London Pre-Market: Helical's £333m Deal Shines Amid Sector Divergence

📈 Today's Key Themes

The London market is poised for a mixed open as pre-market announcements reveal diverging fortunes across sectors. Real estate stands out with Helical plc (#HLCL)'s impressive £333m forward sale of its 100 New Bridge Street development, potentially boosting sector confidence. Technology shows promise with Ondo InsurTech Plc (#ONDO) reporting robust 40% revenue growth and successful US expansion. However, consumer goods face headwinds as The Character Group plc (#CCT) withdraws market guidance due to US trade tariff impacts, signalling potential challenges ahead for companies with significant US exposure.

💡 Company Updates

Trading Updates: Ondo InsurTech Plc (#ONDO) has delivered a strong trading update, reporting a 40% year-on-year revenue growth to not less than £3.8m. The company's registered customers increased by 59% to approximately 151,000, with annualised contracted recurring revenue reaching £5.9m. Ondo's successful scaling of US operations, resulting in a 435% year-on-year growth in registered customers, demonstrates its effective expansion strategy. With a robust cash position of £4.0m and no anticipated need for future funding, Ondo appears well-positioned for continued growth. Annual Results: Kistos Holdings Plc (#KIST) has reported challenging full-year results for 2024, with widening losses and project delays raising concerns about future performance. The company's statutory loss after tax increased to $52 million from $27 million in 2023, while revenue slightly decreased to $216 million from $223 million. Adjusted EBITDA fell to $95 million from $130 million, and the company shifted to a net debt position of $52 million, compared to a net cash position of $62 million in 2023. Cash balances decreased significantly to $114 million from $215 million. These results, combined with delays in key projects like Balder Future, paint a challenging picture for Kistos in the current competitive landscape.

🎯 Leading Developments

Real Estate Boost: Helical plc (#HLCL) has agreed to a forward sale of its 100 New Bridge Street development for £333m, a move that could significantly strengthen its financial position. This transaction is expected to enable the company to return capital to shareholders and potentially fund future projects. The deal highlights the continued demand for prime London commercial real estate, despite broader economic uncertainties. Helical's trading update also notes progress on other projects in its development pipeline, including securing funding and planning approvals, which could drive future growth. Read more Strategic Acquisition: Optima Health plc (#OPT) has announced the acquisition of Cognate Health Limited for up to €9 million, expanding its geographic reach into Ireland. This move is expected to add approximately €7 million in revenue and €1 million in EBITDA to Optima Health. The acquisition provides the company with a base in the Republic of Ireland, including 60 employees and 35 licensed Occupational Physicians across 30 clinic sites. Financed using existing facilities, this strategic move aligns with Optima Health's focus on the occupational health sector and could drive future growth. Read more Consumer Goods Challenges: The Character Group plc (#CCT) has withdrawn its market guidance for the year ending 31 August 2025 due to the impact of US trade tariffs. This decision highlights the challenges faced by companies with significant exposure to the US market, as the tariffs have considerably obscured Character Group's ability to forecast sales. The US market accounted for around 20% of the Group's turnover, indicating a potentially significant impact on the company's financial performance. Despite these challenges, the Board remains confident that the Group will be profitable for the current financial year as a whole. Read more Mining Sector Funding: Gemfields Group Limited (#GEM) has announced a proposed rights issue to raise USD 30 million, subject to shareholder approval. This move comes as the company reports an expected loss per share of USDc 7.0 for the year ended 31 December 2024, compared to USDc 0.8 in the prior year. The significant increase in expected losses and the need for additional funding could signal challenging times ahead for Gemfields and potentially reflect broader pressures in the mining sector. Read more

📅 Week Ahead

15 April 2025: Wise plc (#WISE) Q4 FY25 trading update
15 April 2025: B&M European Value Retail S.A. (#BME) Publication of full-year results
15 April 2025: accesso Technology Group plc (#ACSO) Announcement of 2024 annual results
15 April 2025: Aviva plc (#AV.) Advisory Vote Meeting and General Meeting
16 April 2025: Barratt Redrow plc (#BTRW) Trading update
16 April 2025: WH Smith PLC (#SMWH) 2025 Interim Results Announcement
16 April 2025: Mitie Group plc (#MTO) FY25 Trading Update
16 April 2025: Hays plc (#HAS) Trading update for the quarter ending 31 March 2025 (Q3 FY25)
17 April 2025: J Sainsbury plc (#SBRY) Preliminary Results for the year ending 1 March 2025
17 April 2025: Dunelm Group plc (#DNLM) Q3 Trading Update Release
17 April 2025: Deliveroo plc (#ROO) Q1 2025 trading update

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