FTSE 250 movers: Trustpilot surges on profit upgrade

(Sharecast News) - FTSE 250: 19,192.57, -0.45%

Reviews website operator Trustpilot launched an approximately £20.0m share buyback programme on Thursday as it said full-year profits looked set to beat consensus estimates.

Trustpilot said full-year revenues had risen 18% to $176.0m, a 17% year-on-year increase at constant currency, while bookings increased 16% to $195.0m and the group's net dollar retention rate for the period came to 99%, down ever so slightly from 2022's 100% performance. It also said it had closed the year with $91.0m of cash and no debt.

The FTSE 250-listed group added that its buyback, which will by run by merchant bank Joh. Berenberg, Gossler & Co, forms parts of plans to return excess capital to shareholders made back in September.

Chief executive officer Adrian Blair said: "Building on a solid performance in the first half of the year, we achieved further growth and margin improvement in the second half, with profitability and positive free cash flow ahead of expectations for the year.

"In addition to our focus on delivering sustainable operating leverage, we achieved robust growth in new business and a resilient retention rate across all regions."

Shares in FTSE 250-listed Darktrace rose strongly on Thursday after the cyber security group increased both its sales and margin guidance for the full year following a strong first half.

The company now expects sales for the year to 30 June rising by between 23.0% and 24.5% on last year's $545m, up from previous guidance for growth of between 22.0% and 23.5%.

This is a result of continued strong annualised recurring revenue (ARR) to revenue conversion and a relatively stable exchange rate environment, Darktrace said.

Meanwhile, a tight control on discretionary spending means the adjusted EBITDA margin guidance is moving to 18.0% to 20.0%, up from a range of 17.0% to 19.0% previously.

"Following the roll-out of significant Go-to-Market changes that impacted performance in our first quarter, we were very pleased to see the resulting benefits play out in our strong second quarter financial performance," said chief executive Cathy Graham.

First-half sales rose 27.1% to $329.6m as customer numbers rose 12.9% to 9,232, while adjusted EBITDA margins will be above the top end of its previously communicated guidance range.

"A year-over-year increase in average contract ARR of at least 10% across its customer base, has largely been driven by an increase in average ARR of existing customer contracts, which is up at least 12% year-over-year for contracts aged one year or more," Darktrace said.

Graham added: "Today's results, along with continued acceleration in top and mid-funnel prospect engagement across our key partner and large strategic customer segments, support our belief that we are seeing a return to positive and sustainable growth and reinforces our view of first half stabilisation and second half re-acceleration."

Food packaging firm Hilton Food Group said on Thursday that full-year earnings were expected to be in line with internal expectations, driven by continued revenue growth and operational progress.

Hilton Food said trading during the key festive period was "strong", with 3% volume growth in December compared to the same period last year.

The FTSE 250-listed business also stated it was "confident" in the outlook for 2024, underpinned by "positive recent trading" and its "strong financial position" and cash flows with reduced leverage and "comfortable headroom".

Looking ahead, Hilton said the strength of its "highly automated supply chain and leading technology", combined with its "outstanding multi-category food products" provides it with "a strong platform for sustained growth".

"We continue to explore opportunities in existing and new markets as we deliver on our strategy of becoming the international protein partner of choice," added HFG.

FTSE 250 - Risers

Trustpilot Group (TRST) 170.30p 16.96% Darktrace (DARK) 365.00p 8.76% Tullow Oil (TLW) 32.42p 3.12% Hilton Food Group (HFG) 773.00p 2.25% PPHE Hotel Group Ltd (PPH) 1,180.00p 2.16% W.A.G Payment Solutions (WPS) 93.00p 1.97% C&C Group (CDI) (CCR) 154.20p 1.85% Indivior (INDV) 1,224.00p 1.83% Johnson Matthey (JMAT) 1,643.00p 1.77% easyJet (EZJ) 518.00p 1.73%

FTSE 250 - Fallers

Close Brothers Group (CBG) 714.00p -7.45% Ferrexpo (FXPO) 77.00p -5.52% PureTech Health (PRTC) 190.40p -4.32% IWG (IWG) 177.40p -3.69% Pennon Group (PNN) 725.00p -3.59% ITV (ITV) 60.40p -3.27% International Distributions Services (IDS) 253.60p -3.24% Crest Nicholson Holdings (CRST) 211.00p -3.12% Genus (GNS) 2,098.00p -2.96% WH Smith (SMWH) 1,262.00p -2.92%