Galliford Try Holdings PLC

Galliford Try Plc (LON: GFRD) is a UK based Household Goods company engaged in the business of housebuilding, regeneration and construction. Its areas of operation are categorised into segments like Linden Homes, Galliford Try and Morrison Construction. Its earlier name was Galliford Try PLC.

On 12th March 2020, the company expects to announce its results for the half-year and strategy update.

Trading Update (as on 9th January 2020)
The group released trading update for the H1 FY2020 period, with the disposal of the Partnerships & Regeneration and Linden Homes divisions of Galliford Try PLC on 3 January 2020. From a huge downfall in the new year 2020, the company has a high-quality order book of 3.2 billion pounds and recent substantial contract wins comprising appointments to the YORCivil 4-year key framework for Sheffield Council, AMP7 for Southern Water, the A303 and A47 and improvement works for Highways England, the AMP7 for Yorkshire Water, and in the private sector, the prestigious Project Nash progress in central London for the Portman Estate. On pro forma basis, the company’s cash stood at £225 million at 31 December 2019, with average month-end cash balances for H2 FY2020 anticipated to be in excess of 100 million pounds.

The underlying business is in line with management's anticipations for FY2020 and continues to perform well.  As earlier highlighted, the company anticipates performance to be weighted to H2 FY2020.

Share Price Performance

Daily Chart as at January-09-20, before the market closed (Source: Thomson Reuters)


Galliford Try Holdings PLC (GFRD) shares were trading at GBX 153.46, at the time of writing before the market close as on 9th January 2020 at 2:06 PM GMT. Shares were up by 6.52% against the previous day closing price. Stock's 52 week High is GBX 887 and low price hit in last one year is GBX 103. The company's stock beta stood at 0.90, reflecting slightly lower volatility as compared to the benchmark index.

Conclusion
The company is now a well-capitalised with the successful completion of the disposal of the partnerships and housing divisions. The company reflected the strength of the high-quality order book and several significant wins through the first half of the year.

The United Kingdom’s property market is quite competitive.Rising fears that the profits may come under pressure, due to a potential global downturn, the end of the key government assistance programme (Help to Buy) threatening to take a toll on the company finances. Several of the housebuilder’s companies are preparing for a harder market through M&A (mergers and acquisition). The home construction industry outlook stays uncertain, mainly in the United Kingdom.

Based on the headwinds faced by the group in the current period, we have given a "WATCH" recommendation at the closing price of GBX 144.08 (as on 8^th January 2020), while we look for any upcoming catalysts in the near term.

Aston Martin Lagonda Global Holdings PLC

Aston Martin Lagonda Global Holdings PLC (LON: AML) is a Warwick, United Kingdom-headquartered prominent luxury brand which is focused on the engineering, manufacturing, and design of luxury sports cars. The company is manufacturing and exporting cars in 53 countries around the world.

On 27^th February 2020, the company will announce the FY2019 results.

Trading Update (as on 7^th January 2020)
The company announced the trading update for the financial year 2019. In November 2019, the company has seen challenging trading conditions continued with the peak delivery period of December 2019 resulting in lower margins, lower sales, and higher selling costs. For this period, the core wholesales decreased by 7% to 5,809 as compared with the corresponding period of the last year. This reflects the UK, APAC, and Americas performed widely in-line with the volume anticipations, while Europe region underperformed and also indicates Vantage performance enhanced in Q4 FY2019, backed by retail financing mainly in the US and the UK. In core retail, the company’s sales increased by 12% against the same period of last year. The company expect adjusted EBITDA to be in the range of £130-£140 million in the financial year 2019, with an associated margin in the range of 12.5%-13.5%. This reflects higher than expected retail and client financing assistance; softer core model mix weighing on average selling price, through a shift towards Vantage; decreased from the anticipated wholesale volumes, and also showing the forex headwinds. At the year-end 2019, cash balance stood at £107 million. The company’s net debt and leverage will be in the range of £875-£885 million and 6.9x-7.6x, respectively. Presently, the company has surpassed the several conditions to be able to draw the further $100 million of April 2022.

Share Price Performance

Daily Chart as at January-09-20, before the market closed (Source: Thomson Reuters)

On 9th January 2020, Aston Martin Lagonda Global Holdings PLC shares were trading at GBX 413.30 at the time of writing before the market close (at 3:19 PM GMT), up by 1.20% against the previous day closing price. Stock's 52 weeks High and Low are GBX 1,374.40/GBX 371.10.

Conclusion
From the above trading perspective, the company said that the financial year 2019 has been a very disappointing year. The underlying performance will fail to deliver the profits. The company’s launch plans are well-positioned. The company is attaining all the main operational milestones. For the second quarter of 2020, the company start of production stays on track. Presently, the company emphasis is on revitalising the business, ensuring profitable progress in the medium-term and launching DBX.

Also, the group reported that it is witnessing a challenging trading conditions, mainly in the UK and Europe. From the technical point of view, the stock is trading well below its crucial long-term support level of the 200-day simple moving average, which would be acting as a key resistance level for the stock. The company’s trailing 12 months P/E multiple is significantly higher as compared to the trailing 12 months industry multiple.

Therefore, based on the above rationale, we have given a “Watch” recommendation at the current price of GBX 413.30 (as on 9^th January 2020, before the market close), while we look for the growth catalysts in the near-term.

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