Wickes share crash as cost of living crisis bites
Wickes saw its shares crash 18.11% after warning that full-year profits would be below expectations as the cost-of-living crisis takes its toll on consumers.
The home improvement retailer is now forecasting adjusted pre-tax profits for the current year of £72mln-£82mln, down from its previous forecast of £83mln and below the £85mln recorded in the year to 1 January 2022.
Liberum analyst Wayne Brown said although there would be some disappointment at the news it reflects the tougher wider consumer backdrop rather than anything company specific.
He added H1 performance was robust and it would still be a commendable FY outturn in the current environment if the new guidance is hit.
Corero Network Security plunges despite upbeat assessment
Corero Network Security was a loser in the market on Tuesday despite delivering a positive trading update.
Despite the upbeat nature of the news shares in the group slid 8.56% to 10.15p.
The AIM listed provider of real-time cyber defence solutions reported an increase in order intake in the six months to June 30th, up 22% to c.$10.9mln (H1 2021: $8.9mln).
Revenues for H1 2022 increased c.6% to c.$8.8mln (H1 2021: $8.3mln) and annualised recurring revenue rose c.21% in H1 2022 to c.$13.6mln (H1 2021: $11.2mln), driven by growth in DDoS Protection-as-a-Service and software subscription orders.
Lionel Chmilewsky, CEO of Corero, said:
"We are delighted to report another strong six months of further operational momentum and strategic growth for Corero. With both ARR and bookings growth maintaining their positive trajectory across the first half of the year, it further underpins our focus on new business.”
DotDigital's top end numbers send shares soaring
Dotdigital pleased the market with a trading update with FY results seen at the top end of analyst expectations.
Shares rocketed 26% to 97.20p as the AIM listed provider of an omnichannel marketing automation and customer engagement platform forecast revenue growth of circa 8% to £62.8m and said adjusted EBITDA and adjusted operating profit were both expected to be ahead of expectations.
The company will report its FY results in November and is in bullish mood highlighting strong cash generation, growth in email messaging and an intention to pay a final dividend.
Milan Patel, CEO of Dotdigital, commented: "The Group has delivered a strong trading period, with growth at the top end of expectations and profitability ahead of expectations.
"The market opportunity remains buoyant, underpinned by the structural move to digital marketing. According to the 28th Edition of The CMO Survey published in February 2022, digital marketing spend, which currently accounts for 57.1% of marketing budgets, is expected to grow by 16.2% over the next year.”
"We remain cognisant of broader macro-economic uncertainty but enter the new financial year in a position of strength across our markets.”
Bridgepoint an asset to FTSE 250 as H1 impresses
Bridgepoint Group topped the FTSE 250 risers on Tuesday after strong H1 results were combined with positive comments for the future..
Shares in the asset management company soared 11.65% to 255p after the company reported a 15% and 17% increase in EBITDA and revenue respectively compared to 2021 H1 and said underlying fund performance was ahead of expectations.
Total assets under management of EUR37.1bn were 13% higher than year-end and up 30% from H1 2021, Bridgepoint said.
Commenting on this performance, William Jackson, Bridgepoint chairman, said: "Our results for H1 2022 reflect the resilience and continued strong progress of our business despite a much more volatile market backdrop than expected at the start of the year.
"Looking forward, we expect market volatility and inflation pressures to continue and have positioned our investment activity accordingly. We will not be immune to macroeconomic events but believe our funds are well positioned for current conditions.”
"We are excited by the strategic growth prospects for the Group as we continue to progress our business development plans and remain confident in Bridgepoint's ability to deliver attractive returns for our fund investors and our shareholders alike," he added.