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%
Auto Trader Group PLC
Auto Trader Group PLC (AUTO) is a Manchester, United Kingdom-headquartered digital automotive marketplace. The consumer helps in bringing together the largest pool of vehicle sellers in the country with a targeted consumer audience.
Financial Highlights (FY2019, £million)
(Source: Annual Report, Company Website)
In the financial year 2019, the company’s reported revenue surged by 8% to £355.1 million as compared with the financial year 2018 of £330.1 million, due to an increase in revenues from trade and manufacturer & agency segments but offset by a decline in revenues from consumer services. The operating profit rose by 10% to £243.7 million against the £221.3 million in FY18, while operating profit margin increased to 69%. Profit before tax climbed by 15% to £242.2 million as compared to £210.7 million in FY18. Basic earnings per share increased by 18% to 21 pence as compared with the financial year 2018 of 17.74 pence.
Cash generated from operations increased by 13% to £258.5 millionagainst the £228.4 million in FY2018. Amount returned to shareholders totalled to £151.1 million through share buy-backs of £93.5 million and dividends paid of £57.6 million. Gross external bank debt declined from £343 million in FY18 to £313 million in FY19. The Board proposed a final dividend per share of 4.6 pence as compared with the financial year 2018 data of 4.0 pence per share. The total dividend per share increased by 14% to 6.7 pence against the 5.9 pence in FY2018.
Share Price Performance
Daily Chart as at September-04-19, before the market closed (Source: Thomson Reuters)
On 4th September 2019, at the time of writing (before the market close, GMT 8:20 AM), Auto Trader Group PLC shares were trading at GBX 509 and increased by 0.079% against the previous day closing price. Stock's 52 weeks High and Low are GBX 606.80/GBX 375.60. The company’s stock beta was 0.25, reflecting the lower movement of the stock as compared to the benchmark index.
Valuation Methodology
Conclusion
From the perspective of the market, the used and new car markets share reduced in the financial year 2019. As per the estimates, both markets will continue to decrease for the fiscal year 2019.
The company announced the intention of the Trevor Mather as CEO, to step down from the Board and retire from the group on 31st March 2020.
During the last financial year, new car sales fell by 3.7% anda slow market leads to a decrease in the number of new or used car transactions, directly impacting the earnings of the company. In the latest quarter, the UK economy contracted by 0.2%, showcasing the impact the general economy would have due to impending Brexit. Being in a discretionary industry, the market for cars would be highly affected, which does not augur well for the group.
Based on the headwinds faced by the group, we have given a "WATCH" recommendation at the closing price of GBX 508.60 (as on 3rd September 2019), while we look for any upcoming catalysts in the near term.
Quiz PLC
United Kingdom-based QUIZ PLC (QUIZ) is an international women's wear brand company. The group is focused on providing dressy casual wear and occasion wear mainly for 16-35-year olds and offers footwear, clothing, and accessories. The company’s products comprise of playsuits, tops, shirts, skirts, and denim. The group also provides several outerwear products such as parkas, biker jackets, and faux fur jackets. Its brand operates in 22 countries through more than 300 international franchise stores, standalone stores, concessions, international online partners and wholesale partners. The company has 73 stores and 174 concessions in the United Kingdom.
AGM Trading Update (as on 4th September 2019)
During the period, the company’s revenues were broadly in line as compared with the corresponding period of the last year. In the United Kingdom high street, the company had experienced a decrease in store footfall during the current period.
On 11th October 2019, the company will announce the six months trading update ended on 30th June 2019.
Financial Highlights (FY2019, £’000)
(Source: Annual Report, Company Website)
In FY2019, the company’s reported revenue surged by 12% to £130.9 millionagainst the £116.4 million in FY18, due to an increase in all three channels. Gross margin stood at 60.7%, a decrease of 2.3% against the previous year. Basic earnings per share for the financial year 2019 was 0.09 pence versus 5.49 pence in FY2018.
In the financial year 2019, a dividend per share of 0.8 pence waspaid on September 2018 and 0.4 pence paid on March 2019. Net cash at the year-end stood at £7.5 million, a decrease from the previous year data. Net cash flow from operating activities reduced by £2.6 million to £6.8 millionas compared to the £9.4 million in FY18. EBITDA generated in the year 2019 decreased by £7.9 million and working capital movements increased by £4.4 million against the previous year.
Further Developments
Expansion of the current website with new ranges with enhanced options, expansion in the North American market, and Multi-channel expansion in new markets.
Share Price Performance
Daily Chart as at September-04-19, before the market closed (Source: Thomson Reuters)
On 4th September 2019, at the time of writing (before the market close, GMT 11:38 AM), Quiz PLC shares were trading at GBX 16 and decreased by 13.51% against the previous day closing price. Stock's 52 weeks High and Low are GBX 170/GBX 12.69. The company’s stock beta was 0.81, reflecting the lower movement of the stock as compared to the benchmark index.
Conclusion
In the year 2019, the United Kingdom retail sector continued to be affected by an accumulation of broadly reported structural and macro-economic factors.
In spite of the trading challenges, the company achieved sales progress across all the three distribution channels (Online, International, and Stores and concessions channels). In the financial year 2019, the development through the International and Online businesses was offset by a weaker performance with the United Kingdom Stores and concessions, where the company continue to see suppressed client spending.
Based on the headwinds faced by the group, we have given a "WATCH" recommendation at the closing price of GBX 18.50 (as on 3rd September 2019), while we look for any upcoming catalysts in the near term.
*All forecasted figures and peers have been taken from Thomson Reuters.
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