FTSE 250 movers: Workspace slumps; Premier Foods on the menu

(Sharecast News) - FTSE 250 (MCX) 20,936.42 0.44% Office landlord Workspace Group warned on profits on Friday, sending the shares sharply lower, on the back of higher costs and mounting macroeconomic pressures.

Updating investors ahead of publishing full-year results, the flexible workspace provider - which manages around 4.2m sq ft of space in London and the south east - confirmed trading profits for the year to 31 March 2025 would be line with consensus.

But it also flagged a decline in occupancy and a "marginal" fall in valuation, due to reduced estimated rental value per sq ft, and warned of profit headwinds in the current year.

In particular, the real estate investment trust said "several factors" would impact the year to March 2026, including a lower opening rent roll, further large unit vacations and higher costs, including employers' National Insurance contributions and refinancing costs.

As a result, it now expects a £7m hit to profits. Consensus is currently for 2026 trading profits of between £66m and £72m.

As at 0845 BST, the FTSE 250 stock was trading 10% lower at 408.07p.

Workspace said it would now focus on implementing a recently agreed strategic plan, which was intended to "drive a recovery in occupancy and income growth in the medium term.

"We will also demonstrate how we will deliver longer-term shareholder value through a strategy anchored in operational excellence.

"This disciplined approach will drive enhancements to the platform, investment in our product and more targeted marketing initiatives to support customer growth and increase market share."

Further details will be published alongside the results, on 5 June.

Future shares fell on Friday as the specialist publisher cautioned that it expected a low single-digit decline in full-year organic revenue amid economic uncertainty.

The company, which owns the Go.Compare price comparison website, posted a 21% increase in pre-tax profit to £56.6m for the six months to March. Operating profit rose 8% to £69.1m, driven by lower exceptional costs, and it also a new £55m share buyback.

Revenue fell 3% to £378.4m, as growth in the first quarter was offset by uncertain macroeconomic sentiment in March, impacting US direct advertising, although this recovered in April.

"At this stage, given ongoing macroeconomic uncertainty, the group believes it is prudent to adopt a more cautious view on the second half and expects a low single-digit decline in full-year organic revenue," the company said, adding that forex headwinds were also an issue.

In the business-to-consumer division - Future's largest - organic revenue was flat in the period with "excellent" performance in magazines offset by decline in media, driven by digital advertising.

Revenues at Go.Compare fell 1% as the volume of car insurance quotes decreased, although revenue from non-automotive insurance quotes surged by10%.

Future said it continued to expect to deliver a stable adjusted operating margin of 28% alongside continued strong cash generation.

Shares in Premier Foods rose again after the food manufacturer on Thursday hiked its dividend significantly and reported strong branded volume growth and trading profits ahead of expectations for the year ended 29 March.

Close Brothers surged after RBC Capital Markets lifted its price target on Thursday to 400p from 340p as it suggested there might be "light at the end of the tunnel" for the troubled finance house.

FTSE 250 - Risers

Close Brothers Group (CBG) 367.80p 6.61% Premier Foods (PFD) 211.50p 5.49% Greggs (GRG) 2,040.00p 4.35% W.A.G Payment Solutions (WPS) 61.40p 4.07% Auction Technology Group (ATG) 501.00p 3.19% Lion Finance Group (BGEO) 6,355.00p 3.00% Burberry Group (BRBY) 992.40p 2.75% Trainline (TRN) 277.40p 2.66% TBC Bank Group (TBCG) 4,575.00p 2.58% Mitchells & Butlers (MAB) 273.00p 2.44%

FTSE 250 - Fallers

Workspace Group (WKP) 416.50p -8.26% Future (FUTR) 703.00p -5.64% Ferrexpo (FXPO) 65.70p -4.23% Hochschild Mining (HOC) 263.20p -3.80% Aston Martin Lagonda Global Holdings (AML) 77.45p -2.70% Bodycote (BOY) 547.50p -2.23% RS Group (RS1) 585.00p -1.85% Mobico Group (MCG) 28.06p -1.82% Watches of Switzerland Group (WOSG) 407.60p -1.64% Renishaw (RSW) 2,705.00p -1.64%