Author: Fiona Craig

Fonix plc (LSE:FNX) reported a strong first half of its 2026 financial year, with gross profit increasing 7.1% to £10.5m and adjusted EBITDA rising 6.4% to £8.3m, in line with management expectations. The performance was supported by a 7% increase in total payment volumes to £160m and continued operational reliability, with the platform delivering 100% uptime during the period.

The board said it intends to raise the interim dividend in March 2026, in line with its policy of paying out at least 75% of adjusted earnings per share. Operationally, Fonix continues to push ahead with international expansion, scaling commercial activity in Portugal, completing network connectivity and preparing pilot programmes in a third European market, and establishing a legal entity and making its first hire in a fourth country. While contributions from these new territories are expected to be limited in the near term, management anticipates a more meaningful impact from FY27 onwards.

Alongside geographic expansion, product development remains a key growth driver. Fonix has rolled out its PayFlex solution across major UK radio brands and extended it into Ireland, launched its CompsPortal platform for the first time, and delivered successful RichMessaging pilots. Both the payments and messaging divisions continued to grow, and the board reiterated its confidence in meeting full-year expectations, despite potential headwinds from changes to UK gaming taxation.

Overall, Fonix Mobile PLC’s outlook is underpinned by strong financial performance, an attractive valuation and positive corporate developments that point to continued strategic progress and shareholder alignment. Technical indicators suggest supportive short-term momentum, although some longer-term resistance may remain. Limited disclosure from earnings calls restricts deeper insight into management’s forward guidance.

More about Fonix Mobile PLC

Fonix plc is a London-headquartered provider of mobile payments and messaging solutions, enabling organisations to connect, engage and transact with customers through mobile technology. Founded in 2006, the company works with clients across media, charity, entertainment and enterprise sectors, including major broadcasters and charities, helping them generate revenue and deepen audience engagement through interactive mobile services and seamless payment experiences.

Kitwave Group plc (LSE:KITW) reported record unaudited revenue of £802.7m for the year ended 31 October 2025, representing year-on-year growth of 20.9%. Gross margin improved to 22.8%, while adjusted operating profit increased by 11.7% to £38.0m, largely reflecting continued expansion and a favourable mix shift within the higher-margin Foodservice division.

The group delivered strong cash generation, with cash conversion improving to 104%, and reduced leverage to 2.3x including leases, highlighting a strengthening balance sheet. Reported earnings per share edged lower, however, reflecting an increased share count and the impact of short-term restructuring and integration costs. These costs were associated with the consolidation of foodservice depots and the ramp-up of a new South West distribution centre.

Management said these investments, together with the completed integration of recent foodservice acquisitions into the Creed Foodservice platform and a solid performance from the Retail & Wholesale division, leave the group well positioned to realise operational synergies and support future growth despite a challenging macroeconomic backdrop. In addition, the proposed acquisition of the group by OEP Capital Advisors L.P. has been highlighted as offering an attractive potential outcome for shareholders.

Overall, Kitwave Group plc’s outlook is shaped by its strong financial performance and appealing valuation metrics. This is tempered by bearish technical indicators, which suggest some near-term caution, while the lack of recent earnings call commentary and major new corporate developments limits further insight.

More about Kitwave Group plc

Kitwave Group plc is a UK-based delivered wholesale business supplying impulse products, frozen, chilled and fresh food, alcohol, groceries and tobacco to around 46,000 predominantly independent customers. Operating from a national network of 37 depots, the group serves convenience retailers, leisure operators, vending businesses, foodservice providers, other wholesalers and major national retailers, and has expanded through a combination of organic growth and acquisitions in the fragmented grocery and foodservice wholesale market.

Landore Resources Limited (LSE:LND) announced updated independent mineral resource estimates for the BAM Gold Project, alongside revised figures for the adjacent B-47 and VW base metal deposits at its Junior Lake Property in Ontario. Following the release of the updated resource statement, trading in the company’s shares has resumed on AIM.

The new CIM-compliant estimate for BAM was prepared by SLR Consulting and is based on an optimised pit shell using a long-term gold price assumption of US$3,000 per ounce. It defines Indicated resources of 622,300 ounces of gold and a further 33,700 ounces in the Inferred category. These figures represent a notable reduction compared with the 2022 pit-constrained resource, reflecting tighter geological modelling, updated sampling information and higher assumed operating costs, despite the higher gold price used in the analysis.

Management said the revised work provides a more robust and realistic interpretation of the BAM orebody, significantly reducing geological and development risk. The company believes the updated resource places the project on a more comparable footing with other gold deposits in Ontario and offers a clearer base from which to pursue future growth. The update also highlights the potential strategic value of the nearby nickel, copper, cobalt and platinum group metal deposits at B-47 and VW, particularly against a backdrop of strong gold prices and increasing interest in critical minerals.

From an outlook perspective, Landore continues to be constrained by weak financial fundamentals, including the absence of revenue, ongoing losses and continued cash burn, implying a reliance on external funding despite having no debt. Technical indicators remain unfavourable, with negative MACD signals and the share price trading below key moving averages. Valuation support is limited given negative earnings and the lack of dividend visibility.

More about Landore Resources

Landore Resources Limited is an AIM-listed mineral exploration and development company focused on advancing its wholly owned Junior Lake Property in northwestern Ontario, Canada. Its principal asset is the BAM Gold Project, supported by nearby nickel–copper–cobalt and platinum group metal deposits at B-47 and VW, positioning the company across both gold and critical minerals in a well-established mining jurisdiction.

TheWorks.co.uk plc (LSE:WRKS) reported interim results for the 26 weeks to 2 November 2025, highlighting resilient in-store trading despite significant disruption to online sales. Total like-for-like sales edged up 0.3%, with store LFLs rising a strong 4% and materially outperforming the wider non-food retail market. This was offset by a 36% decline in online sales, reflecting operational challenges following the transition to a new third-party fulfilment partner.

Group revenue slipped marginally by 0.3% to £123.8m, but profitability improved. Pre-IFRS 16 adjusted EBITDA narrowed to a £1.0m loss, while the adjusted loss before tax reduced to £5.1m. The improvement was driven by a 330 basis point uplift in product margins, continued cost-saving initiatives and tighter cost control. Net debt also reduced to £5.3m. No interim dividend was declared, as the Board remains focused on further strengthening the balance sheet.

Trading in the first 11 weeks of the second half showed continued resilience in stores, with store LFLs up 1.2% against a weakening consumer backdrop. However, ongoing online capacity constraints meant total LFLs fell 4.2%. Despite heavier Black Friday discounting and increased post-Christmas clearance activity, the group continued to deliver margin expansion and cost efficiencies.

Strategic actions under the “Elevating The Works” programme remain central to the turnaround. These include enhanced brand marketing centred on screen-free family activities, improved store standards, selective net store openings and distribution efficiencies. Management said the business entered the post-Christmas period with an improved cash position and remains confident of delivering FY26 profit in line with market expectations, while longer-term plans target further sales growth, profitability and shareholder value as online fulfilment issues are resolved.

Overall, the outlook for The Works is mixed. Strong store-led trading and apparent valuation support are positives, but these are balanced by weaker technical indicators and ongoing financial vulnerabilities, including relatively high leverage and uneven profitability.

More about TheWorks.co.uk plc

TheWorks.co.uk plc is the UK’s leading specialist retailer of affordable, screen-free activities for the whole family, offering products across reading, learning, creativity and play. With more than 90% of sales generated through its store network, the group focuses on value-driven consumers seeking low-cost, non-digital leisure activities, while online acts as a complementary channel alongside an optimised nationwide estate.

Future plc (LSE:FUTR) has agreed to acquire 100% of UK digital publisher SheerLuxe Ltd and BLUSH Talent MGMT Ltd for an initial cash consideration of £39.9 million, strengthening its exposure to women’s fashion, beauty and lifestyle content. SheerLuxe, a rapidly growing “Google-zero” brand with around 6 million followers across social media, newsletters, websites and podcasts, has a strong Gen Z audience profile and generated £12.6 million of revenue and £5.1 million of EBITDA in the 12 months to September 2025, implying an EBITDA margin of roughly 40%.

The deal is expected to be earnings accretive, with the acquisition struck at an EV/EBITDA multiple of 7.8x. Future plans to unlock value by applying its commercial scale, advertising and affiliate expertise, and proprietary products such as Collab and Future Optic. The group also intends to leverage its US infrastructure to support a SheerLuxe launch in the United States, further strengthening its Fashion & Beauty vertical alongside established titles including Marie Claire and Who What Wear.

The transaction will be funded from existing facilities and is expected to add around £3 million in annual interest costs. Total consideration is capped at £80 million, linked to ambitious growth targets and the retention of SheerLuxe’s management team. Management said the acquisition aligns with Future’s strategy of using strong cash generation to reduce leverage and return surplus capital to shareholders through buybacks, while sharpening its portfolio around brands that benefit most from its platform-led model.

Looking ahead, Future plc’s outlook reflects a balance of pressures and opportunities. Financial performance remains under strain from declining revenue and profitability, while technical indicators point to bearish momentum. Offsetting these factors, valuation metrics suggest potential undervaluation, and management’s strategic initiatives outlined in recent updates offer some optimism for longer-term growth. Improving revenue momentum and margins will be central to strengthening the overall investment case.

More about Future plc

Future plc is a London-listed global specialist media group operating around 175 brands across a wide range of content verticals. The group monetises audiences through advertising, eCommerce affiliate income and direct consumer revenues such as subscriptions and magazine sales. Its content is distributed via websites, newsletters, video, print publications and live events, with a strategy focused on building engaged audiences, increasing revenue per user and optimising its media portfolio.

Associated British Foods (LSE:ABF) reported group revenue of £6.76bn for the 16 weeks ended 3 January 2026, broadly in line with expectations and down 0.9% at constant currency. Performance across the portfolio was mixed, with strength in retail offset by weaker trading in several commodity-exposed divisions.

Retail revenue, led by Primark, increased by 1.5% at constant currency. The UK and Ireland delivered modest like-for-like and total sales growth, while the US showed stronger momentum with 12% like-for-like growth. This was partly offset by weaker conditions in continental Europe, where both like-for-like and total sales declined. Elsewhere, the grocery division was broadly flat with slight growth, while the ingredients, sugar and agriculture businesses all recorded revenue decreases.

Overall, the update points to resilience in Primark’s core UK and US markets, contrasted with continued pressure in European retail and in businesses more closely linked to commodity cycles. These trends are likely to come under closer examination when the group publishes its interim results in April, particularly in relation to profitability and regional strategy.

From an outlook perspective, Associated British Foods retains a solid financial base and strong operational capabilities, but faces headwinds in accelerating revenue growth and improving cash flow generation. Technical indicators are mixed, while valuation appears reasonable and supported by a moderate dividend yield. Management commentary has highlighted ongoing strategic initiatives alongside persistent challenges, notably within the sugar segment and European operations, resulting in a broadly moderate near-term outlook.

More about Associated British Foods

Associated British Foods is a diversified international food, ingredients and retail group with operations spanning grocery brands, sugar, agriculture and speciality ingredients, alongside its discount fashion retail chain Primark. The group generates revenue across the UK, Ireland, continental Europe, the United States and other international markets, providing broad exposure to both consumer goods and value-focused apparel retailing.

Emmerson PLC (LSE:EML) provided an update on its arbitration case against the Government of the Kingdom of Morocco, confirming that the ICSID tribunal was fully constituted during the fourth quarter of 2025. This followed the appointment of tribunal president Laurent Lévy, after which an initial procedural hearing was held on 16 December 2025. As a result of that hearing, a timetable has been agreed requiring Emmerson to file its detailed Memorial by the end of the first quarter of 2026.

The arbitration has been brought by Emmerson’s subsidiaries, Khemisset UK Ltd and Potasse de Khemisset S.A., and seeks compensation for the alleged expropriation of the Khemisset potash project. The claims also relate to asserted breaches of protections under the UK–Morocco bilateral investment treaty. While the ultimate outcome of the proceedings remains uncertain, management views the case as a pivotal step in its efforts to recover value linked to its Moroccan investment.

From an outlook perspective, Emmerson continues to face significant financial challenges, including the absence of revenue, widening losses and ongoing negative free cash flow, alongside continued erosion of equity. These pressures are partly balanced by supportive technical indicators, with the share price trading above key longer-term moving averages and a positive MACD signal. Valuation support remains limited, however, given the company’s loss-making position and lack of dividend visibility.

More about Emmerson

Emmerson PLC is an AIM-listed mining company focused on the development of the Khemisset potash project in Morocco. Through its UK and Moroccan subsidiaries, the group is positioned within the fertiliser and wider mining sector, with Khemisset representing its core development asset.