Renewable Energy Woes and Consumer Resilience: A Pre-Market Snapshot

📈 Today's Key Themes

As markets prepare to open, a stark contrast emerges between the struggling renewable energy sector and the resilience of some consumer-facing businesses. HydrogenOne Capital Growth (HGEN) reported a significant 12.2% decrease in NAV and a £16.2 million loss, highlighting the challenges faced by clean energy investments. Meanwhile, companies like LBG Media (LBG) and Young & Co.'s Brewery (YNGA) demonstrated strong growth despite economic headwinds. This divergence underscores the uneven impact of global economic uncertainties across various sectors, with luxury goods and automotive industries also facing headwinds, as evidenced by Aston Martin's (AML) Q1 revenue decline.

💡 Company Updates

Annual Results

Skillcast Group (#SKL) has returned to profitability, reporting a positive EBITDA of £0.5 million compared to a loss of £0.6 million last year. The software provider saw a 17% increase in revenue to £13.2 million, with subscription revenue growing by 29% to £11.0 million. The company's Annual Recurring Revenue (ARR) grew by 25% to £11.6 million, indicating strong future revenue potential. However, an increased churn rate from 7% to 11% and management's cautious language about market conditions suggest potential challenges ahead. Zinc Media Group (#ZIN) reported improved profitability despite a revenue dip due to portfolio restructuring. The media production group saw its adjusted EBITDA increase by 7% to £1.5 million and adjusted Operating Profit rise to £0.7 million from £0 million. The gross margin improved significantly from 38.5% to 44.5%, indicating enhanced operational efficiency. With a robust pipeline and £27 million of revenue already booked for FY25, the company appears well-positioned for future growth.

Trading Updates

LBG Media (#LBG) delivered a strong performance in the first half of 2025, with revenue up 13% to £43.9 million and adjusted EBITDA increasing 16% to £12.2 million. The media company's global audience grew to 520 million, up from 494 million in the prior year. With net cash and cash equivalents of £32.9 million and strong cash conversion of over 100%, LBG Media demonstrates robust financial health and growth potential. Young & Co.'s Brewery (#YNGA) reported impressive results for FY25, with total managed revenue up 25.4% and like-for-like sales increasing by 5.7%. The premium pub operator maintained positive momentum in Q4 with a 16.2% increase in total managed revenue, despite facing external challenges including weather and economic uncertainty. This strong performance has led to an increase in the broker target price to 1,300p. Carclo (#CAR) exceeded management expectations with a strong trading performance, achieving margin expansion and substantial debt reduction. The engineering solutions provider reduced its net debt from £29.5 million to £19.3 million. The company's flexible global manufacturing network and regional production strategy position it well to navigate potential market headwinds.

🎯 Leading Developments

HydrogenOne Capital Growth (#HGEN) reported a challenging year, with its NAV decreasing by 12.2% to £116.4 million and a reported loss of £16.2 million (12.6 pence per share). The investment company's share price fell 56.4% to 21.65p, with the discount to NAV increasing from 52% to 76%. This performance highlights the current difficulties faced by the hydrogen and renewable energy sectors, potentially impacting investor sentiment towards clean energy investments. Read more Aston Martin Lagonda (#AML) faces headwinds as it reported a decline in profits and revenues in Q1 2025. The luxury automaker saw its adjusted EBIT decrease by 13% to £(65)m, with total revenue falling 13% to £234m compared to Q1 2024. Net debt increased from £1,163m at the end of 2024 to £1,267m at the end of Q1 2025. The company also expressed increased uncertainty around the impact of recently announced U.S. tariffs on wholesale volumes, which could further pressure the automotive sector. Read more Serabi Gold (#SRB) reported impressive results for 2024, with revenue up 48% to $94.5 million and production increasing by 13% to 37,520 ounces. The mining company saw its EBITDA improve by 160% to $35.9 million, while net profit surged by 321% to $27.8 million. With a strong balance sheet showing $22.2 million in cash and no long-term debt, Serabi Gold is well-positioned for future growth, targeting 60,000 ounces per year by 2026. This positive performance could boost sentiment in the gold mining sector. Read more Hydrogen Utopia International (#HUI) faces significant challenges, with its cash position decreasing from £1.28M to £267K at year-end. The waste management innovator reported a net cash outflow from operating activities of £780,957 and is heavily reliant on funding from Ohrid Organics. The company's ability to continue as a going concern is uncertain, reflecting broader challenges in the renewable energy sector. Read more Ferro-Alloy Resources (#FAR) reported widening losses and declining revenue, shifting focus to R&D amid difficult market conditions. The vanadium producer's loss widened to $9.43 million from $5.25 million in 2023, while revenue decreased 17.1% to $4.74 million. The company's cash position improved to $3.78 million, mainly due to bond issuances, but negative operating cash flow of -$4.27 million raises concerns about financial sustainability. Read more

📅 Week Ahead

1 May 2025: Whitbread plc (#WTB) Preliminary Results for FY25
1 May 2025: Endeavour Mining plc (#EDV) Q1 2025 results release
1 May 2025: Morgan Sindall Group plc (#MGNS) Next scheduled trading update
1 May 2025: Lancashire Holdings Limited (#LRE) Q1 2025 trading statement and conference call
2 May 2025: Shell plc (#SHEL) Q1 2025 results publication

View full calendar

Market Summary