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COVID-19 UK Stocks

COVID-19 effects on UK stocks – are markets over-reacting?

While the COVID-19 virus is affecting some obvious UK stocks such as the airlines its not all bad. Travis Perkins reported a positive performance against a challenging market backdrop and said that is monitoring the potential impact of the Covid-19 virus carefully and will continue to review possible effects on the business.

Boku Inc the world’s leading independent carrier commerce company have seen an increase in the number of transactions on its platform. CEO Jon Prideaux, “in general, the more time people spend indoors, the more our platform is utilised. If large numbers of people are forced to self isolate we would predict that, as already seen in China, this would lead to an increase in the usage of online games and streaming services.”

Mid Wynd International Investment Trust whose net asset value per share has risen 5.0% said that despite some market uncertainty, it has both a balanced and diverse portfolio and is in a good position to react to market conditions.

Rotork plc has said that its Growth Acceleration Programme is on track and progress in 2019 was very encouraging, while it is too early to assess fully the potential impacts of COVID-19 for the company they are planning for modest sales growth on an OCC basis and margin progress in 2020.

Aggreko PLC who have seen strong profit growth and cash generation say they are on track to deliver mid-teens ROCE in 2020 and are monitoring the potential impact of coronavirus.

Science Group plc who are in line with upgraded expectations say that despite its Frontier manufacturing facility being temporarily closed although has now been partially reopened following approval from the local authority. The situation remains under close review.

4imprint Group plc Chairman Paul Moody after delivering a positive 52 weeks said that “Notwithstanding the fluid situation regarding COVID-19, the outlook for 4imprint is positive.”

And XP Power Limited one of the world’s leading developers and manufacturers of critical power control solutions for the Industrial Electronics who delivered a positive set of annual results said that they are affected by certain external events, such as the impact the outbreak of the COVID-19 virus on its supply chain. “This introduces some caution into our outlook, but we remain encouraged by our healthy order book.”

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