Retail Resilience: Currys and Moonpig Outperform as Tech and Energy Sectors Secure Key Contracts

📈 Today's Key Themes

The pre-market landscape is characterised by a strong showing in the retail sector, with Currys plc and Moonpig Group leading the charge with better-than-expected results. This positive sentiment is further bolstered by significant contract wins in the technology and energy sectors, suggesting potential growth areas for investors. However, the market picture is not uniformly bright, as several investment trusts report challenging results, highlighting the diverse nature of current market conditions. This mixed bag of updates sets the stage for a potentially volatile trading day, with sector-specific movements likely to drive market activity.

💡 Company Updates

Trading Updates

Currys plc (#CURY) has delivered a very positive trading update, with full-year profits expected to exceed previous guidance. The company anticipates profits of around £160 million, surpassing the earlier guidance range of £145-155 million. This outperformance signals strong consumer demand in the electronics retail sector and effective management strategies. Investors are likely to view this update favourably, potentially driving the stock higher at market open.

Moonpig Group PLC (#MOON) reports robust profit growth in its latest trading statement. The company has achieved revenue growth driven by strong performance at its core Moonpig brand, with Adjusted EBITDA margin at the top end of the 25-27% guidance range. Notably, Moonpig expects double-digit percentage growth in Adjusted EPS and has announced plans for a new £60 million share buyback program to commence in FY26. This positive update underscores the company's strong position in the online greeting card and gifting market.

Motorpoint Group Plc (#MOTR) has delivered a strong full-year trading update, reporting a 14% increase in retail volumes compared to the previous year. The company has significantly outperformed the used car market, with 0-6 year retail sales volumes growing 14.8% against market growth of 2.8%. Earnings Before Interest and Tax and Profit Before Tax are expected to show substantial improvement, reflecting the company's successful strategies in a competitive market.

Diversified Energy Company PLC (#DEC) has reported progress on its sustainability goals in its 2024 Sustainability Report. The company reduced methane intensity by ~13% year-over-year to 0.7 MT CO2e per MMcfe, marking a 56% reduction since 2020. Additionally, Diversified Energy improved its safety performance and contributed over $1 billion in economic impact to state GDPs. While financial details are limited, the focus on environmental and operational initiatives suggests a positive long-term outlook for the company.

Annual Results

Chapel Down Group Plc (#CDGP) faced significant challenges in 2024, reporting a 58% drop in Adjusted EBITDA to £2,418,000 and a shift to a loss after tax of £1,308,661. Net Sales Revenue declined by 5% to £16,351,000, while gross margin contracted to 48.4% from 51.8%. The increase in net debt to £9.2 million from £1.2 million last year raises concerns about the company's financial position. Despite some positive signs in certain sales channels, the overall financial performance suggests caution is warranted for investors in the UK wine sector.

Baillie Gifford Shin Nippon PLC (#BGS) reported disappointing annual results, with NAV declining by 5.1% and continued underperformance against its benchmark. The investment trust's net return after taxation decreased to £1,989,000 from £2,944,000, while earnings per share declined to 0.67p from 0.94p. The ongoing charges ratio increased to 0.80% from 0.72%, adding to the challenges faced by shareholders. Management has implemented measures to improve performance, but short-term headwinds persist in the small-cap Japanese market.

European Assets Trust PLC (#EAT) experienced a challenging year, reporting a significant 61.5% drop in annual profit to £13.412 million. The trust's NAV total return of -0.8% underperformed its benchmark's +2.4% return, while the share price total return was -3.6%. The widening discount to NAV, from 8.8% to 12.0%, suggests waning investor confidence. Despite some positive aspects like increased income, the overall picture is dominated by underperformance and challenging market conditions.

Impax Environmental Markets plc (#IEM) reported a net loss of £20.6 million in 2024, down from a £48.5 million profit in 2023. The trust's NAV total return of -0.4% and share price total return of -2.6% significantly underperformed the MSCI ACWI's 19.6% return. Total income decreased from £20.3 million to £18.8 million, while basic EPS declined from 16.35p to -7.92p. Despite these challenges, management remains confident in the long-term prospects of environmental markets.

🎯 Leading Developments

Infrastructure and Technology Contract Wins

Cordiant Digital Infrastructure Limited (#CORD) has secured a major contract through its Polish subsidiary, Emitel. The long-term agreement with Orange Polska involves building hundreds of new telecommunications towers, with Orange Polska committing to pay recurring fees for each site. This contract win is expected to enable Emitel to expand its nationwide tower portfolio to well over 1,000 sites, potentially driving substantial revenue growth for Cordiant Digital Infrastructure. The market is likely to view this development positively, given the long-term nature of the contract and the growth potential it represents in the digital infrastructure sector.

4GLOBAL plc (#4GBL) has secured a significant £4 million, 4-year contract renewal and expansion with Sport England. This contract leverages 4GLOBAL's Insight.OS platform and expands the company's Moving Communities programme. The agreement will enable 4GLOBAL to provide data and insights to a wider ecosystem of sport and physical activity stakeholders in England, supporting Sport England's £250 million place-based investment strategy. This contract win validates 4GLOBAL's market position and growth potential in the data and technology sector for sports and physical activity.

Aptitude Software Group plc (#APTD) has announced a new 5-year, $1.0 million contract win for its Fynapse platform with a global leader in mobile parking payments. This contract adds to Aptitude's growing base of Annual Recurring Revenue and demonstrates the platform's value proposition in the high-growth mobile payments industry. While the contract value is relatively small compared to Aptitude's market cap, it represents an important validation of Fynapse's capabilities and Aptitude's ability to secure deals in emerging tech sectors.

Corero Network Security plc (#CNS) has expanded its partnership with TechEnabler in Brazil, upgrading to a 400G platform and securing new contract wins with DigitalnetBR and Forte Telecom in Latin America. This expansion strengthens Corero's presence and growth opportunities in the region, indicating positive progress in the company's strategic growth plans. The cybersecurity sector continues to show resilience and growth potential, which may attract investor interest.

📅 Week Ahead

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

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