FTSE 250 movers: C&C loses fizz, bets off for 888 Holdings

Bulmers cider maker C&C Group said annual results would be hit by the cost of living crisis affecting consumers.

Despite year-on-year net revenue growth of around 20% in the key trading month of December, the company said it now expected operating profit in the year to February of €84-88m against consensus estimates of €95m.

“As outlined in first half results, our outlook for H2 noted a potential significant impact from the continuing cost of living pressures facing consumers,” C&C said.

“We believe consumer spending pressure is a driver behind this trading performance and will continue to be so in the near-term.”

“Further, trading has been significantly impacted by rail network strikes in the UK, reducing footfall in urban areas over the key festive trading period."

Analysts at Shore Capital had pencilled in a profit of around €90m, with the pick-up in December "less than hoped for - we would have anticipated +30%".

"The middle of the range would be equivalent to a 5% cut in our current forecast. From a read across perspective, we would expect that city and metropolitan centres have been hit harder than suburban, noting Mitchells & Butlers solid update across its broad estate."

Shore rated the stock as a 'buy', despite the disappointing update, saying the current valuation of eight times core earnings "reflects the progress the group is making".

"Distribution margins at around 4% is a base on which profitability can build over time as branded margins recover. We would see continued evidence of sustained market share growth in cider and premium beer as catalyst for a re-rating, whilst the balance sheet retains significant optionality."

Gambling firm 888 Holdings said its chief financial officer was stepping down and reported a 3% fall in group revenues for 2022.

The company on Friday said CFO Yariv Dafna would leave at the end of March. 888’s online revenues fell 15% during the year as controls in the UK to protect gamblers took effect, although retail sales were up 54% across the year.

"The outlook for 2023 is unchanged, with group revenues expected to be lower by a low single digit percentage, and an Adjusted EBITDA margin of at least 20%, with a strong focus on integration and execution of cost synergies during the year," 888 said.

Trading during the fourth quarter of 2022 was in-line with board expectations with fourth quarter revenue of £458m, 2% above the prior quarter, reflecting the positive impact of the additional days trading to align reporting periods.

Wizz Air made gains after an upgrade at 'Davy', which also provided lift for easyJet.

FTSE 250 - Risers

Ascential (ASCL) 209.60p 3.97%
Dechra Pharmaceuticals (DPH) 2,934.00p 3.82%
Spectris (SXS) 3,237.00p 3.75%
Moneysupermarket.com Group (MONY) 212.40p 3.31%
CMC Markets (CMCX) 239.50p 3.23%
Molten Ventures (GROW) 402.20p 3.13%
FirstGroup (FGP) 107.20p 3.08%
Inchcape (INCH) 922.00p 2.90%
Darktrace (DARK) 264.10p 2.84%
easyJet (EZJ) 429.60p 2.73%

FTSE 250 - Fallers

C&C Group (CDI) (CCR) 163.60p -10.99%
888 Holdings (DI) (888) 88.75p -5.08%
Hilton Food Group (HFG) 593.00p -4.05%
Volution Group (FAN) 399.00p -3.27%
Pennon Group (PNN) 939.50p -3.24%
Moonpig Group (MOON) 118.80p -2.94%
Playtech (PTEC) 532.00p -2.39%
Redrow (RDW) 513.00p -2.10%
Direct Line Insurance Group (DLG) 179.10p -2.02%
Shaftesbury (SHB) 379.80p -2.01%