UK stockpickers back BTG Consulting and Currys, hold Jet2

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UK stockpickers: BTG, Currys, Jet2

Highlights

BTG Consulting reports 8 per cent organic revenue growth and 10 per cent total growth to £169 million for the year to April 30, supported by steady insolvency flows.
Jet2 posts 4 per cent revenue increase to £7.5 billion and record passenger numbers, but operating profit dips to £440 million after an £11 million Gatwick investment; £250 million share buyback launched.
Currys delivers 18 per cent rise in adjusted pre-tax profit to £191 million and 6 per cent sales growth to £9.3 billion for the year to May 2, launches £50 million buyback and doubles dividend.

Analysts' picks across consulting, travel and retail

As reported by Financial Times, this week's stockpicker column highlights buy recommendations for BTG Consulting and Currys, alongside a hold rating for Jet2, as each company responds differently to current market pressures.

BTG Consulting, formerly Begbies Traynor, is presented as a business that has broadened well beyond its insolvency roots. The February rebrand is intended to reflect a more diversified model spanning financial advisory and real estate services, while restructuring remains a key earnings driver.

For the year to April 30, BTG reports organic revenue growth of 8 per cent and total revenue growth of 10 per cent to £169 million, supported by a steady flow of insolvencies. Management says weaker transactional markets are weighing on advisory and corporate finance activity, but the company is still viewed positively because of its resilient organic growth and defensive profile.

Jet2 remains in the hold category after reporting stronger sales and announcing a new £250 million share buyback. Revenue rises 4 per cent to £7.5 billion in the year to March 31 on record passenger numbers, while operating profit slips from £447 million to £440 million after an £11 million investment in its Gatwick airport footprint.

Bookings are up 7.1 per cent from a year earlier, and the company has hedged 90 per cent of its jet fuel needs for 2027. That gives Jet2 added cost visibility as U.S.-Iran tensions increase and volatility persists across the travel sector.

Cash returns and sector positioning shape the investment case

Currys is also rated a buy after delivering full-year profit ahead of its own guidance. The UK and Nordic electronics retailer posts sales of £9.3 billion for the year to May 2, up 6 per cent, while adjusted pre-tax profit rises 18 per cent to £191 million.

Its Nordic business is a major contributor to that performance, with like-for-like sales growth of 6 per cent and adjusted EBIT at Elkjøp stores in Finland, Denmark, Sweden and Norway climbing to £97 million, more than a third above the previous year. Currys ends the year with £176 million in cash, supports a doubling of the total dividend to 3 pence a share and launches a new £50 million share buyback programme.

The company is also entering a management transition, with Nordics chief executive Fredrik Tønnesen set to succeed Alex Baldock on August 3. The positive view reflects both the retailer's improving operating shape and a valuation that is still seen as supportive of further growth.

Across the three selections, the investment case turns on balance-sheet strength, resilience in uncertain trading conditions and management's ability to return cash while still funding growth. BTG Consulting and Currys are judged to offer stronger upside from those factors, while Jet2 is viewed as well managed but more fairly rated at present.

Our earlier coverage of Delta Air Lines’ Q2 results highlighted how resilient travel demand and higher fares are helping the carrier offset elevated fuel costs across the U.S. airline sector. We noted that Delta beat earnings and revenue expectations, reaffirmed its full-year guidance, and pointed to strength in premium cabin sales as it continued passing higher fuel bills through to customers.

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