Asset Managers Lead Pre-Market Gains Amid Sector Divergence

📈 Today's Key Themes

Pre-market announcements reveal a stark contrast in sector performance, with financial services firms, particularly asset managers, reporting strong results while energy and real estate sectors face significant challenges. Pollen Street Group (#POLN) leads the pack with an impressive 29% increase in Assets under Management, highlighting the strength in the asset management space. Meanwhile, Tullow Oil (#TLW) and Regional REIT (#RGL) report disappointing results, underscoring the ongoing difficulties in the energy and commercial real estate sectors. The technology sector shows resilience, with mixed but generally positive results.

💡 Company Updates

Annual Results

Pollen Street Group (#POLN) delivered exceptional financial results for 2024, with a 29% increase in Assets under Management (AuM) to £5.4 billion. The company reported a 31% rise in operating profit to £58.2 million and a 36% growth in Fund Management Income to £66.8 million. Earnings Per Share (EPS) increased by 27% to 78.8 pence, while the Fund Management EBITDA Margin expanded from 30% to 39%. The company's strong performance across key metrics and positive outlook contribute to a very good sentiment. Personal Group Holdings (#PGH) reported robust growth across all divisions, with revenue from Continuing Operations up 13% to £43.8 million and profit before tax increasing 34% to £6.8 million. The company's Adjusted EBITDA from Continuing Operations rose 29% to £10.0 million, with margin improving to 22.8%. The final dividend was increased by 41% to 16.5p per share, reflecting management's confidence in future prospects. Gamma Communications (#GAMA) announced strong financial results for 2024, with revenue increasing 11% to £579.4 million and profit before tax growing 34% to £95.6 million. The company maintained a high level of recurring revenue at 89% of total revenue and improved its net cash position to £153.7 million. Despite facing economic headwinds in key markets, Gamma's performance and strategic positioning support a positive sentiment. Michelmersh Brick Holdings (#MBH) reported challenging results for 2024, with revenue decreasing by 9.3% to £70.1 million and operating profit falling by 33.3% to £8.2 million. The company's gross margin contracted from 38.9% to 35.8%, and basic earnings per share decreased by 36.9% to 6.59p. Despite maintaining market share and implementing strategic initiatives, the ongoing challenges in the construction industry contribute to a negative sentiment.

Trading Updates

Time Finance (#TIME) reported record nine-month revenues and profits, with Profit Before Tax up 40% to £5.9 million and revenue up 14% to £27.3 million. The company's lending book reached a record £210 million, and Net Tangible Assets increased 14% to £43.0 million. The strong performance and absence of negative market sentiment contribute to a very good outlook. AB Dynamics (#ABDP) announced 11% revenue growth to approximately £58 million in the first half of 2025. The company reported a strong order book providing good visibility into the second half and expressed confidence in achieving full-year expectations. AB Dynamics remains well-positioned to invest in organic growth and acquisitions. Morgan Sindall Group (#MGNS) reported trading slightly ahead of expectations, driven by strong performance in its Fit Out division. The company expects full-year results to be slightly ahead of market consensus, contributing to a positive sentiment.

🎯 Leading Developments

Tullow Oil (#TLW) faces significant refinancing challenges despite reporting a profit after tax of $55 million, up from a loss of $110 million in 2023. The company's revenue decreased to $1,535 million from $1,634 million, and production guidance for 2025 has been lowered to 50-55 kboepd. Material uncertainties exist regarding the company's ability to continue as a going concern, contributing to a negative sentiment. Read more Regional REIT (#RGL) reported a substantial loss of £39.5 million for 2024, albeit an improvement from the £67.5 million loss in 2023. The company faced declining occupancy rates and a decrease in gross rent roll, reflecting challenges in the office market. EPRA earnings per share fell to 19.2p from 33.1p, indicating deteriorating profitability. The cautious outlook and operational challenges contribute to a negative sentiment. Read more FD Technologies (#FDP) delivered a strong annual performance, with KX achieving £18.0 million in annual ACV added (+33% YoY) and annual recurring revenue exceeding $100 million for the first time. The company's Cash EBITDA loss of £14.6 million was ahead of guidance and above the top end of consensus expectations. FD Technologies enters FY26 with a strong and growing pipeline, confident of achieving at least 20% ARR growth. Read more Ashtead Technology Holdings (#AT.) reported impressive full-year results for 2024, with revenue surging 52% to £168.0 million and adjusted EBITA rising 38.9% to £50.3 million. The company achieved 14% organic growth and maintains a positive outlook for continued growth, supported by strong market fundamentals and record customer backlogs. Read more

📅 Week Ahead

26 March 2025: GSK plc (#GSK) FDA Decision on Gepotidacin NDA
26 March 2025: Imperial Brands PLC (#IMB) Capital Markets Day in London
26 March 2025: Ithaca Energy plc (#ITH) Full Year 2024 Results
26 March 2025: Vistry Group PLC (#VTY) 2024 Full Year Results
27 March 2025: NEXT plc (#NXT) Full Year Results
27 March 2025: Playtech plc (#PTEC) Full-year 2024 Results

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