Mixed Signals: NewRiver REIT Shines as MJ Gleeson Stumbles in Pre-Market Updates

📈 Today's Key Themes

Pre-market updates on the London Stock Exchange paint a picture of contrasting fortunes across sectors. The real estate and construction industries are particularly in focus, with NewRiver REIT (#NRR) reporting robust growth, while MJ Gleeson (#GLE) issues a profit warning. The energy sector shows promise, exemplified by Helium One Global (#HE1)'s successful drilling operation. However, several smaller companies across various sectors are grappling with financial challenges, indicating a mixed sentiment in the market.

💡 Company Updates

Annual Results

NewRiver REIT (#NRR) has delivered a stellar performance in its preliminary results for the year ended 31 March 2025. The retail property specialist reported a significant 39% surge in revenue to £90.5m, with IFRS profit after taxation soaring to £23.7m from £3.0m. Underlying Funds From Operations grew by an impressive 25% to £30.5m. The company maintains a high portfolio occupancy of 96.1%, although its LTV increased to 42.3% due to the Capital & Regional acquisition. The market is likely to react positively to these robust results, which demonstrate resilience in the face of challenging market conditions. In stark contrast, MJ Gleeson (#GLE)'s trading update has raised concerns. The housebuilder warns of lower profit margins in its Gleeson Homes division, with the gross margin for FY2025 expected to be around 1% lower than previously forecast. Operating profit is anticipated to be 15-20% below current market expectations, partly due to a planned land disposal not proceeding. This news is likely to put pressure on the company's share price and may have broader implications for the housing sector. Chesterfield Special Cylinders Holdings (#CSC) reported widening losses in its 2025 interim results. Revenue decreased to £5.4 million from £6.5 million in H1 2024, while the adjusted EBITDA loss widened to £1.3 million from £0.7 million. The gross profit margin contracted from 23% to 19%. However, the company's order book grew to £18.0 million from £14.9 million, providing some hope for future performance. Directa Plus (#DCTA) faced significant challenges in its final results for 2024. The graphene-based products manufacturer saw revenue plummet 37% to €6.66m, while loss before tax increased 25% to €5.37m. The adjusted LBITDA worsened by 42% to €3.64m. Despite these setbacks, the company's cash position improved to €4.98m due to a capital raise, providing some financial buffer.

🎯 Leading Developments

In the energy sector, Helium One Global (#HE1) has successfully drilled the State-9 well to a total depth of 1,225ft, confirming the presence of free gas and high-quality, gas-saturated sands. The well encountered 60ft of high-quality, gas-saturated sands, with free gas confirmed during drilling and at total depth. This development could potentially boost investor confidence in the company and the broader energy exploration sector. Read more Pri0r1ty Intelligence Group (#PR1) has completed a £1.05 million fundraise through a share placing. The technology company plans to use the proceeds to support its business operations, fund growth opportunities, and explore cryptocurrency integration. Additionally, the company has signed a non-binding term sheet to acquire Halfspace Limited, an award-winning sports data management business, signaling potential strategic expansion. Read more Rainbow Rare Earths (#RBW) is conducting extensive test work and trade-off studies to optimize the capital and operating costs of its Phalaborwa project in South Africa. The company has established an in-house laboratory in Johannesburg, focusing on optimizing the leaching circuit, which represents 80% of the project's cost base. This development demonstrates the company's commitment to enhancing the project's economics and competitiveness. Read more

📅 Week Ahead

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
4 June 2025: discoverIE Group plc (#DSCV) Full Year Results announcement
5 June 2025: Wise plc (#WISE) FY25 results
5 June 2025: Wizz Air Holdings Plc (#WIZZ) FY2025 results release
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