Market Round-Up

Aena SME SA, a Spanish company that owns and operates airports worldwide, has delivered strong shareholder returns over the past year, benefiting from Spain’s booming economy and record-breaking tourism sector. However, regulatory changes and local perception towards the booming tourism industry may cause potential challenges moving forward.

Aena operates all airports in Spain, several in Latin America, and London Luton Airport here in the UK. The past three years have been particularly rewarding for shareholders, with the stock delivering a 39.9% return in 2023, 20.3% in 2024, and 11.2% since the start of 2025. Dividend yields were also looking attractive at 2.3%, 3.1%, and 3.6% over the same period, respectively. Additionally, its operating profit margin, a key measure of profitability, has been expanding over the past five years, indicating that profitability has not been an issue for the global airport operator.

Spain, which is home to over 87% of Aena’s revenue, saw a record-breaking 94 million tourists in 2024, ranking second only to France as the world’s top destination for tourists. As a result, Spain, the fourth-largest economy in the Eurozone, outperformed Germany, France, Italy, and the UK in GDP growth, posting a 3.2% increase in 2024.

On February 26th, when Aena reported its full-year 2024 results, revenue reached €1.44bn, net profit jumped by 81%, and quarterly earnings per share came in at €3.06, surpassing analysts’ expectations.

Travis Perkins, the UK’s largest supplier of building materials and a FTSE 250 constituent, has hit its lowest share price in 16 years after reporting a 99% drop in operating profit to just £2 million before adjusting for £139m of costs related to impairments and restructuring costs associated with challenging trading conditions.

As of 2nd April 2025, the stock was down 30% over the previous year, with investors disappointed by its last two earnings reports. The Northampton headquartered company attributes its weak performance to a struggling UK construction sector, where it generates 100% of its revenue, falling commodity prices such as timber, and uncertainty surrounding the July General Election and Autumn Budget announcement.

Looking at the bigger picture, Travis Perkins has failed to deliver a single positive annual share price performance since 2021, with sales declining at a 6.3% compounded annual growth rate over the past five years. While management has acknowledged that a turnaround remains difficult to time, the company has already lowered its outlook for 2025.

On a more positive note, Toolstation UK, a subsidiary of Travis Perkins, has performed well, delivering stronger sales revenue, higher margins, and improved operational efficiencies, leading to a 48% jump in adjusted operating profit.

Lastly, the company has undergone significant management changes, as CEO Pete Redfern, who previously led Taylor Wimpey is set to leave after just six months in the role, during which the firm could not turn around its struggles.

Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned. Investments and income arising from them can fall as well as rise in value. Past performance and forecasts are not reliable indicators of future results and performance. The information and views were correct at time of publication but may have changed at point of reading.