FTSE 250 movers: Cheers for M&B, Moonpig slumps on sales downgrade
FTSE 250: 18,975.98, down 0.65% at 1515 GMT.
Pub group Mitchells & Butlers said on Wednesday that like-for-like sales had grown in the twelve months ended 24 September, with profits broadly recovering to pre-Covid levels after stripping out utilities impacts.
M&B said full-year like-for-like sales were up 1.1% when measured against 2019's pre-pandemic levels, while total revenues more than doubled year-on-year to £2.2bn.
Operating profits jumped from £81.0m in 2021 to £124.0m in 2022 and the group swung from a pre-tax loss of £42.0m a year ago to a pre-tax profit of £8.0m in 2022. Earnings per share came to 2.2p, a marked improvement on the prior year's 11.5p per share loss.
Looking ahead, M&B stated that since the year-end, it had been "encouraged" by like-for-like sales growth of 6.5% but noted that it was still "cautiously optimistic" about the future due to potential implications stemming from the ongoing cost-of-living crisis.
Chief executive Phil Urban said: "The trading environment remains highly challenging, with cost inflation continuing to put pressure on margins and we are ever mindful of the pressures that the UK consumer is facing.
"However, we are encouraged by the strength of sales growth at the end of last financial year which has improved further into the early weeks of this year."
Commercial vehicle rental provider Redde Northgate said on Wednesday that full-year results would be "modestly above" market views, as it posted a rise in interim profit and revenue, underpinned by fleet growth and new contract wins.
In the six months to the end of October, group revenue rose 14% to £696.3m, reflecting strong traffic and accident management volumes, fleet growth, pricing increases, and continued robust residual values, it said.
At the same time, reported pre-tax profit was 42% higher versus the same period a year earlier at £101.9m, while underlying pre-tax profit ticked up 6% to £83.7m. Redde said a strong operational performance was partially offset by lower disposal profits and higher interest.
The company said demand for its services continues to be robust across geographies, along with continuing strength in residual values.
"These factors underpin our confidence for the full year which is expected to be modestly above market expectations," it said.
"While the board is mindful of the ongoing macro-economic environment and current LCV supply, it remains confident that our integrated mobility solutions platform will continue to create sustainable shareholder value."
Pharmaceuticals business Indivior upgraded guidance for the peak annual net revenue potential of its Sublocade asset on Wednesday ahead of its Capital Markets Day event in New York City.
Indivior stated net revenue run rates from its Sublocade injection will hit $1.0bn by the end of 2025, while on a long-term view, it now expects to deliver Sublocade peak potential net revenues of more than $1.5bn - based on the expected positive market dynamics for buprenorphine medication-assisted treatment and on continued execution against its OHS strategy.
The FTSE 250-listed firm also said it expects to achieve a double-digit percentage net revenue compound annual growth rate over the medium term, driven primarily by Sublocade in the United States and growing net revenue contributions from its risperidone for extended-release injection.
"Within this outlook, which is based on its current business portfolio, Indivior also expects a return to NR growth in the Rest of the World driven by new products Sublocade (Subutex PR) and Suboxone (buprenorphine/naloxone) Film. Additionally, the company assumes the U.S. market share of Suboxone Film, which it does not promote, will trend towards historical analogs for genericised medicines," said the group.
Indivior added that it expects to achieve "significant operating margin expansion" over the medium term, driven by an improving gross margin and focused management of operating expenses, and also said it had chosen the Nasdaq Composite for an additional share listing in the US.
Greetings card maker Moonpig on Wednesday lowered full-year sales forecasts as it warned that trading conditions had become “progressively more challenging” through October and November and Royal Mail Strikes had also hit orders.
The company on Wednesday said it now expected full-year revenue to be approximately £320m, down from a previous forecast of £320m. Interim pre-tax profits fell 51.2% to £9.1m on flat sales of £142.8m.
“Trading at Moonpig and Greetz (the firm's Dutch operation) reflected the more challenging conditions seen from October onward and was also impacted in the UK by industrial action at Royal Mail during September and October, which affected last-minute card-only orders around each strike day” the company said.
Total orders fell 13.3%, partly due to strike action by members of the Communication Workers Union over pay and conditions, and a tough comparator from last year when profits surged due to Covid restrictions on non-essential shops.
Hargreaves Lansdown analyst Sophie Lund-Yates said: “Operational disruption has resulted in a disappointing downgrade, which has sent shares tumbling. The real issue here is that these challenges are likely to rear their head again until the ongoing dispute can be ironed out."
“It’s also going to put customers off using the service at all. If you can’t guarantee your card will make it in time, there’s little motivation to pay the premium charged by online card-sellers ... swapping providers increases operational risk and would be a long, protracted process at the best of times."
“The other disappointing development is that customers are reducing the amount they spend on gifts. These lucrative add-ons are an important pillar for margin growth but the sad truth is that while the cost of living crisis cruises on, people are simply not inclined to throw chocolates and flowers into their virtual baskets. Sadly, this is also a trend likely to persist at least into the first quarter of next year and massively limits margin potential.”
Online advertising group Baltic Classifieds fell despite reporting arise in interim profits driven by all its business units.
The company posted core profit of €22.8m, up 16%, for the six months to October 31.
Revenue grew 19% to €29.8m driven by a “solid” performance in all four business lines: autos (+19%), real estate (+18%), bobs & services (+27%) and generalist (+13%).
The company, which serves Lithuania, Estonia and Latvia, held adjusted core earnings margin for 2023 despite rising costs in a high inflation environment and further costs related to its IPO.
FTSE 250 - Risers
Mitchells & Butlers (MAB) 153.00p 7.75%
Redde Northgate (REDD) 399.00p 6.83%
Indivior (INDV) 1,780.00p 6.46%
Ferrexpo (FXPO) 170.40p 4.93%
Aston Martin Lagonda Global Holdings (AML) 135.00p 2.47%
Syncona Limited NPV (SYNC) 182.60p 2.01%
Hikma Pharmaceuticals (HIK) 1,548.50p 2.01%
Paragon Banking Group (PAG) 495.80p 1.97%
Spectris (SXS) 3,213.00p 1.58%
PureTech Health (PRTC) 291.00p 1.39%
FTSE 250 - Fallers
Moonpig Group (MOON) 138.50p -8.40%
Baltic Classifieds Group (BCG) 136.20p -5.81%
Bridgepoint Group (Reg S) (BPT) 188.50p -4.17%
Dr. Martens (DOCS) 196.00p -4.02%
Wood Group (John) (WG.) 124.50p -3.68%
Tullow Oil (TLW) 39.08p -3.51%
Genuit Group (GEN) 305.00p -3.48%
Quilter (QLT) 94.82p -3.38%
Fidelity China Special Situations (FCSS) 229.50p -3.37%
Future (FUTR) 1,352.00p -3.22%