Full year results from the defence support company Babcock were published this morning with the share price soaring off the back of news that for the first time in its history, a share buyback was being launched. The £200m capital distribution comes ontop of a 15% increase in dividends, all fuelled by a 50% jump in operating profits as the company heralds a new era for defence. The order book is stable and medium term guidance has also been upped with an underlying operating margin of 9% being a key target. The Babcock share price was 10% higher in early trade.
A trading update from the homeware brands company Ultimate Products released today failed to buoy investor confidence in the stock. Over the February-May period, sales increased moderately but the growth was biased towards lower margin products. The company also saw a series of orders deferred into FY26, contributing to the fact that FY25 EBITDA is now expected to be around £12.5m versus forecasts of £14.3m. Revenue guidance for FY26 is also being lowered, which has been enough to rattle the Ultimate Products share price, trading down by 33% shortly after the open.
Shares in the small cap oil and gas company Zephyr Energy slipped in early trade today after the company announced it had completed a funding round. Whilst the offer was oversubscribed, the sell off reflects the discounted valuation with new stock being sold off at 3p per share. Net proceeds from the fundraise are highlighted as being able to generate immediate accretive production while also providing a path to first cash flow at the company’s Paradox project, with considerable newsflow expected to be seen. The note also makes acknowledgement of the idea that a bitcoin treasury function could be on the cards, something that is becoming de rigueur across many businesses this summer. The Zephyr Energy share price was 21% lower by 8.30am BST.
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Recommended Acquisition of Warehouse REIT PLC - - Tritax Big Box Reit (BBOX)
Preliminary results for the year ended 31.03.2025 - - Babcock International Group (BAB)
Year End Trading Update and Notice of Results - - Filtronic (FTC)
