FTSE 250 shares round-up: Ithaca Energy, Hays, Safestore
On another nervous day for investors, results from a trio of well-followed stocks have generated interesting share price moves. City writer Graeme Evans has the details.
20th February 2025 14:16
by Graeme Evans from interactive investor
Top-end production figures today extended the advance of high-yielding Ithaca Energy Ordinary Share (LSE:ITH) as mid-cap investors also warmed to winter portfolio stock Safestore Holdings Ordinary Shares (LSE:SAFE).
North Sea-focused Ithaca traded at its highest level in over a year, while an update by the self-storage firm helped shares to stage a modest recovery from their five-year low.
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Fallers included Hays (LSE:HAS) after its in-line half-year results, but the FTSE 250 still found positive territory in contrast to a weaker session for London’s blue-chip index.
Ithaca shares have now risen by more than 20% this year as it continues to reap the benefits of last year’s transformative acquisition of Eni’s UK oil and gas producing assets.
The group, which joined the stock market in November 2022, now has stakes in six of the 10 largest fields in the UK Continental Shelf.
In today’s update, full-year production of 80.2 thousand barrels of oil equivalent a day came in 14.2% higher than a year ago and at the top end of the enlarged group’s 76-81 guidance.
Increased scale and enhanced cash flows underpin the outlook for shareholder distributions, which included the payment of a special dividend of $200 million (£158.5 million) on 20 December.
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Ithaca, which trades with a dividend yield of 13.7%, reiterated its expectation that 2025’s distributions will match 2024’s forecast total of $500 million.
Executive chair Yaniv Friedman said Ithaca continued to see “material opportunity” in its home basin alongside the potential for international expansion.
He added: “Our focus will continue to be on high-grading investment across our range of growth opportunities, executing in line with our strategy as a value-led investor, to maximise long-term sustainable shareholder value.”
The recent fortunes of Safestore have bucked its usual strong seasonal performance, having previously risen every 1 November-30 April of the past decade for an average gain of 13.1%.
Amid disappointment for followers of Wild's Consistent Winter Portfolio 2024-25, the stock has fallen by about 25% since the end of October.
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That’s been due to a combination of cost headwinds, UK economic jitters and the impact of the stubborn interest rate outlook on the real estate investment trust (REIT) sector.
The decline has contrasted with today’s trading figures, which covered the first quarter from 1 November to 31 January and showed underlying like-for-like revenues growth of 2.9%.
Occupancy in the UK continued to show an improving trajectory, while growth rates remain strong in European expansion markets.
It is the UK's largest self-storage group with more than 200 sites, including 138 in the UK and 30 in the Paris region. The portfolio has more sites inside the M25 and in central Paris than any rival, placing it closer to the wealthiest and more densely populated UK and French markets.
Shares lifted 12p to 596.5p following the update, which analysts at Peel Hunt described as reassuring. The bank has a target price of 670p, adding that shares trade on less than 15 times earnings compared with 25 times a few years ago.
Hays shares fell another penny to trade near a multi-year low at 72p as half-year results confirmed the weaker guidance given in a trading update last month.
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Amid “considerable headwinds” from economic conditions, the group reported a 66% slide in pre-tax profits to £19 million. The dividend for payment on 9 April is unchanged at 0.95p.
Chief executive Dirk Hahn remains encouraged by the longer-term outlook and has backed the group to return to, and then exceed, its previous profits peak of £250 million.
He said: “Our key markets are being driven by powerful, supportive megatrends and remain characterised by significant talent shortages, which we help solve for our clients.
“When client and candidate confidence improves and the cycle recovers, I am confident we will deliver a healthy drop through of net fees to operating profit.”
UBS kept its price target at 100p following the results.
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