FTSE 250 movers: Volution soars, Hammerson slumps

(Sharecast News) - FTSE 250: 19,698.25, -0.77% at 1440 GMT. Property developer Hammerson narrowed annual losses and said it was looking to cut costs further amid the tougher economic outlook.

The company, which owns shopping centres posted a £164m loss for 2022, compared with a loss of £429m a year earlier, and largely due to a £282m revaluation deficit.

"Whilst we remain very mindful of the uncertain macroeconomic outlook, we have a strong operational grip on the business and are targeting a further 20% reduction in gross administration costs by the end of 2024, and to complete the £500m disposal programme by the end of the year. We have strong momentum and are well placed to deliver another year of robust underlying earnings and cashflow and anticipate a return to cash dividends during the year," the company said on Thursday.

Footfall at its retail locations improved 11% during the year, ending the year at 90% of pre-Covid pandemic 2019 levels. Hammerson said positive footfall and sales trends had continued into the first few months of the year.

Shares in Domino's Pizza Group fell as much as 10% as the company's 2023 outlook disappointed due to higher interest costs and investments in technology.

The company said it expects underlying core profit this year to be within market expectations for £137.6m, excluding about £9m from investments in two new cloud-based IT systems.

Volution Group reported a jump in half-year profits on Thursday, boosted by strong demand across the UK residential market.

The FTSE 250 firm, which makes products intended to improve indoor air quality, said revenues in the six months to 31 January rose nearly 9% to £162.3m, while adjusted operating profits were ahead 7% at £34.2m.

Reported pre-tax profits rose 6% to £22.6m.

The performance was driven by strong demand in UK residential repairs, maintenance and improvements, the firm noted, with homeowners and landlords addressing mould and condensation issues in particular. Volution said the energy crisis had caused people to reduce heating, thereby exacerbating both mould and condensation risks.

Ronnie George, chief executive, said: "We delivered a strong first-half performance across our three regions, driven in particular by strong residential RMI.

"We have successfully managed inflationary headwinds and supply chain challenges through pricing discipline and inventory optimisation, and in doing so maintained our operating margin at 21%."

Looking to the second half, George added: "Although mindful of the cautious sentiment in some of our segments, residential RMI demand remains supportive and inflationary pressures and supply chain challenges are easing."

FTSE 250 - Risers

Volution Group (FAN) 410.00p 15.49% Close Brothers Group (CBG) 1,104.00p 10.51% Darktrace (DARK) 277.00p 5.77% Tullow Oil (TLW) 32.94p 4.57% Hill and Smith (HILS) 1,366.00p 3.48% Coats Group (COA) 78.50p 2.21% Ibstock (IBST) 171.00p 2.03% Jupiter Fund Management (JUP) 146.40p 1.67% Wood Group (John) (WG.) 221.30p 1.61% 4Imprint Group (FOUR) 4,590.00p 1.44%

FTSE 250 - Fallers

Hammerson (HMSO) 26.22p -10.51% Domino's Pizza Group (DOM) 263.40p -7.77% National Express Group (NEX) 134.10p -5.96% Aston Martin Lagonda Global Holdings (AML) 269.10p -5.58% Petershill Partners (PHLL) 166.00p -4.93% CLS Holdings (CLI) 139.80p -4.51% Urban Logistics Reit (SHED) 132.00p -4.35% BlackRock World Mining Trust (BRWM) 684.00p -4.34% Workspace Group (WKP) 472.40p -4.18% Warehouse Reit (WHR) 102.40p -4.12%