FTSE 250 shares round-up: big losses for these two stocks
It’s not been a great day for this pair, which had done very well until recently. City writer Graeme Evans explains what’s gone wrong and the odds of recovery.
24th September 2025 13:22
by Graeme Evans from interactive investor
Ambitious targets and a big City upgrade were overshadowed today as ex-Pendragon business Pinewood Technologies Group (LSE:PINE) skidded during a tough start to life in the FTSE 250 index.
The provider of AI-enhanced software for car dealerships fell 50.5p to 478.5p, placing it alongside Baltic Classifieds Group (LSE:BCG) as the worst performing of today’s mid-cap stocks.
- Learn with ii: How to Buy Shares| Top UK Shares | Cashback Offers
Despite increasing revenues by 21.5% in strong half-year results, Pinewood disappointed the City with its guidance for annual earnings of between £15.5 million and £16 million.
The miss against the £18.4 million consensus was due to a £1.3 million short-term accounting adjustment relating to its US joint venture buyout, plus a delay of one quarter to a system rollout with dealership Marshall Motor Group.
Pinewood used the results to provide new medium-term guidance for earnings of £58 million-£62 million, representing 56% compound annual growth at the mid-point of its 2025-2028 estimates.
City firm Berenberg said the new outlook represented a “material upwards revision” as it lifted its price target to 700p from 590p previously.
The shares, which have rallied from April’s 296p, last week entered the FTSE 250 index less than two years after becoming a standalone software business.
- The Analyst: where to invest when interest rates are falling
- eyeQ: why IAG shares are on the watchlist
Pinewood secured its independence as part of the sale of Pendragon's UK motor and leasing divisions to North America-based Lithia Motors in 2024.
The software group, which has long-standing partnerships with over 50 brands, recently strengthened its offer with the acquisition of Seez in a $42 million (£31 million) deal.
The move, which was funded via the issue of new shares at 315p, enhanced Pinewood's in-house capabilities through AI chatbots for customer service and sales support.
Other highlights in the first half of the year included a five-year contract to implement the Pinewood.AI platform into all 350 Volkswagen and Audi dealers in Japan.
It has also taken full ownership of Pinewood North America and signed a five-year contract to provide its software to all of Lithia’s current and future sites in North America by 2028.
The company expects this to generate about $60 million in revenue on an annualised basis by 2028, at an approximate 45% adjusted earnings margin.
Chief executive Bill Berman said: “We are confident in the scale of the global opportunity in the market, and we are looking forward to delivering on this in the years ahead.”
The decline for the shares of Baltic Classifieds was caused by the Estonian car market after the company issued a brief AGM update cutting revenues and profits guidance by 3-4%.
A new vehicle tax introduced in Estonia at the start of the year initially drove a surge in auto listings before a sharp decline once the levy came into force.
This decline has been compounded by uncertainty over the future of the new tax regime, meaning customers continue to delay purchases.
- Four stocks for active traders
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
Baltic shares fell 22.5p to 293.5p, leaving them 9% lower for the year.
Peel Hunt said: “We expect issues in Estonia Autos to eventually iron out but the timing is uncertain. While there are short-term headwinds, we do not believe it detracts from the long-term investment case.”
The bank has cut its price target from 350p to 335p but noting 24% upside to this morning’s initial share price of 270p it raised its recommendation from Add to Buy.
The group owns and operates 14 online classifieds portals in Lithuania, Estonia and Latvia. In July’s annual results, revenues rose 15% to £82.8 million and operating profit by 40% to £53.5 million.
Chief executive Justinas Šimkus said at the time: “Despite recent economic headwinds, the outlook for future economic growth remains positive, especially for Lithuania, further reinforcing our growth prospects.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.