ADVFN UK Market News

Author: Fiona Craig

  • BP Shares Slide as $5bn Impairment Charge and Softer Gas Prices Cloud Q4 Outlook

    BP Shares Slide as $5bn Impairment Charge and Softer Gas Prices Cloud Q4 Outlook

    BP Plc (LSE:BP.) said it expects to book post-tax impairments of between $4 billion and $5 billion in the fourth quarter of 2025, largely linked to its gas and low-carbon energy activities, as weaker oil and gas prices reduce asset values. The announcement weighed on the shares in Wednesday trading.

    The company said the write-downs are mainly associated with its transition-related businesses and will be excluded from underlying replacement cost profit. However, analysts at Jefferies cautioned that the charges could still have an adverse effect on gearing.

    Jefferies characterised the update as a “small -ve”, estimating a roughly 5% cut to consensus net income of $1.83 billion. The downgrade was attributed primarily to weaker-than-expected price realisations in the gas and low-carbon energy division.

    BP said net debt is forecast to decline to between $22 billion and $23 billion by the end of the quarter, compared with $26.1 billion at the end of the third quarter. The reduction is supported by around $3.5 billion of divestment proceeds. Full-year divestments are now expected to total about $5.3 billion, exceeding earlier guidance of $4 billion. Jefferies said the pace of debt reduction broadly matches expectations, although it sits slightly above consensus forecasts.

    Group upstream production is expected to be broadly flat quarter on quarter, in line with guidance. Oil output is forecast to be unchanged, while gas and low-carbon energy production is expected to decline. Figures include BP’s share of equity-accounted entities.

    Within oil production and operations, weaker realised prices and timing effects in the Gulf of America and the United Arab Emirates are expected to lower underlying replacement cost EBIT by $0.2 billion to $0.4 billion. Jefferies described this impact as marginally negative relative to consensus assumptions.

    In the gas and low-carbon energy segment, realisations are expected to reduce underlying replacement cost EBIT by $0.1 billion to $0.3 billion, including the impact of non-Henry Hub gas pricing. Gas marketing and trading performance is expected to be “average,” similar to the previous quarter, which Jefferies identified as the main downside driver in the update.

    The customers and products division is expected to reflect seasonally lower customer volumes alongside broadly flat fuel margins. Realised refining margins are projected at around $0.1 billion, offset by increased turnaround activity and temporary capacity reductions following a fire at the Whiting refinery. Oil trading results are expected to remain weak, consistent with the third quarter, which Jefferies said was already anticipated by the market.

    BP also disclosed that Brent crude prices averaged $63.73 per barrel during the fourth quarter, down from $69.13 in the previous quarter. Henry Hub gas prices averaged $3.55 per mmbtu, compared with $3.07 previously, while BP’s refining indicator margin fell to $15.2 per barrel from $15.8.

    Finally, the company said its full-year 2025 underlying effective tax rate is now expected to be around 42%, above earlier guidance of roughly 40%, mainly reflecting changes in the geographical mix of profits. Jefferies said this was not a major surprise but noted it adds modest pressure at the group level.

  • MS International Maintains Interim Profits as Defence Focus Sharpens and Cash Position Strengthens

    MS International Maintains Interim Profits as Defence Focus Sharpens and Cash Position Strengthens

    MS International (LSE:MSI) reported largely steady interim results for the six months to 31 October 2025, with profit before tax of £8.47 million on revenue of £55.81 million, marginally lower year on year. On a like-for-like basis, excluding derivative impacts, profit before tax increased to £9.28 million, while cash balances improved to £35.73 million, reinforcing the group’s financial resilience.

    The company described 2025 as a pivotal year following its strategic decision to refocus on the Defence and Security division and to explore the sale of its Forgings and Petrol Station Superstructures and Branding businesses. This repositioning has been accompanied by changes to the board, bringing in a younger and more internationally experienced leadership team, and by a strengthened operational footprint across the US and Europe.

    Within Defence and Security, MS International secured a further annual contract from the US Navy for its MSI-DS 30mm naval weapon system. The group also expanded its support and maintenance facilities in the US and Poland and enhanced its US business development capabilities, positioning the division for growth across both naval and land-based defence markets.

    The Forgings division continues to face softer near-term demand in the UK and US amid trade and policy uncertainty. However, the business has begun deliveries to Mitsubishi Logisnext America and is actively quoting for additional major lift-truck OEM programmes, pointing to a potentially meaningful growth pipeline in the US over the medium term.

    Meanwhile, the Petrol Station Superstructures and Branding operations, now successfully combined, continue to trade strongly. Demand is being driven by large-scale fuel forecourt transformation projects and the evolution of multi-purpose fuel hubs incorporating EV charging and food-to-go offers. In response, the group plans to expand manufacturing capacity to capture rising demand from major retail customers.

    Overall, MS International’s outlook is supported by solid financial performance and recent strategic progress, particularly within Defence and Security. However, technical indicators point to bearish share price momentum, and ongoing cash flow demands present potential risks. While valuation appears reasonable, it is not sufficient on its own to fully offset these technical and operational uncertainties.

    More about MS International

    MS International is a UK-based engineering group operating across Defence and Security, Forgings, and Petrol Station Superstructures and Branding. The company supplies naval and land weapon systems, industrial forgings and components, and designs and manufactures forecourt infrastructure solutions, serving defence customers in the UK, US and Europe alongside major fuel retailers investing in modern, multi-purpose fuel hubs.

  • Vistry Delivers Profit Growth and Margin Improvement as Partnerships Strategy Targets £39bn Affordable Housing Opportunity

    Vistry Delivers Profit Growth and Margin Improvement as Partnerships Strategy Targets £39bn Affordable Housing Opportunity

    Vistry Group (LSE:VTY) reported resilient trading for the full year 2025, with adjusted profit before tax expected to rise modestly to around £270 million on broadly flat revenue of approximately £4.2 billion. Performance came despite a softer private housing market and a 9% decline in total completions to about 15,700 homes.

    Operating margin improved to 8.4%, supported by a higher mix of margin-accretive developments, continued cost discipline and greater use of off-site timber frame construction. Net debt reduced to roughly £145 million over the year, even as the group increased land investment, securing 12,600 plots and strengthening its medium-term development pipeline.

    Vistry’s partnerships-led model continues to underpin its strategy, with around 74% of volumes funded by partners. The group highlighted its positioning to benefit from the UK’s forthcoming £39 billion, 10-year Social and Affordable Homes Programme, supported by a £50 million grant award from Homes England and a £4 billion forward order book. Management also pointed to improving funding visibility and potential planning reforms as supportive factors heading into 2026.

    Looking ahead, Vistry said it remains confident in delivering further financial and strategic progress in 2026, although performance is again expected to be weighted towards the second half of the year as affordable housing allocations ramp up. The group also noted that open market conditions could improve should interest rates begin to ease.

    From an investment perspective, recent corporate actions such as share buybacks provide a positive backdrop. However, the overall outlook remains balanced by mixed financial signals, valuation concerns linked to negative earnings metrics, and technical indicators suggesting stability but warranting caution.

    More about Vistry Group

    Vistry Group is a UK-based housebuilder and residential developer focused on affordable and mixed-tenure housing. The group works in partnership with housing associations, local authorities and private rental sector operators, combining partner-funded developments with open market sales and using off-site construction and a capital-light land strategy to support margins in a challenging housing environment.

  • Atalaya Mining Reaches Top of 2025 Copper Guidance and Raises Ambitions for 2026

    Atalaya Mining Reaches Top of 2025 Copper Guidance and Raises Ambitions for 2026

    Atalaya Mining (LSE:ATYM) delivered copper production of 51,139 tonnes in 2025, reaching the upper end of its guidance range. Performance was supported by record annual plant throughput at the Proyecto Riotinto operation, improved recoveries in the fourth quarter and a sharp increase in copper sales volumes. Higher realised copper prices also helped the group close the year with a strong net cash position of €122 million.

    Looking ahead, the company guided 2026 copper output of between 50,000 and 54,000 tonnes. Operational priorities include accelerating waste stripping at the San Dionisio project, continued drilling and engineering work at San Antonio and Masa Valverde, and further intermittent but value-confirming progress on its proprietary E-LIX processing technology. Regulatory progress at Galicia’s Proyecto Touro was also highlighted, supporting longer-term development optionality across the portfolio.

    Management said these initiatives position Atalaya to benefit from strengthening copper market fundamentals while enhancing the scale and longevity of production from its Iberian asset base.

    From a market perspective, Atalaya Mining’s shares are underpinned by strong financial performance, solid profitability and disciplined cash flow management. Technical indicators point to bullish momentum, although valuation metrics are less compelling, slightly moderating the overall outlook.

    More about Atalaya Mining

    Atalaya Mining is a Spain-focused copper producer listed on the London Stock Exchange. The company operates the Proyecto Riotinto complex and is advancing a pipeline of copper and polymetallic projects across the Riotinto District and Galicia, including San Dionisio, San Antonio, Masa Valverde and Proyecto Touro, with a strategic focus on higher-grade ore and supporting Europe’s critical raw materials supply chains.

  • Ramsdens Posts Record Results as Gold Strength and Diversified Income Push Profits Above £16m

    Ramsdens Posts Record Results as Gold Strength and Diversified Income Push Profits Above £16m

    Ramsdens (LSE:RFX) delivered another record performance in the year to 30 September 2025, with revenue rising 22% to £116.8 million and profit before tax increasing 43% to £16.2 million. Results were driven by strong contributions across all four divisions, supported by a sustained high gold price and the resilience of the group’s diversified operating model.

    The purchase of precious metals was the standout performer, with gross profit climbing 52% to £17.9 million. Pawnbroking profits increased 9%, while jewellery retail gross profit rose 18%, helped by a 35% jump in pre-owned jewellery revenue. Foreign currency exchange also recorded growth, although margins were pressured by a shift toward online and card-based products.

    Ramsdens kept its store estate broadly stable at 168 locations during the year and recommended a 43% increase in the full-year dividend to 16.0p per share, including special dividends. Management also highlighted continued progress in developing its omni-channel offering, combining in-store and digital capabilities.

    Trading momentum has continued into the first quarter of FY26. The company reported precious metals gross profit up more than 50%, record monthly lending that lifted the pawnbroking loan book to £12.8 million, and jewellery retail revenue more than 20% higher year on year. Foreign exchange margins remain under pressure due to ongoing digital migration, but overall performance has remained strong.

    Ramsdens has entered a new phase of expansion, opening a store in Wakefield with further openings planned, alongside the acquisition of a small pawnbroker. Despite higher employment and national insurance costs linked to its commitment to paying the Real Living Wage, the board now expects profit before tax in FY26 to exceed £18 million, underlining confidence in the group’s growth strategy and highly cash-generative model.

    While Ramsdens’ outlook is primarily supported by its strong financial performance and cash flow generation, technical indicators currently suggest bearish share price momentum. This is partly offset by a reasonable valuation, reflected in a low price-to-earnings multiple and an attractive dividend yield.

    More about Ramsdens Holdings

    Ramsdens Holdings is a UK-based diversified financial services provider and retailer operating 168 stores alongside an online platform. The group’s activities span pawnbroking, the purchase of precious metals, jewellery retail – with a particular emphasis on pre-owned items – and foreign currency exchange, creating a resilient multi-income model linked to consumer demand for jewellery, small-sum lending and travel money.

  • Ferrexpo Sustains Over 6m Tonnes of Output in 2025 Despite Intensifying Wartime Disruption

    Ferrexpo Sustains Over 6m Tonnes of Output in 2025 Despite Intensifying Wartime Disruption

    Ferrexpo (LSE:FXPO) said iron ore production in the fourth quarter of 2025 fell short of plan at 1.1 million tonnes after an escalation in missile and drone attacks on Ukraine’s energy, transport and port infrastructure. Despite these pressures, full-year output held up at 6.1 million tonnes, exceeding 2023 levels, although down 9% year on year from 2024.

    During 2025, the group undertook a significant shift in its product mix, increasing production of premium 67% iron ore concentrate to a record 2.9 million tonnes. This higher-grade product accounted for 48% of total output, compared with just 10% in the prior year, reflecting Ferrexpo’s focus on maximising value and customer demand in challenging operating conditions.

    Operationally, the company continued to tightly manage working capital and reduce non-essential capital expenditure and corporate social responsibility spending. Ferrexpo ended the year with a net cash position of approximately $47 million and no debt, despite ongoing constraints including the suspension of VAT refunds and disruption to export logistics. The deterioration of port access forced a costly shift back towards rail transport, limiting the group’s ability to serve non-European markets efficiently.

    Looking ahead, Ferrexpo’s outlook remains shaped by pressure on revenues and profitability stemming from the conflict and logistical challenges. However, technical indicators point to improving share price momentum, and recent operational decisions highlight the company’s resilience and commitment to maintaining responsible operations under extreme conditions. Valuation remains constrained by negative earnings, but the group’s strong balance sheet provides a degree of financial stability.

    More about Ferrexpo

    Ferrexpo is a Switzerland-headquartered producer and exporter of premium-grade iron ore products, supplying high-quality pellets and concentrate to global steelmakers to help reduce carbon emissions and improve productivity. Its core assets are located in Ukraine, and the company is listed on the London Stock Exchange, where it is a constituent of the FTSE All-Share and FTSE4Good indices.

  • Eco Atlantic Engages Guyana Authorities on Next Steps for Orinduik Block

    Eco Atlantic Engages Guyana Authorities on Next Steps for Orinduik Block

    Eco (Atlantic) Oil & Gas (LSE:ECO) said it is holding constructive discussions with Guyana’s Ministry of Natural Resources regarding the future of its appraisal and exploration programme on the offshore Orinduik Block, following the expiry of the block’s second renewal term on 14 January 2026.

    Under the provisions of Guyana’s Petroleum Act, Eco and its partner Navitas Petroleum are able to retain their interests in the Jethro-1 and Joe-1 discoveries while an appraisal plan remains under review. The partners have submitted joint proposals designed to safeguard access to these discoveries and to optimise the configuration of the block in a way that aligns government priorities with shareholder value.

    The company described the talks as part of a standard regulatory process and said they reflect its ongoing efforts to secure a clear, value-enhancing development pathway in the Guyana-Suriname Basin. Maintaining a presence in the basin, one of the most closely watched offshore oil provinces globally, remains a key strategic objective for Eco as it works to advance its portfolio.

    More about Eco Atlantic Oil & Gas

    Eco (Atlantic) Oil & Gas is an exploration-focused oil and gas company listed on both the TSX Venture Exchange and AIM. The group concentrates on offshore Atlantic Margin basins, holding licence interests in Guyana, Namibia and South Africa, with a strategy centred on developing relatively low carbon intensity oil and gas resources in emerging markets close to existing or planned infrastructure.

  • Frontier Developments Raises Full-Year Outlook After Strong H1 Driven by Jurassic World Evolution 3

    Frontier Developments Raises Full-Year Outlook After Strong H1 Driven by Jurassic World Evolution 3

    Frontier Developments (LSE:FDEV) delivered a strong first-half performance in FY26, with revenue rising 26% year on year to £59.6 million and adjusted operating profit jumping 76% to £9.7 million. Results were led by the highly successful launch of Jurassic World Evolution 3, alongside solid contributions from the group’s wider creative management simulation (CMS) portfolio.

    CMS titles accounted for around 90% of total revenue during the period. Planet Zoo became Frontier’s highest-grossing game to date, providing momentum ahead of a planned sequel in FY27, while Elite Dangerous also recorded revenue growth of more than 50%. Trading remained particularly strong in December, including record Christmas Day sales for Jurassic World Evolution 3.

    On the back of this performance, management upgraded full-year guidance, now expecting revenue of approximately £100 million and adjusted operating profit of around £11 million. The uplift reflects improved confidence in sustained sales and marks a clear return to consistent profitability.

    Alongside the financial update, Frontier confirmed a smooth leadership transition, with former chief marketing officer Jo Cooke assuming the role of chief executive on 1 January 2026, succeeding Jonny Watts, who remains on the board to support continuity. The company also reiterated progress across its development pipeline, including an unannounced CMS title planned for FY28 and another new game from its Canadian studio targeted for FY27, reinforcing its long-term CMS-led strategy.

    Overall, Frontier Developments continues to demonstrate strong financial stability and operational execution, supported by positive technical indicators and a healthy slate of upcoming releases. While the absence of a dividend may limit appeal for some investors, the group’s upgraded guidance, proven franchises and expanding pipeline point to a positive trajectory.

    More about Frontier Developments

    Frontier Developments plc is a leading independent video game developer and publisher based in Cambridge, UK. Founded in 1994 by Elite co-author David Braben, the company focuses on genre-leading creative management simulation franchises such as Planet Zoo, Planet Coaster and the Jurassic World Evolution series, alongside space simulation title Elite Dangerous, all built using its proprietary COBRA development technology.

  • Jersey Oil & Gas Focuses on Buchan Optimisation as UK Fiscal Framework Brings Clarity

    Jersey Oil & Gas Focuses on Buchan Optimisation as UK Fiscal Framework Brings Clarity

    Jersey Oil & Gas (LSE:JOG) set out its outlook for 2026 following the UK Government’s conclusion of regulatory and fiscal consultations, which clarified environmental requirements and confirmed that the Energy Profits Levy will remain in place until 2030, to be followed by the Oil and Gas Price Mechanism. The company said the resulting framework provides improved visibility and supports long-term investment planning through the end of the decade.

    Against this backdrop, Jersey Oil & Gas is working with operator NEO Energy and partner Serica Energy to refine the development concept for the Buchan field. This includes reassessing the previously preferred Western Isles FPSO against alternative production solutions, as well as updating the project’s Environmental Impact Assessment to incorporate Scope 3 emissions. The partners are seeking to optimise capital efficiency and project robustness ahead of key development milestones.

    Within the wider Greater Buchan Area, the joint venture has partially relinquished higher-risk acreage on licence P2170, reducing associated fees by around 40%. At the same time, plans are in place to apply for extensions to the second term of licences P2498 (Buchan) and P2170 as work continues toward Field Development Plan approval.

    Strategically, Jersey Oil & Gas said it remains focused on unlocking value from its existing Greater Buchan Area assets, while also pursuing selective acquisitions that could add cash flow and diversification. The group highlighted its ability to utilise more than £100 million of UK tax allowances, supported by a lower cost base, year-end 2025 cash of approximately £11 million, no debt, and a fully carried 20% share of Buchan development costs. In addition, the company is due to receive a further US$20 million cash payment on FDP approval.

    Despite these strategic positives, the outlook continues to be constrained by weak financial performance, with no current revenue, ongoing losses and continued cash burn. These pressures are partly offset by a conservative balance sheet and some year-on-year improvement. Technical indicators remain mixed, while valuation support is limited by negative earnings and the absence of dividend metrics.

    More about Jersey Oil & Gas

    Jersey Oil & Gas plc is an independent upstream oil and gas company focused on exploration and development activities on the UK Continental Shelf. Its core assets are located in the Greater Buchan Area of the North Sea, where it is progressing the Buchan development alongside partners NEO Energy and Serica Energy, while leveraging UK tax allowances to support long-term value creation.

  • Xaar Grows Revenue and Margins in 2025 as New Inkjet Uses Scale Up

    Xaar Grows Revenue and Margins in 2025 as New Inkjet Uses Scale Up

    Xaar (LSE:XAR) reported like-for-like revenue growth of 16.6% in 2025, taking annual revenue to £60.3 million. Performance was led by a 28.9% increase in printhead sales, while the core ceramics business delivered stable results. Additional momentum came from newer products and applications, including jewellery wax, as the group continues to broaden the use cases for its inkjet technology.

    Higher volumes and disciplined cost control supported an improvement in gross margins, with management expecting adjusted full-year profits to come in slightly ahead of market expectations. Net cash declined to around £4.8 million by year end, reflecting £3.1 million of capital expenditure as the company invested in capacity and technology to support future growth.

    Xaar said its differentiated fluid-deposition capabilities are now generating revenue from markets beyond ceramics, reinforcing confidence in the scale of longer-term opportunities. The group also highlighted recent corporate developments, including the appointment of Berenberg and Singer Capital Markets as joint corporate brokers, as part of efforts to support its next phase of growth.

    Despite the positive operational momentum, Xaar’s broader outlook remains mixed. Historical pressures on revenue and profitability continue to weigh on sentiment, although a strong equity position and recent positive corporate signals, such as director share purchases and an upbeat outlook statement, provide some balance. Technical indicators point to a broadly neutral trend, while valuation remains challenging given negative earnings.

    More about Xaar

    Xaar plc is an inkjet printing technology group specialising in printheads that enable the precise deposition of specialist fluids. The company’s core market is ceramics, with expanding applications in areas such as jewellery wax and other industrial uses as it extends its technology into new sectors.