FTSE 250 movers: Senior, Bridgepoint provide a boost
By Frank Prenesti
Date: Tuesday 24 Jan 2023
(Sharecast News) - FTSE 250: 19,887.40, +0.43% at close.
Private equity firm Bridgepoint has announced a share buyback programme of up to £50m.
The programme, which will begin immediately, is expected to be completed on or before 30 September.
"Bridgepoint's strategy and growth agenda, including its approach to diversification, remains unchanged," it said.
"This buyback programme reflects the board's confidence in Bridgepoint's fundamental value and long-term prospects, at a time when short-term market dislocations mean that there is value in allocating capital to repurchase the company's shares.
"The buyback programme represents a targeted use of below 20% of the company's current net cash given the value the board sees in the current valuation."
At 1300 GMT, the shares were up 7.2% at 244.40p.
Broker Peel Hunt, which rates the shares at 'add', said the buyback was "sensible".
"The board has specifically stated this reflects the value which it sees given the current valuation of the shares," said analyst David McCann.
"We think this in turn may implicitly signal a degree of confidence in its ability to complete the targeted €7bn fund VII fund-raise and other strategic objectives. Whilst this will reduce the group firepower a little, the announcement states it will represent less than 20% of group net cash, and we also note that any meaningfully sized acquisition would likely have required the use of new share capital regardless.
"We concur that the shares are modestly undervalued by the market, we see this as a sensible use of some of the capital available and an important signal of board confidence in the prospects. We continue to think Bridgepoint is inexpensive on an absolute basis. We still much prefer the more diversified ICG and Petershill in the UK listed private markets space."
Senior said on Tuesday that adjusted pre-tax profit for 2022 was set to be above the top end of the range of consensus expectations following a strong performance from its Flexonics division.
The range is between £16.2m and £18m.
In a brief statement, Senior - which makes high technology components and systems, mainly for the aerospace & defence, land vehicle and power & energy markets - hailed a strong end to the year in Flexonics and an in-line performance from the aerospace segment.
"Trading in the Flexonics division has been ahead of previous expectations, driven by strong customer demand in the land vehicle and power & energy markets," it said.
"In particular, demand for heavy duty truck and the levels of maintenance and overhaul in power & energy have improved since the last trading update."
At 1305 GMT, the shares were up 9.2% at 148.98p.
Jefferies reiterated its 'buy' stance on the shares. "This is a positive update, and while short, we welcome the better-than-expected trading and improving trends in Flexonics," it said.
"The resultant upgrade to FY22F consensus should be well-received by the market, and should be a welcomed fillip for investors. We would expect the shares to go nicely better on the back of this update. We also remain upbeat/confident about the Aerospace recovery over the next few years, which bodes well for the group's wider recovery potential."
FTSE 250 - Risers
Senior (SNR) 149.00p 9.24%
Bridgepoint Group (Reg S) (BPT) 245.20p 7.54%
TBC Bank Group (TBCG) 2,350.00p 5.15%
PureTech Health (PRTC) 269.50p 5.07%
Baltic Classifieds Group (BCG) 151.60p 4.55%
easyJet (EZJ) 469.50p 4.33%
ASOS (ASC) 775.50p 4.30%
Future (FUTR) 1,569.00p 4.11%
Ascential (ASCL) 207.80p 3.38%
IntegraFin Holding (IHP) 324.80p 3.05%
FTSE 250 - Fallers
Harbour Energy (HBR) 315.10p -3.40%
Hikma Pharmaceuticals (HIK) 1,670.50p -2.51%
International Distributions Services (IDS) 226.30p -2.46%
Wood Group (John) (WG.) 147.00p -2.23%
Tullow Oil (TLW) 36.68p -2.19%
Digital 9 Infrastructure NPV (DGI9) 92.40p -2.01%
Apax Global Alpha Limited (APAX) 176.00p -1.90%
Supermarket Income Reit (SUPR) 98.60p -1.89%
Volution Group (FAN) 387.00p -1.78%
Serco Group (SRP) 154.00p -1.66%
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