Tech and Mining Face Headwinds, Consumer Services Show Resilience in Pre-Market Updates

📈 Today's Key Themes

Pre-market announcements reveal a mixed landscape across sectors, with technology and mining companies facing significant challenges while consumer services demonstrate resilience. FDM Group, Ferrexpo, and Judges Scientific reported disappointing annual results, highlighting ongoing economic uncertainties and market volatility. However, positive updates from Ten Lifestyle Group and Filtronic in the consumer and communication sectors respectively provide some optimism. The divergence in sector performance suggests a potentially choppy market opening, with investors likely to scrutinize company-specific factors and broader economic indicators.

💡 Company Updates

Annual Results

FDM Group (#FDM) reported a challenging 2024, with revenue decreasing by 23% to £257.7m and profit before tax falling 49% to £28.1m. The company's consultant headcount decreased by 34% to 2,578, reflecting difficult market conditions. Despite securing 52 new clients globally, the overall financial decline and cautious outlook suggest continued headwinds for the IT services provider. Ferrexpo plc (#FXPO) faced a tumultuous year, reporting a loss of US$50 million despite a 43% increase in revenue to US$933 million. The loss was primarily due to a US$72 million impairment. Underlying EBITDA decreased by 30% to US$69 million, with the EBITDA margin falling from 15% to 7%. The ongoing war in Ukraine, legal disputes, and potential asset seizures pose substantial risks to the iron ore producer's operations. Judges Scientific plc (#JDG) experienced a challenging 2024, with revenue declining 1.8% to £133.6m and adjusted operating profit decreasing 20% to £27.9m. Operating margins contracted from 25.6% to 20.9%, indicating pressure on profitability. The scientific instrument manufacturer faces headwinds in key markets, particularly China, with weak order intake signalling potential future growth challenges.

Trading Updates

Ten Lifestyle Group Plc (#TENG) reported improved H1 2025 performance, with net revenue increasing 3% year-over-year to c.£31.8m and adjusted EBITDA rising £0.7m to c.£6.0m. The global concierge technology platform secured new contract wins, including a multi-year Extra Large contract in the USA and a Medium contract in AMEA. The company's cash position improved, with net cash of c.£6.8m at the end of H1 2025. 1Spatial Plc (#SPA) announced a strong increase in higher-margin software revenue, with term licence and SaaS revenue growing by over 35% to £11.5m. Recurring revenue now accounts for 62% of total revenue, up from 56% in the prior year. Adjusted EBITDA is expected to be at least £5.6m, up from £5.5m in the prior year. The company maintains a positive outlook for FY2026, with new customer contracts in the final stages of negotiation.

🎯 Leading Developments

Filtronic plc (#FTC) has expanded its strategic partnership with SpaceX, securing increased supply of components for the Starlink satellite constellation project. The agreement provides greater visibility on future revenue and includes the issuance of 10,949,079 warrants to SpaceX, representing up to 5% dilution. This development positions Filtronic well in the growing space technology sector. Gulf Marine Services PLC (#GMS) has secured a new contract for an additional vessel in the Middle East, with an initial term including extensions of seven months. The contract demonstrates GMS's flexibility in meeting current and future demand in the offshore energy sector. While financial details were not disclosed, this win provides some revenue visibility for the company. Pressure Technologies plc (#PRES) announced a strategically important contract to supply pressurised hydrogen storage systems for bp's Aberdeen Hydrogen Hub project. This marks the company's first contract to supply large-scale hydrogen storage systems to a clean energy project in the UK, positioning Pressure Technologies well for future hydrogen storage projects as part of the UK's Net Zero strategy.

📅 Week Ahead

20 March 2025: Bloomsbury Publishing Plc (#BMY) to announce trading update
20 March 2025: Foresight Solar Ord (#FSFL) Annual Results Publication
20 March 2025: Central Asia Metals plc (#CAML) Release of Full Year 2024 Results
20 March 2025: Hostelworld Group plc (#HSW) Full year results for the year ended 31 December 2024
20 March 2025: Eurocell plc (#ECEL) Preliminary financial results announcement
21 March 2025: Carnival Corporation & plc (#CCL) Q1 2025 earnings conference call
21 March 2025: J D Wetherspoon plc (#JDW) Interim Results Release
21 March 2025: JPMorgan Claverhouse Ord (#JCH) Annual Results Release

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