FTSE 250 movers: Bodycote, IDS in favour; Oil stocks weaker

(Sharecast News) - FTSE 250: 19,271.17, +0.78% at 1450 GMT. Shares in heat treatment specialist Bodycote rose as it held full-year guidance and said revenues in the four months to October 30 rose by a third due to price increases and energy cost surcharges.

Total group revenue for the period grew by 29% on last year to £258m, or up 22% at constant currency rates. Bodycote introduced energy surcharges at the end of last year with the intention of covering the highly volatile costs of electricity and gas.

Automotive revenues were up 18%, entirely due to the impact of price increases and energy surcharges. Volumes were flat versus last year, as well as versus the first half of this year, despite supply chain issues easing in a number of areas, Bodycote said.

General Industrial revenues grew 25%, with volumes continuing to hold up well, supported by stronger performance in market sectors where a higher proportion of the work is for capital investment. The energy end market now comprises 17% of general industrial and grew 30%.

Aerospace & Defence revenues grew 19% as civil air travel continues to strengthen and original equipment maker production is ramping up; defence volumes were flat.

Emerging market revenues were up 47%, reflecting the highest level of energy surcharges in the group, as well as double digit volume recovery in China and Mexico. Slovakia and Turkey volumes continued to grow at double digits.

"Civil aerospace volumes continue to grow strongly, with General Industrial volumes growing more modestly and automotive volumes flat. Our approach to using surcharges to cover the highly volatile gas and electricity prices has proven to be successful," the company said.

"The board expects the group to deliver a full year result for 2022 in-line with market expectations."

Sirius Real Estate continued to gain after forecasting a rise in its dividend on Thursday.

Analysts at Berenberg lowered their target price on postal service operator International Distributions Services from 480.0p to 370.0p on Friday but said the company's recent first-half results offered "limited" comfort to shareholders.

Berenberg said International Distributions Services' interim results, which follows a string of profit warnings and negative headlines, may come as "some relief" to investors as they included no further cuts to guidance.

However, the German bank said that given there was no sign of a resolution between IDS and worker's unions in the UK and that the macro outlook remains "gloomy", the situation for the company formerly known as Royal Mail continues to be "challenging".

"The shares are now in deep-value territory in our view, but a deal with the unions is probably needed for the shares to perform," said the analysts, who stood by their 'buy' rating on the stock.

"Due to earnings uncertainty and volatility, traditional earnings multiples are now of limited use for IDS, in our view. However, despite the negative earnings momentum, the shares seem to have found a floor at around 200.0p, possibly reflecting the backstop valuation of the GLS asset. Given the deteriorating macro environment in Europe, we reduce our estimate of GLS's current fair value to 330.0p."

Pub group Mitchells & Butlers gained after the government froze business rates in the autumn budget delivered on Thursday.

FTSE 250 - Risers

W.A.G Payment Solutions (WPS) 80.10p 14.76% International Distributions Services (IDS) 252.70p 6.49% Liontrust Asset Management (LIO) 1,174.00p 6.34% Aston Martin Lagonda Global Holdings (AML) 129.50p 5.46% Sirius Real Estate Ltd. (SRE) 82.20p 4.85% Watches of Switzerland Group (WOSG) 999.00p 3.63% Tritax Big Box Reit (BBOX) 153.70p 3.43% Abrdn (ABDN) 202.50p 3.32% Bank of Georgia Group (BGEO) 2,530.00p 3.27% Bodycote (BOY) 598.50p 3.19%

FTSE 250 - Fallers

Tullow Oil (TLW) 45.04p -3.72% Energean (ENOG) 1,375.00p -3.44% RIT Capital Partners (RCP) 2,200.00p -2.87% Hochschild Mining (HOC) 65.40p -2.68% Petrofac Ltd. (PFC) 117.00p -2.50% Mitie Group (MTO) 75.80p -2.32% Telecom Plus (TEP) 2,235.00p -2.19% QinetiQ Group (QQ.) 337.00p -1.92% TUI AG Reg Shs (DI) (TUI) 142.55p -1.89% SSP Group (SSPG) 207.10p -1.80%