Contrasting Fortunes: Volex Shines While EnSilica and Thruvision Stumble in LSE Pre-Market

📈 Today's Key Themes

The London Stock Exchange pre-market update paints a picture of contrasting fortunes across sectors. Industrial and real estate companies are showing resilience and growth, with Volex plc (#VLX) leading the charge with exceptional full-year results. However, the technology and security sectors face significant headwinds, as evidenced by EnSilica plc (#ENSI) and Thruvision Group plc (#THRU) grappling with contract delays and revenue declines. This divergence highlights the importance of sector diversification and company-specific factors in the current market environment.

💡 Company Updates

Trading Updates and Annual Results

Volex plc (#VLX) delivered an outstanding full-year trading update, significantly exceeding market expectations. The specialist integrated manufacturer reported revenue growth of at least 16% year-on-year, with organic constant currency growth of at least 8%. Underlying operating margins are anticipated to be at the upper end of the 9% to 10% target range, with operating profit of at least $100 million, well ahead of market estimates. This robust performance underscores Volex's success in securing new projects and delivering cost-competitive, advanced manufacturing services. Read more

Sirius Real Estate Limited (#SRE) reported a strong trading update, with a 12.8% year-on-year increase in rent roll and 6.3% like-for-like rent roll growth. This marks the eleventh consecutive year of rent roll growth exceeding 5%. The company's robust balance sheet, demonstrated by successful debt financing at favourable rates, positions it well for future growth. Despite some macro uncertainties, Sirius remains confident in the resilience and attractiveness of its assets. Read more

In contrast, EnSilica plc (#ENSI) faced significant challenges, reporting delays in two major customer contracts. These setbacks are expected to materially reduce NRE revenues in the current financial year. The company now anticipates revenues of between £19 million and £20 million for FY 2025, with EBITDA between £0.1 million and £0.5 million. This represents a substantial decline from previous expectations and highlights the impact of contract delays on financial performance. Read more

Thruvision Group plc (#THRU) reported a disappointing trading update, with revenue for FY25 expected to be approximately £4.4 million, down from £7.8 million in the prior year. The company's cash position is concerning, with the board anticipating that cash resources will last only until the end of June 2025. This update underscores the challenges facing Thruvision and raises questions about its future prospects. Read more

🎯 Leading Developments

Strategic Contracts and Partnerships

Atome Plc (#ATOM) has signed a significant $465 million EPC contract with Casale S.A. for the construction of its 260,000 tonnes per annum green fertilizer plant in Villeta, Paraguay. This fixed-price contract, with a 38-month timeline, marks a major milestone in Atome's flagship project. The company has also secured an equity investment of up to $115 million from Hy24, reducing funding risk and strengthening the project's outlook. This development positions Atome as a key player in the green energy sector. Read more

Made Tech Group Plc (#MTEC) has secured £20 million in new government contracts, including two call-off agreements with the Department for Business and Trade worth £6 million each, and a £6 million contract with the Ministry of Justice. These wins are expected to drive double-digit percentage annual revenue and Adjusted EBITDA growth in FY25, demonstrating Made Tech's strong position in the public sector technology services market. Read more

Funding and Exploration

Strategic Minerals Plc (#SML) has secured grant funding of over £764,000 from the UK Government through the UK Shared Prosperity Fund for its Redmoor Tungsten-Tin-Copper Project in Cornwall. This funding, to be matched by the company's own expenditure, will support new exploration drilling, resource estimation, and economic modeling. The project aims to produce an investment-ready business case for moving Redmoor into prefeasibility, potentially strengthening Strategic Minerals' position in the critical minerals sector. Read more

Positive Trading Momentum

Likewise Group Plc (#LIKE) reported a strong start to the year, with Q1 2025 Gross Sales Revenue increasing by 10.7% year-over-year. The company's Likewise Branded businesses saw a notable 14.6% sales increase. Despite some seasonal headwinds, Likewise Group remains confident in achieving its 2025 objectives and making further progress. Read more

Quartix Technologies plc (#QTX) delivered an impressive trading update, reporting a 21% year-on-year increase in Annualised Recurring Revenue (ARR) to £34.2 million in Q1. New customer acquisition increased by 18%, and new subscriptions grew by 19% compared to the previous year. With a strong cash position and positive operational metrics, Quartix is confident of meeting market expectations for 2025. Read more

📅 Week Ahead

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