Author: Fiona Craig

Tandem Group plc (LSE:TND) said trading remains in line with expectations for the year ending 31 December 2026, with sales for the first five months of the year running ahead of the prior period despite ongoing economic and geopolitical challenges. Group revenue to 31 May was 2% higher year-on-year, supported by strong performances in the bicycles and Home & Garden divisions.

Bicycle Division Delivers Strong Growth

Bicycles continued to be a major contributor to growth, with sales increasing 8% compared with the same period last year.

Management highlighted particularly strong demand for value-focused electric bikes, supported by new product introductions and the company’s continued expansion into European markets. The Squish children’s bicycle brand also contributed positively as Tandem broadened its international reach.

The company believes its growing presence in the e-bike segment positions it well to benefit from ongoing consumer demand for affordable mobility solutions.

Home & Garden Performance Accelerates

The Home & Garden division delivered the strongest growth across the group, with sales rising 37% year-on-year.

Demand was particularly robust for outdoor living products, garden storage solutions and cooling equipment. The division also benefited from the introduction of new product categories, including outdoor heating, pet beds and home décor ranges.

Improved website functionality and digital enhancements have helped increase customer engagement and conversion rates, providing additional support for sales growth.

Second-Half Improvement Expected in Other Divisions

Trading conditions remained more challenging within Toys, Sports and Leisure, where sales were 17% lower than the previous year. Golf revenues also declined by 2%.

Despite these softer performances, management remains optimistic about the second half of the year. Expectations are supported by improved FOB shipment timing, a greater contribution from higher-margin domestic business, and the launch of new pan-European and global licensing agreements.

The company also expects growing international demand for golf-related products to provide additional support as the year progresses.

Outlook Supported by Improving Financial Performance

Tandem’s outlook continues to benefit from an improving financial profile, including a return to profitability, stronger cash generation and relatively low leverage.

However, management acknowledges that margins remain relatively modest and that earnings have been volatile over recent years. Market indicators present a mixed picture, with recent share price strength offset by stretched momentum readings and weaker technical signals.

Valuation remains difficult to assess using traditional earnings metrics due to the company’s negative price-to-earnings ratio and the absence of a meaningful dividend yield.

More About Tandem Group plc

Tandem Group plc is a UK consumer products company operating across bicycles, electric bikes, toys, sports and leisure products, and Home & Garden categories.

The group distributes products through independent retailers, major national chains and online sales channels. In recent years, it has expanded its international footprint, particularly in Europe and the Middle East, while increasing its focus on value-oriented electric bikes and licensed consumer brands.

Oxford Metrics (LSE:OMG) reported higher revenue for the six months ended 31 March 2026 as growth in its Motion Capture business and improved gross margins helped support progress against its strategic objectives. The technology group also maintained a strong cash position while continuing to invest in operational improvements and business integration initiatives.

Motion Capture Growth Offsets Softer Metrology Performance

Interim revenue increased by 3% to £20.7 million, supported primarily by a 10% rise in Motion Capture sales. The division continued to benefit from demand across its core markets, contributing to overall top-line growth during the period.

Revenue within the Vision Metrology business was lower year-on-year, largely due to the timing of project deliveries rather than underlying market conditions. Despite this, the group achieved stronger gross margins and reported a reduction in adjusted EBIT losses compared with the prior period.

Integration and Efficiency Measures Continue

Oxford Metrics continued to execute its strategy of simplifying operations and improving profitability through greater scale and efficiency.

During the period, acquired businesses were integrated into the newly established Industrial Vision and Metrology Systems platform, creating a more unified structure across the group’s industrial technology activities.

Management also progressed property rationalisation and broader cost optimisation programmes as part of efforts to improve operating leverage and support future margin expansion.

Focus on Recurring Revenue and Long-Term Growth

Alongside operational improvements, the company has refined its capital allocation strategy to support sustainable long-term growth.

Management remains focused on increasing recurring revenue streams, enhancing profitability and scaling the business across its target markets. Full-year revenue guidance for FY26 remains unchanged at approximately £56 million.

Looking further ahead, Oxford Metrics continues to target a doubling of group revenue over the medium term while aiming to achieve adjusted EBIT margins in the mid-teens.

Strong Balance Sheet Supports Outlook

The group ended the reporting period with cash balances of £31.7 million despite shareholder returns through dividends and share buybacks, highlighting the strength of its financial position.

While profitability remains a work in progress, Oxford Metrics benefits from supportive share price momentum and a solid balance sheet. The dividend yield also provides additional support for investors, although conventional valuation measures remain constrained by the company’s negative earnings position.

More About Oxford Metrics

Oxford Metrics is a UK-listed technology company specialising in smart sensing, motion capture and precision measurement solutions. The group serves customers across life sciences, engineering, entertainment, manufacturing and industrial markets worldwide.

Founded in 1984, the company has developed leading positions in motion capture technology and high-accuracy vision inspection and metrology systems. Its products are used by thousands of customers across more than 70 countries, supporting applications ranging from scientific research and healthcare to industrial quality control and digital content creation.

GEO Exploration Limited (LSE:GEO) has announced encouraging early results from airborne geophysical surveys conducted across its Gorge Project in Western Australia, identifying a new high-priority magnetic target known as MAG001 and refining a prospective gold-bearing corridor extending for approximately five kilometres. The findings are expected to support target generation ahead of the company’s planned maiden drilling programme, which remains subject to permitting approvals.

Geophysical Surveys Enhance Geological Understanding

The exploration campaign combined high-resolution LiDAR data, aerial imagery, magnetic surveys and radiometric measurements to build a more detailed picture of the project area.

Analysis of the data has highlighted MAG001 as a significant new exploration target, while also improving the interpretation of a broad zone of historical gold mineralisation. Management now believes the mineralised trend may form part of a larger structural corridor with potential to host additional gold discoveries.

The survey results have also identified two uranium anomalies located close to the interpreted gold trend, adding a further dimension to the project’s exploration potential.

New Data Supports Target Generation Strategy

According to the company, the enhanced datasets have significantly improved mapping of historical workings and surface geological features across the project area.

This additional information is helping GEO develop a better understanding of the structural controls and hydrothermal systems that may have influenced mineralisation. Such insights are expected to play an important role in refining exploration targets and directing future drilling activities.

Further Technical Work Under Way

To advance the project, GEO has engaged specialist consultants to undertake detailed litho-structural interpretation of the newly acquired datasets.

The company plans to combine this work with future soil geochemistry programmes and field mapping activities to rank and prioritise exploration targets. Management believes this integrated approach will strengthen the overall exploration model and improve the efficiency of future drilling campaigns.

With several prospective targets now identified, GEO is working towards establishing a robust pipeline of opportunities across the Gorge Project and enhancing its exposure to both gold and uranium exploration in Western Australia.

More About GEO Exploration Limited

GEO Exploration Limited is an AIM-listed mineral exploration company focused on identifying and developing gold and uranium opportunities in Western Australia.

The company employs a range of advanced exploration technologies, including LiDAR, magnetic and radiometric surveys, to generate and refine targets across its portfolio. Its principal assets include the Gorge and Juno projects, where ongoing exploration programmes are aimed at unlocking new mineral discoveries.

Tritax Big Box REIT (LSE:BBOX) has entered into a development management agreement with Tritax Management LLP to advance a planned 125MW data centre project in Chelmsford, Essex. The scheme represents the company’s second large-scale data centre development and forms part of its broader strategy to build a significant presence in the UK digital infrastructure market.

Manager Appointed to Oversee Project Delivery

Under the agreement, Tritax Management will provide a range of services covering planning, construction management, technical power expertise and pre-leasing activities. The structure follows the model previously adopted for the company’s first major data centre project at Manor Farm near Heathrow.

Management believes the arrangement will provide the specialist expertise required to progress the project through planning, development and eventual occupation.

Fee Structure Includes Performance-Based Incentives

As part of the agreement, Tritax Management will receive approximately £3.3 million for project assembly and preparatory work already undertaken.

The manager will also be entitled to a development management fee of up to 5% of total project costs, subject to planning approval being secured. In addition, a performance-related profit-sharing mechanism has been agreed, allowing Tritax Management to receive 17.5% of project profits if the development is successfully completed and leased.

Half of any profit-share entitlement will be settled in Tritax Big Box shares, helping align the interests of management with those of shareholders.

Data Centre Ambitions Continue to Grow

The board, supported by advice from Jefferies International, concluded that the related-party arrangements are fair and reasonable for shareholders.

The Chelmsford scheme is targeting a yield on cost of between 10% and 11%, highlighting the attractive returns the company believes can be generated from data centre development. The project also reflects Tritax Big Box’s efforts to diversify beyond its traditional logistics warehouse portfolio while leveraging its growing expertise in power-intensive infrastructure projects.

Management sees data centres as a significant long-term growth opportunity alongside its established position in the UK logistics sector.

Financial and Market Outlook

The company’s outlook continues to be supported by solid operational and financial performance, although weaker free cash flow conversion during 2025 and higher debt levels remain areas of focus.

Technical indicators remain constructive, with the shares maintaining an established upward trend. Valuation metrics also appear supportive, combining a relatively modest earnings multiple with a dividend yield of around 4.6%.

Recent corporate updates have reinforced confidence in the company’s development pipeline and capital allocation strategy, although investors continue to monitor execution risks and the timing of income generation from new projects.

More About Tritax Big Box REIT

Tritax Big Box REIT plc is the UK’s largest listed owner and developer of large-scale logistics warehouses and controls the country’s most extensive logistics-focused land portfolio.

As a member of the FTSE 100, the company invests in strategically located logistics assets and development opportunities designed to generate long-term income and capital growth. In recent years, Tritax has expanded its focus beyond logistics into data centre development, using its “power first” approach to capitalise on rising demand for digital infrastructure across the UK.

Smiths News PLC (LSE:SNWS) has strengthened its position in the UK newspaper distribution market after securing a long-term agreement with News UK & Ireland that will see the company become the exclusive wholesale distributor of The Sun, The Times and The Sunday Times across Great Britain from July 2027.

The new contract extends the partnership between the two companies until July 2037 and significantly expands Smiths News’ national reach, reinforcing its role as the leading distributor of printed news publications in the UK.

Contract Expected to Deliver Significant Revenue Growth

Under the terms of the agreement, Smiths News expects the expanded distribution arrangement to contribute approximately £125 million of additional annual revenue from July 2027.

The company said implementation and transition costs associated with the expansion will be incurred during FY2027, although the contract is expected to enhance earnings from FY2028 onwards.

Management believes the agreement represents a major strategic milestone that strengthens the group’s long-term revenue visibility and supports continued growth in its core distribution business.

Expansion to Be Funded from Existing Resources

Smiths News plans to finance the required expansion of its distribution network using existing cash resources and available financing facilities.

Despite the investment required to support the enlarged operation, the company has reaffirmed its current dividend guidance, signalling confidence in its financial position and future cash generation.

In addition, Smiths News has committed to maintaining current delivery service charges for retail customers throughout the duration of the contract. The move is designed to provide cost certainty for newsagents while supporting the long-term sustainability of newspaper distribution across the UK.

Strategic Position Further Strengthened

The agreement effectively provides Smiths News with nationwide distribution coverage for News UK’s newspaper portfolio, further consolidating its leadership position within the sector.

Management believes the scale and duration of the contract will enhance operational efficiency, strengthen customer relationships and provide a solid foundation for future growth opportunities across its distribution network.

Investment Case Supported by Valuation and Momentum

The company’s outlook continues to benefit from attractive valuation metrics, including a relatively low price-to-earnings ratio and a strong dividend yield.

Technical indicators also remain supportive, suggesting positive market momentum. While financial performance is underpinned by solid cash generation and operational efficiency, investors continue to monitor leverage levels and the company’s negative equity position.

More About Smiths News PLC

Smiths News PLC is the UK’s largest newspaper and magazine wholesaler, providing early-morning distribution services to more than 22,000 retail outlets across England and Wales.

With a history spanning more than two centuries, the company distributes publications on behalf of major national and regional publishers and has expanded into adjacent markets including recycling collection services, book distribution, home entertainment logistics and broader final-mile delivery solutions. Its extensive infrastructure network supports one of the fastest physical supply chains in the UK media sector.

Castings P.L.C. (LSE:CGS) reported a modest decline in revenue for the year ended 31 March 2026 as demand across key commercial vehicle markets remained subdued. Group revenue slipped 2.1% to £173.2 million, reflecting weaker heavy truck activity in Europe and continued uncertainty in the United States. Despite these headwinds, operating profit more than doubled to £10.0 million as the company improved operational efficiency and aligned production capacity with market conditions.

Efficiency Improvements Drive Higher Profitability

The group’s foundry operations delivered a slight increase in production volumes, with output rising 1.2% to 41,500 tonnes during the year. Improved operating performance helped strengthen margins across both the foundry and machining divisions, supporting a significant increase in profitability despite lower sales.

Reflecting confidence in the business and its financial position, Castings maintained its total dividend at 18.40 pence per share.

New Capacity Investment Creates Growth Platform

A key milestone during the year was the commissioning of a new production line at the William Lee foundry. The investment is expected to increase overall group capacity by approximately 15% while also allowing the manufacture of larger and more complex castings.

The company also reported progress at its large-castings facility in Scunthorpe, which moved into profitability during the period and expanded the range of products it can supply to customers.

Management believes these developments enhance the group’s ability to support future demand growth and strengthen its competitive position within European commercial vehicle supply chains.

Demand Outlook Improves Across Multiple Markets

Looking ahead, Castings sees opportunities emerging across several sectors, including wind energy, agriculture and commercial vehicle electrification.

Although operations at William Lee experienced a temporary power supply constraint early in the current financial year, customer production schedules suggest demand could increase by between 5% and 10%. The company expects its recent capacity investments to leave it well placed to capture additional business as market conditions improve.

Strong Balance Sheet Supports Investment Case

The group’s outlook benefits from a robust balance sheet and an attractive valuation profile, supported by a relatively low earnings multiple and a strong dividend yield.

However, these positives are balanced against weaker cash generation and negative free cash flow recorded during the period, while technical indicators continue to suggest a broader bearish trend in the share price. Recent insider buying by the chief executive is viewed as a supportive signal, reflecting management confidence in the company’s prospects.

More About Castings

Castings P.L.C. is a UK engineering group specialising in iron foundry operations and precision machining. The company is a major supplier of cast components to heavy truck and commercial vehicle manufacturers, with most of its production exported to leading European original equipment manufacturers.

In addition to serving the transport sector, Castings supplies products to customers operating in wind energy, agricultural machinery and industrial markets through facilities including William Lee and Ductile Castings in Scunthorpe.

International Public Partnerships (LSE:INPP) has reported continued resilience across its infrastructure portfolio, with more than 98% of its investments supported by long-term contracted or regulated revenue streams. The company said its portfolio is delivering projected net returns of 9.4% and reaffirmed both its progressive dividend policy and dividend targets for 2026 and 2027.

Portfolio Positioned to Support Decades of Income Growth

Management highlighted the strength and longevity of the existing portfolio, noting that current assets alone are expected to underpin dividend growth for at least the next 25 years.

The company’s focus on essential infrastructure assets with predictable cash flows continues to provide visibility over future income generation, supporting its objective of delivering sustainable returns to shareholders.

Capital Recycling Creates Opportunities for Reinvestment

During the period, INPP continued to execute its capital recycling strategy, completing a partial disposal of its interest in the Moray East Offshore Transmission Owner (OFTO) project at a premium to carrying value.

The company also returned capital to shareholders through share buybacks exceeding £26 million while simultaneously redeploying funds into investments offering attractive long-term return potential. Among these was an investment in the Sizewell C nuclear power project, which management views as a strategic opportunity within the UK infrastructure sector.

Further asset realisations are expected during the second half of 2026 as the company continues to optimise its portfolio.

Core Infrastructure Assets Deliver Steady Progress

Several key investments reported positive operational performance during the period. Tideway, Cadent, BeNEX and Community Fibre all continued to make progress, supporting portfolio returns and reinforcing INPP’s exposure to essential infrastructure sectors.

The company remains focused on regulated and critical infrastructure assets across energy, transport, utilities and communications, areas that continue to benefit from long-term demand and stable revenue characteristics.

Financial Strength Supports Outlook

INPP’s outlook remains supported by a conservative balance sheet, strong asset backing and improving cash generation. These factors provide a solid foundation for future shareholder returns and support the group’s long-term investment strategy.

While earnings volatility remains a consideration, valuation support is underpinned by the company’s dividend profile. Technical indicators are currently neutral to slightly weaker in the near term, although management remains focused on long-term value creation through disciplined capital allocation and portfolio management.

More About International Public Partnerships

International Public Partnerships Limited is a listed infrastructure investment company focused on generating long-term, inflation-linked returns from a diversified portfolio of more than 130 infrastructure assets.

Its investments span regulated utilities, public-private partnership projects and operating businesses across sectors including energy, transport and digital infrastructure. The company seeks to deliver dependable long-term income through exposure to essential services supported by durable cash flows and long-duration contractual arrangements.

Georgina Energy plc (LSE:GEX) has taken another step toward drilling at its wholly owned Hussar EP513 prospect in Western Australia after paying a deposit to Ensign Australia to secure the Ensign 970 drilling rig. The move supports the company’s plans to commence a Q3 2026 drilling programme targeting helium, hydrogen and natural gas within subsalt formations at the project.

Preparations Progress Ahead of Planned Well

The upcoming exploration well is expected to reach a depth of approximately 3,200 metres and will test geological targets that management believes have significant resource potential. Independent consultants have previously estimated substantial prospective resources at Hussar, with the project carrying a multi-billion-dollar in-situ valuation based on those assessments.

Securing the drilling rig represents an important milestone as the company moves from planning toward execution of the exploration campaign.

Infrastructure and Site Development Under Way

Preparatory work at the site is already progressing, including upgrades to access roads, drilling of water bores and civil engineering activities required to establish drill and accommodation pads.

At the same time, specialist consultants are coordinating key operational requirements, including casing design, logging services and other technical support needed for the drilling programme.

The broader development strategy, including drilling activities and infrastructure required to support potential future production, is expected to be fully funded by Harlequin and its partners. Management believes this funding arrangement significantly strengthens the pathway toward advancing Hussar as a potentially major onshore helium, hydrogen and hydrocarbon project in Australia.

Financial Profile Remains a Key Consideration

Despite operational progress, Georgina Energy continues to face the challenges associated with being an early-stage exploration company. The business currently generates no revenue and remains loss-making, with negative cash flow, rising debt levels and negative equity weighing on its financial profile.

Market indicators provide a more constructive picture, with technical momentum remaining relatively supportive. However, valuation remains difficult to assess given the absence of earnings and dividend income.

More About Georgina Energy plc

Georgina Energy plc is a London-listed exploration company focused on helium, hydrogen and natural gas opportunities in Australia. Through its wholly owned subsidiary, Westmarket Oil & Gas, the company holds a 100% interest in the Hussar prospect in Western Australia and the EPA155 Mt Winter project in the Northern Territory.

The group is targeting resources that could help address growing global demand for helium and hydrogen while also exploring associated natural gas potential across its Australian permit portfolio.

Rockwood Strategic plc (LSE:RKW) delivered another year of strong growth in the 12 months to 31 March 2026, with net asset value increasing to £149.4 million from £96.6 million. The expansion was supported by continued investor demand, which resulted in a 44.5% increase in the company’s share count during the period.

Long-Term Performance Continues to Outpace Peers

The investment trust maintained its track record of outperforming the wider market over both three- and five-year periods. Over five years, Rockwood generated a net asset value total return of 97.4%, making it the strongest-performing UK equity investment trust in its peer group over that timeframe.

The company’s performance has also been recognised across the industry through a number of awards that highlight its distinctive investment approach and long-term results.

Momentum Builds Following Year-End

Performance has strengthened further since the financial year-end. By mid-June 2026, net asset value total return had risen by a further 17%, while additional share issuance increased total net assets to approximately £180 million.

Recent gains have been supported by takeover activity involving portfolio companies Treatt and Van Elle, both of which received acquisition approaches at significant premiums. The portfolio also benefited from strong share price appreciation at Filtronic, contributing to overall returns.

These developments have reinforced Rockwood’s position as one of the leading UK smaller companies investment trusts, with continued investor interest reflecting growing confidence in opportunities across the UK small-cap market.

Financial Strength Supports Outlook

The company’s outlook remains underpinned by a strong balance sheet and positive market momentum. Continued net asset growth and investor demand provide a supportive backdrop for future performance.

However, some factors continue to temper the investment case, including negative operating and free cash flow metrics as well as fluctuations in revenue trends. Valuation appears relatively attractive based on earnings measures, while recent corporate developments have generally been positive, although ongoing share issuance may create dilution considerations for existing investors.

More About Rockwood Strategic plc

Rockwood Strategic plc is a UK-listed investment trust focused on identifying undervalued smaller companies with the potential for significant value creation. Managed by Rockwood Asset Management, the trust takes an active investment approach, seeking opportunities where corporate events, strategic change or direct engagement can help unlock shareholder value.

The portfolio is primarily invested in UK smaller companies and aims to generate long-term returns by capitalising on overlooked opportunities across the small-cap and AIM markets.

GreenRoc Strategic Materials (LSE:GROC) has secured advisory assistance from the European Investment Bank’s InvestEU Advisory Hub as it advances plans for its Amitsoq graphite mine and active anode material (AAM) processing project. The support, provided at no cost to the company, is intended to help prepare the project for future financing and investment discussions.

Advisory Programme Targets Financing Readiness

Under the mandate, the InvestEU Advisory Hub will assist with a range of activities designed to strengthen the project’s investment case. The work will include market analysis, technical and economic assessments focused on bankability, enhancements to business planning and financial modelling, and support in preparing fundraising materials and investor engagement strategies.

Management believes the programme will help position Amitsoq more effectively as the company progresses towards larger-scale development and financing.

Drilling Approval and Test Work Advance Project Development

GreenRoc has also received approval from the Government of Greenland to proceed with its Phase III drilling campaign at the Amitsoq project, marking another important step in the project’s advancement.

At the same time, testing has commenced on a 300-kilogram subsample taken from an 18-tonne bulk graphite ore sample. The results are expected to contribute to the ongoing pre-feasibility study and support the optimisation of future processing flowsheets and plant design.

Active Anode Material Pilot Plant Makes Progress

Alongside developments at Amitsoq, GreenRoc continues to advance its downstream active anode material strategy. The company’s pilot plant has now processed approximately 700 kilograms of graphite concentrate into spherical graphite, an important material used in lithium-ion battery production.

The facility has also commissioned advanced in-house analytical equipment, providing additional technical capabilities and supporting product development. These milestones are expected to reduce development risk and strengthen the technical foundation of the project ahead of potential commercial-scale operations.

Financial and Market Considerations

As a pre-revenue company, GreenRoc continues to report losses and ongoing cash outflows as it develops its projects. While the balance sheet benefits from relatively low debt levels, the absence of operating revenue remains a key consideration for investors.

Technical indicators remain weak, with the shares trading below major moving averages and momentum measures remaining negative. Valuation metrics are also difficult to assess given the company’s lack of earnings and absence of dividend payments.

More About GreenRoc Strategic Materials

GreenRoc Strategic Materials is an AIM-listed mining development company focused on bringing the Amitsoq graphite project in Greenland into production. The project hosts a high-grade graphite resource and is intended to supply responsibly sourced graphite and active anode materials to battery manufacturers in Europe and North America.

The company is targeting growing demand from the electric vehicle sector and aims to establish a secure, non-conflict supply chain for critical battery materials, supported by its long-life JORC-compliant resource and ESG-focused development strategy.