Retail Resilience and Mining Moves: LSE Pre-Market Highlights

📈 Today's Key Themes

The London Stock Exchange is poised for a mixed opening as pre-market updates reveal a tale of two sectors. The retail landscape shows remarkable resilience, with Currys plc (#CURY) and Hammerson Plc (#HMSO) reporting strong performances. Meanwhile, the mining sector is abuzz with Central Asia Metals plc's (#CAML) transformative acquisition. However, it's not all positive, as Shoe Zone plc (#SHOE) faces headwinds in footwear retail, and Time Out Group plc (#TMO) grapples with challenges in its media division. The financial services sector presents a mixed picture, with some firms navigating through a competitive environment.

💡 Company Updates

Annual Results

Currys plc (#CURY) has delivered a stellar performance in its full-year results, with adjusted profit before tax soaring by 37% year-on-year to around £162 million. The company saw robust sales growth in both its UK & Ireland and Nordic segments, with like-for-like sales up 4% in the post-Peak period. This strong performance has enabled Currys to resume cash dividends, signalling confidence in its financial position and future prospects.

Trading Updates

Staffline Group plc (#STAF) reported a solid start to 2025, with gross profit up 6.2% in the first four months. The company's Recruitment GB division saw a 6.6% year-on-year uplift in temporary worker hours, indicating strong demand in the sector. Staffline also announced a substantial new contract with a leading logistics company, boosting its outlook for the next three years. Hammerson Plc (#HMSO) provided an upbeat trading update, reporting over 50 million visitors to its destinations so far in 2025. The company has completed the acquisition of Brent Cross at a 16% discount to book value and an 8.6% net initial yield. Group like-for-like sales were up 1% in Q1 2025, with a 2% increase in the UK. Hammerson expects total GRI growth of around 10% for FY2025 and adjusted earnings of approximately £95 million. On a more cautious note, Close Brothers Group plc (#CBG) faces headwinds in its latest trading statement. The group reported a 0.9% decrease in its loan book for the quarter and a 3.5% decline year-to-date. However, the company remains on track to deliver annualised cost savings of around £25 million by the end of the 2025 financial year.

Half-Year Results

Shoe Zone plc (#SHOE) reported challenging half-year results, posting a loss before tax of £2.3 million compared to a £2.6 million profit last year. Total revenue declined by 6.5% to £71.5 million, with store revenue decreasing by 10.3%. The company has revised its full-year profit forecast down from £10.0 million to £5.0 million, reflecting the difficult trading conditions.

🎯 Leading Developments

Central Asia Metals' Game-Changing Acquisition

Central Asia Metals plc (#CAML) has agreed to acquire New World Resources' high-grade Antler copper project in Arizona, a move that promises to transform the company's production profile. The Antler Project boasts a post-tax NPV of US$498 million and an IRR of over 30%, with expected annual production of 30,000 tonnes of payable copper equivalent over a 12-year mine life. This acquisition is set to more than double Central Asia Metals' production and cash flow, positioning the company for significant growth in the copper market.

The Antler Project acquisition marks a pivotal moment for Central Asia Metals, potentially reshaping the company's future in the global copper market.

Hammerson's Strategic Moves in Retail Property

Hammerson Plc (#HMSO) has completed the acquisition of Brent Cross, a significant move that strengthens its UK retail property portfolio. The deal was secured at a 16% discount to book value and an attractive 8.6% net initial yield. This strategic acquisition, coupled with strong trading performance and robust leasing activity, underscores Hammerson's confidence in the retail sector's recovery. The company's updated financial guidance, including around 10% total GRI growth for FY2025, suggests a positive outlook for the retail property market.

Time Out Group's Media Division Struggles

Time Out Group plc (#TMO) is facing challenges in its Media division, with revenues expected to decline by around 20% due to local commercial conditions in the USA. The company is now reviewing its Media strategy to improve profitability and visibility. Despite these headwinds, Time Out's Markets business continues to grow in line with expectations. The company expects adjusted Group EBITDA for FY25 to be between £11-£13 million, reflecting the mixed performance across its divisions.

📅 Week Ahead

22 May 2025: Investec Group (#INVP) Full year results release
22 May 2025: Johnson Matthey Plc (#JMAT) Announcement of results for the year ending 31st March 2025
22 May 2025: Tate & Lyle plc (#TATE) Announcement of full-year results
22 May 2025: Hiscox Ltd (#HSX) Capital Markets Day
23 May 2025: AJ Bell plc (#AJB) Announcement of interim results

View full calendar

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