FTSE 250 movers: Chemring takes off as Ferrexpo not so hot

By Frank Prenesti

The FTSE 250 was up 0.33% to 17,620.21 at 1453 BST.

Chemring shares were up as the company said said that it was on track to meet its revenue target for the 2022 fiscal year even as its FY 2023 order book continued to build.

As at 30 September, the aerospace, defence and security specialist said its FY 2022 sales target was fully covered by its order book so that sales for the year to 31 October were seen in line with management’s forecasts.

The company’s order book stood at £678m, versus £488m at the end of April, thanks in part to a £40m tailwind from the strong US dollar.

Looking out to FY 2023, the order book for its Countermeasures & Energetics unit was 93% covered and at its shorter cycle Sensors & Information arm 60% covered.

“Increasing interest rates are not expected to have a material impact on the Group,” it added in a statement.

Volution shares gained as the company posted a rise in full-year profit and revenue on Thursday, as it highlighted good growth across all geographies.

For the year to the end of July, the designer and manufacturer of energy efficient indoor air quality solutions reported a 14.5% jump in adjusted pre-tax profit to £60.9m and a 12.9% increase in revenues to £307.7m.

The company hailed good organic revenue growth across all three regions of the UK, Continental Europe and Australasia. This was delivered through both volume and price, it said.

Volution also said its geographic diversification strategy continues, with revenue from non-UK customers increasing from 58.7% to 61.6% in the year.

Chief executive Ronnie George said: “Our strategic investment in higher levels of component and finished goods inventory, a decision taken over one year ago, has helped underpin excellent service levels and we are delighted with the progress we have made in delivering ‘Healthy air, sustainably’. I am proud of the results our committed employees have delivered in the year.

Shares in gambling outfit 888 were up as it launched its new Africa venture.

Online trading platform CMC Markets said on Thursday that first-half profits are set to be ahead of the previous year following an improvement in underlying market activity through August and September.

In a pre-close trading update for the six months to the end of September, the company said net operating income is expected to be around £153m, up 21% on the same period a year ago.

Leveraged gross client income will come in at around £155m, up 22%, while leveraged net trading revenue is expected to rise 27% to £128m. Non-leveraged net trading revenue is expected to decline 14% on the same period a year earlier to £21m.

CMC said it closed the first six months with a pickup in market volatility and trading volumes, which drove the improvement in operating income.

On the downside, shares in iron ore pellet producer Ferrexpo fell as it reported a sharp fall in third-quarter output on Thursday due to Russia’s blockade of Ukraine’s Black Sea ports.

The company said production slumped 68% year-on-year to 0.8 million tonnes. Sales fell 65% to 1 million tonnes.

“The third quarter of 2022 saw an additional constraint on the Ukrainian railway network with the increase of shipments of grain during the annual harvest season, further to the other demands and constraints facing logistics providers in Ukraine,” said chief executive Jim North.

“We continue to operate in accordance with the volume of sales that we can achieve at the present time and expect to increase production once we have further clarity on logistics corridors.”

“The group continues to adapt to its present circumstances, as demonstrated by our increased focus on producing direct reduction pellets, with this higher grade product typically receiving an additional premium in the market.”

FTSE 250 – Risers

Volution Group (FAN) 330.00p 7.67%
Chemring Group (CHG) 320.50p 5.43%
888 Holdings (DI) (888) 100.80p 4.95%
CMC Markets (CMCX) 232.00p 4.27%
Currys (CURY) 65.30p 4.06%
Wizz Air Holdings (WIZZ) 1,496.00p 3.92%
TUI AG Reg Shs (DI) (TUI) 114.25p 3.82%
Tritax Eurobox (GBP) (EBOX) 62.80p 3.63%
Carnival (CCL) 583.00p 3.63%
Darktrace (DARK) 315.10p 3.55%

FTSE 250 – Fallers

Synthomer (SYNT) 102.50p -8.89%
Ferrexpo (FXPO) 126.00p -4.47%
Vistry Group (VTY) 576.50p -4.39%
NB Private Equity Partners Ltd. (NBPE) 1,570.00p -3.09%
Tullow Oil (TLW) 45.00p -2.51%
Merchants Trust (MRCH) 510.00p -2.49%
Vietnam Enterprise Investments (DI) (VEIL) 622.00p -2.35%
Mitchells & Butlers (MAB) 110.00p -2.22%
Law Debenture Corp. (LWDB) 688.00p -2.13%
Bodycote (BOY) 497.40p -2.09%

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