Tech and Retail Stumble as Real Estate Firms Show Resilience in Pre-Market Updates

📈 Today's Key Themes

Pre-market announcements paint a challenging picture for the tech and retail sectors, with several companies reporting significant profit declines despite revenue growth. Auction Technology Group, Pets at Home, and iomart Group all face margin pressures and integration challenges. In contrast, the real estate sector shows signs of resilience, with Harworth Group securing a major credit facility and Workspace Group executing strategic disposals. This sector divergence, coupled with strategic acquisitions and financing activities across industries, suggests a mixed opening for the market with sector-specific variations in sentiment.

💡 Company Updates

Annual Results

Auction Technology Group (#ATG) reported a challenging full-year performance, with revenue up 9.2% to $190.2m but swinging to an operating loss of $134.2m, including a $150.9m goodwill impairment. The company's adjusted EBITDA declined by 4.0% to $76.8m, with margins contracting from 45.9% to 40.4%. Despite strong cash flow conversion, the increase in adjusted net debt to $174.0m from $114.7m raises concerns. The outlook for FY26 suggests further margin pressure, contributing to a negative sentiment surrounding the stock.

Half-Year Results

Pets at Home Group (#PETS) faced significant headwinds in its half-year results, reporting a 33.5% drop in underlying profit before tax to £36.2m. While group consumer revenue marginally increased by 0.7% to £1,055.8m, the retail segment struggled with a 2.3% revenue decline. The company's shift from a net cash position to net debt of £12.0m and the initiation of a £20m cost-cutting program underscore the challenges ahead, despite some resilience in its Vet Group.

iomart Group (#IOM) reported mixed half-year results, with revenue up 25% to £77.7m, largely driven by the Atech acquisition. However, the company faced an adjusted loss before tax of £2.5m compared to a £4.3m profit last year. Organic revenue declined by approximately £6.0m, and adjusted EBITDA decreased to £12.9m from £17.0m. The increase in net debt to £109.6m and ongoing market challenges contribute to a negative sentiment for the stock.

🎯 Leading Developments

Real Estate Sector Shows Resilience: Harworth Group (#HWG) has secured a new £275 million Revolving Credit Facility with improved terms, including an extended maturity and reduced costs. This transformational financing event provides the company with increased flexibility to invest in its pipeline of sites. The facility replaces the existing £240 million facility, extending the debt maturity by around 2.5 years. This development is seen as very positive, supporting the company's future growth and strategic initiatives. Read more

Strategic Acquisition in Specialty Chemicals: Elementis (#ELM) has completed the acquisition of Alchemy Ingredients Limited, a UK-based personal care specialist. This strategic move strengthens Elementis' position in the growing natural skincare market, bringing complementary products and technologies that can be leveraged through the company's global sales and distribution network. The acquisition is expected to be accretive, with Alchemy's FY25 revenue forecast over $6m and attractive margins. Read more

CEO Contract Renewal with Revised Compensation: Georgia Capital (#CGEO) has renewed CEO Irakli Gilauri's employment contract for a further three years, introducing a new compensation structure. The revised structure includes a cash salary, annual bonus, and Long-Term Incentive Plan (LTIP) with ambitious total shareholder return (TSR) targets. This move aims to better align management and shareholder interests, reflecting recent share price strength while focusing on strategy, capital allocation, and management development. Read more

Strategic Portfolio Disposal: Workspace Group (#WKP) has announced the £41.7m disposal of three assets, aligning with its portfolio management strategy. The sale was in line with the September 2025 valuation and at a net initial yield of 7.9%. This move is part of Workspace's 'Fix, Accelerate and Scale' strategy, with a target of £200m of disposals within two years to optimize its portfolio. The strategic disposal demonstrates the company's proactive approach to portfolio management and value creation. Read more

📅 Week Ahead

27 November 2025: Safestore Holdings Plc (#SAFE) Fourth Quarter Trading Update
27 November 2025: Gelion plc (#GELN) to announce full year results and host investor presentation
28 November 2025: Haleon plc (#HLN) Q4 2025 Trading Update
28 November 2025: Mitchells & Butlers plc (#MAB) Release of Final Results
28 November 2025: Custodian Property Income REIT plc (#CREI) Interim quarterly dividend payment
28 November 2025: genedrive plc (#GDR) Expected date for next annual results announcement

View full calendar

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