Tech Tumbles, Real Estate Rises: Pre-Market Shakeup on LSE

📈 Today's Key Themes

Pre-market sentiment on the London Stock Exchange is mixed as technology companies face headwinds while real estate firms show resilience. The tech sector is bracing for a potential sell-off following Eagle Eye Solutions' loss of a major US contract, while real estate giants like Sirius Real Estate report impressive profit growth. Industrial companies present a mixed bag, with ME Group International posting record profitability contrasting with challenges faced by others. Healthcare firms continue to struggle with widening losses, adding to the complex market landscape as trading opens.

💡 Company Updates

Annual Results

Sirius Real Estate Limited (#SRE) has delivered a stellar performance, with profit before tax surging 75% to €201.6m. Total revenue increased by 9.9% to €317.5m, underpinned by like-for-like rent roll growth of 6.3%. The company's cash position has strengthened significantly to €571.3m from €214.5m. With a sentiment score of "GOOD", analysts praise the robust organic growth and strategic acquisitions driving Sirius's performance. In contrast, Trellus Health plc (#TRLS) reported widening losses, with adjusted EBITDA loss increasing to $7.2m from $5.8m in the previous year. Despite revenue growth to $114k, the company faces a material uncertainty about its ability to continue as a going concern. With a "BAD" sentiment score, the financial results raise concerns about Trellus Health's long-term viability without additional funding. Bigblu Broadband plc (#BBB) also faces significant challenges, reporting a widening loss from continuing operations of £3.138m. The company's cash position has plummeted from £3.632m to just £26k, while net debt has surged from £1.5m to £6.5m. With a "BAD" sentiment score, analysts express concern over the company's liquidity and its ability to navigate current market conditions.

Trading Updates

ME Group International plc (#MEGP) reports record first-half Group profitability, driven by strong performance in its Revolution laundry business. Laundry operations revenue is up 13.3% (15.7% at constant currency). With a "VERY_GOOD" sentiment score, the company remains on track to deliver full-year profit in line with expectations, signaling positive momentum in the industrial sector.

🎯 Leading Developments

Eagle Eye Solutions Group plc (#EYE) has lost a high-margin US contract worth £9-10 million in annual revenue, effective from 2 August 2025. This significant setback is expected to impact near-term earnings, although the company projects a return to double-digit revenue growth and 20% adjusted EBITDA margin in FY27. With a "BAD" sentiment score, this development could have broader implications for investor confidence in the tech sector. On a more positive note, Capita plc (#CPI) has secured a £37 million contract to deliver pensions administration services for a global parent company's UK pension schemes. The five-year contract, with an option to extend for an additional year, represents a significant new revenue stream for Capita's Pension Solutions business. With a "GOOD" sentiment score, this win could boost investor confidence in Capita's turnaround efforts. FirstGroup plc (#FGP) has announced a new open access rail service between London Euston and Stirling, Scotland, to be operated under the Lumo brand. The service is expected to generate annual revenues of around £50m with a low double-digit operating profit margin. With a "GOOD" sentiment score, this development showcases FirstGroup's ability to capitalize on opportunities in the open access rail market. CyanConnode Holdings plc (#CYAN) has signed a contract valued at approximately £70 million to deploy 750,000 smart meters in Goa, India. This represents a significant revenue opportunity for the company, equivalent to over 2.5 times its current market capitalization. With a "GOOD" sentiment score, this contract win could drive renewed interest in CyanConnode's growth potential.

📅 Week Ahead

3 June 2025: Pennon Group Plc (#PNN) Announcement of full year results
3 June 2025: Chemring Group PLC (#CHG) Interim results for the six months ended 30 April 2025
3 June 2025: Kier Group plc (#KIE) Capital Markets Event
4 June 2025: B&M European Value Retail S.A. (#BME) Preliminary Results Announcement
4 June 2025: Paragon Banking Group PLC (#PAG) Publication of half-year results
4 June 2025: Ninety One Group (#N91) Full-year results for the year ended 31 March 2025
5 June 2025: Wise plc (#WISE) FY25 results
5 June 2025: Wizz Air Holdings Plc (#WIZZ) Full Year 2025 results
5 June 2025: Mitie Group plc (#MTO) FY25 results release
5 June 2025: CMC Markets Plc (#CMCX) FY 2025 Results

View full calendar

Market Summary