MARKET REPORT: Raspberry Pi tumbles on lower profit forecasts
MARKET REPORT: Raspberry Pi tumbles on lower profit forecasts
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Computer platform maker Raspberry Pi saw some of the fervour that has been propelling the 2024 market newcomer higher dissipate following a trading update. It expects to report 2024 adjusted earnings of not less than £29million – a 17 per cent drop from the £35million reported a year earlier.
The FTSE 250-listed firm said monthly shipments hit a low in the summer but have recovered steadily in the second half of the year as inventory levels normalised. It is targeting gradual growth in the year ahead and anticipates seeing the full benefit of 2024’s new product launches.
Its valuation has jumped by more than 150 per cent, to a market cap of £1.4billion, since its IPO last June, much of it since December 18, when it was revealed that America’s SW Investment Management had amassed a 3.59 per cent holding. Raspberry Pi shed 3.9 per cent, or 28.5p, at 711.5p.
Slowdown: Computer platform maker Raspberry Pi expects to report 2024 adjusted earnings of not less than £29m – a 17% drop from the £35m reported a year earlier. Ahead of the first US interest rate decision of 2025, the FTSE 100 closed 0.3 per cent, or 23.94 points, higher at 8557.81, while the FTSE 250 ended 0.1 per cent, or 28.81 points, lower at 20,559.70.
Fresnillo was up 2.7 per cent, or 18p, to 675p, as the precious metals miner said it expects its 2024 profits to more than double, reflecting lower costs and a jump in commodity prices. British Airways-owner IAG rose 2.5 per cent, or 8p, at 330.7p as the Government backed plans for a third runway at London’s Heathrow airport, the airline’s home base.
