The FTSE 250 has a good few names that may be instantly acquainted to many within the UK. Some that do nicely go on to the large league, specifically the FTSE 100. Noteworthy examples embrace JD Sports activities Trend and Auto Dealer.

Nevertheless, some family names proceed to languish within the FTSE 250. Right here, I’ll have a look at two of them to see if both enchantment to me.

Shaken, and stirred

First up, we’ve luxurious carmaker Aston Martin (LSE: AML). I used to be re-watching Goldfinger (1964) yesterday, which is the place James Bond first drives the Aston Martin DB5. The model has been iconic ever since.

Sadly, the inventory doesn’t mirror the status. Down 97% since itemizing in 2018, it has been extra scrapyard than showroom!

Final 12 months, wholesale volumes fell 9 % to six,030 vehicles, as Aston repositioned its mannequin vary and skilled weak point in China. Gross margin was 36.9%, a 220 foundation factors lower, whereas the pre-tax loss got here in at a hefty £289m. 

This 12 months is likely to be higher, with a contemporary vary of fashions, together with the plug-in hybrid Valhalla supercar due within the second half. New CEO Adrian Hallmark has pledged to finish the losses inside 18 months. 

Nevertheless, my important concern right here is the stability sheet threat. Internet debt was £1.26bn on the finish of March, increased than the present market cap of £862m. Simply writing that places me off shopping for the shares.

Altering instances

Subsequent, we’ve ITV (LSE: ITV). After we discuss family names, ITV is actually that, with its content material pumped into tens of hundreds of thousands of properties throughout the UK over many a long time.

I walked previous a home the opposite day that had the Emmerdale theme tune blasting by way of an open window. It provoked a powerful nostalgia in me, transporting me straight again to childhood in my Nanna’s entrance room. Heartbeat does one thing related.

Nevertheless, shares of the broadcaster have slumped by 69% over the previous decade. And in an indication of the instances, Emmerdale can have one full hour minimize per week beginning in January. Comparable adjustments are being made to Coronation Avenue. 

ITV’s Managing Director of Media and Leisure Kevin Lygo stated this transfer will assist “create headroom in the overall programme budget for investment in programming that can help ITV grow reach in a very very competitive market.”

The very fact he stated ‘very’ twice is revealing. Attributable to competitors, I simply don’t assume ITV has anyplace close to the mindshare — particularly amongst youthful viewers — or aggressive edge that it had within the pre-streaming period.

Now, it’s true that its streaming platform ITVX is rising strongly, and now accounts for over 1 / 4 of group advert income. That is the place I watched Goldfinger, funnily sufficient.

ITV can also be reaching new audiences — and advertisers — by way of YouTube. In the meantime, the Studios division, which additionally makes content material for different streamers, stays a useful asset.

Nevertheless, I concern ITVX is just going to exchange the normal broadcast viewership. The inventory may be very low cost at 8 instances earnings, with a 6% dividend yield, however I feel that displays ITV’s future progress challenges.

Trying forward, Netflix and Amazon Prime Video are prone to change into stronger, with bigger budgets. I fear that ITVX will more and more change into a small fish in a large streaming ocean.

Due to this fact, I see higher progress alternatives for my ISA.