Author: Fiona Craig

Persimmon (LSE:PSN) delivered strong full-year results for 2025, with home completions rising 12% to 11,905 and new housing revenue increasing 16% to £3.31 billion. Underlying operating profit grew 17% to £472.1 million, while margins improved slightly. Growth was recorded across all three of the company’s brands, supported by improved mortgage availability, rising real wages and an expanded network of sales outlets.

The group continued to invest in its future development pipeline, spending £541 million on land acquisitions during the year. This investment expanded its strategic land bank to more than 77,000 potential plots. Persimmon also maintained its five-star rating from the Home Builders Federation (HBF) and reported strong customer satisfaction scores. Forward sales have increased, and early trading in 2026 shows improved sales rates and pricing. Assuming no prolonged disruption linked to geopolitical tensions such as the Iran conflict, the company expects further growth in housing volumes this year and is targeting medium-term improvements in margins, returns and shareholder distributions.

Persimmon’s outlook is supported by strong financial stability, favourable technical indicators and positive corporate developments. Its strategic expansion initiatives and solid market position are key strengths. However, some pressure on cash flow efficiency and valuation metrics suggests there may still be areas for improvement.

More about Persimmon

Persimmon is a UK-based housebuilder focused on delivering value-oriented new homes through three distinct brands. The company benefits from a large strategic land bank, a vertically integrated supply chain and a growing outlet network. Its developments serve a broad range of buyers, including private homeowners, housing associations and build-to-rent investors across the UK.

EnSilica (LSE:ENSI) has secured a series of new design and development agreements that expand its presence in healthcare technology while strengthening its automotive pipeline. The company has been awarded a US$1.6 million contract from a UK-listed life sciences technology group to develop and manufacture a next-generation chip for advanced analytical systems. In addition, EnSilica has entered into a fully funded US$200,000 feasibility study with a U.S. healthcare company to design a wireless biosensing and therapeutic controller ASIC. If successful, the project could lead to a larger multi-million-dollar supply agreement.

The company also reported increased demand and an extended production timeline for an existing automotive ASIC programme, now expected to run beyond 2030. This extension is projected to add more than US$4 million in additional revenue between 2026 and 2028. Management said the combination of new healthcare projects and expanded automotive commitments improves revenue visibility and supports expectations of significantly higher revenue and EBITDA in the 2026 financial year.

Despite these contract wins, the company’s outlook remains constrained by recent financial performance, including declining revenue, ongoing losses and a sharp deterioration in free cash flow. However, technical indicators provide a partial counterbalance, with the share price trading well above key moving averages and showing strong upward momentum, though some indicators suggest the rally may be approaching stretched levels. Valuation metrics remain challenging as the company is currently loss-making and does not offer a dividend yield.

More about EnSilica PLC

EnSilica plc is a fabless semiconductor company specialising in the design of application-specific integrated circuits (ASICs), including RF, millimetre-wave, mixed-signal and complex digital chips. The company serves customers across sectors such as space and communications, industrial systems, automotive and healthcare. EnSilica focuses on delivering secure and reliable semiconductor solutions and leverages reusable intellectual property and silicon platforms to support scalable design projects and long-term supply revenue streams.

Somero Enterprises (LSE:SOM), a global specialist in laser-guided concrete levelling systems and related training services, continues to support commercial construction projects through its proprietary technology and service-focused model. The company has expanded its product portfolio with electric and next-generation boomed screeds as well as ride-on machines, broadening its addressable market and strengthening its position in high-specification industrial flooring.

For 2025, Somero reported revenue of $88.9 million, representing a 19% year-on-year decline, alongside lower margins. However, the company noted a stronger performance in the second half of the year, supported by disciplined cost management and solid cash generation. New and upgraded products contributed $13 million in sales, while regional revenue trends improved significantly during the latter half of the year. Operating cash flow remained stable, enabling the group to maintain its dividend payments, carry out share buybacks and enter 2026 expecting revenue, profitability and cash generation broadly in line with the prior year.

Somero maintains a strong financial position with low levels of debt and attractive valuation metrics, while recent share buybacks have further supported shareholder returns. However, the drop in revenue and pressure on cash flow generation present risks that the company will need to address. Technical indicators currently show mixed signals, with no clear directional trend in the share price.

More about Somero Enterprises Inc

Somero Enterprises Inc designs and manufactures laser-guided concrete levelling equipment and provides associated training, education and technical support to contractors in more than 90 countries. Its technology enables faster and more precise installation of horizontal concrete floors used in a wide range of commercial developments, including facilities for major global blue-chip companies, reinforcing its long-standing leadership in the Laser Screed market.

Sabre Insurance Group (LSE:SBRE) reported a 4.9% increase in profit before tax for 2025 to £51 million, while its net insurance margin improved to 19.2%. The results came despite a 14.2% decline in gross written premiums, reflecting the company’s strategy of maintaining strict pricing discipline rather than pursuing volume growth during softer market conditions. Supported by a strong capital position, Sabre raised its total dividend for the year to 13.5p per share and announced plans for a £5 million share buyback. The company said its solvency coverage ratio will remain within the targeted 140%–160% range even after these capital returns.

Management noted that disciplined pricing, combined with easing claims inflation, helped deliver strong profitability and has positioned the group for a return to premium growth. Early trading in 2026 indicates that motor vehicle gross written premiums are already more than 5% higher year on year. Strategic initiatives under the company’s Ambition 2030 plan are also advancing, including the launch of Sabre Direct for motorcycles and the rollout of new differentiated pricing models. These initiatives are expected to support higher profitability and sustainable growth over the coming years.

The company’s outlook is supported by strong financial fundamentals, including a robust balance sheet with low leverage and an attractive valuation profile marked by a relatively low price-to-earnings ratio and a high dividend yield. Technical indicators are moderately positive but mixed when compared with longer-term averages. Recent corporate actions, including the announced share buyback and insider share purchases, also provide supportive signals for investors.

More about Sabre Insurance Group plc

Sabre Insurance Group plc is one of the UK’s leading specialist motor insurance underwriters, offering policies for cars, motorcycles and taxis. The company focuses on disciplined underwriting, careful management of insurance cycles and conservative assumptions around claims inflation, allowing it to maintain strong margins and capital resilience in the competitive UK motor insurance market.

Rotork (LSE:ROR) reported solid results for 2025, with order intake increasing 6.0% on an organic constant-currency basis and revenue rising 3.7%. Growth was supported by strong performance in the Chemical, Process & Industrial (CPI) and Water & Power segments, as well as continued momentum from the Rotork Service division. This progress came despite some project delays affecting the midstream Oil & Gas market. Adjusted operating profit increased 10% on the same basis, while operating margins expanded to 24.6% and return on capital employed reached 38.4%.

During the year, the group deployed capital through the acquisition of Noah, the disposal of non-core assets, and a £100 million share buyback programme. Rotork also maintained a net cash position and increased its full-year dividend by 7.1%, reflecting management’s confidence in continued progress through 2026 as its Growth+ strategy advances.

The company’s outlook is primarily supported by strong financial performance, including healthy revenue and cash flow growth, low leverage and efficient use of equity capital. However, technical indicators suggest the possibility of near-term share price weakness, and the company’s relatively high price-to-earnings ratio raises questions about valuation, moderating the overall investment outlook.

More about Rotork plc

Rotork plc is a UK-based engineering group specialising in flow control and instrumentation technologies used across the Oil & Gas, Chemical, Process & Industrial (CPI), and Water & Power sectors. The company designs and manufactures actuators, control systems and related services, with an increasing emphasis on electric actuation and aftermarket support. This strategy positions Rotork as an asset-light, high-margin supplier serving critical infrastructure industries worldwide.

Spirax Group (LSE:SPX) reported organic revenue growth of 5% to £1.70 billion in 2025, outperforming global industrial production levels. All three of the company’s divisions recorded organic sales increases, while improved adjusted margins helped lift the group’s organic adjusted operating margin to 20%. However, statutory profit declined during the period as one-off restructuring costs weighed on reported operating profit and margins. Despite this, Spirax improved cash conversion, reduced leverage to 1.5 times EBITDA, increased returns on capital, and raised its dividend.

Performance across divisions was mixed. Steam Thermal Solutions recorded modest organic growth but experienced pressure on statutory margins. Electric Thermal Solutions achieved double-digit organic revenue growth, supported in part by recovering semiconductor demand, while Watson-Marlow delivered mid-single-digit growth as activity in biopharma markets strengthened. Management said a recently completed efficiency and simplification programme is now generating around £40 million in annualised cost savings, providing additional capacity for reinvestment and supporting expectations of further organic growth and margin expansion in 2026 despite ongoing macroeconomic uncertainty.

The company’s outlook is supported by strong financial performance and positive commentary from its latest earnings call. Technical indicators suggest a largely neutral share price trend, while valuation metrics imply the stock may be trading at elevated levels. Management believes its ongoing strategic initiatives and restructuring programme will support long-term performance, even as certain regional markets remain challenging.

More about Spirax Group

Spirax Group is a UK-based engineering company specialising in thermal energy and fluid technology solutions that help industrial customers improve efficiency, safety and decarbonisation. The group operates through three main divisions: Steam Thermal Solutions, Electric Thermal Solutions and Watson-Marlow Fluid Technology Solutions. Its technologies serve industries including food processing, healthcare, semiconductors and biopharmaceuticals, with more than 30 manufacturing sites and over 100,000 customers worldwide.

Nuformix (LSE:NFX) has been granted Orphan Drug Designation by the U.S. Food and Drug Administration for tranilast lystate, the inhaled active compound used in its NXP002 programme for idiopathic pulmonary fibrosis (IPF), a rare and often fatal lung disease. The designation follows a similar orphan status previously awarded in Europe and provides several development incentives, including potential tax credits, reduced regulatory fees and the possibility of market exclusivity. Nuformix said the recognition could strengthen its position in ongoing licensing discussions and increase the strategic value of the NXP002 programme for potential partners.

With orphan designation now secured in both the United States and Europe, Nuformix is further establishing its presence in the specialised fibrosis treatment space. The regulatory support could help accelerate progress toward future clinical and commercial milestones. The company said the achievement also demonstrates the potential of its drug repurposing approach to generate regulatory assets that may attract partnerships and support longer-term value creation, although the programme remains at a preclinical stage.

The company’s broader outlook remains constrained by weak financial performance, including the absence of recent revenue, continuing losses and sustained negative free cash flow, though it operates without debt. Technical indicators also suggest downside pressure, with the share price trading below key short- and medium-term averages and a negative MACD signal. Valuation metrics are similarly limited by negative earnings and the lack of dividend support.

More about Nuformix Plc

Nuformix plc is a UK-listed pharmaceutical development company focused on treating unmet medical needs in fibrosis and oncology through drug repurposing. The company specialises in identifying, developing and patenting improved forms of existing drugs with enhanced physical properties, creating differentiated products with new commercial opportunities and early-stage licensing potential from its pipeline of preclinical assets.