FTSE 250 shares round-up: some big winners and heavy losers

Big falls for AI-exposed names Renishaw (LSE:RSW), Ceres Power Holdings (LSE:CWR) and Volex (LSE:VLX) today contrasted with Dunelm Group (LSE:DNLM) and THG  Ordinary Share (LSE:THG) as mid-cap investors experienced a session of significant share price moves.

An underperforming FTSE 250 index traded in negative territory after the global tech sell-off left its mark through a repricing of some of the beneficiaries of the AI and data-centre buildout.

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They included precision engineering firm Renishaw, whose shares have moved to the brink of the FTSE 100 thanks to the support of AI-related demand in semiconductor manufacturing.

Other casualties included Volex, which makes critical power and data transmission products, and the clean energy technology company Ceres Power.

At the right end of the FTSE 250 index, Dunelm jumped 69p to 870p as shares moved closer to where they were prior to last month’s hefty results-day sell-off.

The rally was fuelled by a 4% sales rebound in the final seven weeks of the company’s first quarter, which reversed a 3% fall in the heatwave-hit first six weeks.

Dunelm, which reiterated guidance for the 2026-27 year, added: “Despite the challenging trading backdrop, we believe we continued to outperform an overall soft market.”

The shares slid from 886.5p to as low as 734p after Dunelm’s annual results and strategic update included a self-funded plan to accelerate top-line growth.

The update led to speculation that no special dividends would be paid this year and next, which would end the company’s six-year run of surplus cash returns.

Dunelm shares yield dividend income of 6%, with the next payment of 28.5p a share due on 17 November as part of a 2.2% increase in the total for 2025-26 to 45.5p.

Broker Peel Hunt, which has a price target of 1,086p, said today: “Dunelm’s strategy reset is a statement of ambition, aimed at reinvigorating the rate of sales growth, to close the door on competitors, while better positioning the business for the future.

“Initiatives are well under way, but on a multiple of 10 times earnings the market is watching rather than buying ahead of results, making this the right moment to re-engage, in our view.”

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THG led the FTSE 250 index after the beauty and nutrition e-commerce business increased its earnings guidance on the back of a better-than-expected third quarter performance.

It is also on track for full-year free cash flow of between £25 million and £35 million, which would be its first positive result since the initial public offering (IPO) in September 2020.

Founder and chief executive Matt Moulding said: “Q4 is traditionally our busiest and most cash-generative quarter, and we enter this important trading period with confidence.”

Licensing deals with Krispy Kreme, Gold’s Gym and Caffe Nero have boosted the Myprotein nutrition division, which has also seen a 20% drop in whey protein concentrate prices since the group’s interim results in mid-September.

Peel Hunt has a current forecast for a full-year underlying margin in Nutrition of 9.3% but said this would begin to look conservative if the decline in whey price is sustained.

The broker has a target of 80p, which compares with a price of 32p following today’s bounce of 4.5p and last October’s level of 49p.

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Elsewhere in the FTSE 250, Seraphim Space Investment Trust Ord (LSE:SSIT) toasted a “landmark” year by reporting a more than doubling of its portfolio value to £605.5 million.

The 133% increase was driven by ICEYE after SSIT’s largest investment was valued at more than 10 billion euros (£8.5 billion) in June’s most recent fundraising round.

Helsinki-based ICEYE delivers sovereign monitoring capabilities from space, with its satellites able to detect and respond to changes in any location on Earth.

SSIT’s net asset value per ordinary share increased by 102.9% to 240.49p in the year to 30 June, which compares with a year-end share price of 187.8p and today’s 192p.

It raised £137 million of capital through May’s C share issue, of which £72.5 million has so far been deployed at five existing portfolio companies and one new firm.

Chief executive Mark Boggett said: “With the secular trends driving the sector set to persist following Space Exploration Technologies Corp Class A (NASDAQ:SPCX)’s blockbuster IPO, we anticipate another period of record investment activity and believe the portfolio is well placed to extend its recent momentum.”