Hilton Food Group PLC (LSE:HFG) topped the FTSE 250 fallers after warning on full-year profits after posting a drop in interim pre-tax profits to £34.4mln, down 3.9%.
The group cautioned "Across our markets, we have seen volumes come under pressure with the cost of living increasing and consumers becoming ever more cost-conscious.”
“In our Seafood business these trends have been exacerbated with world events leading to unprecedented raw material price increases.”
"Given these factors, and combined with the impact of start-up costs and rising interest rates, the board now anticipates that profitability for the year will be below expectations."
Shares fell 27% to 686.50p and Russ Mould, investment director at AJ Bell said “even food suppliers are finding life hard” as “consumers are watching every penny.”
“That means higher prices for meat and seafood are becoming too much for many people to stomach, feeding into lower sales volumes for Hilton.”
1.45pm: Shares in Wickes advance after robust first half
Shares in Wickes advanced after it delivered record first-half sales performance in what it described as "a challenging macro backdrop".
Interim revenues rose 1.3% year-on-year to £822.3mln with like-for-like sales up 0.8% year-on-year and 23.4% on a three-year basis.
Investec analyst Kate Calvert said “In a challenging environment, Wickes continues to take market share and has delivered a robust first half performance, in-line with our expectations.”
In a note following the results she said there would no change to their full year 2023 pre-tax profit forecast but she did increase the dividend forecast as management guide to a maintained full year payout.
Calvert said “Whilst short term demand is difficult to project, Wickes has multiple self-help growth levers to go after, which we expect to drive market share.”
“With the shares trading on a full year 2023 PE of 6.1x and a forecast 9% DPS yield, the valuation is very undemanding.”
Investec has a buy rating on Wickes.
Zambian agreement boosts Tertiary Minerals
Tertiary Minerals PLC (AIM:TYM) pleased the market with news that it has signed a technical cooperation agreement with First Quantum Minerals (TSX:FQM) Ltd in connection with two of its copper exploration projects in Zambia.
Shares took off, rising 72%, as executive chairman Patrick Cheetham said “"This agreement will turbo-charge Tertiary's Zambian exploration in these two key licence areas.”
The agreements covers Tertiary's Mukai and Mushima North projects.
Together, Tertiary and First Quantum will set up a technical committee to work collaboratively to advance and develop the two projects.
Quantum will also advise and assist Tertiary on the project's technical matters and provide Tertiary with all of its historical exploration data for the two licence areas.
Cheetham added “We are set to benefit from FQM's extensive and in-depth country experience, gained over many years of exploration and mine development in Zambia and, importantly, its site-specific historical exploration in and around these two exciting projects.”
Shares in Big Technologies rise after positive trading update
Big Technologies PLC (AIM:BIG) on Thursday reported double-digit rises in both interim revenue and profit, as it expects its adjusted earnings margin to top current market expectations for 2022.
The group said based on current monthly recurring revenue it expects to deliver full-year revenues of at least £48mln with an adjusted EBITDA margin of in excess of 58%, ahead of current expectations.
Shares were 4% higher at 289p following the news.
At the interim stage the company reported revenues rose by 27% to £22.9mln from £18.0mln a year earlier as a result of "new contract wins and an increase in business from existing customers".
Operating profits rose by 14% to £8.8mln from £8.0mln, despite administrative expenses rising by 53% to £7.5mln from £4.9mln a year ago.
Chief executive officer Sara Murray said: "I am very pleased with our continued growth in revenue and profit during the first half of the financial year, which clearly illustrates the progress we are making against our strategic objectives."
DFS tumbles after profits warning
Shares in DFS Furniture PLC (LSE:DFS) hit the rocks on Thursday as analysts lowered profit forecasts after it reported that profits had dipped in the twelve months ended June 27 and cautioned that sales could fall even further amid a fall in consumer spending.
The furniture retailer said pre-tax profits had fallen 43% to £58.5mln as order numbers "softened markedly" in the fourth quarter of the trading year and the first three months of the new year.
DFS outlined three potential profit scenarios for the current 2022-23 financial year, warning that underlying profits may plunge to £20.0mln-£54.0mln if sales numbers decline by 5% to 15%.
Chief executive Tim Stacey said: "Looking forward, the UK furniture market continues to be challenging and the outlook for the sector remains uncertain given the macroeconomic environment."
Analysts at Peel Hunt said the “retail market for big ticket purchases has been almost impossible and furniture has been no different” as it downgraded profit forecasts for the next two years.
The broker cut its forecast for full year 2023 to £32mln from £65mln and for 2024 to £42mln from £70mln as well as lowering its price target to 200p from 260p.
But on a positive note “history tells us that DFS comes out of crises much stronger and there is no reason that will not happen this time” it said retaining a buy rating.
Citi Research upgrades Tate & Lyle
Tate & Lyle PLC (LSE:TATE) received a boost today as Citi Research put the company on its buy list.
Shares rose 2% after the upgrade to buy from hold with Citi forecasting that the company can deliver 9% normalised EBIT compound annual growth which it said is not appreciated at the current levels of the share price.
Although in the near-term Tate is more exposed to gas inflation than its peers Citi estimated that the downside to consensus EBIT forecasts was limited in full year 2024 once adjusted for pricing and self help.
Citi said it lied the company for its transformational story and defensive characteristics and sees further upside coming from as it narrows the valuation discount to higher multiple ingredients names.