FTSE 250 movers: Currys finds favour; Miners lose lustre

(Sharecast News) - FTSE 250 (MCX) 22,636.63 0.11%

Electricals retailer Currys said on Tuesday that full-year profit was set to be ahead of guidance as it hailed strong performances in the UK & Ireland and the Nordics.

The company said in a trading update that group like-for-like sales growth was strong at 4% for both the 16 weeks to 2 May and the full year.

LFL sales in the UK & Ireland were up 3% in the year to 2 May, while sales in the Nordics were 6% higher.

Currys now expects full-year adjusted pre-tax profit of around £191m, up 18% on the previous year and just above guidance for between £180m and 190m.

The group hailed continued robust trading in the UK & Ireland, with adjusted earnings before interest and tax expected to growth "slightly", driven by market share gains and strong growth in services, B2B and new categories.

Currys said sales growth and stable gross margin more than offset cost headwinds, and iD mobile subscribers rose 18% year-on-year to 2.6m.

In the Nordics, adjusted EBIT is expected to show strong growth on the year, it said, with recent growth driven by market share gains and a very strong performance in kitchens and new categories such as computing components.

Chief executive Alex Baldock said: "We finished a good year well, with strong performance in the UK&I and the Nordics, a region that represents 40% of group sales and that grew especially strongly.

"Profits grew 18% and free cash flow increased again, from a strategy that is delivering ever-stronger results for colleagues, customers, shareholders and society.

"Recent trading has been very solid; we've not yet seen an impact from the Middle East conflict, and our energy costs are well hedged for the coming year.

"This performance, combined with our strong balance sheet, means we are well positioned to navigate any market volatility ahead, tap into exciting growth opportunities and continue returning capital to shareholders."

Shares in Dr Martens surged by 10% as the UK bootmaker reported a sharp jump in annual profits as its move to more full-price sales started to pay off.

Adjusted pre-tax profit for the year to March 29 soared by 61% to £55m, driven by a "standout" 19% jump in shoe sales and beating analysts' estimates of £51m. Chief executive Ije Nwokorie has implemented a "consumer first" strategy, cutting back on discount activity and expanding product lines to boost margin recovery.

Revenue was down 2.9% in reported terms to £764.9m with direct-to-consumer revenue partly hit by the switch to full-price sales.

Full-price direct-to-consumer revenue in its largest market, the US, rose 14%, as Dr Martens cut its reliance on discounted sales to wholesale partners.

The company also revealed it had paid around £10m in US tariffs, which would be treated as an exceptional cost "due to their magnitude and unusual nature, with any future refunds to be considered exceptional income" after the Supreme Court ruled the levies illegal.

"We are currently navigating an unpredictable trading environment, with geopolitical uncertainty impacting consumer confidence, and against this backdrop are focused on executing our strategy," the company said on Tuesday.

"There is still ongoing work to complete in some areas of the business, including the execution of our retail strategy, which will represent a short-term revenue headwind. However, our business is materially more resilient than it was previously, and this underpins our confidence in our medium-term targets."

Dr Martens has also cut inventory and debt as part of its turnaround strategy after profits last year were hit by high costs and weak US wholesale demand, while American tariffs also added extra costs.

Food producer Cranswick rose as it hiked its dividend and reported a rise in full-year profit and revenue amid strong demand across its core categories.

In the year to 28 March, adjusted pre-tax profit rose 11.2% to £220m on revenue of £2.98bn, up 9.5% on the previous year. Like-for-like revenue was 6.8% higher.

UK food revenue grew 9.4% during the year, underpinned by strong volume growth of 8.3% and record Christmas trading, Cranswick said. Poultry revenue was 13.9% higher and now represents 20.3% of reported group revenue, while revenue from gourmet products rose 15.3%, with a strong contribution from Blakemans.

Revenue from pet products was ahead 29.8%, reflecting expansion of the Pets at Home relationship.

The dividend per share was lifted to 112.5p from 101p.

Travel food outlet operator SSP Group posted a 3% rise in like for like sales in the first six weeks of the second half, despite a slump in passenger traffic in Asia and the Middle East due to the Iran war.

The Upper Crust owner said the rise compared to 5% in the first two quarters of the fiscal year, adding that it still expected earnings to be within consensus estimates.

"However, if the operating environment were to deteriorate e.g. due to a resumption of the conflict in the Middle East, a material further decline in the availability of aviation fuel, or a marked softening of consumer travel sentiment, it would inevitably impact our full year performance," the company said on Tuesday.

Underlying operating profit for the six months to March 31 rose 9% to £50m. SSP expects full-year earnings per share to remain within the market consensus range of 13.6p - 14.8p.

Sales in the Asia-Pacific, Eastern Europe and Middle East - excluding the Gulf - fell to zero from 14% growth from April 1 to May 10 due to a drop in connecting flights and lower local traffic.

Gulf operations were running on average at 60% of usual capacity, although SSP noted that sales in the region were only 2% of the group's total.

"Visibility to the resolution of this conflict continues to be limited and we are monitoring developments closely," SSP said.

Passenger numbers in the UK, North America and Continental Europe - around 80% of group sales - remained largely unaffected by the war to date.

Miners fell, with Hochschild and Pan African Resources both lower on the back of weaker metals prices.

Electronics maker DiscoverIE Group on Tuesday said it had bought a 90% stake in North American firm 3Gmetalworx for £50m.

3G designs and manufactures electromagnetic shielding products for the electronics industry, with its main markets being aerospace & defence, commercial space satellite and industrial. Its management will keep a 10% interest in the business.

"The acquisition supports our strategy of building a differentiated, growth-focused electronics group by strengthening our North American presence in attractive, long-term growth markets, such as security and aerospace & defence," DiscoverIE said in a statement.

The business has production and sales facilities in Toronto, Canada and in the US in Florida and California.

FTSE 250 - Risers

Currys (CURY) 142.40p 12.90%

Kainos Group (KNOS) 867.00p 5.79%

Cranswick (CWK) 5,510.00p 5.75%

Trustpilot Group (TRST) 244.20p 3.97%

Bytes Technology Group (BYIT) 364.60p 3.57%

GB Group (GBG) 231.00p 2.90%

Frasers Group (FRAS) 709.50p 2.82%

Discoverie Group (DSCV) 698.00p 2.65%

CMC Markets (CMCX) 388.00p 2.65%

NCC Group (NCC) 140.40p 2.33%

FTSE 250 - Fallers

Ceres Power Holdings (CWR) 695.00p -3.61%

Hochschild Mining (HOC) 587.00p -3.05%

Aston Martin Lagonda Global Holdings (AML) 46.42p -2.72%

Pan African Resources (PAF) 136.70p -2.62%

Greggs (GRG) 1,690.00p -2.54%

Raspberry PI Holdings (RPI) 678.75p -2.51%

Vistry Group (VTY) 258.20p -2.49%

Caledonia Investments (CLDN) 363.00p -2.29%

PPHE Hotel Group Ltd (PPH) 1,520.00p -2.18%

Endeavour Mining (EDV) 4,391.00p -2.13%