Author: Fiona Craig

LVMH (EU:MC) reported a decline in annual revenue, highlighting how ongoing global economic headwinds and geopolitical tensions continue to weigh on the luxury sector.

The update triggered a market sell-off. LVMH’s ADRs slipped 1.6% on Tuesday, while the group’s shares in Paris fell around 8% shortly after the market opened on Wednesday.

During the analyst call, chairman and chief executive Bernard Arnault struck a cautious tone on the outlook for 2026.

“With the continuing geopolitical crises, with economic uncertainty and the policies of certain states, including ours, to tax us to the maximum and create unemployment – I think there is reason to be a little cautious,” he told analysts.

For 2025, the group reported revenue of €80.8 billion, down 5% year on year, while organic revenue declined by 1%. Trading conditions weakened notably in Europe during the second half of the year. In contrast, the United States returned to growth, supported by stronger domestic demand. Japan fell back from an exceptionally strong prior year boosted by tourism, while performance across the rest of Asia showed clear improvement.

Results in the final quarter pointed to signs of stabilisation. Fourth-quarter organic revenue increased 1% to €22.7 billion, and the second half of the year also delivered 1% organic growth, reflecting improving trends across all business divisions.

Kepler Cheuvreux analyst Charles-Louis Scotti described the figures as “a reassuring set of 2025 results, with unchanged like-for-like (LFL) sales trends in Q4 despite c.400bps tougher YOY comparisons.”

“We continue to see LVMH as a good proxy on the expected sector recovery and reiterate our Buy rating,” he added.

Profit from recurring operations declined 9% to €17.8 billion in 2025, partly due to adverse currency movements. Net profit amounted to €10.9 billion, while operating free cash flow increased 8% to €11.3 billion.

Fashion and Leather Goods, the group’s largest division, posted an 8% fall in reported revenue, although LVMH said underlying local demand remained resilient. Wines and Spirits was affected by softer cognac demand, while Selective Retailing delivered a strong performance.

Arnault said the group demonstrated “solidity” despite a disrupted environment and stressed its continued focus on investing in brand desirability and innovation. While acknowledging uncertainty heading into 2026, LVMH said it remains committed to strengthening its leadership position in global luxury.

Bernstein analyst Luca Solca noted that “the upside from cost and capital controls will be more limited” in 2026, given that “a lot of work has been done already.”

“What would push the business and the share price forward is a global demand recovery and a return to top-line growth. This started in 2H25, albeit incrementally,” he added.

“If so, and if our base case scenario is correct, LVMH can be a compelling investment,” Solca continued.

British Land (LSE:BLND) has announced an agreement to acquire Life Science REIT (LSE:LABS) in a transaction valuing the specialist property trust at £150 million. The offer represents a 21% premium to LABS’ closing share price of 35.4 pence.

Under the terms of the deal, Life Science REIT shareholders will receive 42.8 pence per share, comprising 14.1 pence in cash and 0.07 new British Land shares. The consideration implies a 15% premium to LABS’ three-month volume-weighted average price of 37.3 pence, while also reflecting a 26% discount to its EPRA Net Tangible Assets of 57.7 pence as at 31 December.

The board of Life Science REIT has unanimously recommended the offer, and British Land has already secured irrevocable undertakings from shareholders representing 31.1% of the issued share capital. On completion, LABS investors are expected to hold around 2.4% of the enlarged British Land group and should be eligible to receive British Land’s final dividend for FY26.

Life Science REIT’s property portfolio is valued at £332.6 million and generates annual rent of £26.5 million. The assets are concentrated across five properties, including a £27 million development at Oxford Technology Park that has been affected by delays linked to costly design changes. The scheme is being reconfigured from large-format units into smaller spaces, which have so far seen weaker leasing demand.

In addition, a property at Cambourne is being reclassified to secondary business park status. Both the Oxford Technology Park and Cambourne assets are located roughly 10 miles from the centres of Oxford and Cambridge respectively, factors that have weighed on recent valuations.

Richmond Hill Resources (LSE:RHR) has raised £600,000 in gross proceeds through a placing of new shares, while confirming further progress on the acquisition of the Martello Gold Project in Ontario, Canada. The funding provides additional working capital and supports the company’s plans to move the recently acquired asset towards a maiden drilling programme.

The fundraising comprised the placing of 23,077,000 new ordinary shares at 2.6 pence per share, arranged through broker Clear Capital Limited. The issue price represents a 6% premium to the company’s mid-market closing price on 27 January 2026. Richmond Hill said the net proceeds will be used for general working capital and to advance exploration activities at Martello. The company is also considering the introduction of a future facility that would allow retail investors to participate in subsequent equity fundraisings, with further details to be announced if such a structure is put in place.

Alongside the placing, Richmond Hill confirmed it has entered into a sale and purchase agreement to acquire the Martello Gold Project, on the same commercial terms announced in December. The vendor has changed from Olerud Ltd to Ulvestone Ltd, which has assumed all rights and obligations under the agreement. Both entities are controlled by James Ikin, a substantial shareholder in Richmond Hill. The company reiterated that historic data compilation and digitisation at Martello are well advanced and nearing completion, with the aim of defining priority drill targets ahead of an initial drilling campaign.

As part of the transaction, Richmond Hill will shortly make a £100,000 cash payment to the vendor and has issued 38,750,000 new shares at 2 pence per share to satisfy the first tranche of the equity consideration. In addition, the company has issued 1,300,000 shares at the same price to settle outstanding liabilities with a creditor.

Given the vendor’s ownership structure, the acquisition constitutes a related party transaction under the AIM Rules. The board, which is independent of the transaction, said it considers the terms to be fair and reasonable following consultation with its nominated adviser.

Application has been made for the admission of 63,127,000 new ordinary shares to trading on AIM, with admission expected on or around 11 February 2026. Following admission, Richmond Hill will have 657,337,949 ordinary shares in issue.

Hamish Harris, CEO of Richmond Hill, commented: “The Board is delighted to have successfully raised funds at a premium to the prevailing share price on 27 January 2026. With gold trading above $5,000 per ounce at the time of this announcement and Richmond Hill is poised to commence drilling in the near term, we are excited about the significant momentum the Company has achieved in such a short period since listing. This fundraise positions us strongly to unlock value for shareholders as we advance our exploration programme.”

Atalaya Mining (LSE:ATYM) has raised £130 million in gross proceeds through an equity fundraise that was significantly oversubscribed. The transaction comprised a placing of 12.73 million new shares with institutional investors and existing shareholders, alongside a retail offer of 270,000 shares, all priced at £10.00 per share. The new equity represents around 9.2% of the company’s issued share capital prior to the fundraise and includes participation from a non-executive director, further broadening Atalaya’s institutional shareholder base.

The proceeds will be used to accelerate development across Atalaya’s copper growth projects in Spain, strengthen the balance sheet and enhance financial flexibility, particularly in relation to advancing the Proyecto Touro development. Management said the capital raise positions the company to push forward its broader Riotinto District pipeline while taking advantage of supportive copper market conditions. The newly issued shares are expected to begin trading on the London Stock Exchange on 2 February 2026.

From an outlook perspective, Atalaya is supported by strong profitability, improving free cash flow generation and relatively low leverage, providing a solid financial foundation for executing its growth strategy. These strengths are balanced by technical indicators that suggest the shares are currently overbought, increasing the risk of near-term volatility. Valuation metrics are considered moderate, with the investment case also reflecting a relatively low dividend yield.

More about Atalaya Mining

Atalaya Mining Copper, S.A. is a European copper producer that owns and operates the Proyecto Riotinto mining complex in southwest Spain, including the Cerro Colorado open pit mine and a 15 million tonne per annum processing plant that serves as a regional hub. Listed on the London Stock Exchange’s Main Market and a member of the FTSE 250, the company is expanding its asset base through a pipeline of development projects, including Proyecto Masa Valverde, Proyecto Riotinto East, the Proyecto Touro brownfield copper project in northwest Spain and Proyecto Ossa Morena.

Hargreaves Services (LSE:HSP) delivered a strong first-half performance for the six months ended 30 November 2025, with revenue rising 46.1% to £183.1 million and profit before tax jumping 169.8% to £14.3 million. The result was driven primarily by significant growth in the Services division, which benefited from increased activity on major infrastructure projects, alongside solid contributions from Hargreaves Land and the HRMS joint venture.

The group’s cash position strengthened materially over the period, more than doubling to £37.3 million. This improvement was supported by the completion of the first tranche sale of renewable energy land assets for £8.8 million. On the back of its stronger balance sheet, the board announced plans to return up to £15 million of cash to shareholders through a tender offer at a premium to the current share price. In addition, the interim dividend was increased by 5.4%. The company also confirmed a planned leadership transition, with long-serving chief executive Gordon Banham set to step down in July 2026 and current chief operating officer Simon Hicks named as his successor.

Operational visibility remains strong. Around 90% of Services division revenue for the current financial year is already contracted, while the Land and HRMS businesses also offer good earnings visibility. As a result, management now expects the Services division to outperform previous market forecasts and anticipates full-year profit before tax and EBITDA to come in around 4% ahead of expectations, signalling improving earnings momentum and a more proactive approach to capital returns.

From an investment standpoint, Hargreaves Services is supported by robust financial performance, strong revenue growth and healthy cash generation. The valuation appears attractive, with a reasonable earnings multiple and a solid dividend yield, while recent corporate actions further reinforce confidence in the group’s strategic direction. These positives are balanced by more cautious share price technical signals, which currently point to bearish trends.

More about Hargreaves Services

Hargreaves Services plc is a diversified UK-based group operating across environmental, infrastructure and property markets, with activities in the UK and South East Asia. The group is organised into three main segments: Services, which provides materials handling, mechanical and electrical contracting, logistics and large-scale earthworks for sectors such as clean energy, connectivity and environmental infrastructure; Hargreaves Land, focused on sustainable brownfield development and the realisation of renewable energy land assets; and HRMS, a German joint venture active in specialist commodity markets and the owner of DK Recycling und Roheisen, a recycler of steel waste materials.