FTSE 250 movers: Trustpilot takes off; Investors slam door on Safestore

(Sharecast News) - FTSE 250 (MCX) 20,424.81 0.45%

Review website Trustpilot surged on Thursday as it said full-year earnings were set to be ahead of consensus expectations.

The group expects to report FY24 booking of $239m, up 23% on the year and 21% at constant currency, reflecting a "strong" performance across its focus markets, particularly in North America.

Consensus expectations are for constant currency revenue growth of 16%. The company also said that adjusted earnings before interest, tax, depreciation and amortisation were set to come in ahead of consensus expectations of $22.2m.

UK bookings jumped 22% at constant currency, while Europe and Rest of World saw an 18% increase. In North America, bookings were up 26%.

Chief executive Adrian Blair said: "The Trustpilot platform continues to expand, driving a growth flywheel as more consumers read and write reviews, and more businesses use our products to build trust, grow and improve. In 2024 we focused on B2B product innovation, launching new features combined with new pricing and product packages. As a result, we delivered strong new business growth, combined with a significant improvement in the net dollar retention rate.

"New customer acquisition was strong throughout the year across all focus markets, particularly North America, and we are very pleased with the resulting overall growth in bookings of 21% cc, with adjusted EBITDA expected to be ahead of consensus. We made considerable strategic and operational progress in 2024 and remain confident in the significant growth opportunities ahead."

At 1335 GMT, the shares were up 15.6% at 317.26p.

Russ Mould, investment director at AJ Bell, said: "Navigating the internet and deciding if you can trust the website through which you are ordering products and services is a key part of everyday life for millions of us. This is no surprise given the alternative is being ripped off or ending up with a substandard experience.

"In this context you can see why the reviews served by Trustpilot might be in heavy demand and, sure enough, its latest update reveals strong levels of growth and an earnings upgrade. It's the kind of news which would earn a five-star rating with most shareholders.

"The more people use its site and post reviews, the more it derives network benefits. As more consumers use the platform and share their own opinions, the richer the insights the company can offer clients.

"Done well, this creates a virtuous circle where consumers feel drawn to Trustpilot because it is where meaningful services are listed and reviewed. The more consumers who use Trustpilot, the more businesses will feel they must engage with the company's services."

Luxury fashion brand Burberry shot higher after Cartier owner Richemont posted a much better-than-expected 10% increase in third-quarter sales. Watches of Switzerland also got a boost.

Bakkavor gained after full-year update.

Dunelm fell as the homeware retailer reaffirmed its full-year profit expectations and reported an uptick in first-half, but said the environment remained "challenging".

Self-storage provider Safestore said on Thursday that underlying earnings had fallen in the 12 months ended 31 October on the back of a modest reduction in revenues.

Safestore said underlying EBITDA had fallen 4.8% to £135.4m, reflecting market inflationary pressures on key cost lines and the impact of new developments, while revenues were down 0.3% at £223.4m. Adjusted diluted EPRA earnings per share were 11.7% lower at 42.3p.

The FTSE 250-listed group also noted that net debt had risen from £810.3m to £899.5m and said it had exercised an RCF accordion option to increase the facility's size by £100.0m to £500.0m and increase the maturity date by one year to November 2028.

Safestore, which opened ten new stores and extensions in the year, also stated that its portfolio had delivered a 13.6% increase in property revaluation to £3.28bn

Chief executive Frederic Vecchioli said: "We have delivered resilient operating performance in challenging market conditions and have made good progress on our strategic priorities. "

Market Movers

FTSE 250 - Risers

Trustpilot Group (TRST) 319.00p 16.21% Raspberry PI Holdings (RPI) 673.75p 12.57% Watches of Switzerland Group (WOSG) 519.00p 7.28% Burberry Group (BRBY) 1,012.50p 5.25% Deliveroo Class (ROO) 135.50p 4.71% Petershill Partners (PHLL) 270.00p 4.25% Bakkavor Group (BAKK) 149.00p 4.20% Plus500 Ltd (DI) (PLUS) 2,830.00p 3.06% PayPoint (PAY) 703.00p 2.93% Oxford Nanopore Technologies (ONT) 149.20p 2.90%

FTSE 250 - Fallers

Safestore Holdings (SAFE) 599.50p -9.78% Dunelm Group (DNLM) 965.50p -6.26% W.A.G Payment Solutions (WPS) 83.60p -4.35% B&M European Value Retail S.A. (DI) (BME) 310.10p -3.70% Big Yellow Group (BYG) 875.00p -3.53% Marshalls (MSLH) 254.50p -2.68% Future (FUTR) 890.00p -2.57% Grainger (GRI) 216.50p -2.26% Ashmore Group (ASHM) 153.10p -2.17% Harworth Group (HWG) 162.50p -2.11%