Daily Stock Market Report (Thur 16 Jan 2025) - IGG, PMI, RLE, TRST, CARR, WISE, SNWS, DNLM, CABP

16th Jan by Graham Neary

66 comments 6858 reads

Good morning! We have another large collection of year-end updates.

1pm: we're finished for today!

Spreadsheet accompanying this report (updated to 10/1/2025)

Companies Reporting

Name (Mkt Cap*)	RNS	Summary	Our view (Author)
Pearson (LON:PSON) (£8.6b)	TU	UL Sales +3%, Adj Op Profit +10%. FCF ahead of guidance.
Wise (LON:WISE) (£15.0bn)	Q3 Results	+24% volume growth, U/L income +13%.	AMBER (Graham)
Taylor Wimpey (LON:TW.) (£4.0bn)	TU	In line op. profit for 2024. Outlook: well placed to grow volumes. Increased build cost pressure.
IG group (LON:IGG) (£3.6bn)	Acquisition of Freetrade	Freetrade purchased for £160m.	GREEN (Graham holds)
Dunelm (LON:DNLM) (£2.1bn)	H1 TU	Sales +2.4%, FY25 PBT within the range of market expectations	AMBER (Graham)
Deliveroo (LON:ROO) (£2.0bn)	Q4 TU	2024 adj. EBITDA towards top end of range (£110-130m).
Savills (LON:SVS) (£1.5bn)	Year End TU	2024 in line. Year ahead: challenging conditions to continue but most markets are in recovery.
Safestore Holdings (LON:SAFE) (£1.45b)	FY Results	EPRA Basic NTA per Share up 14.6% to 1,091p.
Trustpilot (LON:TRST) (£1.1bn)	TU	21% constant currency bookings growth and adj. EBITDA to be ahead of consensus.	AMBER/GREEN (Graham)
Bakkavor (LON:BAKK) (£810m)	Full Year TU	Ahead of market expectations. LfL Revenue up 5.1%. Net debt bottom end of 1-2x target range.
Ibstock (LON:IBST) (£661m)	TU	Adj. EBITDA £79m, “consistent with previous guidance”. Outlook: improved conditions.
Young & Co's Brewery (LON:YNGA) (£518m)	Q3 TU	Traded “exceptionally well” over Christmas/NY. LfLs up 11.6%. Optimistic about the year ahead.
Ab Dynamics (LON:ABDP) (£426m)	AGM TU	In line. Net Cash £23.2m.
Niox (LON:NIOX) (£235m)	Full Year TU	Adj. EBITDA slightly ahead of exps at £13.8m.
Cab Payments Holdings (LON:CABP) (£169m)	Pre-close TU	Adj. EBITDA within range of analysts' consensus. Sales £105m (2023: £137m).	AMBER (Mark)
MPAC (LON:MPAC) (£156m)	FY TU	In line. UL PBT £10.5m (FY23: £7.1m). Net debt £37m (FY23: net cash £2.1m). Order book £111m (FY23: £72.5m).
Smiths News (LON:SNWS) (£147m)	TU	In line.	AMBER/GREEN (Mark)
Avingtrans (LON:AVG) (£127m)	TU	In line.
Concurrent Technologies (LON:CNC) (£119m)	TU	Rev & PBT 10% ahead of market expectations.
SRT Marine Systems (LON:SRT) (£114m)	TU	H1 PBT £2.5m on revenues of £25.5m (H1 last year revenues: £5.5m). £334m active order book.
Carr's (LON:CARR) (£108m)	Sale of Engineering Division	£75m received, 7.1x Adj EBITDA. £70m to be returned via tender offer.	AMBER (Mark)
Premier Miton (LON:PMI) (£97m)	Q1 AUM	£10.7bn AuM as of Dec 2024 (Sep 2024: £10.7bn).	AMBER/GREEN…

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Less than 200 GBP per month

More than 200 GBP per month

2 or less withdrawals

Free

1.75% of the amount over 200 GBP

3 or more withdrawals

0.5 GBP per withdrawal

0.5 GBP + 1.75% of amount over 200 GBP

Rusty2

16th Jan

From Wise website:

Withdrawing cash from an ATM with a wise card*

	Less than 200 GBP per month	More than 200 GBP per month
2 or less withdrawals	Free	1.75% of the amount over 200 GBP
3 or more withdrawals	0.5 GBP per withdrawal	0.5 GBP + 1.75% of amount over 200 GBP

Maybe you do 2 transactions, per month, totalling under £200?

Charles Mitchell

No normally €500-600. I did join when transferwise so maybe got a deal ? Or else it has changed. Off to Madrid in March so will see then.

Just logged in- they have changed it .

Actually use little cash nowadays abroad, but will look at options.

Thanks for pointing this out Rusty. Just like so many companies, seduce you in then change the rules. Pretty sure I had no notification.

Funderstruck

Thanks Graham & Mark for your time consuming comprehensive report ,truly prodigious .

Harry Hindsight

This comment is under review

intuitive6191

Wise has always had a £200 limit on withdrawals on my contract. That might explain why there have been no notifications.

It is not an issue for me as that is not why I use the card.

Interesting to see how many people use cash and rely on cash withdrawals.

Indeed Harry.

But without the Wise card discussion the Daily report comments would have been down about 25%. It seems that something is needed to fill what was once a vibrant thread

Anyway, we haven't yet started to cover other aspects of the Wise service such as savings pots etc.

abtan

Real Estate Investors (LON:RLE)

Hi Mark

Thanks for your analysis. I completely agreed with it, particularly your view on the risk to book values.

I actually held a position last year, but started tracking all the properties they had listed for sale or had sold.

This eventually resulted in me closing my position as it seemed like things were going very slowly and I was sceptical of the dividend being maintained.

In fact, if my tracking is correct (and I think it is because it ties in with the figures in today's announcement) then the last big sale/agreement they made was in August, which seems like a long time ago.

For me therefore there's clearly a risk that book values might come down and the share price with it.

Wise (LON:WISE)

I hold Wise and there have been enough comments on it today, so 3 quick notes on Revolut:

Their FX service (I believe) is supported by Currency Cloud (a Wise competitor), so that should add costs for their customers somewhere or eventually.
Revolut charge fees for FX transfers (e.g. on weekends/after 5pm on Friday, amounts greater than €1,000, etc...)
So anyone interested in transferring money on a regular basis won't use them in the long term when someone like Wise exists.
More info on Revolut's FX fees are here: https://help.revolut.com/en-PT...
From the Revolut AR I can see that Revolut FX volumes were 1/3rd of Wise in FY23 (£285m vs £795m), despite having 3 times as many customers (45m vs 15m)

They are clearly very different beasts within the FX segment targeting very different customer bases.

John LA

17th Jan

I agree with your sentiment even although magazine prices are rising, I still buy when visiting a supermarket, same price as a pint. Good mgt will make the strategy work and the company has a good dividend approach tempted to buy more

Thank you for your excellent review, in Africa for example payment to mobile is common practice and I believe WISE helps facilitate some of these transactions. A firm holder of WISE think it has good growth opportunities

kevind1875

26th Jan

Would recommend digging out the recent Money Week article on Wise. The key to understanding Wise’s potential growth IMO is how they transfer money, why this enables them to be fast and cheap and why no one else can compete.

Essentially Wise do not actually move money across borders which is inevitably slow and expensive (eg Swift, Revolut). Instead they use money that is already where customers want to send it and then debit your account at an agreed exchange rate.

way

Paul Hill (a.k.a. the most enthusiastic interviewer in finance) interviewed a fund manager named Jamie Ward for The Exchange this month (it's on youtube 2nd January Video). He gave a good overview of Wise too.

timarr

Hi kevind1875

I know. I'm a payment consultant by day. The Moneyweek article is pretty good though: https://moneyweek.com/currenci...

The Wise model only works between countries where there are large deposits - in more exotic countries they will also use SWIFT or whatever mechanisms are available to them.
However, it's not true no one else can compete - there are plenty of companies trying, but the regulatory burden and the capital needed both represent enormous, and largely unrecognised, moats even before we consider whether the technology is superior.

They could fall into a regulatory pothole, but if they can avoid that it's hard to see the competition catching up.

Note that Revolut is just a bank - they will use whatver mechanisms are available to them to move money. I'd guess they're losing money on their money transfer service, but it may be worth it to attract new accountholders and deposits. Completely different business model to Wise (LON:WISE).

ISAallowance

Interesting news article that HSBC have abandoned their attempt at a cross currency app, "Zing": https://www.reuters.com/busine...

Talks about 400 redundancies, so clearly not a trivial project, and the article suggests that it was started to compete with the likes of Wise and Revolut (although it's a news article, so that could be rubbish!).

JSchoffer

17th Feb

Interesting email today from Monzo bank around international payments which impacts Wise (LON:WISE)

Not sure how much work Wise gets from Monzo but if more digital banks can offer this then I can see Wise suffering as the streamlined process negates the need of an extra account.

Hi JSchoffer

That's very useful, thank you for sharing.

I think it makes sense if a bank started using their own balances for major currency pair transfers...but INR and RON? Something seems odd there.
Also, I was under the impression that Monzo was a GBP-only bank, so presumably they won't hold sufficient/any balances in INR or RON to manage transfers for these currencies themselves.
Another thought; are Monzo customers still using Wise to send money in these 4 new currencies, but now there's no need for them to move over to the Wise App to do so?
(with apologies for the possible ignorance of this question - I am not a Monzo customer and do not know how their app works, but I was under the impression that customers could only send GBP in the Monzo App.)
From your screenshot it looks like Monzo are still using Wise for every other currency, which adds to the intrigue - if Monzo are using a Wise competitor, then why not completely move away from Wise?

Thanks again for sharing

Not sure how much work Wise (LON:WISE) gets from Monzo but if more digital banks can offer this then I can see Wise suffering as the streamlined process negates the need of an extra account.

Not exactly ...

You no longer need a separate Wise account to transfer money internationally with Monzo because Monzo has partnered with Wise to integrate their international transfer service directly into the Monzo app, meaning you can initiate and complete international transfers without leaving the Monzo platform, effectively eliminating the need to have a separate Wise account to do so; all the functionality is handled within your Monzo app using Wise's technology in the background

Basically this is Monzo powered by Wise, removing the friction Monzo customers previously suffered and further embedding Wise. It's part of Wise's deep integration strategy into domestic payment networks.

The clue to this is that cross border payments are really difficult, there's no way a relatively small bank like Monzo could do this on their own.

EDIT - post crossed with abtan's. His third point is essentially what's happening.

Thanks Timarr and Abtan, makes sense and bolsters the Wise bull argument. Will keep looking for holes in my investment!

18th Feb

Hi JS

Absolutely - it's Charlie Munger's old disconfirm mantra, do everything you can to find the weaknesses.

FWIW my biggest fear for Wise (LON:WISE) is a breach of anti-money laundering regulations, where they somehow become embroiled in a scandal that attracts the US regulator's attention. I can't see any way of insulating myself from that risk, which is why my Wise stake is only half what it otherwise would be.

I should stress I have no reason to think Wise is in anyway doing anything wrong, it's just that it's such a complex area that it's easy to get tangled up in something even if you follow the rules (which are useless and don't work anyway, but this is the world we live in).

Technically, though, what Wise do is really hard to replicate, they have increasingly deep liquidity and the thicket of local regulations they've navigated over a decade is another level of moat. But nothing is ever perfect, or perfectly safe.

Daily Stock Market Report (Thur 16 Jan 2025) - IGG, PMI, RLE, TRST, CARR, WISE, SNWS, DNLM, CABP

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Graham Neary

66 comments

Withdrawing cash from an ATM with a wise card*

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