Fuller's Toasts Success as Property and Manufacturing Sectors Face Headwinds

📈 Today's Key Themes

The London market is poised for a mixed opening as pre-market announcements reveal a stark contrast in sector performances. Fuller, Smith & Turner leads the pack with impressive annual results, showcasing the resilience of the hospitality sector. However, property and manufacturing companies face significant challenges, with TR Property Investment Trust reporting substantial losses and Castings P.L.C. seeing a sharp drop in profits. The venture capital sector shows promise, with Molten Ventures demonstrating improved performance. Across the board, margin pressures and cost inflation emerge as key concerns, potentially impacting overall market sentiment.

💡 Company Updates

Annual Results

Fuller, Smith & Turner (#FSTA) has delivered a stellar performance, with adjusted profit before tax soaring 32% to £27.0 million. The pub and hotel operator reported a 4.8% increase in revenue to £376.3 million, driven by strong like-for-like sales growth of 5.2% across all categories. Operating margins improved from 9.6% to 10.7%, demonstrating effective cost management. The company's adjusted earnings per share jumped an impressive 40% to 34.22p. This robust performance underscores the resilience of the hospitality sector and positions Fuller's well for continued growth. In contrast, Castings P.L.C. (#CGS) faced significant headwinds, reporting a 76% drop in operating profit to £4.8 million. The industrial machinery manufacturer saw revenue decline by 21% to £177.0 million, reflecting reduced demand from key customers and increased electricity costs. The company's cash position also weakened, falling from £32.5 million to £15.6 million. Despite these challenges, Castings maintained its final dividend at 14.19 pence per share, signalling confidence in its long-term prospects. TR Property Investment Trust (#TRY) reported a significant downturn, swinging from a profit of £196.3 million last year to a loss of £27.4 million. The trust's NAV per share decreased by 6.9% to 327.16p, while its share price declined by 9.5% to 294.00p. Despite these challenges, the trust increased its total dividend by 1.3% to 15.90p per share. The results reflect the broader challenges facing the property sector, with heightened volatility and macro headwinds impacting performance.

Trading Updates

Ibstock (#IBST) provided a mixed trading update, reporting robust demand but facing margin pressures in a more competitive market. The building materials manufacturer has seen activity levels well above the prior year period. However, steps taken to add back productive capacity have led to higher than expected incremental fixed costs. The company now expects full year 2025 adjusted EBITDA to be in the range of £77 million to £82 million, compared to £79 million in 2024. This outlook highlights the ongoing challenges in balancing growth with profitability in the current economic climate.

🎯 Leading Developments

In the venture capital space, Oakley Capital Investments (#OCI) has made a significant move by acquiring a majority stake in G3, a global strategic advisory consultancy. Oakley Capital's indirect contribution via Fund VI is anticipated to be around £18 million. This investment taps into the growing market for strategic risk advisory services and demonstrates confidence in G3's strong, double-digit growth in recent years. Read more Helium One Global (#HE1) has reached a crucial milestone in its development, finalizing negotiations on regulatory framework agreements for its southern Rukwa project in Tanzania. The company has agreed to a 17% government free carried interest and expects the formal award of the Mining Licence shortly. This progress paves the way for the incorporation of the joint venture company, Songwe Helium Ltd, marking a significant step towards commercializing Tanzania's helium resources. Read more In a positive development for its Asian expansion, Ten Lifestyle Group (#TENG) has secured a new multi-year contract with a leading Japanese financial services provider. The contract, categorized as 'Medium' with an annual value between £0.25m and £2m, is expected to support revenue growth in FY 2026. This win strengthens Ten's presence in the Japanese market and demonstrates the company's ability to attract high-profile clients in key growth regions. Read more

📅 Week Ahead

12 June 2025: Halma plc (#HLMA) Full Year Results
12 June 2025: PayPoint plc (#PAY) Preliminary results for the financial year ended 31 March 2025
12 June 2025: Origin Enterprises plc (#OGN) Q3 trading update and FY 2025 guidance
12 June 2025: IDOX plc (#IDOX) Reporting of FY25 H1 results
12 June 2025: Norcros plc (#NXR) Full year results for the year ended 31 March 2025
12 June 2025: Motorpoint Group Plc (#MOTR) Full Year Results
12 June 2025: Mind Gym plc (#MIND) Announcement of FY25 results
12 June 2025: General Accident Plc (#GACA) Cancellation Settlement Date, if Cancellation is implemented
12 June 2025: HarbourVest Global Private Equity Ltd. (#HVPE) Capital Markets Day
13 June 2025: Lancashire Holdings Limited (#LRE) Final ordinary dividend payment

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