FTSE 250 round-up: 4imprint, Oxford Instruments, Hilton Food Group

Contrasting fortunes in the FTSE 250 index today saw 4imprint Group (LSE:FOUR) and Oxford Instruments (LSE:OXIG) ease tariffs-driven worries but Hilton Food Group (LSE:HFG) suffer more heavy selling.

The mid-cap benchmark reached mid-afternoon 0.6% higher above 22,000, led by double-digit percentage gains for the corporate merchandise firm and the provider of scientific technology and expertise to academic and industrial laboratories.

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Hilton Food lost a fifth of its value, extending the poor run since it warned in September’s interim results about the sales impact of higher cod and haddock prices.

The food supplier, which has partnerships with major retailers including Ahold, Tesco, Waitrose and Walmart Canada, said recent trading had been resilient amid a “highly inflationary” pricing environment.

It said the UK seafood division continued to be impacted by softer white-fish demand, driven by ongoing high raw material inflation and cautious consumer spending.

In addition, its Foppen smoked salmon business is still experiencing operational disruption due to regulatory restrictions on shipments to the US. 

The normal seasonal uplift is expected to support the group’s performance in the near term, meaning profit for the year to 28 December should be between £72 million and £75 million. This compares with last year’s £76 million.

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However, the impact of inflationary pressures and continued disruption at Foppen means the board expects that profit progression in the next financial year will be difficult.

It added that the development of new operations in Canada and a joint venture in Saudi Arabia remain on schedule. Meanwhile, a business review has reached an advanced stage and has identified “clear opportunities” to optimise the group's operations going forward. 

Shore Capital reduced its profit expectations for next year by 17% to £67 million.

Despite the downgrade, the broker highlighted Hilton’s efficient model, strong customer relationships and balance sheet strength as reasons for confidence in the medium term.

The descent of Hilton’s shares to a decade low below 500p contrasted with the resurgence of 4imprint, which topped 4,000p for the first time since March.

The US-focused promotional products firm eased concerns over trade and economic uncertainty by forecasting a full-year pre-tax profit above the upper end of the City’s forecast range.

Order intake has continued to run 3% below the prior year, while the gross profit margin has remained strong at just below 33% as product cost increases due to tariffs are being phased in later anticipated.

The Manchester-based business remains confident that it will effectively navigate market conditions, leaving it well placed to take advantage of opportunities that will present themselves as economic and market conditions improve.

The shares, which are still more than 15% lower across this year, have been backed to reach 5,140p by analysts at Berenberg while Peel Hunt has a price target of 5,300p.

The latter said: “While macro challenges persist, we are seeing improvements on multiple fronts, including progress in US/China trade negotiations, slightly better top-line trends than we expected, and good margin execution.”

Berenberg added: “We would highlight that 4imprint’s strategy has always been to continue to invest during challenging macroeconomic times, when other peers are unable to, enabling it to take market share when the cycle recovers.

“We expect 4imprint to act similarly in this period, both in relation to its marketing spend and being strategic in its pricing strategy.”

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Oxford Instruments rose 263p to 2,055p as half-year results showed the business is recovering from the significant economic and tariffs disruption seen in the first quarter.

Half-year pre-tax profits fell 22.5% to £25.4 million but the group reported improved order momentum in the second quarter and said cost control actions underpinned an expected margin improvement in its imaging and analysis division.

Chief executive Richard Tyson reported further progress in the group’s strategic aims to simplify, improve commercial execution and realign its regional presence. 

He added: “Our trading performance reflects that we, like others, have had to navigate the impacts of tariffs and the related global economic disruption.”

The results helped shares put back the losses seen after a trading update in mid-October, which resulted in downgrades to the City’s margin expectations.

Peel Hunt, which has a price target of 2,200p, said: “Recent performance suggests the shares are looking through what should be a limited trading impact from US uncertainty. In our opinion, earnings momentum should build into the 2027 financial year.”