Tech Surge and Financial Strain: LSE Pre-Market Landscape Shifts

📈 Today's Key Themes

The London Stock Exchange pre-market landscape is characterized by a stark contrast between sectors. The technology and industrial sectors are showing remarkable strength, exemplified by Filtronic plc (#FTC)'s exceptional 120% revenue surge. Conversely, financial services companies like Liontrust Asset Management PLC (#LIO) face significant headwinds, reporting profit declines. Strategic moves, including Brave Bison Group plc (#BBSN)'s transformative acquisition and MaxCyte, Inc. (#MXCT)'s AIM delisting, are reshaping market dynamics. The overall sentiment leans positive for tech and industrials but remains cautious for financial and energy sectors.

💡 Company Updates

Annual Results

Liontrust Asset Management PLC (#LIO) reported challenging annual results, with adjusted profit before tax down 28.2% to £48.3 million. The company's assets under management and advice (AuMA) fell 18.7% to £22.6 billion, reflecting the difficult market conditions faced by the asset management sector. The adjusted operating margin contracted from 35.5% to 29.4%, indicating increased cost pressures. Despite these headwinds, Liontrust maintained a strong liquidity position, which could provide some stability moving forward. Marks Electrical Group PLC (#MRK) faced a challenging year, reporting a shift to an annual loss of £1.44 million, down from a £0.43 million profit last year. While revenue increased by 2.6% to £117.2 million, the company's gross profit margin declined from 25.4% to 24.4%. The adjusted EBITDA margin also fell from 4.4% to 3.6%, reflecting the impact of rising costs and challenging market conditions in the retail sector.

Trading Updates

Filtronic plc (#FTC) delivered an exceptional trading update, reporting a 120% surge in revenue to £56.3 million. The company's adjusted EBITDA is expected to be no less than £16.6 million, significantly exceeding market expectations. With a strong net cash position of £12.3 million, Filtronic is well-positioned to capitalize on growing opportunities in the European space and aerospace/defence markets. Hargreaves Services Plc (#HSP) provided a positive pre-close trading update, expecting to report revenue and profit ahead of market forecasts. The company's Services and German joint venture divisions are driving this growth, with additional contract wins and improved profitability in steel waste recycling operations. Hargreaves Services maintains a healthy cash position of £23.3 million, further strengthening its financial outlook. Ultimate Products Plc (#ULTP) issued a cautionary trading update, warning of lower profits due to weaker consumer demand and order deferrals. The company now expects FY25 revenue to be approximately 4% lower than last year, with adjusted EBITDA forecast at around £12.5 million, below the current consensus of £14.3 million. This update reflects the ongoing challenges in the consumer goods sector.

🎯 Leading Developments

Strategic Acquisitions and Divestments

Brave Bison Group plc (#BBSN) has agreed to acquire MiniMBA, a leading online training platform for marketing professionals, in a transformative deal worth £19 million. This acquisition is expected to increase Brave Bison's pro-forma net revenue by 43% to £36.5 million and Adjusted EBITDA by 80% to £8.1 million. The transaction is set to be significantly accretive, increasing Adjusted Basic EPS by approximately 21% on a pro-forma basis. This strategic move positions Brave Bison as a leading marketing and technology partner for global brands. Read more In a related development, Centaur Media Plc (#CAU) has signed a conditional agreement to sell its MiniMBA division to Brave Bison Group plc for an enterprise value of £19 million. This represents a favorable valuation of 6.7x FY24 Operating Profit for the asset. The transaction is expected to unlock significant shareholder value for Centaur Media, with the Board intending to consult shareholders on the approach to return capital. Read more

Market Exits and Restructuring

MaxCyte, Inc. (#MXCT) has announced the cancellation of its shares from trading on the AIM market, with the last day of dealings set for June 25, 2025. This delisting represents a significant change for UK investors, as MaxCyte's shares will continue to trade solely on the Nasdaq Global Select Market. The move could potentially impact liquidity for UK-based shareholders and may influence the company's visibility in the London market. Read more

Capital Raising Activities

Zephyr Energy plc (#ZPHR) has raised £10.5 million through an oversubscribed placing, but at a 20% discount to the previous share price. While the funds will be used for immediate production, Paradox project development, and Williston Basin growth, the significant discount suggests low investor appetite. This capital raise, representing 17% of the enlarged share capital, indicates potential ongoing challenges for the company and may impact market sentiment in the energy sector. Read more

📅 Week Ahead

26 June 2025: Inchcape plc (#INCH) Pre-close trading update
26 June 2025: AO World plc (#AO.) FY25 final results announcement
26 June 2025: Volex plc (#VLX) Preliminary FY2025 results
26 June 2025: Foresight Group Holdings Limited (#FSG) Full Year Results to 31 March 2025 announcement
26 June 2025: MaxCyte, Inc. (#MXCT) Cancellation of admission to trading on AIM
27 June 2025: CC Japan Income & Growth Ord (#CCJI) Publication of results for the six months ended 30 April 2025
27 June 2025: Brave Bison Group plc (#BBSN) Dividend payment date

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Market Summary