FTSE 250 round-up: big interest in these mid-cap stocks
There’s plenty going on in the second tier Tuesday, especially at three well-known stocks. City writer Graeme Evans explains what’s moving their share prices.
14th October 2025 14:02
by Graeme Evans from interactive investor
The return to form of MITIE Group (LSE:MTO) shares, support for the “compelling” valuation of discoverIE Group (LSE:DSCV) and a Buy upgrade for Hollywood Bowl Group (LSE:BOWL) today flowed from a busy session of mid-cap updates.
Their positive statements, alongside an encouraging performance by THG Ordinary Share (LSE:THG), failed to prevent the FTSE 250 index from slipping below 22,000 after Monday’s M&A-driven outperformance.
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The latest bout of takeover action, which yesterday helped the FTSE 250 advance 1.2%, came as private equity giant Blackstone said it was mulling a bid for Big Yellow Group (LSE:BYG). The takeover target rose 15% and fellow self-storage firm Safestore Holdings Ordinary Shares (LSE:SAFE) rallied by 9%.
The pair experienced quieter levels of trading today as investors turned their buying focus to the share buyback plans of Bellway (LSE:BWY) and Mitie and the strong trading of Hollywood Bowl.
Facilities manager Mitie sparked a 10.6p rise to 149.6p after it upgraded earnings guidance and said it planned to end the suspension of buybacks that followed June’s £366 million deal to buy AIM-listed fire safety and inspection business Marlowe.
Shares had been on a run from 112p to 160p in the three months prior to the takeover, which formed part of Mitie’s pivot from UK leader in facilities management to one in technology-led and data-driven “facilities transformation”.
Free cash flow generation and increasing profitability now means Mitie expects debt leverage to quickly reduce to target, giving it capacity for a new £100 million buyback programme.
Notable contract renewals and extensions in the first half of the financial year includes security for Associated British Ports, Co-operative Group and a major supermarket chain.
House broker Peel Hunt increased its earnings forecasts by up to 3% following today’s update, which showed half-year revenues growth of 10% and improved guidance for an annual operating profit of at least £260 million.
“We confidently reiterate our 191p target price and Buy recommendation,” the broker added.
Hollywood Bowl rose 15.5p to 278p after the UK and Canada’s largest ten-pin bowling operator overcame this summer’s unhelpful warm weather to report record revenues of £250.8 million.
This represented 8.9% growth on a year earlier and came in 1.1% stronger than the City consensus. The group also expects a record figure for underlying earnings, which based on the midpoint of forecasts points to a figure of about £68 million.
Chief executive Stephen Burns said the cash generative nature of the business meant it was well placed to continue investing in the size and quality of the estate. The group remains on track to grow its portfolio to 130 centres by 2035, up from 77 in the UK and 15 in Canada currently.
Berenberg retained its Buy recommendation and 440p target price following the update, while a bigger-than-expected net cash figure of £15.2 million at the September year-end prompted Peel Hunt to upgrade from its previous Add stance.
The same City firm also highlighted the case for discoverIE shares after the customised electronics firm said second-quarter sales growth improved to 1%.
Three of its four operating units - Sensing, Connectivity and Magnetics - delivered good levels of organic growth but they were offset by the Controls unit, which has experienced subdued levels of demand from certain large customers.
One of the positives for Peel Hunt concerned organic order growth of 8% in the second quarter, which it said was supportive of its forecast for 3.5% sales growth in the second half.
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It described the company’s valuation as compelling, pointing out that a price/earnings multiple of 15 times is “too low for a business with the potential for 6% organic growth through-cycle and possible catalysts on M&A”.
Shares in the group, whose customers include wind power firm Vestas and technology solutions business Leidos, opened as high as 610p but later retreated towards their opening mark at 585p. Peel Hunt’s target is 1,000p.
THG shares also got off to a strong start after the e-commerce business reported its strongest quarter for organic growth since the end of 2021. The 6.3% improvement in the third quarter to the end of September was driven by a 10% rise for THG Nutrition, which is home to online sports nutrition brand MyProtein.
THG Beauty, which trades as Lookfantastic, Dermstore and Cult Beauty, also showed continued momentum as THG reiterated guidance for the year. The shares peaked at 41.5p before settling 1.3p higher at 38.7p.
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