Tech Triumphs While Travel Troubles: Pre-Market Movers Shake Up LSE

📈 Today's Key Themes

Pre-market announcements paint a picture of contrasting fortunes across London-listed companies, setting the stage for a potentially volatile open. Technology and specialized services firms are showing resilience, with TruFin plc (#TRU) and Zinc Media Group plc (#ZIN) reporting strong performances. However, the travel and hospitality sector faces significant headwinds, exemplified by SSP Group plc (#SSPG)'s profit squeeze. This divergence underscores the importance of operational efficiency and cost management in navigating the current economic landscape, with geopolitical events continuing to impact certain sectors disproportionately.

💡 Company Updates

Annual Results

Amcomri Group plc (#AMCO) reported record revenues and profits, with revenue increasing by 23.4% to £58.1m and adjusted EBITDA growing by 33.3% to £7.7m. The company's gross margin improved to 36.4% from 32.2%, while cash balances rose significantly to £12.1m from £4.0m. The sentiment surrounding this update is good, reflecting the company's strong financial performance and improved balance sheet. Calnex Solutions plc (#CLX) demonstrated a strong turnaround, with revenue growing 13% to £18.4m and profit before tax improving from a £384k loss to a £720k profit. The company's diversification into cloud computing and defence markets is paying off, offsetting challenges in the telecoms sector. The sentiment is good, although the high P/E ratio and ongoing market uncertainties prevent an extremely bullish stance.

Trading Updates

TruFin plc (#TRU) exceeded market expectations, projecting its 2025 financial performance to be materially ahead of forecasts. The company expects group revenue to be not less than £51m and adjusted EBITDA not less than £8m. With a strong cash position and shares trading at a discount to their intrinsic value, the sentiment surrounding TruFin is very good. Knights Group Holdings plc (#KGH) reported solid financial performance, with underlying PBT expected to increase 11% to c.£28.0m and revenue growth of 8% to c.£162.0m. The company's continued execution of its acquisition strategy and strong balance sheet contribute to a good sentiment. Hilton Food Group plc (#HFG) indicated that trading continues to be in line with Board expectations, with volumes and sales ahead of the same period last year across all three operating regions. Despite macroeconomic uncertainties, the company expresses confidence in delivering earnings growth for the full year, resulting in a good sentiment.

Half-Year Results

Hardide plc (#HDD) achieved a significant turnaround, with revenue increasing by 32% to £2.801m and EBITDA turning positive at £390k. The company's gross margin improved from 41% to 54%, and free cash flow improved from -£700k to £300k. The sentiment is good, reflecting the company's progress towards sustained profitability.

🎯 Leading Developments

Challenges in Travel and Hospitality

SSP Group plc (#SSPG) reported a significant profit decline despite revenue growth, facing challenges from geopolitical events and market uncertainties. Operating profit decreased from £58.0m to £15.1m year-on-year, while the company swung to a loss before tax of £37.3m. The underlying operating profit margin contracted sharply from 3.8% to 0.9%. This update highlights the ongoing pressures in the travel sector and may impact investor sentiment towards similar companies. Read more

Technology Sector Resilience

Zinc Media Group plc (#ZIN) secured a new multi-million-pound commission for a cultural documentary in Saudi Arabia, boosting its FY25 revenue outlook. Total revenue booked and expected in FY25 increased to £30m, up £3m since the last update. This development showcases the resilience of specialized content creators and their ability to secure significant contracts even in challenging economic environments. Read more

Sustainability Challenges

Xeros Technology Group plc (#XSG) faces significant challenges with declining revenue, continued losses, and material uncertainty about its going concern status. Revenue decreased by 45.8% to £0.2m in 2024, while the adjusted EBITDA loss reduced by 5% to £4.4m. This update highlights the ongoing challenges faced by some companies in the sustainable technology sector, particularly those still in the commercialization phase. Read more

Oil & Gas Exploration Developments

Geo Exploration Limited (#GEO) announced a 23% uplift in unrisked license-wide prospective resources to 4.31 billion barrels for its Namibian license. The identification of two new sandstone leads containing 792 MMbbl of unrisked gross mean prospective resources highlights the potential of the company's assets. This update may spark interest in the oil & gas exploration sector, particularly for companies with assets in promising regions. Read more

📅 Week Ahead

21 May 2025: SSE plc (#SSE) Full-year results presentation and Q&A session
21 May 2025: Intermediate Capital Group plc (#ICG) Full year results announcement
22 May 2025: Investec Group (#INVP) Full year results release
21 May 2025: JD Sports Fashion Plc (#JD.) FY25 results/Q126 update
22 May 2025: Johnson Matthey Plc (#JMAT) Announcement of results for the year ending 31st March 2025

View full calendar

Market Summary