial performance, strength and simplicity of the business model, decent industry prospects, and support from the valuation as done using the above method, we have given a “Hold” stance on Next Fifteen Communications Group PLC at the current market price of GBX 670.00 (as on 24 March 2021 at 12:02 PM GMT), while we look forward to reviewing the FY21 results comprehensively.
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