FTSE 250 movers: Savills down on earnings, Network Intl up
The FTSE 250 was down 0.14% at 20,268.95 at 1445 BST.
Shares in posh real estate advisor Savills fell even as the company backed its full-year expectations and posted a jump in first-half revenues but a drop in profits.
In the six months to 30 June, revenues rose 11% to £1.04bn, but group underlying pre-tax profit fell to £59.2m from £66.1m and pre-tax profit declined to £50.4m from £63.3m. The company declared an interim dividend of 6.6p a share, up from 6.0p in the first half of 2021.
Savills highlighted staff cost inflation and the anticipated progressive return to higher levels of marketing, travel and entertainment/events related expenditure compared with abnormally low levels in 2021.
The company said residential markets, particularly in the UK, have remained relatively buoyant in the first half of 2022 despite increasing economic headwinds.
"Activity in the prime housing markets remained particularly robust, despite constrained levels of publicly available stock. However, price growth has begun to moderate in response to the rising cost of debt in particular," it said.
Payments company Network International gained after reporting a 31.1% improvement in total revenue in its interim results on Thursday, to $205.03m, or 21% excluding its DPO acquisition.
The FTSE 250 firm put the growth down to “broad-based growth” across all of its regions and business lines, with the Middle East up 22% year-on-year for the six months ended 30 June, and Africa growing 21%, also excluding DPO.
Underlying EBITDA rose 26.2% to $76.2m with a margin of 37.2%, up 190 basis points, which it put down to strong revenue performance and cost control while investing in product capabilities for future growth.
Profit for the period surged 113% to $32m, driven by underlying EBITDA growth, a $2.2m gain on the disposal of Mercury, and a $2.2m net balance sheet translation benefit, primarily from the devaluation of the Egyptian pound.
Underlying free cash flow totalled $40m, up 90% on the same period last year, driven by higher underlying EBITDA.
Cash flow from operating activities swung to a positive $90.6m from an outflow of $11.28m a year ago, supported by strong underlying business performance and profit for the period.
Network International reconfirmed its financial guidance and outlook for the full financial year, with expected group revenue growth of between 27% and 29%, and “modest” EBITDA margin expansion year-on-year.
At the same time, the company announced its intention to return excess cash to shareholders through a new share buyback programme worth up to $100m.
Network International Holdings (NETW) 220.20p 9.99%
Aston Martin Lagonda Global Holdings (AML) 534.60p 6.92%
Hochschild Mining (HOC) 84.10p 5.06%
OSB Group (OSB) 575.00p 5.02%
Polymetal International (POLY) 220.00p 4.76%
888 Holdings (DI) (888) 159.40p 4.52%
XP Power Ltd. (DI) (XPP) 2,335.00p 4.01%
Carnival (CCL) 798.80p 3.98%
TUI AG Reg Shs (DI) (TUI) 150.85p 3.78%
Liontrust Asset Management (LIO) 1,068.00p 3.69%
FTSE 250 - Fallers
Savills (SVS) 989.50p -11.97%
Jupiter Fund Management (JUP) 121.10p -6.20%
Ferrexpo (FXPO) 144.60p -4.24%
Jlen Environmental Assets Group Limited NPV (JLEN) 129.00p -2.86%
Marks & Spencer Group (MKS) 138.40p -2.77%
Home Reit (HOME) 119.80p -2.76%
The Renewables Infrastructure Group Limited (TRIG) 143.20p -2.72%
Man Group (EMG) 250.20p -2.65%
Target Healthcare Reit Ltd (THRL) 114.40p -2.39%
Trainline (TRN) 361.30p -2.35%