Tech Resilience Amid Market Turbulence: Alfa and Allianz Shine as CAB Payments Stumbles

📈 Today's Key Themes

The pre-market landscape reveals a stark contrast between sectors, with technology companies demonstrating remarkable resilience. Alfa Financial Software and Allianz Technology Trust have posted impressive results, highlighting the tech sector's strength. However, financial services face significant headwinds, exemplified by CAB Payments' sharp profit decline. The property sector presents a mixed picture, with Glenveagh Properties and Empiric Student Property navigating challenges while showing some positive indicators. This sectoral divergence underscores the uneven impact of current economic conditions on different market segments.

💡 Company Updates

Annual Results

Alfa Financial Software (#ALFA) has delivered a stellar performance, with profit before tax increasing by 15% to £34.1m. The company reported record total contract value of £221.3m, up 34% year-on-year, and an 8% revenue growth to £109.9m. The sentiment is overwhelmingly positive, with the company's diversified customer base and strong subscription revenue growth indicating robust future prospects.

In contrast, CAB Payments (#CABP) faced significant challenges, reporting a sharp 53% drop in profit before tax to £17.6m. Total income fell by 23% to £105.5m, with the adjusted EBITDA margin contracting from 47% to 29%. The negative sentiment stems from macro-economic headwinds and reduced aid flows, which have severely impacted the company's performance.

Allianz Technology Trust (#ATT) reported impressive results, with NAV increasing by 35.6% to 458.6p per share and the share price rising by 38.1%. The trust's ability to keep pace with its benchmark while maintaining a balanced portfolio approach has contributed to the positive sentiment surrounding its performance.

Glenveagh Properties (#GLV) delivered a mixed performance, with revenue increasing 43% to €869.2 million, but net debt rising to €179.0 million. The company's profit before tax more than doubled to €113.8 million, and its forward order book grew 35% to €1.1 billion, indicating strong future prospects despite some financial challenges.

Empiric Student Property (#ESP) reported solid results, with revenue increasing 4.6% to £84.2 million and like-for-like rental growth of 9.3%. The company's gross margin improved to 70% from 69%, demonstrating operational efficiency. The positive outlook for 2025/26, including targeted rental growth of 5%, supports an optimistic sentiment.

Half-Year Results

DFS Furniture (#DFS) reported a significant increase in profits, with underlying profit before tax and brand amortisation up 95.4% to £17.0m. Gross sales increased by 1.4% to £675.6m, and the company saw strong order intake growth of 10.1% year-on-year. The positive sentiment is bolstered by the company's upgraded full-year expectations despite a subdued market.

Haydale Graphene Industries (#HAYD) faced significant challenges, reporting a 50% revenue decline to £1.25 million and widening losses. The negative sentiment is driven by persistent underperformance and financial pressures, despite ongoing restructuring efforts and new contracts.

🎯 Leading Developments

ImmuPharma (#IMM) has unveiled groundbreaking data on the unique mechanism of action of its lead autoimmune drug candidate, P140. The non-immunosuppressive nature of P140 suggests it could become a safe and effective treatment option for autoimmune diseases like lupus. This development has generated very positive sentiment, with potential to attract significant interest from partners. Read more

Arrow Exploration (#AXL) reported a substantial increase in its reserves, with a 92% increase in Proved Developed Producing (PDP) reserves to 2.38 MMboe. The company's success in growing reserves through drilling campaigns has led to new discoveries and increased production, generating very positive sentiment about its growth prospects. Read more

Norcros (#NXR) announced a positive outcome to its pension scheme valuation, with the deficit reduced from £36.0m to £11.7m. This improvement in the company's financial position, coupled with lower future cash contributions, has been received very positively by the market. Read more

Fuller, Smith & Turner (#FSTA) has secured a new £185 million bank facility and launched a share buyback program. The company also acquired the freehold of an iconic pub in Twickenham. These developments have been viewed positively, demonstrating the company's financial strength and strategic focus. Read more

📅 Week Ahead

14 March 2025: Bodycote plc (#BOY) Announcement of full year 2024 results
14 March 2025: Target Healthcare REIT Ord (#THRL) Announcement of half-year results
14 March 2025: Assura Plc (#AGR) Deadline for KKR and USSIM to announce a firm intention to make an offer or confirm they do not intend to make an offer
14 March 2025: Henderson Opportunities Trust plc (#HOT) Second General Meeting to approve the winding-up of the Company
14 March 2025: Jupiter Green Investment Trust PLC (#JGC) Second General Meeting, Effective Date, appointment of Liquidators and Transfer Agreement executed and implemented

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