Greencore Surges on Profit Upgrade as Energy Sector Faces Headwinds

📈 Today's Key Themes

Pre-market announcements reveal a mixed bag of performances across sectors, with consumer defensive and healthcare companies showing strength while the energy sector grapples with challenges. Greencore Group (#GNC) leads the positive sentiment with a strong Q2 performance and upgraded profit forecast, contrasting sharply with Serica Energy (#SQZ)'s significant profit decline due to operational issues. The technology and industrial sectors also show promise, with several companies reporting robust annual results and securing new contracts, indicating a cautiously optimistic outlook for the market.

💡 Company Updates

Annual Results

NIOX Group Plc (#NIOX) reported a strong performance for 2024, with revenue increasing by 14% to £41.8 million and adjusted EBITDA growing 21% to £13.8 million. The company saw growth across all regions, particularly in APAC, and improved its EBITDA margin to 33%. The sentiment is good, with the company's robust cash generation and positive outlook for 2025 supporting future growth prospects. Pinewood Technologies Group PLC (#PINE) delivered impressive annual results, with revenue up 15.1% to £31.2m and a high recurring revenue rate of 86.5%. The company secured major contracts with Marshall Motor Group and Global Auto Holdings, while maintaining a low churn rate of 1.1%. The sentiment is good, reflecting the company's strong market position and positive outlook, despite some caution due to high valuation. Serica Energy plc (#SQZ) faced significant challenges in 2024, with profit before tax decreasing 58% to $160.5 million and revenue declining 21% to $727.2 million. The company shifted from a net cash position to net debt of $82.5 million, primarily due to lower production volumes and reduced pricing. The sentiment is bad, with ongoing operational challenges and an uncertain regulatory environment in the UK North Sea presenting significant risks for the company's near-term performance.

Trading Updates

Greencore Group plc (#GNC) reported a strong Q2 performance, with profit conversion ahead of expectations. The company now forecasts full-year adjusted operating profit to exceed market expectations, projecting a range of £112-£115m for FY25. The sentiment is very good, indicating a positive outlook for the business based on strong revenue and volume momentum. Renew Holdings plc (#RNWH) provided a positive H1 trading update, with operating profit expected to be ahead of the prior year. While there are some headwinds in the Rail sector, these appear to be offset by positive momentum in the Water business. The sentiment is good, supported by the company's strong order book and recent acquisitions performing in line with expectations.

🎯 Leading Developments

Big Technologies PLC (#BIG) has secured a significant £20 million contract to provide electronic monitoring services in Northern Ireland over 10 years. This represents a new customer and long-term revenue stream for the company. The sentiment is good, as the contract value is substantial relative to the company's market cap and could have a meaningful impact on the business. Read more Capita plc (#CPI) has extended its contract with the Education Authority of Northern Ireland, valued at £107 million. The extension builds on a 13-year partnership and will run from April 2025 to March 2027, with an option to extend for two more years. The sentiment is good, providing revenue visibility over the next 2-4 years and demonstrating the strength of Capita's long-standing client relationships. Read more 1Spatial Plc (#SPA) has won a £0.5m contract with Kent County Council for its 1Streetworks solution, which automates the production of traffic management plans. This marks the third material contract win for 1Streetworks, indicating growing market adoption. The sentiment is good, as the contract represents an important milestone for the company and suggests increasing traction for its innovative solution. Read more

📅 Week Ahead

2 April 2025: JPMorgan American Ord (#JAM) Results for the year ended 31st December 2024 to be published
2 April 2025: Big Technologies PLC (#BIG) Announcement of Full Year Results for the year ended 31 December 2024
2 April 2025: Anpario plc (#ANP) Publication of audited financial results for year ended 31 December 2024
2 April 2025: Gattaca plc (#GATC) Interim Results Release
3 April 2025: Rio Tinto Group (#RIO) Rio Tinto plc AGM
3 April 2025: Wise plc (#WISE) Wise Capital Markets Day
4 April 2025: Albion Crown VCT Ord (#CRWN) Offers for Subscription close
4 April 2025: Serica Energy plc (#SQZ) Deadline for EnQuest to announce firm intention to make an offer or state it does not intend to make an offer
4 April 2025: EnQuest PLC (#ENQ) Deadline for EnQuest to announce firm intention to make offer or state it does not intend to make offer
4 April 2025: Knights Group Holdings plc (#KGH) Completion of IBB Law acquisition

View full calendar

Market Summary