FTSE 250 movers: Investors put the boot into Dr Martens
By Frank Prenesti
Date: Tuesday 16 Apr 2024
(Sharecast News) - FTSE 250 (MCX) 19,461.17 -1.21%
Dr Martens was the FTSE 250 story of the day for all the wrong reasons as the shares slumped by more than a third on Tuesday - with trading suspended at one point - as the UK bootmaker said chief executive Kenny Wilson would be on his way by the end of the financial year while a fifth profit warning was flagged amid continuing woes in its key US market.
Wilson will be replaced by brand officer Ije Nwokorie, Dr Martens said in a statement.
"There is a wide range of potential outcomes for full-year 2025 given that we have only recently started the year. However, we have assumed that revenue declines by single-digit percentage year-on-year and ... we could see a worst-case scenario of profit-before-tax of around one-third of the 2024 level," it added.
The company issued four profits warnings last year as a tough consumer environment in the US continues to affect sales of its famous boots.
On Tuesday it said USA wholesale revenue was expected to be down by double digits year-on-year, with its autumn/winter order book - which makes up the majority of the second half of US wholesales - forecast to be "significantly" down and hitting profits by £20m.
There would also be a further one-off £35m hit from single-digit cost base inflation and retaining staff.
"As previously communicated, we do not anticipate increasing prices further this year, and therefore in full-year 2025 we are unable to offset cost inflation as we have in prior years," the company said.
"Given the ongoing challenging performance of our US wholesale business, we expect to continue to require the additional inventory storage facilities in this market through 2025, and therefore the majority of the £15m of additional costs incurred in 2024 are expected to repeat."
Online marketplace operator Auction Technology Group reported a 6% improvement in first-half revenue in an update on Tuesday, to $86m, as it narrowed its full-year margin guidance.
"The group now expects its 2024 adjusted EBITDA margin to be 46% due to the mix of revenue with a higher contribution of lower margin value-added services relative to higher margin I&C commission revenue."
QinetiQ shares fell despite reporting a good operational performance in the final quarter of its financial year on Tuesday, in line with market expectations.
Plus500 reported a solid first-quarter performance in an update on Tuesday, with the company tracking ahead of market expectations for the 2024 financial year.
Market Movers
FTSE 250 - Risers
Savills (SVS) 1,060.00p 3.31%
Centamin (DI) (CEY) 128.90p 2.06%
Plus500 Ltd (DI) (PLUS) 2,014.00p 1.77%
Bakkavor Group (BAKK) 116.50p 1.30%
Hochschild Mining (HOC) 148.60p 1.23%
Harbour Energy (HBR) 296.00p 1.16%
North Atlantic Smaller Companies Inv Trust (NAS) 3,610.00p 1.12%
Wood Group (John) (WG.) 141.70p 0.93%
NB Private Equity Partners Ltd. (NBPE) 1,668.00p 0.85%
Endeavour Mining (EDV) 1,726.00p 0.82%
FTSE 250 - Fallers
Dr. Martens (DOCS) 63.90p -32.70%
Auction Technology Group (ATG) 550.00p -11.72%
QinetiQ Group (QQ.) 333.60p -6.76%
TUI AG Reg Shs (DI) (TUI) 585.00p -4.72%
Ferrexpo (FXPO) 45.30p -4.23%
Hays (HAS) 88.60p -4.22%
International Distributions Services (IDS) 218.40p -3.87%
Close Brothers Group (CBG) 443.40p -3.36%
Vesuvius (VSVS) 476.00p -3.15%
Oxford Instruments (OXIG) 2,025.00p -3.11%
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