FTSE 250 movers: Premier Foods on the menu; Ibstock wobbles
By Frank Prenesti
Date: Wednesday 06 Mar 2024
(Sharecast News) - FTSE 250 (MCX) 19,484.92 1.11%
Premier Foods said on Wednesday that it will benefit from £33m increased free cash flow in the financial year to 29 March 2025 after reaching an agreement with the trustee of its pension scheme to suspend pension deficit contribution payments from 1 April 2024.
The company - which owns Bisto, Ambrosia, Bird's and Batchelors, among others - said the suspension of future contributions is taking place earlier than originally expected, "reflecting the strong performance of the pension scheme, following the segregated merger in June 2020".
Administration costs associated with running the pension scheme of around £5m per year and the dividend match mechanism are currently unchanged.
Chief financial officer Duncan Leggett said: "The further significant progress in the funding position of the pension scheme has enabled us to take another important step to expected full resolution of the scheme by the end of 2026.
"This suspension of pension payments substantially increases the free cash flow available to us and presents us with enhanced capital allocation options to deliver on our growth ambitions.
"The scheme has reached this position following strong stewardship by the trustee over many years and we will continue to work collaboratively with them to further de-risk the scheme."
Brick maker Ibstock revealed on Wednesday that revenue and profits had fallen in 2023 amid "difficult market conditions".
Ibstock said revenues were down 21% at £406.0m, as sales volumes reduced in line with UK domestic brick deliveries, while pre-tax profits crashed 71% to £30.0m, and earnings per share were 75% lower at 5.4p.
The FTSE 250-listed group said it had delivered a "resilient performance" against a "challenging market backdrop", with adjusted underlying earnings of £107.0m, down 23% year-on-year, in line with expectations set at the start of the year, underlining "the quality and resilience" of the business. Adjusted underlying earnings margins contracted 70 basis points to 26.5%.
Ibstock also pointed to its "robust year-end balance sheet position", with closing net debt of £101.0m, more than double what it was a year earlier, representing leverage of 1.1x, in the middle of its target range.
It added that activity in the early weeks of 2024 has been "in line with the subdued levels" seen in the latter part of 2023, but stated that while remaining cautious, it currently anticipates "a degree of improvement" as the year progresses.
Chief executive Joe Hudson said: "We have delivered a resilient performance for the year in what have been very difficult market conditions, and I am proud of the way that colleagues across the group have responded in such challenging circumstances. Our results reflect both continued strong execution and the difficult but decisive actions taken to reduce headcount and realign capacity with near-term market conditions. The organisational changes implemented during the second half of the 2023 year have created a leaner, more customer-focused business, which will deliver an enduring benefit for years to come."
Lancashire Holdings reported substantial profit growth and strong underwriting results in its final results on Wednesday.
The FTSE 250 company delivered a profit after tax of $321.5m, swinging from a loss of $15.5m a year earlier and resulting in a 24.7% increase in diluted book value per share (DBVS).
That strong financial performance led Lancashire to announce a special dividend of 50 cents per share on top of the final dividend of 15 cents, as the board also approved a 50% increase to the company's ordinary dividend policy.
It recorded a 16.9% increase in gross premiums written to $1.9bn and a 23.9% rise in insurance revenue to $1.5bn. Lancashire achieved a strong combined undiscounted ratio of 82.6%, or 74.9% on a discounted basis.
Market Movers
FTSE 250 - Risers
Premier Foods (PFD) 156.80p 12.97%
TUI AG Reg Shs (DI) (TUI) 568.50p 8.91%
Genus (GNS) 1,785.00p 5.87%
PureTech Health (PRTC) 197.80p 5.10%
Hipgnosis Songs Fund Limited NPV (SONG) 63.00p 4.48%
Jupiter Fund Management (JUP) 90.35p 3.91%
Wizz Air Holdings (WIZZ) 2,271.00p 3.51%
FDM Group (Holdings) (FDM) 409.50p 3.41%
Oxford Instruments (OXIG) 2,150.00p 3.37%
Mitchells & Butlers (MAB) 243.80p 3.31%
FTSE 250 - Fallers
Ibstock (IBST) 153.50p -3.88%
PPHE Hotel Group Ltd (PPH) 1,245.00p -3.11%
Me Group International (MEGP) 164.00p -1.80%
Lancashire Holdings Limited (LRE) 660.00p -1.71%
Spirent Communications (SPT) 175.10p -1.07%
Rotork (ROR) 324.40p -1.04%
Grainger (GRI) 252.00p -1.02%
Diversified Energy Company (DEC) 919.50p -0.92%
TP Icap Group (TCAP) 188.20p -0.90%
Coats Group (COA) 68.00p -0.87%
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