Shares round-up: Fuller, Smith & Turner, Workspace, H-Power

Results cheer for forecast-beating Fuller Smith & Turner  Class A (LSE:FSTA) today contrasted with Workspace Group (LSE:WKP) after the flexible workplace firm cut its dividend and warned of a “substantial” fall in profit.

Fullers rose 70p to a three-month high of 726p as the London and South East-focused pub chain highlighted its position as one of the best stocks in the beleaguered hospitality industry.

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Adjusted profits for the year to 28 March beat City expectations following a rise of 28% to £34.6 million, while earnings per share lifted 38% to 47.18p for 93% growth across three years.

Executive chair Simon Emeny told investors: “Operationally we have led the market once again, with sales, volume and margin growth as we work collectively as a team to deliver outstanding experiences in our pubs and hotels.”

He said the company’s momentum continued into the new financial year after like-for-like sales rose 4.4% in the first 10 weeks of the period.

Broker Peel Hunt upgraded its 2027 pre-tax profit forecast by 8% to £36 million, which is based on assumptions for 3% like-for-like sales and 20 basis points margin growth.

The City firm reiterated its 775p target price and Add rating, noting that the valuation of 7.1 times earnings is the highest in a hugely de-rated hospitality sector.

The FTSE All-Share company said today that it plans to invest over £30 million across the estate, which comprises 185 managed pubs and hotels and 152 tenanted inns.

It will also begin the transformation of The Barrowboy and Banker on London Bridge by creating a 26-bedroom hotel to mirror an earlier investment at The Counting House, Cornhill.

Emeny urged the government to deliver a lower VAT rate for the hospitality industry that will kick start further investment.

He pointed out that the industry employs 3.6 million people and contributes £96 billion to the UK economy, including £56 billion in tax receipts.

Emeny added: “Since the hike in National Insurance contributions for young employees, the country has seen youth unemployment rise to 15%, creating another self-inflicted problem for society that the government now needs to solve.

“The recent introduction of the Employment Rights Act 2025 only serves to add extra cost and bureaucracy, causing pubs, which are famed for delivering part-time jobs for both younger and older workers, to rethink their hiring strategy.”

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The shares of FTSE 250-listed Workspace fell 12.6p to return to last month’s multi-year low of 320p, representing a 53% discount on its year-end net asset value of 687p.

The company, which manages 3.8 million sq ft of space at 57 locations in London and the South East, reported a 9.4% drop in trading profit to £60.5 million and reiterated that it expects a “substantial” step down in performance in the current year.

This is attributed to a lower opening rent roll, the impact of disposals, higher borrowing costs and increased expenses. Inflationary pressures, higher interest rates and subdued levels of business confidence have continued to weigh on decision‑making across its customer base.

Chief executive Charlie Green, who joined the business in February, said the recent performance highlighted the need to reposition the business as he laid out his medium-term ambition to achieve £125 million of trading profit.

Green said: “We must strengthen and modernise our offer to take full advantage of our exceptional portfolio of buildings. That requires elevating our offer to meet the evolving demands of occupiers today.

“As we progress this strategy, alongside the impact of disposing of higher-yielding assets and increased interest costs, there will be a near-term impact on profitability.”

The final dividend of 16.7p brings the total for the year to 26.1p, which is down 8% on a year earlier and in line with the guidance of returning to 1.2 times earnings cover.

Green added: “We have a focused plan to transform the business, with a clear emphasis on shareholder returns through sustainable earnings growth.”

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On AIM, H-Power (LSE:HPOW) shares rose after the provider of ammonia-based low carbon hydrogen production and hydrogen-to-power solutions highlighted some key commercial developments alongside its interim results.

The company, which last month changed its name from AFC Energy, announced the UK’s first commercial sale of bulk hydrogen from cracked ammonia to a third-party customer.

The results for the six months to 30 April were in line with expectations as revenues rose to £253,000 and losses narrowed to £5.8 million from £10.1 million the year before. It ended the year with total available cash of £17.4 million.

Chief executive John Wilson said the business had made considerable progress: “Together with our strong balance sheet and a building order book, we remain confident of delivering scalable commercial success and creating significant value for our shareholders and stakeholders.”

The shares have fallen from more than 60p in 2021 to today’s 13.1p, although house broker Peel Hunt has maintained its Buy recommendation with a target price of 23p.

Also on AIM, the shares of energy-focused investment company Coastal Africa made a strong debut during their first day of dealings on the junior market.

The company is targeting opportunities across the West African oil and gas sector, as well as energy infrastructure, energy services and broader energy assets.

It is led by Conrad Clauson, whose previous involvement with the Coastal Energy Company culminated in its acquisition by CEPSA for approximately $2.3 billion (£1.7 billion) in 2014.

Coastal Africa raised £17.4 million through the issue of shares at a price of 161p before they rose to 200p in early dealings. BP has agreed to subscribe for £10 million of convertible loan notes in what the company regards as further validation of its strategy and growth ambitions.

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The company doesn’t currently own any trading businesses or operational assets and hasn’t generated revenue to date.

Clauson said: “We see a significant opportunity across shallow-water West African projects and look forward to leveraging the experience of our team to progress opportunities capable of delivering attractive returns for shareholders while supporting broader regional development objectives.”