Upstream Share Discussion Threads

[master rsi] 29/1/2025 00:00

SFOR 36.02p as UT but ( spread at close 36.96 v 37.12p )

Dowgate Capital's note out this AM suggests EBITDA of £85m, and end 2025 net debt of £125m.
Dowgate comment:

"We retain our view that the shares will multiply from the current depressed level of just 0.5x revenues and 4x EBITDA as evidence of revenue recovery, margin improvement and further debt reduction comes through."

Could be the start of a monster recovery here.

[master rsi] 28/1/2025 23:08

Synthomer shares rise as it anticipates revenue growth for 2024

(Alliance News) - Synthomer PLC on Tuesday said its trading for the 2024 has been in line with expectations as it expressed confidence in achieving further earnings progress in 2025.

The London-based developer of highly specialised polymers said it expects to deliver revenue of approximately GBP2.0 billion for 2024, "in line with expectations". This compares with GBP1.94 billion achieved the year before.

Shares in Sythomer closed up 5.6% at 158.00 pence on Tuesday in London.

Earnings before interest, tax, depreciation and amortisation are also expected to grow, to the range of GBP145 million and GBP148 million, from GBP137.4 million achieved the prior year.

The firm said continuing group volume improved further in its second-half, but at a slower rate than the first, reflecting mixed end market demand trends.

It noted that strong exit margins in 2024 in its speciality business, combined with volume improvement in Health & Protection and its operational and strategic progress, give it confidence in delivering further earnings progress in 2025.

Synthomer Chief Executive Michael Willome said: "We are pleased to report robust underlying earnings progress in 2024, even with the additional operating investments we have made in our people and our assets.

[master rsi] 28/1/2025 22:23

MARKET REPORT
LONDON MARKET CLOSE: FTSE's defensive qualities shine amid tech volatility

(Alliance News) - Stocks in London made strong progress on Tuesday as a degree of calm returned to US markets after Monday's heavy tech-led losses.

The FTSE 100 index ended up 30.16 points, 0.4%, at 8,533.87. The FTSE 250 jumped 219.01 points, 1.1%, at 20,588.51, and the AIM All-Share rose 3.93 points, 0.6%, at 715.32.

The Cboe UK 100 ended up 0.4% at 855.97 on Tuesday, the Cboe UK 250 gained 1.1% at 18,011.11, and the Cboe Small Companies rose 0.1% to 16,034.53.

Russ Mould at AJ Bell noted the FTSE 100 "continued to be an island of calm", with investors lapping up its "plethora" of defensive stocks.

"Utilities and healthcare were in demand, implying that investors were keen to ensure portfolios had some support in case of another tech-related wobble," he added.

On Monday, concerns that China's DeepSeek's artificial intelligence app could threaten the dominance of the US tech giants sparked carnage with Nvidia dropping 17%. Broadcom and Oracle followed suit, dropping 17% and 14% respectively.

On Tuesday, markets in New York were brighter. The Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.4% higher, while the Nasdaq Composite rallied 1.0%.

"The DeepSeek shock has reminded investors they cannot be complacent when trying to play the AI trend. Stocks do not travel in unison and neither do they always travel upwards. Sometimes it’s good to be reminded of this. Valuations have been getting lofty in the tech space and investors need to appreciate that richly priced stocks can fall hard on the slightest bit of bad news," Mould added.

Bank of America sees winners and losers in the technology world from DeepSeek.

"The exact cost of development and energy consumption of DeepSeek are not fully documented, though...we believe that the implications of lower cost to run AI models is a benefit to the general software group," the broker commented.

"The lower cost to run AI should enable capex scale for Microsoft while easing graphics processing constraints likely a negative for Oracle," BofA said in a note to clients.

In European equities on Tuesday, the CAC 40 in Paris ended up 0.1%, while the DAX 40 in Frankfurt advanced 0.7%.

Tariff chat sparked fresh dollar strength. The pound was quoted at USD1.2432 late Tuesday afternoon in London, down from USD1.2479 at the equities close on Monday.

The euro stood lower at USD1.0424, against USD1.0505. Against the yen, the dollar was trading higher at JPY155.63 compared to JPY154.16.

Donald Trump said Monday that the US will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

Speaking at a Republican congressional retreat in Miami, Trump said the levies could take place in the "very near future," so as to "return production of these essential goods to the US of America."

"If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America," he added.

Trump was speaking ahead of Wednesday's interest rate decision by the Federal Reserve.

Last week the US president called on the US central bank to lower rates but he is likely to be disappointed.

The Fed is widely expected to keep the federal funds rate range unchanged at 4.25% to 4.50%.

Data on Tuesday showed US consumer confidence declined in January, with both present and future outlooks deteriorating.

The Conference Board's Consumer Confidence index dropped by 5.4 points to 104.1 in January, from a revised December reading of 109.5. December's figure was revised upward by 4.8 points but remained 3.3 points lower than November's level.

In London, Prime Minister Keir Starmer said the government's "growth mission" was now the driving force behind policy decisions.

He told business chiefs in the City of London that had been made clear to "each of our Cabinet colleagues".

On Wednesday, Chancellor Rachel Reeves will deliver a major speech setting out plans for growth, expected to include support for expansion of Heathrow airport.

Starmer told business leaders: "When you're answering the question, 'should we do X, or should we do Y', that is guided by the mission.

"Should we do X? If it's good for growth, good for wealth creation the answer is 'yes', if it's not then the answer is 'no'.

"It prioritises and gives a sense of direction to government."

He added he was "hard-wiring growth into all the decisions of the Cabinet".

On the FTSE 100, Rentokil Initial firmed 0.8% as it kept its outlook unchanged in an unscheduled update on Tuesday, offering a slight lift to shares still beleaguered by a troubling update in September.

In a trading statement, Rentokil said organic revenue growth in the final three months of last year was 3.0%. North America organic revenue growth accelerated to 2.3% on-year in the fourth-quarter from 1.4% in the third.

The pest control and hygiene firm said its group adjusted operating margin, adjusted pretax profit before amortisation and its North America adjusted operating margin were all in line with prior guidance.

Analysts at Stifel took heart from Rentokil's update.

"We view this as a robust trading update, and look forward to more details being provided at the prelims," Stifel said.

On the FTSE 250 well received trading updates prompted gains for Computacenter, AG Barr and Pets at Home, which rose 6.1%, 6.7% and 5.4% respectively.

Hatfield-based Computacenter gave mixed messages in its update, guiding to profit at the lower end of analyst forecasts alongside a product order backlog "significantly ahead" of 2024.

Cumbernauld-based soft drink and energy drink manufacturer AG Barr said Irn-Bru, Rubicon and Boost had all performed strongly in the financial year ending January 25, with Rubicon the stand-out performer.

In a trading update, AG Barr said annual revenue is expected to be around GBP420 million, up 5% from GBP400 million a year prior. This is line with company compiled consensus.

AG Barr said Rubicon achieved another year of double digit revenue growth.

Irn-Bru also delivered strong revenue growth and is now one of the top five carbonates in the UK, the firm said, while Boost gained momentum in the second half with a step up in profitability.

At Cheshire's Pets At Home, a forecast of "modest" profit growth during its current financial year was enough to put some energy into the share price.

Brent oil was quoted lower at USD77.21 a barrel at the time of the equities close in London on Tuesday, down from USD77.26 on Monday. Gold firmed to USD2,755.79 an ounce against USD2,740.66.

Wednesday's global economic calendar sees Australian inflation figures overnight and interest rates decisions in Canada and the US at 1445 and 1900 GMT respectively.

Wednesday's local corporate calendar sees a trading update from trading platform AJ Bell.

[master rsi] 28/1/2025 22:06

DOW

136 points UP at the end

[master rsi] 28/1/2025 16:33

How the UPS are performing during last month

[master rsi] 28/1/2025 16:14

How the UPS are performing today

[master rsi] 28/1/2025 14:54

BOOM 380 v 390p +23.50p

That's the way the way I like it

[master rsi] 28/1/2025 14:38

DOW

On the up with 29 points at the start of the day

[master rsi] 28/1/2025 13:45

SAAS 116.50 (24.50 / 26.63%) - Microlise shares up on earnings expectations and upbeat update

(Alliance News) - Microlise Group PLC on Tuesday said it achieved strong growth in 2024, driven by a "resilient" performance amid its international expansion.

The Nottingham, England-based provider of transport technology solutions to fleet operators expects adjusted earnings before interest, tax, depreciation, and amortisation to rise to GBP11.3 million for 2024, up 20% from GBP9.4 million the previous year, "slightly" ahead of market expectations.

The company anticipates revenue for the year to increase to GBP81.0 million, up 13% compared to GBP71.7 million in 2023, driven by "robust" recurring revenue, which grew 21% to GBP54.7 million from GBP45.0 million.

Microlise said it added 375 new customers during the year, including WooliesX Ltd in Australia and Foodstuffs South Island Ltd in New Zealand. The company also renewed a five-year agreement with JCB Ltd, extending a partnership that has lasted over 14 years.

Despite a slowdown in original equipment manufacturer sales during the second half, Microlise said it saw strong direct customer sales, particularly in Australia, as supply chain issues eased.

The company maintained a "healthy" cash conversion rate of 89%, with net cash of GBP11.4 million at year-end, down from GBP16.8 million the previous year.

Microlise also addressed a cyber security incident in late 2024, which caused temporary disruption to its network. The company said its systems were fully restored within 2.5 weeks, and no customer data was compromised due to its strong security measures.

Looking ahead, Microlise expressed confidence in its ability to sustain growth in 2025, supported by a robust and expanding business pipeline and strong momentum in international markets.

Full-year results are expected in late March.

[master rsi] 28/1/2025 13:20

Big Technologies maintains expectations, confident in return to growth

(Sharecast News) - Remote people monitoring specialist Big Technologies confirmed in an update on Tuesday that it was on track to meet market expectations for 2024, despite a revenue dip attributed to the loss of a Colombian customer earlier in the year.

The AIM-traded company said revenue for the year was expected to reach £50.3m, down from £55.2m in 2023, while adjusted EBITDA was forecast at £27m, compared to £33m the prior year.

It put the decline down to the impact of the Colombian contract loss in May, as well as increased investment in US business development, which had started yielding new customer wins.

The firm said its monthly recurring revenue (MRR) at the end of 2024 stood at £4m, slightly up from £3.9m in the first half of the year, providing strong visibility for future revenue streams tied to its long-term contracts.

For 2025, Big Technologies said it expected sales and profitability to remain at similar levels to 2024, assuming no adverse currency movements, with MRR anticipated to grow further.

Positioned for the long term, the company highlighted its financial flexibility to invest in new technologies and expand into under-represented markets.

Supported by favourable trends in the electronic monitoring sector and a clear strategy, Big Technologies said it was confident in returning to growth in the near future.

At 1200 GMT, shares in Big Technologies were up 0.78% at 127.48p.

[master rsi] 28/1/2025 12:57

MARKET REPORT
LONDON MARKET MIDDAY: European shares up while NY set for calmer day

(Alliance News) - Stocks prices in London went into Tuesday afternoon higher, shaking off drama in New York tech overnight, while the dollar was on the up amid another US tariff threat.

The FTSE 100 index added 51.82 points, 0.6%, at 8,555.53. The FTSE 250 was up 190.59 points, 0.9%, at 20,560.09, and the AIM All-Share rose 3.37 points, 0.5%, at 714.76.

The Cboe UK 100 was 0.6% higher at 857.38, the Cboe UK 250 rose 1.0% at 17,993.35, and the Cboe Small Companies was down 0.3% at 15,969.43.

In Frankfurt, the DAX 40 rose 0.6% in early afternoon trade, while the CAC 40 was up 0.4%.

Against the dollar, the pound fell to USD1.2432 early Tuesday afternoon, from USD1.2479 at the time of the London equities close on Monday. The euro faded to USD1.0425 from USD1.0505. Against the yen, the dollar surged to JPY155.38 from JPY154.16.

Donald Trump said Monday that the US will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

Speaking at a Republican congressional retreat in Miami, Trump said the levies could take place in the "very near future," so as to "return production of these essential goods to the US of America."

"If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America," he added.

XTB analyst Kathleen Brooks commented: "The one thing that is bigger than the AI story right now is Donald Trump. His thoughts on DeepSeek's cheap AI large language model were always going to be important for traders, however, he didn't dwell on DeepSeek for long. Instead, he stated his desire for 'much bigger' universal tariffs than the 2.5% favoured by the now confirmed Treasury Secretary Scott Bessent."

The emergence of DeepSeek hit US tech hard on Monday, but the sell-offs spread to power stocks too.

Constellation Energy and GE Vernova fell 21% and 22%. The pair are 4.0% and 2.7% higher in pre-market dealings in New York.

Chip maker Nvidia, at the heart of the recent AI craze, was up 4.7% in pre-market dealings, after a slump overnight.

SPI Asset Management analyst Stephen Innes commented: "Chinese startup DeepSeek's low-cost AI model sparked concerns about the sector's inflated valuations.

"The impact was catastrophic for Nvidia, a linchpin in the AI chip revolution. Its shares plunged 17%, erasing nearly USD600 billion in market value and tarnishing the lustre of the market's poster child."

US stock market futures point to a calmer day on Tuesday. The Dow Jones Industrial Average is called to open flat, the S&P 500 up 0.3% and the Nasdaq Composite 0.6% higher.

Among London's large-caps gains were largely broad-based.

Pest control and hygiene firm Rentokil added 2.9% on a well-received trading statement, Primark owner AB Foods rose 2.9% despite Bank of America reinitiating it at only 'underperform', while investor Scottish Mortgage Investment Trust added 1.9%. Scottish Mortgage backs a who's who of tech names, so it fell under the cross-hairs of Monday's DeepSeek worries, losing 5.2%.

Keeping a lid on the FTSE 100's progress, miners struggled. Glencore fell 0.8%, Rio Tinto lost 0.5% and Antofagasta declined 0.3%.

Elsewhere, SSP rose 3.7%. It said it continued to anticipate on-year revenue and earnings growth for the current financial year, noting continued structural growth across the global travel industry.

The London-headquartered operator of food outlets at travel locations and owner of Upper Crust brand, holding its annual general meeting on Tuesday, said sales grew 11% on-year in the three months to December 31, its first financial quarter. They rose 14% at constant currency.

SSP expects revenue of between GBP3.7 billion and GBP3.8 billion for the financial year that will end in September, at least 7.8% higher than GBP3.43 billion in financial 2024.

Irn-Bru maker AG Barr added 5.3%. It expects to deliver strong top line growth driven by demand for its three core soft drinks.

The Cumbernauld, Scotland-based soft drink and energy drink manufacturer said Irn-Bru, Rubicon and Boost had all performed strongly in the financial year ending January 25, with Rubicon the stand-out performer.

In a trading update, AG Barr said annual revenue is expected to be around GBP420 million, up 5% from GBP400 million a year prior. This is line with company compiled consensus.

Elsewhere in London, Wickes added 12%. The home improvement retailer said it returned to revenue growth in the second half of its financial year.

It expects to report revenue for the year that ended December 28 of GBP1.54 billion, a decline of 1.0% from GBP1.54 billion in financial 2023.

For the second half alone, Wickes says it generated revenue of GBP738.9 million, a climb of 1.8% on-year. Revenue had shrunk 3.4% in the first half.

Wickes now expects adjusted pretax profit for the full-year to be at the upper end of the GBP39.7 million to GBP44.0 million consensus range.

Pressure Technologies shares rose 10% as the engineering firm reported a contract win. It won a deal with General Dynamics Electric Boat, the submarine making subsidiary of defence firm General Dynamics.

Pressure's Chesterfield Special Cylinders unit will supply safety-critical pressure vessels to GDEB. GDEB designs, constructs and supports submarines for the US Navy.

The Federal Open Market Committee kicks off its two-day meeting on Tuesday, before a decision at 1900 GMT on Wednesday.

Analysts at ING commented: "After 100bp of rate cuts the Fed has signalled it needs evidence of economic weakness and more subdued inflation prints to justify further policy loosening. President Trump's low tax, light-touch regulation policies should be good news for growth, while immigration controls and trade tariffs provide upside risk for prices, suggesting we could have a long wait for the next cut."

Brent oil was quoted at USD77.77 a barrel midday Tuesday, rising from USD77.26 at the time of the London equities close on Monday. Gold rose to USD2,743.81 an ounce from USD2,740.66.

Still to come on Tuesday is a US durable goods orders reading at 1330 GMM

[master rsi] 28/1/2025 12:31

How the UPS are performing during last month

[master rsi] 28/1/2025 12:16

How the UPS are performing today

[master rsi] 28/1/2025 11:46

Update from Cavendish they have a target os 1300p.....

Audioboom Group (BOOM): CORP
Strengthening in the UK, forecasts reiterated

Audioboom has announced 1 renewed and 2 new UK podcast partnerships, alongside the hiring of a key UK-focused sales executive, to drive growth in the UK from currently less than 5% of group revenue.
Multi-award-winning comedy podcast No Such Thing As A Fish has expanded its long-standing partnership with Audioboom through a multi-year extension, where Audioboom’s differentiated AdRip solution and the Showcase platform, can continue to monetise over 550 episodes since the podcast’s debut in 2014.

Hat Trick Productions, which is the company behind Have I Got News For You, has then entered a new content partnership that will bring its growing slate of critically acclaimed podcasts to the Audioboom platform, and football podcast Filthy @ Five brings over 5m YouTube views in 2024, which will see Audioboom further develop its monetisation products for video podcasting.

We expect the new & renewed partnerships and expanded salesforce will drive strong UK revenue growth in the coming years, and after four successive upgrades to FY24E and FY25E adjusted EBITDA from $1.3m and $2.0m to $3.4m and $4.5m over October, November, December, and January, we reiterate our FY25E forecasts at this point. As management continues to focus on scaling the platform, EBITDA, and cash, we expect Audioboom will be excellently positioned to achieve new financial records, and we look forward to Audioboom capitalising on its robust momentum at updates through FY25, further renewals and wins of key podcasts on attractive terms, and potential external interest in the platform."

[master rsi] 28/1/2025 11:08

BOOM 370p +8p

Is starting to move forward as the large trades are appearing on the ticker

Buys of 10K
2x5K and smaller one

Spread 365 v 375p
Buys at 374p
sells at 368.66p

[master rsi] 28/1/2025 11:02

Foxtons shares jump as 2024 results beat expectations with strong revenue growth
FOXT 4.82%
Investing.com -- Foxtons Group (LON:FOXT) plc on Tuesday beat market expectations for 2024, reporting double-digit growth in both revenue and earnings, sending shares up over 5%.

The London-based estate agency attributed this to growth in its lettings business and an improvement in its sales operations.

Foxtons reported a 11% revenue increase to £163 million in 2024, compared to £147.1 million in 2023.

Adjusted operating profit also grew by 33% to approximately £19 million, driven by higher revenue and improved operational efficiency across all divisions.

Lettings, which contribute 65% of the group's revenue, continued to drive growth. Lettings revenue increased by 5%, supported by acquisitions and organic growth.

The fourth quarter saw particularly strong lettings revenue growth of 11% compared to the same period in 2023.

“Lettings remains a key area of focus for the Group, underpinning Group earnings with its non-cyclical and recurring characteristics,” the company said in a statement.

Foxtons also expanded its footprint in the lettings market by buying Haslams Estate Agents and Imagine Property Group in October 2024, adding over 2,900 tenancies to its portfolio.

These deals, valued at £12.6 million, are expected to serve as hubs in commuter towns like Reading and Watford.

Early performance from these additions has been in line with expectations, according to the company.

The sales division saw an impressive 30% rise in revenue, driven by a 20% increase in market share and a 10% recovery in transaction volumes across London.

While average sales prices remained flat, reflecting broader market trends, operational improvements helped reduce sales operating losses and boosted the segment's contribution to group profitability.

Financial services also posted growth, with revenue up about 6% for the year and a stronger fourth quarter showing a 15% increase over the prior year.

The company attributed this progress to operational improvements implemented by the new managing director who assumed the role in early 2024. These changes have increased productivity and enhanced the division's growth potential.

Foxtons reported a strong sales pipeline entering 2025, with under-offer activity at its highest level since the 2016 Brexit vote.

This momentum is partly attributed to first-time buyer activity ahead of the anticipated Stamp Duty rate increase in April.

Initial data from January 2025 indicates continued strong buyer demand despite interest rate uncertainty and consumer confidence.

The lettings market is expected to remain resilient this year, with high tenant demand and stable stock levels supporting rental prices and transaction volumes.

Meanwhile, the outlook for sales will depend heavily on the pace of interest rate reductions, with quicker cuts potentially driving faster growth.

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[master rsi] 28/1/2025 10:37

THG 42.08p +2.08p +5.20%

Frasers Group has 4.8% stake in partner THG

THG PLC - Manchester-based e-commerce retailer of consumer beauty and nutrition products - Frasers Group PLC holds 63.1 million THG shares, a 4.8% stake, as of Friday last week, THG says in a stock exchange announcement on Tuesday, providing no other details.

At the current market price, the stake is worth GBP26.6 million. Back in June, Shirebrook, England-based retailer Frasers and THG signed a cooperation agreement that included the launch of THG's Myprotein products in Frasers' Sports Direct stores.

In October, Frasers invested GBP10 million in THG by taking part in an equity raise conducted to support the spin-off of THG's Ingenuity technology business. On Thursday last week, THG provided a positive trading update, having completed the demerger of Ingenuity at the start of the month.

[master rsi] 28/1/2025 10:06

SThree slashes dividend as profit falls but confident in outlook

(Alliance News) - SThree PLC on Tuesday said it started the new financial year as a stronger organisation, despite reporting a fall in annual profit and revenue and reducing its dividend.

The London-based recruiter focused on science, technology, engineering and mathematics said pretax profit fell 13% to GBP67.6 million in the financial year that ended November 30 from GBP77.9 million a year prior.

Revenue declined 10% to GBP1.49 billion from GBP1.66 billion.

SThree proposed a final dividend per share of 9.2 pence each, slashed by 21% from 11.6p. That brings the total payout to 14.3p for financial 2024, cut 14% from 16.6p a year ago.

Looking ahead SThree said it expects challenging economic conditions, which are weighing on new business activity, to persist throughout the new financial year.

SThree confirmed it expects pretax profit of around GBP25 million for financial 2025, down 63% from financial 2024. These include up to GBP7 million of one-off costs to deliver operational efficiencies.

Chief Executive Officer Timo Lehne said: "Whilst we navigate this extended cycle, we continue to drive material operational enhancements through the group to position us in line with the structural opportunities arising as a result of clear trends, such as rapid technological change and new ways of working. We continue to believe this future world of work is based on hard-to-find STEM skills, with 63% of employers identifying skills gaps as the biggest barrier to business transformation over the coming years.

SThree shares were down 3.9% to 274.00 pence each on Tuesday morning in London.

[master rsi] 28/1/2025 09:35

UK Cabinet ministers face economic growth test for new policies
(Alliance News) - Keir Starmer and Rachel Reeves have ordered Cabinet colleagues to ditch policies which could stand in the way of efforts to grow the economy.

The UK prime minister said the government's "growth mission" was now the driving force behind policy decisions.

He told business chiefs in the City of London that had been made clear to "each of our Cabinet colleagues".

The chancellor will deliver a major speech on Wednesday setting out plans for growth, expected to include support for expansion of Heathrow airport – an issue which Cabinet ministers including Energy Secretary Ed Miliband have opposed in the past.

Starmer told business leaders: "When you're answering the question, 'should we do X, or should we do Y', that is guided by the mission.

"Should we do X? If it's good for growth, good for wealth creation the answer is 'yes', if it's not then the answer is 'no'.

"It prioritises and gives a sense of direction to government."

He added he was "hard-wiring growth into all the decisions of the Cabinet".

"So what Rachel and I have done is to make it clear to each of our Cabinet colleagues that in each of their briefs, growth is the number one mission," he said.

Ministers will be expected to set out the growth credentials of new policies in order to get approval from their Cabinet colleagues, in a shake-up to the usual system to get "collective agreement" on substantive changes.

The prime minister has asked Cabinet Secretary Chris Wormald to implement the changes.

The new rules mean that the economic impacts of proposals will be subjected to the same rigorous assessment that already applies to new public spending.

Speaking at the same meeting of business chiefs in London, the chancellor said her duty was to promote the UK as a destination for business investment.

In a sign of a change of rhetoric following months of highlighting the difficult legacy left by the Conservatives, Reeves said: "It's the role of government to shout about all the amazing things that we are doing as a country, all the huge opportunities that we have."

[pangrati] 28/1/2025 09:18

STOCK WATCH

EMPIRE METALS / LSE:EEE

[master rsi] 28/1/2025 09:13

MARKET REPORT
LONDON MARKET OPEN: FTSE 100 climbs after US tech "tantrum"

(Alliance News) - London's FTSE 100 opened slightly higher on Tuesday, keeping its poise despite a sell-off of a host of US tech names at the start of the week.

The likes of Nvidia, which slumped 17% overnight, were hurt by the emergence of Chinese competition in the artificial intelligence space. The Nasdaq Composite shed 3.1% on Monday. Nasdaq futures are currently 0.3% higher, the index looking set to recover only a fraction of its slump.

The FTSE 100 index added 26.64 points, 0.3%, at 8,530.35. The FTSE 250 was up 78.90 points, 0.4%, at 20,448.40, and the AIM All-Share added 1.46 points, 0.2%, at 712.85.

The Cboe UK 100 was 0.3% higher at 855.10, the Cboe UK 250 rose 0.4% at 17,884.89, and the Cboe Small Companies was down 0.7% at 15,909.12.

In Frankfurt, the DAX 40 rose 0.1% in early trade, while the CAC 40 fell 0.1%.

SAP rose 0.5% in Frankfurt as the enterprise software firm expects higher 2025 profit than previously targeted. In Paris, the luxury goods sector returns to focus with LVMH due to report after the closing bell. The stock was down 0.5% in early trade.

Against the dollar, the pound fell to USD1.2435 early Tuesday, from USD1.2479 at the time of the London equities close on Monday. The euro declined to USD1.0431 from USD1.0505. Against the yen, the dollar surged to JPY155.68 from JPY154.16.

Donald Trump said Monday that the US will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

Speaking at a Republican congressional retreat in Miami, Trump said the levies could take place in the "very near future," so as to "return production of these essential goods to the US of America."

"If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America," he added.

SPI Asset Management analyst Stephen Innes labelled US trade on Monday as "tech and tariff tantrums".

"Equity market futures are attempting to stabilize today, but the aftershocks of DeepSeek's impact on US tech valuations might linger. Given the close ties between AI growth and dollar dynamics—often seen as reciprocal drivers of capital flows—the dollar wasn't the immediate haven it typically is during equity downturns. Traders, anticipating the potential for capital outflows due to the tech shakeup, initially sold the dollar. However, the Treasury's strategy for phased-in tariffs, combined with President Trump's comments supporting these measures and more, seems to have solidified new support levels for the greenback," Innes added.

"This week's narrative has shifted from the usual macroeconomic and central bank influences to focusing on tech and tariffs rocking the market. However, this doesn't mean central bank activities should be ignored, particularly those of the Federal Reserve and the ECB. Despite the expected 25 basis point cut from the ECB and the Fed on pause, renewed tariff concerns could spark a widening guidance divergence in the EUR vs USD swap spreads, much to the dollar bulls' pleasure."

In the UK, Keir Starmer and Rachel Reeves will meet top executives from some of Britain's major businesses on Tuesday as they continue their quest for economic growth.

The meeting will see the prime minister and chancellor seek to persuade bosses from businesses including Tesco, BT Group, Unilever and Lloyds Banking Group that they are committed to helping the private sector thrive as they attempt to attract more investment to the UK.

It will also see the announcement of further changes to pension rules designed to increase the amount of money available for investment in the UK.

Ahead of the meeting, Starmer said: "To achieve the change our country needs requires nothing short of rewiring the economy.

"It needs creative reform, the removal of hurdles and unrelenting focus. Whether it's how public services are run, regulation or pension rules, my government will not accept the status quo."

In Hong Kong, the Hang Seng Index ended up 0.1% in an abbreviated trading day before the Chinese New Year holiday is observed. Markets there do not re-open until Monday. Financial markets in Shanghai were closed on Tuesday and do not re-open until next week Wednesday.

In London, Rentokil added 3.4% in early trade. It said it traded in line with expectations in 2024 and the pest and control and hygiene firm said its North America boss will step down.

Rentokil said organic revenue growth in the final three months of last year was 3.0%. North America organic revenue growth accelerated to 2.3% on-year in the fourth-quarter from 1.3% in the third.

The firm said its group adjusted operating margin, adjusted pretax profit before amortisation and its North America adjusted operating margin were all in line with prior guidance.

In September, it forecast a group adjusted operating profit margin is expected to be around 15.5%. Group adjusted profit before tax and amortisation is expected of around GBP700 million, it said at the time.

Rentokil said Brad Paulsen will step down as CEO of North America for an opportunity at a New York-listed building materials firm. Rentokil Chief Commercial Officer Alain Moffroid will take on the role of North America CEO.

RS Group fell 6.2%. It cautioned that its annual outturn will be at the lower end of market expectations, after a tricky third-quarter characterised by declining industrial production.

The industrial and electronics products distributor said revenue in the three months to December 31 fell 3% on-year, slipping 1% on a like-for-like basis.

"We continue to control costs tightly and therefore our prior gross margin and cost guidance remains unchanged. The softer than expected Q3 revenue performance and weak business confidence in EMEA will however likely result in full year profit before tax being around the bottom end of the consensus range," RS warned.

It puts consensus for adjusted operating profit in the GBP247 million from GBP274 million range.

Computacenter warned annual profit will be at the lower end of analysts forecasts, but hailed a "record" performance in the second half of last year.

Shares rose 4.0%.

It puts the analyst range for adjusted pretax profit at GBP253.6 million to GBP266.5 million. The lower end profit forecast takes into account strategic investments, lower interest income receipts following the earlier completion of the share buyback and the GBP7 million hit from a stronger sterling. It had completed a GBP200 million share buyback in October, "earlier than expected".

The technology services provider, which serves corporate and public sector firms, said a tricky 2024 market environment contrasted with a "strong comparative in 2023".

Total revenue in 2024, on a gross invoiced income basis, fell 2% from 2023, but edged up 0.5% at constant currency.

"While we are pleased with overall execution towards the end of the year, with Germany and North America delivering strong performances, parts of our larger current Technology Sourcing projects in the US and the UK have slipped into the early part of 2025. For the second half of 2024 adjusted operating profit is expected to be ahead of the equivalent period in 2023 in both constant currency and on a reported basis. This represents Computacenter's most profitable half year in its history and we ended the year with a record number of customers generating over GBP1 million of gross profit per annum," Computacenter added.

Halfords jumped 10% as the cycling and motor products retailer predicted annual profit ahead of consensus.

For the financial year which concludes in March, it expects underlying pretax profit between GBP32 million and GBP37 million.

This will be above the average sell-side expectation of GBP28.3 million, according to company-compiled consensus. Halfords said it also represents an "upgrade" to its profit expectations.

In the third-quarter of its financial year, like-for-like sales growth was "positive" in both Retail and Autocentres. It had been flat in the first half.

"Retail traded well over the peak trading period as our product and promotional proposition resonated well with customers, notably in Cycling," Halfords said, adding that Christmas gifting contributed to like-for-like sales growth of 13% in December.

It added: "Current trading has benefitted from the colder weather in more recent weeks with Motoring Product delivering LfL sales growth in January of 5.5%."

Brent oil was quoted at USD77.55 a barrel early Tuesday, rising from USD77.26 at the time of the London equities close on Monday. Gold dropped to USD2,735.86 an ounce from USD2,740.66.

[master rsi] 28/1/2025 08:35

SFOR 37.75p +4.28p -- S4 Capital plc - Fourth Quarter Trading Update
Fourth quarter in line with expectations and anticipated 2024 full year results slightly ahead of current consensus, with liquidity and net debt significantly better than expected

S4 Capital plc (SFOR.L) confirms that trading in the fourth quarter was in line with the expectations outlined on 7th November and 2024 is expected to be slightly above current consensus of net revenue at £746 million and operational EBITDA of £84 million. Fourth quarter like for like net revenue showed a sequential improvement over the first three quarters. The Company anticipates like for like net revenue will be down approximately 11% and operational EBITDA margin in the range of 11-12% for the year. Operational EBITDA improved as a result of significant cost reductions, which continued throughout the fourth quarter. Net debt will be significantly below current consensus of £185 million and below the lower end of the previously indicated range of £150-190 million, following a strong focus on working capital. The net debt to EBITDA ratio at the end of 2024 is expected to be approximately 1.6x versus current consensus of 2.2x and a targeted range of 1.5-2.0x.

Reflecting trading conditions in the second half of 2024 and the subsequent medium term outlook, the Company expects a non-cash impairment charge to be included in exceptional items in the full year results for 2024.

The annual results for 2024 will be announced on 24 March 2025. at which point the Company will provide more detailed targets for 2025. Current indications are for net revenue and operational EBITDA to be broadly similar in 2025 to 2024.

Sir Martin Sorrell, Executive Chairman of S4Capital plc said:

"Trading in the fourth quarter improved over the first three, with stronger like for like net revenues performance and operational EBITDA margins. However, our industry continued to reflect the trends seen earlier in the year. Tech clients, accounting for approximately half of our revenue, continued to invest significantly in capital expenditure to build AI capacity rather than marketing operating expenditure. Global macro-economic conditions remained challenging and interest rates relatively high and there was some underperformance, when compared to our markets. In addition our Technology Services practice continued to be affected by a reduction in one of our larger relationships. Despite this challenging environment, the Company successfully improved its cost base and protected operating margins. Liquidity and net debt was significantly better due to improved profitability in the fourth quarter and tight working capital control, coming in below the lower end of our net debt range.

Although it is early in the year, there is still some macro-economic uncertainty, interest rates remain high and clients are likely to remain cautious. That said, the headwind we experienced in Technology Services is likely to ease and initial indications are for net revenue and operational EBITDA to be broadly similar in 2025 to 2024. We will maintain our focus on cost efficiency for the year ahead.

We continue to focus on our larger, scaled relationships with leading enterprise clients, while driving margin improvement through greater efficiency, utilisation, billability and pricing. We remain confident in our strategy, business model and talent, which together with scaled client relationships position us well for growth in the longer term. We continue to capitalise on our prominent AI positioning and see multiple AI related assignments."

[master rsi] 28/1/2025 08:25

FTSE

Opening 24 points better