FTSE 250 winners and losers: Kier Group, Trustpilot, Wickes, IP Group

Red crane operated by construction firm Kier. Photo: Mike Kemp/In Pictures via Getty Images.

Mid-cap investors today favoured Kier Group (LSE:KIE) over the AI momentum of Trustpilot Group (LSE:TRST) in a FTSE 250 session when resilient Wickes Group (LSE:WIX) and heavily discounted IP Group (LSE:IPO) also drew buying interest.

Shares of Kier returned to form, lifting by 11p to 259p as the construction and infrastructure group said 2026-27 earnings are set to be at the top end of its prior expectations.

Broker Peel Hunt noted that a new management team, led by chief executive Stuart Togwell, had hit the ground running as it increased its target price by 50p to 350p.

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And despite the momentum seen in today’s annual results, Panmure Liberum pointed out that a valuation multiple of 10 times forecast earnings was still a material discount to peers.

It added: “In our opinion, Kier’s valuation fails to reflect the transformed balance sheet, high-quality order book, and the group’s future growth potential.”

Panmure said that applying the average forward price/earnings multiple of its peers to Kier’s prospective earnings per share indicates upside to a 12-month target price of 322p.

Three years of operational and debt reduction progress have lifted the shares from 59p at the end of 2022 to last month’s peak of 261.8p. They faded to 242p ahead of today’s results.

Year-on-year revenue growth of 7.5% to £4.4 billion at an unchanged operating margin of 3.9% meant adjusted profit rose 6.7% to £169.8 million. Free cash flow of £206 million represented 121% cash conversion, well above the group’s medium-term target of 90%.

A dividend of 5.2p a share is due to be paid on 4 December, lifting the total for the year by 8% to 7.8p and representing earnings cover of three times.

The company also updated medium-term targets as it looks to focus on core businesses where end markets are underpinned by long-term structural growth trends. They include mid-single digit revenue growth and an adjusted operating margin of 4-4.5%

There will be no investment in new property developments, with capital re-allocated to enhance the group’s balance sheet strength.

Boosted by order-book growth of 8% to a record £11.9 billion, Togwell added: “We enter 2026-27 with strong foundations and clear strategic priorities, to make the most of the sizable opportunity in front of us.”

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The shares of Wickes surged to the top of the FTSE 250 index, lifting by 15.8p to 192.4p after it reported a 1.1% rise in half-year profit to £27.6 million and said that it had seen an acceleration in the current quarter’s trading performance.

While the consumer environment remains uncertain, Wickes backed the City’s consensus forecast of about 10% growth in 2026’s adjusted pre-tax profit.

Peel Hunt said: “In a market offering no favours, Wickes has delivered another very strong performance, driven by continued volume growth.”

The broker has a price target of 295p, having seen shares fall 23% in the calendar year to last night’s valuation multiple of eight times forward earnings with 6.5% dividend yield.

The group, which trades from 229 stores but has an ambition for 300, lifted the interim dividend for payment on 6 November by 2.8% to 3.7p a share.

IP Group, which is an early stage investor in university and research-based companies, rose 1.4p to 67.1p but continues to trade at a 40%-plus discount to its latest net asset value (NAV).

The figure in today’s half-year results rose 18.4% on a year ago to 113.9p a share, having benefited from a £27 million uplift in royalty and milestone income in relation to Pfizer Inc (NYSE:PFE) obesity drug programmes to £152 million.

NAV rose to 117p by the end of last week after IP benefited from a £26.4 million hike in the value of its stake in FTSE 250-listed Oxford Nanopore Technologies (LSE:ONT) since 30 June.

The group has backed other high-profile companies including the virtual physical therapy business Hinge Health Inc Ordinary Shares - Class A (NYSE:HNGE), which after a founding investment by IP in 2012 listed on the New York Stock Exchange last year.

Chief executive Greg Smith said: “Looking ahead, we see a substantial pipeline of potential value-driving milestones across our HealthTech, DeepTech and CleanTech portfolios.”

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At the bottom of the FTSE 250, Trustpilot shares returned to where they were in April after unchanged guidance in half-year results caused shares to unwind some of this year’s strong run.

The fall of 47p to 214.8p leaves the consumer reviews platform up by a third year-to-date, having upgraded its earnings guidance by about 35% over the past year.

Revenues in today’s results increased 19% on a constant exchange rate basis to $151 million (£112 million), while the leading indicator of bookings improved 18% thanks to strong growth in the US and in the Enterprise customer segment.

Underlying earnings advanced by 46% to $26 million as the margin expanded from 14.6% a year ago to 17.4%.

Chief executive Adrian Blair highlighted AI as a significant tailwind: “As consumers increasingly use AI to discover and evaluate businesses, trusted, independent feedback is becoming even more valuable to businesses.

“Trustpilot’s scale and authority as the number one cited review platform globally means our content is increasingly visible in AI-generated answers.”

Bank of America said it regarded Trustpilot as a high-quality business with significant untapped potential, particularly in North America where penetration of its addressable market remains roughly one-tenth of UK levels.

The bank, which has a price target of 332p, added: “The most encouraging read from today’s release is that AI-led discovery is converting into commercial momentum in North America, still the largest medium-term upside opportunity in our view.”