FTSE 250 movers: Molten fires, TP Icap slips

(Sharecast News) - FTSE 250: 19,098.67, +1.45% at 1455 GMT. Tech venture capital investor Molten Ventures said it expected no impact from the collapse of Silicon Valley Bank, after the lender's UK arm was rescued by HSBC.

The company confirmed SVB UK provided 40% of Molten's current undrawn credit of up to £60m and a £90m term loan.

"Furthermore, Molten has a strong cash position, with gross cash balances currently in excess of £30m of which less than £1m is currently deposited with SVB UK," the company said on Tuesday.

It added that it had "worked closely with its portfolio companies to further improve the position over recent days".

Interdealer broker TP ICAP lifted its dividend on Tuesday as it reported a jump in full-year profit, boosted by increased market volatility.

In the year to the end of December 2022, adjusted pre-tax profit rose to £226m from £177m the year before, on revenues of £2.1bn, up from £1.9bn. The total dividend per share was hiked to 12.4p from 9.5p.

On a statutory basis, pre-tax profit increased to £113m from £24m.

TP ICAP said its global broking division benefited from increased volatility across a range of asset classes. This was driven by events in Ukraine, substantiative monetary policy tightening, and a marked slowdown in economic growth. ICAP said that all global broking asset classes reported high single-digit growth.

Chief executive Nicolas Breteau said: "We delivered a strong performance: high single-digit revenue growth and an increase in profitability. Significant monetary tightening in many economies benefited Rates, our largest business."

Looking forward, the company noted that global interest rates are expected to remain elevated this year.

"We expect that volumes will continue to be solid, but moderated from the peaks at the beginning of the war in Ukraine," it said. "The recent decline in the European gas price has supported a more liquid, and stable, market so far this year. A sustained recovery continues to depend on geopolitical developments."

Merchant bank Close Brothers said on Tuesday that it had been a "challenging" first half, posting a drop in profits as it was hit by provisions related to the Novitas loan book.

In the six months to the end of January 2023, operating profit before tax slumped 91% to £11.7m, while adjusted operating profit slid 90% to £12.6m.

As previously announced, the company said it had taken steps to resolve the issues surrounding Novitas, resulting in an additional provision of £89.8m, with the total provisions relating to Novitas taken in the first half at £114.6m.

As well as issues related to the Novitas loan book, Close Brothers pointed to a challenging market backdrop, with the weaker UK macroeconomic outlook creating significant uncertainty for both its individual and SME customers.

Chief executive Adrian Sainsbury said: "It has been a challenging six months, with our half year results significantly impacted by the increased provisions in relation to Novitas, as announced previously in January 2023.

"While this is clearly disappointing, our underlying business remains resilient, enabling us to support almost three million customers, including over 360 thousand SMEs, as we continue to lend consistently through this period of uncertainty."

Piping manufacturer Genuit said on Tuesday that full-year profits had slumped despite reporting a modest uptick in revenues.

Genuit said operating profits had fallen 20.4% to £53.4m and pre-tax profits had tumbled 27.8% to £45.4m even as revenues rose 4.7% to £622.2m. Earnings per share were 12% lower at 14.7p and dividends per share increased just 0.8% at 12.3p.

The FTSE 250-listed group stated the decline in annual profits came as underlying operating margins contracted 20 basis points to 15.8% and the amount spent on the purchase of property, plant and equipment rose approximately £8.0m to £41.1m. Net debt excluding lease liabilities fell £2.0m to £143.1m.

Chief executive Joe Vorih said: "We have improved our pricing processes, begun the simplification of the business to unlock synergies and lower structural costs, and strengthened our sustainability leadership with the adoption of our science-based targets and a reduction in carbon intensity through the year.

"While short-term market instability will likely remain through much of 2023, our self-help measures, the Genuit Business System, and investment for sustainability-driven growth should position us well to deliver against our financial and strategic commitments."

FTSE 250 - Risers

Molten Ventures (GROW) 326.60p 7.58% Wizz Air Holdings (WIZZ) 2,888.00p 7.44% HGCapital Trust (HGT) 352.00p 6.67% Mitchells & Butlers (MAB) 166.20p 5.66% Trainline (TRN) 252.90p 5.64% ASOS (ASC) 866.50p 5.35% Bank of Georgia Group (BGEO) 2,565.00p 5.34% National Express Group (NEX) 133.50p 5.20% Aston Martin Lagonda Global Holdings (AML) 257.90p 5.18% 4Imprint Group (FOUR) 4,510.00p 5.13%

FTSE 250 - Fallers

TP Icap Group (TCAP) 168.80p -5.38% Close Brothers Group (CBG) 979.50p -3.59% Genuit Group (GEN) 269.50p -3.58% Digital 9 Infrastructure NPV (DGI9) 76.40p -2.55% Man Group (EMG) 262.30p -2.42% Baillie Gifford Japan Trust (BGFD) 733.00p -2.01% JPMorgan Japanese Inv Trust (JFJ) 455.50p -1.62% Synthomer (SYNT) 137.10p -1.44% ICG Enterprise Trust (ICGT) 1,084.00p -1.28% Tullow Oil (TLW) 31.60p -1.25%