MARKET REPORT: Senior shares rocket as aerospace bounces back

Shares in senior engineering group surged as it sounded a positive note on earnings.

The group, which rejoined the FTSE 250 this month and supplies products for the likes of Airbus, Boeing and Rolls-Royce, said earnings for 2022 should be “above the high end of consensus expectations.”

Analysts had bid for a range of £16.2m to £18m.

Senior has benefited from strong performance in its flexonics division, which saw increased demand in the heavy truck and power and energy markets.

The group’s aerospace division also traded well, with City broker Jefferies emphasizing it sees “significant recovery potential” for both companies. Shares rose 7.5 percent, or 10.2 pence, to 146.6 pence.

Rolls-Royce, meanwhile, gained 3 percent, or 3.2 pence, to 111.4 pence after Exane BNP Paribas upgraded the jet engine manufacturer’s rating from underperform to neutral.

The group also extended its agreement to supply engines to British luxury yacht manufacturer Sunseeker until at least 2025.

In the wider market, the FTSE 100 fell 0.35 percent, or 27.31 points, to 7757.36, but the FTSE 250 rose 0.27 percent, or 53.62 points, to 19855.31.

Private equity firm Bridgepoint added 7.5 per cent, or 17p, to 245p after launching its share buyback program worth up to £50m.

Ceres Power Holdings, which develops electrolyser technology for green hydrogen production, hailed ‘another year of significant investment for growth’ at the company after its 2022 revenue remained in line with previous forecasts of around £21m.

Stock watch – Yu Group

Yu Group is on track to exceed sales forecasts after a record year.

The company, which supplies energy, gas and water to businesses, said its revenue for 2022 appears to have risen by more than 76 per cent to more than £275 million – up from a forecast of around £260 million in November.

Investors will be rewarded with a “modest” dividend payout, bosses said.

They also said that Yu has made a strong start to the new fiscal year.

Shares rose 12.1 percent, or 77 pence, to 715 pence.

The company also announced a series of positive updates on projects such as the Chinese joint ventures, the 100kW electrolyser module and the fuel cell and electrolysis testing facility. Shares rose 7.6 percent, or 29.5 pence, to 416.4 pence.

Advertising giant M&C Saatchi was on track to record its biggest gain yet following new business wins and cost-cutting measures. Profits for 2022 would likely have increased by 14 per cent to £31m. Revenue is expected to be 9 percent higher at £271 million compared to the previous 12 months.

There was also a change at the top. Chairman Gareth Davis, who assumed the position in January 2021, will step down once a replacement has been found. Shares rose 0.6 percent, or 1p, to 168p.

Meanwhile, land development company Henry Boot warned its profit for 2022 would be “slightly below market expectations” at £48.1m following a slump in the value of its investment portfolio.

The group also warned that this year would be harder than 2022. Shares fell 4.5 percent, or 11 pence, to 235 pence.

Meanwhile, the UK’s largest newspaper and magazine distributor became embroiled in a dispute with investors over a resolution to relax its policy on making political donations up to £50,000.

Smiths News insisted it had no plans to make political donations, but wanted to make sure the company’s current guidelines weren’t stricter than the regulatory framework.

The resolution passed, but the company vowed to “initiate dialogue” after 21.23 percent of shareholders voted against the proposal at yesterday’s annual general meeting.

In a separate update, Smiths News reported that business continued as usual with 46 percent of newspaper and magazine revenue through 2029. Shares fell 8.3 percent, or 4.6 pence, to 50.8 pence.

Carnival got off to a great start to the new year after cruise line Cunard, which has three ships, had its best January for bookings in the past decade.

The company added that there was demand for Cunard’s fourth ship, the Queen Anne, which will enter service early next year. Shares rose 2.2 percent, or 16.6 pence, to 785.4 pence.