Author: Fiona Craig

Genus plc (LSE:GNS) reported a stronger-than-anticipated first-half performance for its 2026 financial year, with adjusted profit before tax, excluding a milestone payment, now expected to be around £50 million. Including the milestone, adjusted profit is forecast at approximately £55.6 million, both figures ahead of internal expectations. The outperformance reflects robust trading at the PIC pork genetics division alongside in-line results from the ABS cattle genetics business.

On the back of this momentum, the board has upgraded its full-year outlook, now expecting adjusted profit before tax, excluding the milestone, to come moderately above the top end of current market forecasts. The update points to continued strength in Genus’s core operations and improving earnings visibility across its global genetics portfolio.

Genus also confirmed that China’s State-owned Assets Supervision and Administration Commission (SASAC) has approved the establishment of its porcine joint venture in China. This regulatory clearance triggers a final US$7.5 million milestone payment from joint venture partner BCA, with completion of the transaction and receipt of funds expected in the third quarter of the current financial year. The development marks a significant step in Genus’s strategy to expand its presence in the Chinese pork market and strengthens its long-term growth prospects in a key global protein sector.

From an investment perspective, Genus’s outlook is supported by positive corporate developments and solid financial delivery. However, technical indicators point to potential overbought conditions, while a relatively high P/E ratio suggests valuation may already reflect much of the near-term optimism.

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Genus plc is a global leader in animal genetics, applying advanced biotechnology to improve livestock breeding outcomes. The Group supplies high-value genetic products to dairy, beef and pork producers in more than 75 countries through its ABS (cattle) and PIC (pigs) brands. Its offerings include semen, embryos and breeding animals designed to enhance productivity, efficiency and quality across global protein supply chains, supported by proprietary breeding lines, an extensive distribution network and innovations such as its PRRS-resistant pig, which is progressing through further regulatory approvals ahead of wider commercial rollout.

Spectra Systems Corporation (LSE:SPSY) said its security printing subsidiary, Cartor Security Printers, has been selected by HM Revenue & Customs as the preferred bidder for a new UK contract to manufacture and supply duty stamps for vaping products. The contract, which is expected to be finalised shortly, will be delivered in partnership with a leading provider of tax stamp track-and-trace technology.

The agreement is valued at an estimated £38.4 million including VAT over an initial five-year term, with an option to extend for a sixth year. Spectra expects to generate around 15% of the total contract value, strengthening its exposure to government-backed security printing work. The award reinforces the Group’s position in authentication and security printing and highlights the operational benefits of its recent transatlantic reorganisation and closer integration between its US and UK operations.

From an investment perspective, Spectra Systems’ outlook remains well supported by strong financial performance and an attractive valuation profile. Healthy profit margins and effective cash flow management underpin its growth prospects, while recent contract wins add further momentum. Technical indicators point to a broadly neutral share price trend, slightly moderating an otherwise positive overall assessment.

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Spectra Systems Corporation specialises in machine-readable, high-speed authentication technologies, security printing, brand protection solutions and gaming security software. Through its Cartor Security Printers division, the Group provides advanced security printing and authentication features to government and commercial clients, with a particular focus on tax stamps and other high-integrity security documents.

GCM Resources (LSE:GCM) has conditionally raised approximately £1.0 million through a placing of 16.7 million new ordinary shares at 6 pence per share, representing a discount of around 20% to the prior closing bid price. The fundraising is intended to bolster the company’s working capital position as it continues to progress its flagship Phulbari Coal and Power Project in Bangladesh.

Proceeds from the placing will be used to fund corporate overheads, legal and advisory expenses and general administrative costs. Management noted that recent political commentary and policy signals in Bangladesh suggesting greater support for domestic coal production are encouraging, although not yet sufficient to provide definitive clarity on the project’s path to development. The new shares will account for approximately 4.72% of the enlarged issued share capital and are expected to be admitted to trading on AIM on 21 January 2026. In addition, warrants have been issued to Clear Capital as part of its remuneration for acting as sole bookrunner on the placing.

From an investment perspective, GCM Resources’ outlook continues to be constrained by its financial profile. The company remains pre-revenue, with ongoing net losses and sustained negative operating and free cash flow, despite maintaining a relatively solid balance sheet with modest leverage. Technical indicators are more supportive, showing a strong underlying trend and momentum, although overbought signals introduce near-term risk. Valuation remains difficult to assess due to negative earnings and the absence of dividend support.

More about GCM Resources

GCM Resources plc is an AIM-quoted resource development company focused on advancing the Phulbari Coal and Power Project in north-west Bangladesh. The project hosts a JORC-compliant coal resource of approximately 572 million tonnes and is intended to integrate an open-pit coal mine with fuel supply for existing and planned coal-fired power stations. The company’s strategy centres on delivering low-cost, domestically sourced electricity using high-efficiency generation technology, subject to approval from the Government of Bangladesh and in partnership with international development stakeholders.

The Character Group (LSE:CCT) said trading conditions remain difficult, with like-for-like sales in the four months to Christmas 2025 around 11% lower year on year. The company expects first-half sales to 28 February 2026 to fall below the comparable period, reflecting ongoing pressure across the toy retail market.

Looking ahead, management is forecasting a stronger second half, with full-year 2026 revenue expected to be broadly in line with 2025 levels. Supported by an improved product mix and portfolio optimisation, the Group anticipates that profit before tax and highlighted items will more than double despite relatively flat turnover. The update also emphasised the company’s robust balance sheet, net cash position and substantial unused working capital facilities.

In addition, Character confirmed the completion of its latest share buyback programme, under which 1,126,549 shares were repurchased for approximately £3.0 million. The move underscores the Group’s continued focus on returning capital to shareholders ahead of the release of its interim results in May 2026.

From a market perspective, the outlook remains mixed. Financial performance is under pressure from declining revenues, weaker profitability and soft cash generation, while technical indicators point to bearish momentum, with the shares trading below key moving averages. Although the dividend yield remains high, a negative P/E ratio highlights ongoing profitability concerns, limiting the stock’s appeal to growth-oriented investors.

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The Character Group plc is a UK-based designer, developer and international distributor of toys, games and giftware. Operating within the leisure goods sector, the Group supplies products to customers in the UK, Scandinavia and other international markets, with a broad portfolio of branded ranges showcased at major global toy fairs.

Johnson Service Group (LSE:JSG) reported a 4.3% increase in full-year 2025 revenue to £535.6 million, supported by growth across both operating divisions. Revenue from the HORECA business rose to £390.0 million, while the Workwear division increased to £145.6 million, resulting in group-wide organic growth of 1.4%.

Disciplined cost management and operational efficiencies drove a strong rise in adjusted operating profit and further margin improvement, bringing the group closer to its 2026 target margin of at least 14%. HORECA activity remained resilient, delivering organic growth of 1.0%, while stable demand in Workwear supported organic growth of 2.4%. Net debt increased to around £112.0 million, primarily reflecting £54.7 million of cash deployed on share buybacks. The completion of the latest £25.0 million programme lifted total capital returned through repurchases since 2022 to £90.3 million.

The board said it remains confident in delivering additional progress and advancing its margin ambitions in 2026, despite ongoing macroeconomic uncertainty. Full-year results are scheduled for release in early March.

From an investment perspective, Johnson Service Group’s outlook is underpinned by solid financial execution and constructive sentiment from recent earnings commentary. The ongoing share buyback programme continues to enhance shareholder returns, while neutral technical indicators and a fair valuation support a broadly positive assessment.

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Johnson Service Group is a leading provider of textile services across the UK and the Republic of Ireland. The Group supplies laundry and related services to the HORECA (hotel, restaurant and catering) sector, alongside workwear rental and laundry solutions for corporate and industrial customers. Its business model is built around long-term contracts, high customer retention and operational efficiency within specialist textile care markets.

Ninety One (LSE:N91) said assets under management increased to £159.8 billion as at 31 December 2025, rising from £152.1 billion at the end of September and £130.2 billion a year earlier. The increase highlights ongoing net inflows and market appreciation across the Group’s investment strategies, reinforcing the scale and reach of its global investment platform.

The firm confirmed that its next update on assets under management, covering the fourth quarter of the 2026 financial year, will be released on 16 April 2026. This update is expected to be closely monitored by investors as a key indicator of business momentum, fee-generating capacity and client demand trends.

Ninety One’s overall outlook is supported by strong underlying financial performance and what is viewed as an attractive valuation, underpinned by positive commentary from recent earnings updates and strategic corporate actions. While technical indicators suggest a degree of near-term caution, the Group’s solid fundamentals and long-term strategy continue to position it well for sustainable growth.

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Ninety One is an independent global investment manager founded in South Africa in 1991. The firm offers a broad range of actively managed investment strategies to institutional and individual clients worldwide and operates across multiple international markets. Ninety One is dual-listed on the London Stock Exchange and the Johannesburg Stock Exchange.

CelLBxHealth plc (LSE:CLBX) reported preliminary unaudited revenues of approximately £1.4 million for 2025, modestly below expectations after around £0.2 million of forecast sales shifted into the first quarter of 2026. Year-end cash stood at £7.3 million, providing the Group with a solid liquidity position as it reshapes its operating model.

To reduce overheads and improve efficiency, the company has taken a series of cost-control measures. These include delisting from the OTCQX Market in favour of the lower-cost Pink Limited Market, consolidating its Guildford operations into a single site, and implementing headcount reductions and wider restructuring initiatives. Management expects these actions to deliver annualised cost savings of approximately £5.9 million. Alongside this, CelLBxHealth is progressing a revised commercial strategy supported by a qualified sales pipeline of around £12.6 million for 2026–27, equivalent to a risk-weighted value of £4.5 million.

Despite these operational steps, the company’s outlook remains challenged. Financial pressures and bearish technical indicators continue to weigh most heavily on sentiment, while valuation metrics remain constrained. That said, recent corporate actions and progress highlighted in earnings communications provide some encouragement, suggesting potential longer-term improvement if execution and revenue delivery strengthen.

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CelLBxHealth plc is a precision circulating tumour cell (CTC) intelligence company developing proprietary CTC-based technologies for use in research, drug development and clinical oncology. Its patent-protected Parsortix platform enables the isolation of tumour cells from blood for downstream imaging, proteomic and genomic analysis. Commercial activities include product sales, clinical trial laboratory services, assay development and lab-developed tests delivered from its GCLP-compliant laboratory in the UK.

Europa Oil & Gas (LSE:EOG) has been granted a two-year extension to the first phase of its PEDL343 licence by the North Sea Transition Authority. The licence hosts the Cloughton onshore gas discovery, estimated at 137 billion cubic feet, with the revised schedule extending Phase One to March 2028 and Phase Two to July 2030.

The updated timeline provides Europa with additional flexibility to complete its planned work programme, which includes the acquisition of 17 km² of 3D seismic data and the drilling of an appraisal well to a depth of 6,500 feet. Management said that, if successful, the project could be fast-tracked for connection to the UK National Transmission System. The company also highlighted the potential broader benefits, including reducing reliance on higher-emission imported LNG, supporting local employment, supplying gas to almost half of North Yorkshire’s homes and generating over £50 million in tax revenues, while keeping surface disruption to a minimum for nearby communities.

From a market perspective, Europa Oil & Gas continues to face pressure from a challenging financial backdrop, marked by material declines in revenue and profitability. That said, recent corporate developments and selectively positive technical signals offer some counterbalance and point to potential longer-term improvement. Although valuation metrics remain negative due to current losses, insider confidence and strategic progress around key assets provide a degree of cautious optimism.

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Europa Oil & Gas (Holdings) plc is an AIM-quoted exploration, development and production company with a portfolio of assets spanning the UK, Ireland and West Africa. The Group focuses on advancing onshore and offshore hydrocarbon projects while seeking to create value through disciplined exploration and appraisal activity.