Author: Fiona Craig

Tertiary Minerals plc (LSE:TYM) is preparing to begin a diamond drilling programme of up to 1,000 metres at its Mushima North project in Zambia, targeting deeper silver-copper-zinc mineralisation beneath the existing Discovery Zone.

The company said mobilisation to the site had commenced, with drilling expected to begin early next week. The programme will comprise up to four diamond drill holes designed to investigate the potential continuation of mineralisation at depth and assess whether the near-surface oxide deposit extends into an underlying primary sulphide system.

The planned work follows more than 3,600 metres of reverse circulation drilling completed at the Discovery Zone and forms part of Tertiary’s wider programme to establish a Mineral Resource Estimate before the end of 2026.

Diamond Drilling to Investigate Mineralisation at Depth

Tertiary Minerals plans to drill approximately 1,000 metres at Target A1, with up to four holes measuring between 200 and 250 metres each.

The holes will be inclined at approximately 60 to 70 degrees below horizontal, allowing the company to investigate mineralisation at vertical depths of up to 200 metres.

This represents a significant extension beyond the current near-surface Exploration Target, which reaches approximately 95 metres vertically, and the recent Phase 4 drilling programme, which investigated mineralisation to a maximum vertical depth of 125 metres.

The programme is designed as an initial proof-of-concept investigation into the potential continuation of mineralisation beneath the Discovery Zone.

A principal objective is to establish whether the existing oxide mineralisation transitions into a deeper primary sulphide deposit.

The drilling will also provide geological information on the structure and composition of the mineralised system, helping guide future exploration and technical studies.

Diamond drill core will be collected for additional metallurgical testing and other technical investigations.

The programme is expected to take approximately four weeks to complete.

Discovery Zone Exploration Target Contains Up to 58 Million Ounces Silver Equivalent

The Discovery Zone at Mushima North has a previously announced JORC-compliant Exploration Target of between 15 million and 30 million tonnes, with an estimated grade range of 40 to 60 grams per tonne silver equivalent.

The upper end of the Exploration Target represents approximately 58 million ounces of silver equivalent.

The target relates to a near-surface mineralised body within the oxide zone, measuring approximately 500 metres in length, 300 metres in width and up to 75 metres in thickness.

These dimensions are based on a lower cut-off grade of 25 grams per tonne silver equivalent.

The mineralisation remains open to the northwest, southwest and at depth, indicating that its full extent and geometry have not yet been established.

The Exploration Target is conceptual and does not constitute a Mineral Resource Estimate. Further exploration is required to determine whether sufficient mineralisation can be defined to support a formal mineral resource.

Tertiary intends to use its existing drilling results and outstanding laboratory data to support the preparation of a Mineral Resource Estimate before the end of the year.

Phase 4 Drilling Identifies Higher-Grade Mineralised Zone

The recent Phase 4 reverse circulation drilling programme identified a higher-grade area within the Discovery Zone.

This zone has a surface footprint measuring up to 400 metres by 150 metres, with mineralisation extending to a vertical depth of 125 metres.

The deposit remains open below the deepest drilling completed to date.

The company believes that further drilling is required to understand whether the mineralised system continues at depth and whether primary sulphide mineralisation occurs beneath the oxide zone.

Previous exploration also identified elevated concentrations of several additional elements associated with the silver-copper-zinc mineralisation.

Reported concentrations included bismuth of up to 0.53%, antimony of up to 0.22%, cobalt of 0.39% and gallium of up to 40 grams per tonne.

The potential significance of these elements has not yet been fully investigated.

The forthcoming diamond drilling programme will provide an opportunity to collect further geological and analytical information on the mineralised system.

Assay and Metallurgical Results Expected Shortly

Tertiary Minerals expects to receive the remaining laboratory assay results from its Phase 4 drilling programme imminently.

Initial metallurgical testwork results are also expected shortly.

These results will contribute to the company’s understanding of the mineralisation and its technical characteristics as it progresses towards a Mineral Resource Estimate.

During the new diamond drilling programme, samples will initially be assessed on site using portable X-ray fluorescence equipment to identify copper and zinc concentrations.

Selected mineralised intervals will subsequently be submitted to a certified external laboratory for more comprehensive analysis.

The laboratory testing will cover silver, copper, zinc, cobalt, bismuth, antimony, gallium, germanium and rare earth elements.

Samples will be submitted in batches throughout the programme.

The first laboratory results are expected approximately six to eight weeks after the initial batch is submitted.

The expanded analytical programme is intended to provide a more detailed understanding of the mineralised system and the potential presence of additional elements.

Western Zone Provides Additional Exploration Target

The Phase 4 drilling programme also identified a separate shallow copper-mineralised area approximately 900 metres west-southwest of the Discovery Zone.

The newly identified prospect, known as the Western Zone, was encountered during preliminary scout drilling.

Mineralisation at the Western Zone remains open, and its full extent has not yet been established.

The discovery provides another area for potential follow-up exploration within the wider Target A1 prospect.

Tertiary has not announced a dedicated drilling programme for the Western Zone as part of its latest update.

The immediate focus remains on testing deeper mineralisation beneath the Discovery Zone and completing the technical work required for the planned resource estimate.

Mushima North Located Near Historic Kalengwa Copper Mine

The Mushima North project is situated in Zambia’s prospective Iron-Oxide-Copper-Gold geological region.

Target A1 lies approximately 28 kilometres east of the historic Kalengwa copper-silver mine, which is currently undergoing redevelopment.

Kalengwa was historically recognised as one of Zambia’s highest-grade copper deposits, with ore averaging approximately 11% copper transported for direct smelting during the 1970s.

Mushima North is held under exploration licence 27068-HQ-LEL through Copernicus Minerals Limited.

Copernicus is owned 90% by Tertiary Minerals (Zambia) Limited and 10% by local partner Mwashia Resources Limited.

The project is also covered by a technical cooperation agreement with First Quantum Minerals Limited.

Under the arrangement, Tertiary can access historical exploration information and geological expertise relating to the area.

The agreement is non-binding and does not impose commercial restrictions on Tertiary or grant First Quantum a right of first refusal over the project.

In addition to Target A1, several other geochemical and geophysical targets remain untested by drilling.

These include targets B1, B2, B3 and C2, most of which are situated within approximately 12 kilometres of Target A1.

Managing Director Highlights Potential for Deeper Sulphide Mineralisation

Tertiary Minerals Managing Director Richard Belcher said the upcoming diamond drilling campaign represented an important next stage in the company’s exploration work at Mushima North.

“We are very excited to be back drilling again this field season at the Discovery Zone where we have made great progress and have already completed over 3,600m of Reverse Circulation drilling to support our Mineral Resource Estimation work. This programme marks our first diamond drill programme on the Project and will test for the continuation of mineralisation below the Discovery Zone and, in particular, for the potential of underlying primary sulphides.

“With the last of the laboratory results for the recent Phase 4 drilling due imminently, along with the initial metallurgical testwork results, we are then positioned for a very strong finish to this year’s Zambian field season. I look forward to providing further updates on these results and the drill programme in the coming weeks.”

The company expects the combination of new drilling, outstanding assays and metallurgical testing to provide further information on the Discovery Zone’s geological characteristics and potential development opportunities.

Tertiary Minerals Outlook

Tertiary Minerals is preparing to commence its first diamond drilling programme at Mushima North, with up to 1,000 metres of drilling planned over approximately four weeks.

The immediate objective is to determine whether silver-copper-zinc mineralisation continues beneath the existing Discovery Zone and to investigate the potential presence of an underlying primary sulphide system.

The programme will also generate drill core for additional metallurgical studies and improve the company’s geological understanding of Target A1.

Remaining Phase 4 assay results and initial metallurgical testwork findings are expected imminently, while the first results from the new drilling programme are anticipated approximately six to eight weeks after initial samples are submitted for laboratory analysis.

Tertiary continues to target completion of a Mineral Resource Estimate before the end of 2026.

The results of the forthcoming drilling will be important in determining whether deeper mineralisation warrants further exploration beyond the currently defined near-surface target.

Touchstone Exploration Inc. (LSE:TXP) has reported encouraging initial natural gas test results from its Carapal Ridge-3 well in Trinidad and Tobago, alongside the successful start of oil production from the first well in its WD-4 development drilling programme.

The company recorded average natural gas test rates of approximately 5.0 million and 6.8 million cubic feet per day (MMcf/d) at different choke settings from the Karamat reservoir at Carapal Ridge-3 (CR-3).

Meanwhile, the PS-623 well at WD-4 entered production at an initial estimated rate of 387 barrels of oil per day (bbls/d) during its first 24 hours.

Touchstone cautioned that these preliminary results do not represent stabilised production rates and that further testing will be required to determine long-term well performance.

The company also reported improved operational reliability at its Cascadura gas field and outlined additional well optimisation activities planned before the end of 2026.

Carapal Ridge-3 Delivers Initial Gas Test Rates of Up to 6.8 MMcf/d

Touchstone completed the Karamat reservoir interval at its CR-3 well on the Central block during October 2026.

The completion programme involved installing a retrievable bridge plug above the Herrera reservoir and perforating 62 feet of the Karamat formation at depths between 6,540 and 6,619 feet.

Cleanup and flow testing commenced on 19 October.

During initial cleanup operations, the well produced approximately 7.7 MMcf/d of natural gas at a flowing wellhead pressure of 650 pounds per square inch (psi), using a 70% open choke.

Following cleanup, shut-in wellhead tubing pressure increased to approximately 2,600 psi.

The company subsequently conducted extended testing over four days at different choke settings.

CR-3 recorded an average natural gas flow rate of approximately 5.0 MMcf/d at a flowing wellhead pressure of 500 psi on a 60% open choke.

At an 80% open choke, the well produced an average of approximately 6.8 MMcf/d at a flowing wellhead pressure of 400 psi.

Touchstone reported minimal condensate production and said no formation water had been observed during testing.

The well is connected to the Central block gas processing facility, allowing gas to be exported for sale through the Atlantic LNG facility under the existing Train 4 sales agreement.

Further flow and pressure build-up testing is continuing, supported by downhole pressure recorders.

The company emphasised that the reported flow rates were recorded under testing conditions and should not be regarded as representative of sustained commercial production.

Karamat Reservoir Could Provide Additional Development Opportunities

CR-3 is Touchstone’s first well targeting the Karamat reservoir within the Central block.

The formation is also present across wells in the Carapal, Baraka and Baraka East fields.

The company said the preliminary CR-3 results could indicate an additional natural gas development opportunity alongside its existing Herrera reservoir programme.

Further geological and engineering assessments will be required to determine whether the Karamat interval offers commercially viable production opportunities elsewhere in the block.

Touchstone stressed that the CR-3 test results do not establish comparable reservoir quality or production potential at other locations.

The company will continue evaluating reservoir performance, production decline characteristics and the potential contribution of the Karamat formation to its wider Central block operations.

The availability of existing gas processing infrastructure could provide an opportunity to accommodate additional production if further development proves commercially viable.

WD-4 Well Begins Oil Production at Initial Rate of 387 Barrels Per Day

Touchstone has also completed drilling and brought its PS-623 development well into production at the WD-4 block.

The well was spudded on 19 September 2026 and reached a total depth of 6,500 feet on 4 October.

Interpretation of wireline logs identified approximately 450 feet of potential net hydrocarbon pay across intervals between 3,326 and 6,250 feet.

Following drilling, the well was completed across a 40-foot interval in the Cruse formation.

PS-623 subsequently entered production at a field-estimated initial flush rate of approximately 387 barrels of crude oil per day during its first 24 hours.

The well recorded a water cut of approximately 1%, with production flowing through a 6/32-inch choke at a wellhead pressure of 1,040 psi.

Touchstone cautioned that initial flush production rates typically decline as wells continue operating.

The company will monitor PS-623 to establish a more representative production decline curve and determine its stabilised output.

Second WD-4 Development Well Expected to Spud Shortly

Following completion of PS-623, Touchstone has mobilised its drilling rig to the second location in the WD-4 development programme.

The company expects drilling of the second well to commence shortly.

The two-well campaign is intended to advance development of the WD-4 field and provide additional production opportunities.

Touchstone previously announced that the drilling contractor would cover the turnkey drilling costs associated with the second well.

This arrangement reduces the company’s direct capital exposure while allowing development activities to continue.

Results from the second well will provide further information on the production potential of the WD-4 block.

Cascadura Compressor Reliability Improves to 98%

Touchstone reported improved operating performance at its Cascadura field on the Ortoire block following earlier troubleshooting of its booster compressor.

Compressor uptime availability reached approximately 98% during September 2026.

The improvement supported higher average gross natural gas production across the field.

Average gross gas output increased from approximately 9.7 MMcf/d in July to 12.5 MMcf/d in August, before reaching 13.0 MMcf/d in September.

The company said improved compressor reliability had established a more stable operating platform for further production optimisation.

The stronger operating performance is expected to support ongoing efforts to improve output from existing Cascadura wells.

Three Cascadura Workovers Planned Before Year-End

Touchstone intends to undertake three production optimisation workovers at Cascadura before the end of 2026.

The programme includes a coiled tubing cleanout at Cascadura-3ST1, designed to improve well performance.

At Cascadura-5, the company plans to recomplete an oil-producing interval.

A further workover is planned at Cascadura Deep-1 to enable production from two previously producing Herrera reservoir zones.

The Cascadura Deep-1 operation involves removing a plug that currently isolates the lower Herrera interval.

That interval previously produced between September 2023 and June 2024 before being isolated to allow production from the upper Herrera zone.

The proposed workover is intended to allow both intervals to produce simultaneously.

Touchstone said the planned activities are designed to improve productivity, access additional producing intervals and optimise production from existing infrastructure.

Actual production improvements will depend on the outcome of the individual workovers.

Baraka-1 Workover to Assess Deeper Herrera Reservoir

Touchstone is also planning a workover at the Baraka-1 well within the Central block.

The operation will evaluate a lower interval of the Herrera reservoir that was previously tested by an earlier operator.

During a three-day test, the interval recorded gross peak production rates of approximately 270 barrels of oil per day and 1.3 MMcf/d of natural gas.

Touchstone intends to reassess the interval to determine its current production potential.

The proposed workover forms part of the company’s broader efforts to evaluate additional hydrocarbon opportunities within its existing acreage.

The historical test results provide an indication of previous reservoir performance but do not establish the well’s current or future production capacity.

Third-Quarter Production Averages 4,485 Boe/d

Touchstone reported average sales volumes of 4,485 barrels of oil equivalent per day (boe/d) during the third quarter of 2026.

The total comprised approximately 19.4 MMcf/d of natural gas and 1,259 barrels per day of crude oil and liquids.

The company continues to focus on improving production reliability and bringing additional wells into operation across its Trinidad and Tobago assets.

The improved performance at Cascadura, together with the initial results from CR-3 and PS-623, provides further information for management as it assesses future production opportunities.

However, Touchstone has not provided updated consolidated production guidance or quantified the expected sustained contribution from the newly tested wells.

Chief Executive Highlights Encouraging Early Results

Touchstone President and Chief Executive Officer Paul R. Baay welcomed the initial results from the company’s recent drilling and completion activities while emphasising the need for further production data.

“It is encouraging to see the early test results from both the CR-3 and PS-623 wells, but it will take some time before we can better assess production decline behaviour and stabilized production rates from the wells. While it remains early days, the initial CR-3 well results may indicate an additional natural gas opportunity for us in the region that could help utilize available processing capacity at the Central block. We will provide updates as appropriate during ongoing testing and production.”

The company will continue monitoring both wells as additional production information becomes available.

Touchstone Exploration Outlook

Touchstone’s near-term operational priorities include completing further testing at CR-3, monitoring initial oil production from PS-623 and commencing drilling of the second WD-4 development well.

The company will also focus on maintaining improved compressor reliability at Cascadura and executing its planned production optimisation workovers before the end of 2026.

At the Central block, the proposed Baraka-1 workover and continued evaluation of the Karamat reservoir could identify additional development opportunities.

The initial CR-3 gas flows and PS-623 oil production provide encouraging operational results, although neither well has yet established a stabilised long-term production rate.

Further testing and production history will be necessary to assess sustainable output, decline rates and the commercial potential of additional development.

Touchstone’s ongoing programme is aimed at improving production from existing assets while evaluating opportunities to expand oil and natural gas output across its Trinidad and Tobago portfolio.

Bunzl plc (LSE:BNZL) has announced the acquisition of 100% of Wessex Cleaning Equipment and Janitorial Supplies, strengthening its position in the UK cleaning and hygiene distribution market.

The international distribution and services group said the acquisition would expand its geographical coverage and enhance its product offering, particularly in cleaning equipment sales and hire.

Wessex generated revenue of £11 million in the financial year ended 31 March 2026. Financial terms of the transaction were not disclosed.

Acquisition Strengthens Bunzl’s UK Cleaning and Hygiene Operations

The acquisition of Wessex represents a further expansion of Bunzl’s presence in the UK cleaning and hygiene sector.

Wessex is an established distributor of cleaning and hygiene products, janitorial supplies and specialist cleaning equipment.

The business serves customers across a range of industries, providing products and equipment used in commercial cleaning and hygiene operations.

Bunzl said the acquisition would complement its existing distribution activities and improve its ability to serve customers across additional geographical markets.

The transaction also broadens the group’s offering in cleaning equipment sales and rental services, alongside its established product distribution operations.

Wessex Reports £11 Million in Annual Revenue

Wessex recorded revenue of £11 million for the financial year ended 31 March 2026.

The acquired business has developed its market position through customer service, technical expertise and established relationships with local customers.

Its operations cover cleaning and hygiene consumables, janitorial products and cleaning equipment.

The addition of Wessex provides Bunzl with an established customer base and further operational capabilities within the UK market.

However, Bunzl has not disclosed Wessex’s profitability, the acquisition price or the expected financial contribution to the group’s earnings.

The company also did not provide details of anticipated cost savings or integration expenses.

Cleaning Equipment Sales and Hire Expand Product Offering

An important element of the acquisition is the addition of Wessex’s cleaning equipment sales and hire capabilities.

These services complement Bunzl’s existing distribution activities and provide opportunities to broaden its offering to commercial customers.

The acquisition strengthens the group’s ability to supply both everyday cleaning and hygiene products and specialist equipment.

Bunzl also expects the transaction to improve its geographical reach within the UK.

The expanded offering could provide opportunities to develop relationships with existing customers while serving additional businesses requiring cleaning and hygiene solutions.

The company has not announced specific revenue or operational targets associated with the acquisition.

Chief Executive Welcomes Wessex to Bunzl

Bunzl Chief Executive Officer Frank van Zanten welcomed the acquisition and highlighted Wessex’s established position in its market.

“I am pleased to welcome Wessex to Bunzl. The business has built an excellent reputation for customer service, technical expertise and strong local relationships, and we look forward to working with the team to support the next stage of its development.”

The comments indicate Bunzl’s intention to build on Wessex’s existing customer relationships and technical capabilities as the business becomes part of the wider group.

Bunzl Continues Expansion Through Acquisitions

The purchase of Wessex is consistent with Bunzl’s approach of expanding its specialist distribution operations through acquisitions.

The transaction adds an established UK business with annual revenue of £11 million and operations spanning cleaning products, janitorial supplies and equipment services.

The acquisition also strengthens Bunzl’s position in a market where businesses require ongoing supplies of cleaning and hygiene products.

By combining Wessex’s local market relationships and technical expertise with its broader distribution operations, Bunzl aims to enhance its UK customer offering.

No timetable for operational integration or additional investment plans was disclosed.

Bunzl Outlook

Bunzl’s acquisition of Wessex Cleaning Equipment and Janitorial Supplies expands its presence in the UK cleaning and hygiene distribution market.

The acquired business generated £11 million in annual revenue and brings additional expertise in cleaning equipment sales and hire.

Management expects the transaction to strengthen geographical coverage and broaden the group’s offering to customers across multiple sectors.

Although the acquisition provides an additional source of revenue, Bunzl has not disclosed the purchase consideration or quantified its expected impact on group profitability.

The company will now focus on supporting Wessex’s development within its existing UK distribution operations.

EnSilica plc (LSE:ENSI) has secured a new application-specific integrated circuit (ASIC) development and supply agreement worth approximately $2.4 million with a US healthcare technology company, while completing a key development milestone on a separate $1.6 million life-sciences contract.

The semiconductor design specialist said the new healthcare agreement follows the successful completion of a feasibility study announced in March 2026 and covers the development of a wireless biosensing and therapeutic controller chip.

Separately, EnSilica has completed the tape-out of a next-generation ASIC for a UK-listed life-sciences technology company, allowing the design to progress to semiconductor fabrication.

Both programmes were originally announced on 10 March 2026 and represent progress in EnSilica’s healthcare and life-sciences semiconductor activities.

Healthcare Feasibility Study Converts Into $2.4 Million Contract

EnSilica has converted an initial feasibility study with a US healthcare technology customer into a full ASIC development and supply agreement.

The contract is expected to generate approximately $2.4 million in development revenue over an anticipated 18-month programme.

The project involves designing a wireless biosensing and therapeutic controller ASIC intended for use in a medical device that incorporates cloud-based artificial intelligence.

The customer’s technology is being developed to support the treatment of a widespread chronic medical condition affecting tens of millions of people in the United States and hundreds of millions globally.

EnSilica has not disclosed the customer’s identity or the specific medical condition being targeted.

The company will undertake the complete ASIC development programme, moving the project beyond its initial feasibility stage towards a chip suitable for the customer’s intended application.

The agreement also establishes a framework for EnSilica to supply the semiconductor over the commercial lifetime of the customer’s product.

Potential for Recurring Revenue From Healthcare Chip Supply

The healthcare contract provides EnSilica with an initial development revenue opportunity and the potential to generate additional income through future chip production and supply.

Under the agreement, EnSilica will develop the ASIC over approximately 18 months, with subsequent supply arrangements linked to the customer’s commercialisation plans.

The company said the medical condition targeted by the customer’s device represents a substantial potential market because of the number of patients affected worldwide.

If development is successful and the device receives the necessary regulatory approvals, commercial adoption could create demand for significant ASIC production volumes.

However, future supply revenue will depend on the customer’s ability to bring the product to market and achieve commercial sales.

EnSilica has not disclosed any committed production volumes or the potential financial value of long-term chip supply.

The $2.4 million contract value relates to the development programme rather than guaranteed future manufacturing revenue.

UK Life-Sciences ASIC Completes Tape-Out

EnSilica has also completed the tape-out of an ASIC being developed for a publicly quoted UK life-sciences technology company.

The milestone forms part of a previously announced contract valued at approximately $1.6 million.

The agreement covers design implementation, tape-out management and prototype wafer manufacturing services for a semiconductor intended for use in advanced life-science analysis systems.

Tape-out marks the completion of the chip design stage and its preparation for semiconductor fabrication.

With this stage completed, the ASIC is progressing to manufacturing at a leading semiconductor foundry.

EnSilica will continue supporting the customer through wafer fabrication and subsequent production activities.

The company expects the majority of revenue associated with the $1.6 million contract to be recognised during its financial year ending 31 May 2027.

Life-Sciences Programme Offers Further Manufacturing Opportunities

The completion of tape-out represents a development milestone for EnSilica’s UK life-sciences customer.

The programme is now moving from design implementation into physical semiconductor manufacturing, with prototype wafer production forming part of the existing agreement.

EnSilica will remain involved as the chip progresses through fabrication and towards production.

The company said the contract could also lead to additional long-term revenue through future production wafer supply.

Any such revenue would depend on the customer’s subsequent manufacturing requirements and commercial plans.

No committed future production volumes or additional supply contract values have been disclosed.

The development highlights EnSilica’s involvement across multiple stages of semiconductor projects, from initial design through to fabrication support and potential production supply.

Healthcare and Life-Sciences Projects Support ASIC Business Model

The two programmes demonstrate different stages of EnSilica’s ASIC development and supply activities.

The US healthcare agreement has progressed from feasibility assessment to a full development programme, while the UK life-sciences project has completed design tape-out and is advancing towards fabrication.

Together, the contracts represent approximately $4 million in announced development and related service values, comprising the new $2.4 million healthcare agreement and the previously disclosed $1.6 million life-sciences contract.

These amounts relate to separate projects and should not be interpreted as $4 million of newly awarded business.

Both arrangements also provide potential opportunities for future semiconductor supply beyond the initial development work.

EnSilica’s fabless operating model allows the company to design application-specific chips and coordinate manufacturing through external semiconductor foundries.

The company is seeking to establish longer-term customer relationships that can extend from development services into recurring ASIC or wafer supply.

Chief Executive Highlights Progress on Both Contracts

EnSilica Chief Executive Officer Ian Lankshear welcomed the conversion of the healthcare feasibility study into a full development agreement and the completion of the UK life-sciences tape-out.

“We are delighted to have converted the feasibility study for our healthcare customer, announced in March, into a multi-year development and supply agreement. The scale of the market for the customer’s device is clear, creating the potential for significant chip volumes as the product progresses towards commercialisation.

“Additionally, completing tape-out for our UK life-sciences ASIC is another important milestone, underlining our team’s ability to execute complex design and manufacturing chip programmes, and to deliver against customer commitments.”

The company views both developments as evidence of progress in delivering semiconductor programmes for customers operating in healthcare and life-sciences markets.

EnSilica Outlook

EnSilica’s latest contract announcements provide further visibility over its ongoing ASIC development activities.

The new $2.4 million US healthcare agreement is expected to run for approximately 18 months and establishes a potential route to future chip supply revenue.

Meanwhile, the UK life-sciences programme has entered the fabrication stage, with most of its existing $1.6 million contract revenue expected to be recognised during the financial year ending 31 May 2027.

Both projects could generate additional manufacturing-related revenue if their respective customers progress successfully towards commercial production.

However, future supply volumes remain dependent on development outcomes, customer requirements, regulatory approvals where applicable and commercial adoption.

The immediate focus will be on delivering the healthcare development programme and supporting the life-sciences ASIC through wafer manufacturing and towards production.

WPP plc (LSE:WPP) reported third-quarter 2026 revenue of £3.27 billion, an increase of 0.5% year on year, as improving performance in its media and production businesses helped offset continued weakness in creative services.

The advertising and marketing services group reported revenue less pass-through costs of £2.41 billion, representing a 2.0% decline on a reported basis and a 2.1% decrease on a like-for-like basis.

Although underlying revenue remained under pressure, WPP said its third-quarter performance was consistent with expectations and showed sequential improvement as the company continued implementing its Elevate28 transformation strategy.

The group maintained its full-year guidance, including an expected headline operating profit margin of between 12% and 13%, and reiterated its objective of returning to organic growth during 2027.

Third-Quarter Revenue Rises 0.5% to £3.27 Billion

WPP reported revenue of £3.27 billion for the three months to September 2026, compared with £3.26 billion in the corresponding period last year.

Revenue increased 0.5% on both a reported and like-for-like basis.

However, revenue less pass-through costs declined to £2.41 billion from £2.46 billion a year earlier.

This represented a reported reduction of 2.0% and a like-for-like decline of 2.1%.

For the first nine months of 2026, total revenue reached £9.65 billion, down 2.8% on a reported basis and 1.9% like for like.

Revenue less pass-through costs for the nine-month period declined 4.4% to £7.16 billion, equivalent to a 3.9% like-for-like decrease.

WPP said the third-quarter performance reflected an improving underlying trend compared with earlier periods of the year.

The company continues to expect revenue less pass-through costs to decline by a low to mid-single-digit percentage during the second half of 2026, with fourth-quarter performance anticipated towards the better end of that range.

WPP Media Returns to Growth as Creative Revenue Declines

WPP’s Global Integrated Agencies business reported a 2.1% like-for-like decline in revenue less pass-through costs during the third quarter.

This represented an improvement from the 2.8% decline recorded in the second quarter.

WPP Media returned to growth, reporting a 0.3% like-for-like increase following a 2.8% decline in the preceding quarter.

The improvement reflected stronger spending trends among existing clients, contributions from new account wins and more favourable comparative figures.

WPP Production also delivered growth, with revenue less pass-through costs increasing 2.5% like for like, compared with 1.3% growth in the second quarter.

The production business benefited from new client assignments and stronger activity across Asia-Pacific and Latin America.

In contrast, WPP Creative reported a 5.1% like-for-like decline, compared with a 3.5% reduction in the second quarter.

The company attributed the weaker performance to reduced client spending, partially offset by contributions from recently secured business.

Within the creative division, public relations returned to growth, while brand and design agencies recorded mid-single-digit growth during the quarter.

Regional Performance Remains Mixed

WPP reported like-for-like declines in revenue less pass-through costs across all four of its geographic regions.

North America declined 1.8%, improving from a 4.3% reduction in the second quarter.

The improvement reflected better performance at WPP Media, although WPP Creative continued to weigh on regional results.

Europe, the Middle East and Africa reported a 1.7% decline, compared with a 3.0% reduction in the preceding quarter.

Within the region, the United Kingdom declined 1.2%, improving from a 5.5% fall in the second quarter, while Germany returned to growth with an increase of 2.4%.

However, the Middle East and Africa business declined 12.4%, reflecting continued geopolitical uncertainty.

Asia-Pacific reported a 4.3% reduction, reversing the 0.3% growth recorded in the second quarter.

China declined 8.7%, compared with growth of 15.6% in the preceding period, with WPP attributing the change partly to timing factors.

India returned to growth, increasing 2.9%, while Australia declined 4.8%.

Latin America recorded a 1.2% like-for-like decline, reflecting weaker performance in Mexico following previous client losses.

Automotive and Healthcare Clients Deliver Growth

Performance varied across WPP’s major client sectors during the third quarter.

Automotive clients generated like-for-like growth of 6.7% in revenue less pass-through costs, while Healthcare and Pharmaceuticals increased 4.3%.

However, several other sectors continued to experience weaker demand.

Consumer Packaged Goods declined 6.4%, while Technology and Digital Services fell 3.9%.

Retail revenue less pass-through costs decreased 6.0%.

Telecommunications, Media and Entertainment recorded a 15.7% decline, while Financial Services fell 8.9%.

WPP’s top 25 clients reported a 2.7% like-for-like reduction in revenue less pass-through costs, improving from a 3.2% decline in the second quarter.

The company said the performance continued to reflect the impact of client assignments lost during the previous year.

Coca-Cola, DoorDash and Waymo Among Major Client Wins

WPP reported several new business wins and contract renewals during the third quarter, supporting its efforts to stabilise client activity.

The company retained its longstanding global media partnership with The Coca-Cola Company, excluding North America, Japan and South Korea, which were not included in the review.

WPP also expanded its global media relationship with DoorDash and secured an appointment as Waymo’s media partner across North America and EMEA.

Other agreements included an integrated content partnership with Nestlé in China, covering creative and production services.

TurboTax appointed WPP for digital video and social content, while the company secured additional media business from Godrej Consumer Products across several international markets.

WPP was also selected as an integrated agency partner for voter communications by the UK’s Electoral Commission.

The company said these wins and renewals reflected continued demand for its integrated media, creative and technology services.

Elevate28 Strategy Targets £250 Million in Annualised Savings

WPP continued implementing its Elevate28 transformation programme during the quarter.

The strategy is designed to simplify the group’s operating structure, strengthen its integrated service offering and improve financial performance.

The first phase, covering 2026, focuses on stabilising business performance and reducing costs.

WPP is targeting gross annualised cost savings of £250 million by the end of 2026, equivalent to approximately £100 million of gross savings during the year.

The company is also evaluating potential asset disposals and expects disposal-related activity to generate at least £200 million in cash proceeds.

The second phase, scheduled for 2027, aims to return the business to organic growth, rebuild margins and reduce leverage.

From 2028 onwards, the group intends to accelerate growth through greater integration of media, creative, production and enterprise solutions, alongside expanded use of AI-enabled workflows.

WPP said it remains focused on maintaining an investment-grade balance sheet throughout the programme.

AI Investment and Technology Partnerships Continue

WPP continued investing in artificial intelligence, data infrastructure and production capabilities during the third quarter.

In September, the company opened Devon’s Point, a 34,000-square-foot production facility in East London.

The site combines AI-enabled virtual production technology, modular studio facilities and post-production capabilities.

WPP also expanded its Open Intelligence data network, adding 48 new data partners during the quarter.

The additions increased its total number of data partnerships to almost 400.

The company also announced an expanded strategic partnership with Kyndryl, covering enterprise transformation, marketing services and joint commercial initiatives.

Separately, WPP’s Burson business acquired cognitive AI company Limbik, bringing additional predictive intelligence capabilities into the group.

These developments form part of WPP’s strategy to integrate AI-enabled tools into its media, creative and enterprise services.

Adjusted Net Debt Falls to £3 Billion

WPP reported adjusted net debt of £3.0 billion at 30 September 2026, compared with £3.6 billion a year earlier.

Average adjusted net debt over the preceding 12 months was £3.2 billion, down from £3.4 billion at the corresponding point in 2025.

The company noted that accounting changes under IFRS 9 reduced reported adjusted net debt by £214 million at the end of September 2026.

The same changes reduced the rolling 12-month average adjusted net debt figure by £167 million.

WPP continues to expect adjusted operating cash flow before working capital of between £800 million and £900 million for 2026.

Excluding anticipated restructuring costs associated with historical programmes and Elevate28, the company expects the equivalent figure to be between £1.0 billion and £1.1 billion.

Total cash restructuring costs are forecast at approximately £250 million, including £190 million associated with Elevate28 and £60 million relating to earlier programmes.

Chief Executive Highlights Progress Towards 2027 Recovery

WPP Chief Executive Officer Cindy Rose said the company remained focused on stabilising performance and preparing for the next phase of its transformation strategy.

“We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP. Our integrated client proposition and modern data solutions are gaining traction with both new and existing clients.

“Client demand remains healthy for our AI-enabled media, creative, production and enterprise solutions, powered by our agentic marketing platform WPP Open. Winning competitive pitches to renew long-standing partnerships with clients like The Coca-Cola Company and DoorDash provides further evidence of commercial momentum and client confidence in WPP’s ability to drive brand differentiation and business growth at a global scale.”

Rose said the improving quarterly performance supported management’s confidence in the company’s strategy and its objective of returning to growth during 2027.

WPP Outlook

WPP has maintained its financial guidance for 2026 despite continued pressure on underlying revenue.

The group expects like-for-like revenue less pass-through costs to decline by a low to mid-single-digit percentage during the second half, with fourth-quarter performance towards the better end of that range.

Headline operating profit margin guidance remains between 12% and 13%.

Adjusted operating cash flow before working capital is expected to reach £800 million to £900 million.

The company also expects capital expenditure of approximately £190 million and continues to target at least £200 million in cash proceeds from disposal-related activity.

Management’s immediate priorities include completing the stabilisation phase of Elevate28, delivering cost savings and supporting the contribution from recent client wins.

WPP continues to target a return to organic growth during 2027, followed by further margin improvements and accelerated growth from 2028 onwards.

Whitbread plc (LSE:WTB) has welcomed changes to business rates announced in the UK Government’s 2026 Budget, estimating that the measures could reduce its annual business rates payments by between £45 million and £60 million against previous expectations by the 2029 financial year.

The Premier Inn owner said the Government’s decision to limit business rates increases for hospitality properties in England over the next two years would significantly reduce the additional costs previously anticipated by the group.

Under the revised measures, Whitbread now expects its business rates bill to increase by between £7.5 million and £12.5 million in FY2028, compared with a previously expected increase of approximately £35 million.

The company anticipates a similar benefit in FY2029, although it cautioned that its estimates remain preliminary pending publication of the full details of the Budget measures.

Business Rates Changes Reduce Expected Cost Increases

The UK Government has announced measures designed to limit increases in business rates for hospitality businesses in England.

Under the proposals, business rates will be frozen for two years in a way that prevents hospitality properties from facing increases above the rate of inflation.

Whitbread expects the changes to reduce the financial impact of business rates increases that had previously been anticipated across its UK operations.

The company estimates that its total business rates payments will now rise by between £7.5 million and £12.5 million in FY2028.

This compares with the previous consensus expectation of an increase of approximately £35 million.

Based on these estimates, the revised measures could reduce the additional annual cost burden in FY2028 by approximately £22.5 million to £27.5 million compared with earlier expectations.

Whitbread expects a similar benefit in FY2029.

The group stressed that the figures are preliminary and may change once the full details of the Government’s measures become available.

Annual Business Rates Bill Could Be £45 Million to £60 Million Lower by FY2029

Whitbread estimates that its annual business rates payments in FY2029 could be between £45 million and £60 million lower than previously anticipated.

The projected reduction reflects the cumulative effect of the changes over the two-year period.

The company expects the revised business rates framework to have a significant positive impact on its financial performance.

Business rates represent an important operating expense for hospitality businesses with extensive property portfolios, including Whitbread’s Premier Inn hotel network.

Limiting increases in these costs could help reduce pressure on operating margins and support cash generation.

However, the company has not yet provided revised earnings or profit forecasts incorporating the measures.

Whitbread intends to assess the final regulations before updating its financial guidance.

National Living Wage Changes Also Welcomed

Alongside the business rates measures, Whitbread welcomed the Government’s approach to increases in the National Living Wage and National Minimum Wage.

The company said the announced wage increases were more manageable than those introduced through previous Budgets.

Labour expenses and property-related costs are significant components of the hospitality sector’s operating cost base.

Whitbread believes the combination of moderated business rates increases and changes to minimum wage requirements will help mitigate some of the cost pressures facing its business.

The company has not disclosed a separate financial estimate for the impact of the wage measures.

Budget Measures Support Whitbread’s Five-Year Plan

Whitbread said the anticipated reduction in business rates costs would provide additional support for its existing Five-Year Plan.

The strategy is intended to deliver improvements in operating margins, cash flow and shareholder returns.

Lower-than-expected property-related cost increases could contribute to those objectives by reducing the amount of additional expenditure the company must absorb over the coming financial years.

Chief Executive Officer Dominic Paul welcomed the Government’s decision.

“The business rate measures announced in the UK Budget will do much to mitigate the damaging impact of the past two Budgets on the hospitality sector, and we are grateful that the Government has listened to our concerns. Limiting the increase in business rates over the next two years to inflation, together with a more reasonable increase in the national living wage and national minimum wage, will make a significant difference to our business. This provides further momentum as we execute our Five-Year Plan which is on track to deliver a material increase in margins, cashflow and returns for shareholders.”

The company indicated that the Budget measures could provide further momentum for its existing financial and operational objectives.

Updated Cost Inflation Guidance Expected in January 2027

Whitbread plans to provide updated guidance on UK cost inflation for FY2028 alongside its third-quarter FY2027 trading update in January 2027.

The guidance will incorporate the company’s assessment of the UK Budget measures, including their expected impact on business rates.

Until then, the group will continue reviewing the details of the Government’s proposals and their implications for its property portfolio.

The financial benefit will depend on the final implementation of the announced measures and the resulting business rates calculations.

Whitbread Outlook

Whitbread expects the UK Government’s revised business rates measures to reduce its anticipated operating cost increases over the next two financial years.

The group currently estimates that business rates payments will increase by between £7.5 million and £12.5 million in FY2028, substantially below the previously expected £35 million increase.

By FY2029, annual business rates payments could be between £45 million and £60 million lower than earlier projections.

The anticipated savings would provide additional support for Whitbread’s Five-Year Plan, particularly its objectives of improving margins, cash flow and shareholder returns.

Further clarity is expected in January 2027, when the company plans to publish updated UK cost inflation guidance incorporating the Budget measures.

Vanquis Banking Group plc (LSE:VANQ) has lowered its profitability expectations for 2026 and 2027 after rising credit losses and household affordability pressures contributed to a small loss in the third quarter, despite continued growth in customer lending balances.

The specialist lender reported gross customer interest-earning balances of £3.21 billion at 30 September 2026, representing a 5% increase from the previous quarter and 21% growth year on year.

However, signs of financial pressure among certain credit card customers towards the end of the quarter led to higher charge-offs and increased expected credit loss provisions.

Vanquis now expects negligible statutory return on tangible equity (ROTE) in 2026, compared with previous guidance for a low single-digit return. The company has also reduced its expectations for 2027 and 2028, assuming the recent deterioration in credit performance continues.

Customer Lending Balances Rise to £3.21 Billion

Vanquis reported gross customer interest-earning balances of £3.21 billion at the end of September, compared with £3.05 billion at the end of June and £2.65 billion a year earlier.

Net receivables increased 5% during the quarter to £3.09 billion, representing annual growth of 23%.

Credit Card balances increased modestly, supported by new customer acquisitions and the expected conversion of maturing balance transfers into interest-earning balances.

However, spending among existing customers remained cautious as the company maintained tighter lending criteria in response to economic uncertainty.

Vehicle Finance balances were broadly unchanged, reflecting a measured approach to new lending ahead of the introduction of a new onboarding and servicing platform.

Second Charge Mortgage balances continued to expand through forward-flow origination agreements with partners, exceeding £900 million at the end of September.

The shift towards secured mortgage lending forms part of Vanquis’s strategy to develop a lower-risk lending portfolio.

Net Interest Margin Holds at 14.8% as Credit Costs Increase

Vanquis reported a year-to-date net interest margin (NIM) of 14.8%, compared with 15.0% at the end of June and 17.0% a year earlier.

The 20-basis-point quarterly reduction reflected the growing proportion of lower-risk, lower-margin Second Charge Mortgages and an increase in promotional Credit Card balances, which initially generate lower yields.

The group’s year-to-date risk-adjusted margin (RAM) declined to 8.5% from 9.3% at the end of June and 11.6% in September 2025.

The decline reflected both lower net interest margins and higher impairment costs.

Vanquis reported a year-to-date cost of risk of 7.6%, an increase of 60 basis points from the previous quarter.

The lender said the deterioration in credit performance became more apparent towards the end of September, particularly within certain Credit Card customer groups.

Household Affordability Pressures Lead to Higher Credit Losses

Vanquis said customers had generally remained resilient during the quarter, but rising living costs began to affect affordability among some credit card borrowers.

The company reported an increase in Credit Card charge-offs, largely associated with a wider industry rise in individual insolvencies.

When customers enter certain insolvency arrangements, outstanding credit balances are immediately charged off, rather than following the normal progression through delinquency stages.

Vanquis said the increase in charge-offs did not reflect a notable deterioration in overall delinquency trends.

Nevertheless, the company recognised higher IFRS 9 expected credit loss provisions to account for the risk of continued elevated charge-offs.

The additional impairment charges contributed to a small loss during the third quarter.

Management is now assuming that pressure on household finances will persist into 2027 and has adjusted its lending growth plans accordingly.

The group intends to respond through tighter underwriting standards, moderated balance growth and further cost reductions.

Vanquis Reduces 2026 and 2027 Lending Growth Forecasts

Vanquis has lowered its expectations for customer lending balances over the next two years.

Gross customer interest-earning balances are now forecast to reach approximately £3.3 billion by the end of 2026, compared with previous guidance for more than £3.3 billion.

For 2027, the company expects balances of approximately £3.4 billion, down from its earlier target of more than £3.7 billion.

Despite the slower growth outlook, Vanquis maintained its net interest margin guidance.

The company continues to expect NIM of approximately 14.5% in 2026 and more than 13% in 2027.

However, risk-adjusted margin expectations have been reduced to reflect the weaker credit environment.

Vanquis now forecasts RAM of approximately 8.0% in 2026, compared with previous guidance of more than 8.5%.

For 2027, RAM is expected to reach approximately 7.5%, down from the previous target of more than 8.0%.

Profitability Guidance Cut Through 2028

Vanquis has revised its statutory return on tangible equity expectations following the increase in impairment charges and additional restructuring costs.

The group now expects negligible statutory ROTE in 2026, compared with its previous forecast for a low single-digit return.

Assuming the weaker credit performance observed towards the end of the third quarter continues, Vanquis expects statutory ROTE in the low single digits during 2027, rather than the low double digits previously anticipated.

For 2028, the company now expects a low double-digit return, compared with its previous mid-teens guidance.

Despite the reductions, management continues to anticipate improved profitability in both 2027 and 2028.

The company has maintained its cost-to-income ratio targets of the low 50s for 2026 and the mid-to-high 40s for 2027.

Technology Programme Expected to Deliver £30 Million to £35 Million in Savings

Vanquis is implementing additional organisational changes intended to simplify its operating structure and improve efficiency.

These measures have resulted in modest severance costs during the third quarter.

The group’s Gateway technology platform is also approaching completion.

Vanquis expects the transformation programme to generate cumulative cost savings of between £30 million and £35 million over the 2026–2028 period.

The savings are expected to come from operational improvements, increased automation and the responsible use of artificial intelligence.

Management said the cost initiatives would support its efforts to improve profitability while maintaining a more cautious approach to lending growth.

CET1 Capital Ratio Falls to 14.8%

Vanquis reported a Common Equity Tier 1 (CET1) capital ratio of 14.8% at the end of September, down from 15.6% at the end of June and 17.4% a year earlier.

The decline reflected the deployment of capital to support growth.

Following the redemption of £41.5 million in surplus Tier 2 capital during October, Vanquis said it had completed its planned capital optimisation initiatives.

The group is also preparing for the introduction of Basel 3.1 and the Small Domestic Deposit Takers (SDDT) regime on 1 January 2027.

The new regulatory framework is expected to increase surplus capital by approximately £15 million.

Under the revised capital treatment, the group’s September 2026 CET1 ratio would have been 12.8%, above its 2027 target of more than 12%.

In anticipation of the transition, Vanquis has reduced its 2026 CET1 guidance under the existing regime to more than 14%, from more than 14.5% previously.

CEO Succession Update Expected in November

Vanquis also provided an update on its leadership transition following the announcement on 11 September that Chief Executive Officer Ian McLaughlin intended to step down.

The Board expects to announce further details regarding his succession in November 2026.

Separately, the company confirmed that legal proceedings between Vanquis Bank Limited and claims management company TMS Legal Limited have concluded on confidential, mutually acceptable terms.

No financial details of the settlement were disclosed.

Vanquis Banking Group Outlook

Vanquis enters the final quarter of 2026 with continued growth in lending balances but increased uncertainty surrounding credit performance and household affordability.

The company expects customer interest-earning balances to reach approximately £3.3 billion by year-end, while maintaining its net interest margin target of around 14.5%.

However, higher credit losses have prompted reductions to risk-adjusted margin and profitability forecasts through 2028.

Management is responding by moderating lending growth, tightening underwriting and accelerating efficiency measures.

The group continues to expect improving profitability over the next two years, supported by planned cost savings and technology investment, although the pace of recovery will depend partly on future credit performance.