FTSE 250 movers: Auction Tech surges after update; Tritax Bigbox slides
16th May 2024 14:56
(Sharecast News) - FTSE 250 (MCX) 20,767.99 -0.04%#
Auction Technology Group reported 6% growth in first-half revenue on Thursday, to $86m (£67.81m), driven by strong growth in value-added services and contributions from 'EstateSales'.
The FTSE 250 company said adjusted EBITDA, however, narrowed by 6% to $35.7m, impacted by changes in the revenue mix and cost phasing.
Despite challenges such as a 17% decrease in gross merchandise value (GMV), ATG was optimistic, maintaining its full-year outlook for group revenue to range between $175m and $180m, with a midpoint growth rate of 7%, driven by strategic initiatives like atgXL, atgShip, and atgPay.
The firm anticipated improving organic revenue growth in the second half, supported by momentum on the Proxibid marketplace and cost phasing.
Future unveiled plans to return a further £45m to shareholders on Thursday, sending the shares higher, despite a fall in half-year revenues and profits.
The UK media group said the share buyback programme would get underway "shortly" and would add to the £45m already returned through buybacks and dividends in the last six months.
The news was welcomed by investors and by 0930 BST, the FTSE 250 stock was trading 19% higher at 1,034p.
The update came as the publisher of Homes & Gardens, The Week, Country Life and PC Pro, among others, posted first-half numbers.
The group, which also owns the Go Compare price comparison site, said revenues in the six months to 31 March fell 3% to £391.5m, with a 2% organic decline compounded by an adverse currency fluctuations.
However, Future said it had returned to year-on-year revenue growth in the second quarter, with organic growth of 3%.
Adjusted operating profits fell 19% to £105.8m, impacted by the adverse revenue mix and investments. Statutory operating profits slid 24% to £63.7m.
Jon Steinberg, chief executive, said: "Overall trading was in line with our expectations. While the market environment remains challenging, we are encouraged to returned to organic revenue growth in the second quarter, progress which has continued into the third quarter."
Looking to the full year, Future said it was confident about meeting its full-year outlook, including organic revenue growth in the second half and a full-year adjusted operating margin of around 28%.
Last December, shares in Future plunged after the firm posted a slump in annual profits. The firm said it been hit by "challenging" market dynamics in the US.
Steinberg, who has been in the role a just over a year, said: "In December we set out plans to ensure that Future is best positioned to capitalise on opportunities in our markets. This plans are centred on growing a highly-engaged audience, diversifying and increasing revenue per user.
"I'm pleased to report that in the early stages of this two-year plan we have made good progress, which will enable us to drive accelerating revenue growth."
Telecom equipment specialist Helios Towers reiterated its full-year outlook on Thursday, after a jump in first-quarter earnings.
The London-listed firm, which builds and operates telecoms towers for mobile network operators in Africa and the Middle East, said revenues increased 14% in the three months to 31 March to $194.6m.
Adjusted earnings before interest, tax, depreciation and amortisation rose 21% to $102.2m.
Helios said it was making "solid progress" towards its full-year guidance as a result.
The company is currently forecasting organic tenancy additions of between 1,600 and 2,100 for the full year, and adjusted EBITDA of between $405m and $420m.
Logistics-focussed property investor Tritax EuroBox reported a 10.1% increase in IFRS rental income to €35.9m (£30.8m) on Thursday, driven by rent indexations, asset management initiatives, and the conversion of rental guarantees into income.
The London-listed company said annualised rental income, however, declined 2.6% year-on-year to €74.3m for the six months ended 31 March, primarily due to its sales programme.
Like-for-like rental income showed a marginal decrease of 0.3% over the six-month period.
Financially, Tritax EuroBox said it maintained a robust position with an adjusted EPRA cost ratio of 24.1%, well within its target range of 20% to 25%, and adjusted earnings per share of 2.62 euro cents, down 3%, again primarily due to disposals.
The board said its dividend per share remained well covered at 104.7% by adjusted earnings per share for the period.
Listed residential landlord Grainger reported an 11% increase in first-half net rental income on Thursday, to £53.2m, continuing its upward trajectory since its 'strategic restart' in 2016.
The FTSE 250 company said adjusted earnings slipped to £44.4m for the six months ended 31 March, down from £47.1m a year earlier, supported by strategic divestment and capital reinvestment into build-to-rent (BTR) and private rented sector (PRS) assets.
Its board hiked the interim dividend by 11% to 2.54p per share, as EPRA earnings saw 12% growth to £24.5m.
Operational performance remained strong, with 8.1% like-for-like rental growth in the PRS portfolio and occupancy rates at 97.7%, reflecting sustained demand for residential properties within the portfolio.
Market Movers
FTSE 250 - Risers
Auction Technology Group (ATG) 577.00p 17.28%
Future (FUTR) 1,020.00p 17.24%
Watches of Switzerland Group (WOSG) 381.40p 12.91%
Helios Towers (HTWS) 123.80p 12.14%
Wood Group (John) (WG.) 191.80p 3.34%
Travis Perkins (TPK) 853.00p 2.65%
Diversified Energy Company (DEC) 1,129.00p 2.54%
OSB Group (OSB) 461.00p 2.22%
TBC Bank Group (TBCG) 2,585.00p 2.17%
Drax Group (DRX) 562.50p 2.09%
FTSE 250 - Fallers
Tritax Eurobox (GBP) (EBOX) 58.20p -6.13%
Wizz Air Holdings (WIZZ) 2,118.00p -4.51%
Spectris (SXS) 3,176.00p -3.82%
Balfour Beatty (BBY) 370.00p -3.44%
Trustpilot Group (TRST) 208.50p -3.25%
Grainger (GRI) 264.00p -2.94%
Serco Group (SRP) 179.90p -2.76%
RHI Magnesita N.V. (DI) (RHIM) 3,580.00p -2.72%
Aston Martin Lagonda Global Holdings (AML) 140.50p -2.63%
SDCL Energy Efficiency Income Trust (SEIT) 65.20p -2.54%