Housing sector gets built up and knocked down

There was a difference of opinion in companies that operate as part of the housing sector with Headlam Group, the floor coverings distributor, taking a pessimistic view of sector’s prospects while B&Q-owner Kingfisher found reasons to be cheerful
Headlam reported a loss in the first half of the year and warned of “limited indication” of any improvement in the wider market.
This was in stark contrast to listed DIY business Kingfisher, the owner of B&Q and Screwfix, which led the FTSE 100, rising by 32½p, or 11.2 per cent, to 323p, after it said in its interim results that it expected its adjusted profit before tax to come in towards the upper end of the company’s forecast.
Shares in Headlam Group fell by 7p, or 4.6 per cent, to 146½p with sales down by 11.8 per cent year-on-year in the UK and an underlying loss before tax of £16.4 million, compared with a profit of £6 million in the previous year.
However, it added that lead indicators for the market appeared “more positive” but that the timing of a market recovery remains “uncertain” and looks to be later than previously anticipated, potentially during some point in 2025.
In more positive news, Michael O’Leary, the chief executive of Ryanair, told Reuters that the budget airline had seen better momentum in bookings since August with less need to discount prices, though he also warned that profit for the year would likely be down on last year.
O’Leary’s bullish comments on air travel demand pushed up the stock prices of London’s listed airline with Easyjet up by 30p, or 6.2 per cent, to 517½p and IAG — which owns British Airways — rising by 6¾p, or 3.4 per cent, to 206½p. In the FTSE 250, Wizz Air rose by 108p, or 9.2 per cent, to £12.78.
At the other end of the index, BAE Systems fell by 62½p, or 4.7 per cent, to £12.73, in line with other European defence stocks, as reports emerge that Ukraine’s allies are beginning to more closely examine a potential ceasefire with Russia.
Overall, the FTSE 100 was up by 31.42 points, or 0.38 per cent, to 8,309.86 and the FTSE 250 rose by 15.01 points, or 0.07 per cent, to 20,944.6. Both indexes were boosted by mounting hopes of a significant cut to interest rates in the US by the Federal Reserve.
Essentra, the FTSE 250 manufacturer based in Milton Keynes, fell to the bottom of its index, dropping by 25½p, or 15.2 per cent, to 141¾p, after it cut its profit guidance for the year.
Elsewhere, TT Electronics suffered its second dramatic fall in as many days after it was downgraded by analysts at Berenberg following the electronics manufacturer’s warning that sales in the second half of the year would be around £15 million to £20 million lower than previously anticipated thanks to issues in its North America business.
The analysts said that they struggle to see a catalyst that might improve investor sentiment towards the company over the next 6 to 12 months, meaning that its reduced share price reflects fair value for the “foreseeable future”. Shares in the company fell by 7¾p, or 8 per cent, to 89½p.
JTC, the fund manager, fell by 52p, or 4.6 per cent, to £10.82 — largely the victim of high expectations as its results fell neatly in line with consensus forecasts.
The company’s interim results were hailed by analysts at Berenberg as “typically strong” though RBC Capital called the results “slightly light”, pointing to issues with its valuation after a strong run, with the share price up 44 per cent over the last 12 months.
In the AIM market, Kooth, the youth digital mental well-being business, rose by 16p, or 5 per cent, to 339p after it recorded a 179 per cent year-on-year increase in sales to £32.5 million in its interim results.
The startup, which provides online mental health support to young people, said it had made significant progress in its key US market, which has grown to roughly 70 per cent of its annual recurring revenue.
Learning Technologies, the business support services group, warned that — given current trading — the company expected sales to be towards the bottom of its range of between £473 and £493 million though its shares nonetheless rose by 1¾p, or 2.6 per cent, to 71¾p.