Daily Stock Market Report (Mon 3 Feb 2025) - ULTP, SDY, SRC, ENSI, CHH, SSTY, FEN

3rd Feb by Graham Neary

82 comments 6614 reads

Good morning!

I'm afraid we have a few profit warnings in the mix today.

12pm: It's a clean sweep of the RNS lineup today. See you tomorrow!

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
Sigmaroc (LON:SRC) (£814m)	FY TU	2024 earnings “modestly ahead” of consensus, improved margins. FY25 outlook unchanged.	AMBER (Roland) Upgraded earnings expectations are encouraging, as are progress on deleveraging and integration of acquisitions. A P/E of 8 might offer value, but low margins and relatively high debt levels mean I remain neutral for now.
Speedy Hire (LON:SDY) (£124m)	TU	Profit warning. Challenging start to Q4 (Jan-March), ongoing macro uncertainty. Net debt £123m.	BLACK (AMBER) (Graham) The economy and CP7 are singled out as reasons for this severe profit warning. Long-term it might still be a winner but I'd prefer to be neutral as we saw a similar profit warning in early 2024. Too accident-prone.
Ultimate Products (LON:ULTP) (£87m)	TU	Profit warning. PBT estimate cut by 36% for FY25 to £11m, cut by 27% for FY26 to £13.7m (Zeus).	BLACK (AMBER/GREEN) (Roland) A slowdown in orders has triggered today’s profit warning. But I think value may be starting to emerge.
Churchill China (LON:CHH) (£68m)	TU	Year-end trading was in line with exps. No change to Nov 24 guidance. Markets remain challenging.	AMBER/GREEN (Roland holds) Today’s update looks broadly reassuring to me. I see value in this market-leading ceramics business, although I suspect patience will be needed.
Frenkel Topping (LON:FEN) (£45m)	TU	2024 adj EBITDA flat at £8m. FUM +17% to £1,560m. FY results to be in line, outlook confident.	AMBER (Graham) My initial take is that this is at fair value. An argument could be made for cheapness (forward PER 8.5x), but it’s not jumping out at me.
EnSilica (LON:ENSI) (£41m)	£10m funding award	£10.4m award from UK Space Agency to develop components for mass market satellite broadband.	AMBER/RED (Graham) Customers and the Space Agency seem to have a lot of faith in ENSI, and its debt facilities were refinanced in Nov. So this could be an interesting gamble, but value is highly uncertain.
Safestay (LON:SSTY) (£15m)	TU	Rev +2% to £23m in 2024, adj EBITDA -4.4% to £6.5m. Fwd bookings +27% at 1 Jan 25, confident in adj EBITDA growth.	AMBER (Roland) Pricing pressure saw average bed rates drop 10% despite higher occupancy.…

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FREng

3rd Feb

I noticed today that 3 Pennant International (LON:PEN) directors had bought shares. Small total cost but PENN is illiquid. I hold.

Might CARD suffer from Trump’s sanctions?

TEIN

Zotefoams (LON:ZTF) is reverting to it's trend line after the breakout from the last results didn't hold. Note it fell heavily on Friday also. There's price support at £2.75 and £2.50:

Rusty2

Card Factory (LON:CARD) why would they be affected by Trump's tariffs?

sevenccc

And Mills has been on the Board at MJ GLEESON (LON:GLE) for a number of years. Harwood are the biggest shareholder there though only 10%.

snowdrop

sadly SPM your post was not on the site when I posted mine. I just noted that my own holding had lept and then pasted a section of your article link when I discovered the actuality.

excellent and thanks again. Of the goodies quoted, next is the only one missing from my stack. It's selling the duds fast that makes the difference!

dulciemo

Shake it up to suit himself and his cronies. We dont need that.

JohnDoe2378

Can't have any ego investing

Factory outside the USA. Now selling in the USA? So presumably importing

Yes they acquired Garven recently but only paid $25m for it, so it must be a small exposure. Looks like they import some products from China. No tariffs on the UK yet.

NeilS

Exporting to USA following the recent purchase of distribution companies over there.

And mid way through investing £10m in additional piece of expensive production machinery to create foam.

murrb

Last week Schroders announced that they had reduced their holding in ZTF from 16% to 15%. Perhaps with the change of strategy announced by the board a couple of months ago, to shelve Rezorce, Schroders may no longer be interested in holding a stake or such a large stake. ZTF is pretty illiquid so without another fund steppng in to take up the slack it is possible that the share price will continue to slide till the point where the value is such that buyers come in in size? Either that or Schroders will have a price lower than which they will not be prepared to sell and they will just drip shares into the market until they are done.

colin1862

4th Feb

He doesn't like them. Haven't seen a policy but it will come. Musk's long term goal is to get to Mars and he needs the support of government to achieve this so he can trade off Tesla and Mars

His Dad was German but he doesn't seem to want to cut them any slack.....I don't know the reason but it will be revealed in time

Harry Hindsight

A country ruled by business people with common sense, entrepreneurialism and pride in their country.

Who wants that?

I prefer low productivity, no growth, socialist, woke, crime ridden, open border, no identity - er Grate Britain.

Apologies this is an investment site and got suckered.

Just dipped into Credo Technology Holding (NSQ:CRDO) despite DeepNowt other than NVIDIA (NSQ:NVDA) everyone else doing fine.

His cronies will go to Mars - yours will live on them.

Patrickmylnetrade

6th Feb

I would say it’s an oxymoron (no pun intended)

Daily Stock Market Report (Mon 3 Feb 2025) - ULTP, SDY, SRC, ENSI, CHH, SSTY, FEN

Companies Reporting

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Graham Neary

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