Author: Fiona Craig

RBC Capital Markets has maintained a cautious stance on Unilever Plc (LSE:ULVR), arguing that the company’s planned spin-off of its ice cream division, The Magnum Ice Cream Company (TMICC), is unlikely to deliver meaningful value creation. In a recent research note, analyst James Edwardes Jones reaffirmed an “underperform” rating with a price target of GBp 3,900 — around 14% below the current trading price of GBp 4,689.

RBC estimates that the separation will cut Unilever’s group EBITDA by 11–13% and reduce earnings per share by 1–3% over 2026–2027, even after planned share consolidation. The brokerage set a fair value of £38 per share based on an adjusted present value model, slightly below its price target, reinforcing its cautious view.

Although the demerger is expected to sharpen Unilever’s focus on its Beauty & Wellbeing segment, it also involves divesting its strongest-performing business. TMICC, which includes leading brands such as Magnum and Cornetto, currently has a market leadership score of around 250 compared with just over 100 for the remainder of Unilever’s portfolio. RBC highlighted that this would leave the company less dominant in its core markets.

Another area of concern is stranded costs—overheads tied to the departing unit—representing roughly 13% of ice cream revenue. While Unilever has outlined €800 million in productivity savings to mitigate this, RBC believes margin improvement will be difficult in a less favorable cost environment.

The report also questioned Unilever’s ability to meet its midterm target of 4–6% organic sales growth, with RBC forecasting just 2% annual volume growth. It noted that roughly a quarter of Unilever’s portfolio remains tied to non-core brands, adding to the challenge.

For TMICC as a standalone entity, RBC expects moderate upside, led by its away-from-home business, which benefits from higher margins and stronger structural growth. However, its at-home segment faces intense competition from private labels, particularly in the U.S., where store brands already hold about 18% market share.

Overall, RBC’s analysis suggests that while the spin-off may offer operational clarity, it removes Unilever’s most competitively advantaged business without significantly boosting growth or valuation.

HSBC Holdings (LSE:HSBA) has set aside $1.1 billion to cover potential liabilities arising from a lawsuit in Luxembourg connected to Bernard Madoff’s Ponzi scheme, one of the largest financial frauds in U.S. history. The legal action involves a claim brought by Herald Fund SPC seeking restitution of securities and cash related to the Bernard L. Madoff Investment Securities LLC fraud.

The Luxembourg Court of Cassation recently denied HSBC’s appeal regarding Herald’s securities restitution claim but accepted the subsidiary’s appeal on the cash restitution claim. The bank confirmed that it continues to defend the case through its subsidiary, while the reserve aims to ensure sufficient coverage for potential outcomes.

More about HSBC

HSBC Holdings is one of the world’s largest banking and financial services organizations, headquartered in London. It serves customers globally through retail banking, wealth management, commercial banking, and investment banking operations. The bank has a strong international presence across Europe, Asia, the Americas, the Middle East, and Africa.

Goodwin PLC (LSE:GDWN) has announced a sharp increase in profitability, with trading profit before tax expected to exceed £71 million for the financial year ending April 2026—doubling from the prior year. The surge is underpinned by strong performance across all business divisions, a healthy order book, and greater visibility in key defense and nuclear programs.

Reflecting its strong financial position and robust cash generation, the company has declared a special interim dividend of 532 pence per share to reward shareholders. In addition, Goodwin has strengthened its leadership team with the appointments of Adam Deeth as Finance Director and Anthony Thomas as Director, supporting its strategic growth plans.

The company’s stock outlook is supported by its strong financial performance and positive technical indicators. However, a high P/E ratio signals potential overvaluation, tempering overall sentiment.

More about Goodwin

Goodwin PLC operates within the engineering sector, specializing in manufacturing and supplying high-quality products to industries including defense, nuclear, and other strategic markets. The company is recognized for its strong order book and established market position, reflecting its capacity to deliver complex, high-value projects.

Eco Buildings Group PLC (LSE:ECOB) has announced the completion of groundworks and the start of ground floor construction on its 18-unit apartment development in Tirana, Albania. This milestone triggered a 10% contract payment of €220,000, representing the project’s first revenue inflow. The development forms part of a growing pipeline in Albania, with negotiations underway for additional apartment blocks. The project remains ahead of schedule, further cementing Eco Buildings’ position as a leader in sustainable modular housing solutions.

Although operational progress is strong, the company continues to face financial challenges, including issues around profitability and cash flow. Technical indicators signal bullish momentum, but an elevated RSI suggests caution. Valuation remains weak, reflecting negative earnings and the absence of dividends.

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Eco Buildings Group Plc is a technology-driven construction company specializing in sustainable modular housing through its proprietary automated GFRG building system. This approach enables the rapid delivery of high-quality, cost-efficient homes and is certified across multiple jurisdictions. The company works with governments and developers worldwide to address urgent housing needs, spanning both affordable and high-end market segments.

Kromek Group plc (LSE:KMK) has reported a sharp increase in revenue for the first half of 2026, expecting at least £14.5 million compared to £3.7 million in the same period last year. This strong performance has been driven primarily by the company’s CBRN Detection division and a significant contribution from its agreement with Siemens Healthineers.

Kromek anticipates posting a profit before tax and positive adjusted EBITDA for the period, marking a turnaround from the previous year’s losses. These results bolster confidence in the company’s ability to meet full-year market expectations and highlight the growing commercial strength of its product portfolio.

The company’s outlook remains positive, supported by strong revenue growth and improving profitability. Technical indicators suggest bullish momentum, though caution is warranted as the RSI approaches overbought territory. Valuation metrics indicate fair pricing, with the P/E ratio reflecting a reasonable market position.

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Kromek Group plc is a UK-based developer of advanced radiation detection and bio-detection technologies, specializing in imaging and CBRN detection. Headquartered in County Durham with operations in the UK and US, the company supplies detector components for medical, security, and industrial markets and provides nuclear radiation detection solutions for global homeland defense. It is also advancing biosecurity technologies for the detection of airborne pathogens.

Lansdowne Oil & Gas (LSE:LOGP) has released its interim results for the first half of 2025, outlining key strategic developments. The company continues to pursue compensation for the Barryroe Oil and Gas Field through the Energy Charter Treaty while progressing toward a planned reverse takeover.

For the period, Lansdowne reported a loss of £0.337 million, with cash balances rising modestly to £0.013 million. Trading in the company’s shares remains suspended on AIM pending the completion of the reverse takeover, which is anticipated to close in the fourth quarter.

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Lansdowne Oil & Gas is an exploration and appraisal company focused on oil and gas assets in the North Celtic Sea. The company is listed on the AIM market and is pursuing strategic transactions to strengthen its position and advance its asset base.

Great Western Mining Corporation PLC (LSE:GWMO) has announced the results of a recent soil sampling campaign in the Huntoon area of Nevada, revealing a 2.8 km strike length of geochemically anomalous soil samples for tungsten, copper, and zinc. The findings indicate the presence of a much larger mineralized system than previously identified, highlighting the area’s district-scale potential.

The company plans to carry out targeted geological fieldwork and follow-up sampling to better define these zones ahead of a new drilling program. This expanded footprint marks a significant step forward in advancing the project and strengthening its exploration pipeline.

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Great Western Mining Corporation PLC is a diversified exploration and development company focused on strategic mineral projects in Mineral County, Nevada. Its multi-commodity strategy targets both near-term development and long-term exploration opportunities, including copper, gold, silver, and tungsten assets. The company’s focus aligns with U.S. critical minerals priorities, supporting domestic resource development.

Grainger plc (LSE:GRI) has voiced its support for the Renters’ Rights Bill, which has passed through the House of Commons and is expected to take effect in 2026. The legislation seeks to improve standards in the private rented sector by abolishing no-fault evictions and maintaining open market rent alignment. Grainger believes these reforms will provide greater security for renters and create a more stable environment for investors. The company has stated it is ready to implement the changes immediately if required, aligning with its strategy of delivering high-quality rental homes and collaborating with policymakers on sector reforms.

Grainger’s outlook is supported by its strong valuation and favorable technical indicators. Financial performance remains solid, driven by growth and operational efficiency. However, high leverage and declining free cash flow present areas of concern, and the lack of recent earnings call or corporate events data limits further insight into near-term developments.

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Grainger plc is the UK’s largest listed residential landlord and a leading operator in the private rented sector. The company focuses on expanding its build-to-rent portfolio through a robust investment and operational platform. It manages a national portfolio of over 11,000 rental homes and has a pipeline of approximately 4,500 additional build-to-rent homes valued at £1.3 billion.

Petrofac Limited (LSE:PFC) has announced a significant restructuring plan following TenneT’s decision to terminate its scope of work on a 2GW program in the Netherlands. In response, Petrofac has applied for administration of its ultimate holding company while continuing normal trading operations.

The company is engaging with key creditors to explore alternative restructuring and M&A solutions and has secured support from both noteholders and lenders. Administrators will collaborate with Petrofac’s executive management team to safeguard value and ensure the company’s operational capabilities remain intact during this transition period.

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Petrofac is a global service provider to the energy industry, offering engineering, construction, operations, and maintenance services for oil, gas, refining, petrochemical, and renewable energy infrastructure. The company operates primarily in the Middle East, North Africa, and the UK North Sea, with additional key markets in India, Southeast Asia, and the United States. Petrofac is recognized for its cost-effective, locally focused delivery model and employs approximately 7,300 people across 31 offices worldwide.

Bioventix (LSE:BVXP) has reported a 4% decline in revenue and a 5% drop in profit before tax for the year ended June 2025. The company is shifting its strategic focus toward developing antibodies for neurological conditions but continues to face headwinds in the Chinese market, where local manufacturing policies and cost pressures are weighing on performance.

Despite these challenges, Bioventix saw a 12% increase in sales of its vitamin D antibody, partially offsetting declines in other product categories. The company anticipates further pressure on revenue in the near term as market dynamics evolve and its commercial structure adapts to changing global conditions.

Financially, Bioventix remains in a strong position, with excellent profitability and a solid balance sheet. While technical indicators show some weakness, its fair valuation and attractive dividend yield continue to offer a compelling investment case. Recent corporate developments further support confidence in its long-term growth strategy.

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Bioventix PLC is a UK-based specialist in the development and commercial supply of high-affinity monoclonal antibodies for clinical diagnostics. Its antibodies are used in blood-testing equipment manufactured by leading in vitro diagnostics companies such as Roche Diagnostics, Siemens Healthineers, and Abbott Diagnostics. These products play a key role in diagnosing conditions including heart disease, thyroid disorders, and cancer.