Author: Fiona Craig

Keller Group (LSE:KLR) achieved record results in 2025, reporting a 3.4% increase in revenue to £3.09 billion. Underlying operating profit rose 2.6% to £218.2 million, sustaining a margin of 7.1% despite currency pressures and varied regional trading conditions.

The group generated its strongest return on capital in 17 years at 30.7% and moved into a net cash position for the first time in over a quarter of a century. Its order book remained solid at £1.5 billion, supported by robust contributions from North America, EME and APAC operations.

Reflecting structurally improved cash generation, Keller increased its total dividend by 41.6% to 70.4 pence per share and announced plans for a further £100 million share buyback. The enhanced capital returns signal management’s confidence in the durability of earnings and future cash flows.

New chief executive James Wroath reaffirmed the company’s strategic priorities, which include expanding local market share, targeting higher-growth end markets and maintaining investment in people, safety standards and sustainability initiatives. The group aims to capitalise on long-term themes such as infrastructure investment and the global energy transition.

From an investment standpoint, Keller’s strong revenue growth, profitability and disciplined cash management underpin a constructive outlook. Technical indicators point to bullish momentum, while valuation metrics suggest the shares may offer relative value. The announced buyback programme further reinforces shareholder return prospects.

More about Keller Group plc

Keller Group plc is the world’s largest geotechnical specialist contractor, delivering advanced foundation engineering and ground-improvement solutions to the global construction industry. Employing around 10,000 people across five continents and completing approximately 5,500 projects annually, the company generates roughly £3 billion in revenue from infrastructure, residential and commercial markets.

Morgan Advanced Materials (LSE:MGAM) reported lower revenue and earnings for 2025 against a backdrop of subdued semiconductor demand and softness in European industrial markets. Trading conditions improved in the second half, helping to stabilise performance after a challenging start to the year.

Despite the earnings decline, the group maintained its total dividend and delivered improved cash generation and free cash flow. Net debt increased as the company continued to invest in semiconductor-related capacity and progressed its business simplification programme.

Management said the simplification initiative is largely complete and remains on track to generate £27 million in savings by 2026, helping to mitigate margin pressure. The sale of the majority of its Molten Metal Systems division and the launch of a strategic review of the Thermal Products business signal a sharper focus on higher-margin growth areas within the portfolio.

Operationally, Morgan is implementing turnaround plans at key sites, introducing group-wide procurement measures and rolling out a new ERP platform as part of a broader transformation effort. For 2026, the company expects modest organic revenue growth and an adjusted operating margin of around 10%. Leverage is projected to decline as disposal proceeds are received and transformation benefits begin to materialise.

From an investment perspective, Morgan retains a solid financial base and strong operational capabilities, although revenue and net income growth remain under pressure. Technical indicators suggest positive momentum, albeit with potential overbought signals warranting caution. Valuation metrics are mixed, combining a relatively elevated P/E ratio with an appealing dividend yield. Strategic actions, including portfolio reshaping and share buybacks, provide additional support to the medium-term outlook.

More about Morgan Advanced Materials

Morgan Advanced Materials is a global specialist in advanced materials, co-designing and manufacturing mission-critical components for essential industrial and technological applications. Established in 1856, the company employs approximately 8,100 people across 57 sites worldwide, serving diverse end markets including semiconductor, industrial and other high-performance sectors.

CyanConnode (LSE:CYAN) has received a revised indicative takeover approach from Esyasoft, proposing an all-cash offer that values the company at approximately £37.5 million, or 10.44 pence per share. The proposal represents a premium of up to 67% compared with recent trading reference points.

The board, advised by Strand Hanson, stated that it would unanimously recommend the offer to shareholders should Esyasoft proceed with a firm bid on the outlined financial terms and subject to agreement on other key conditions. The acquisition would be implemented through a scheme of arrangement, although there is no assurance at this stage that a binding offer will ultimately be made.

Directors highlighted the potential strategic rationale for combining the two businesses, citing opportunities for operational scale, enhanced capital backing and broader international growth. Roughly one quarter of CyanConnode’s recent revenue has been generated through the Esyasoft group, underscoring the depth of their commercial ties. Esyasoft has also previously provided US$20.25 million in convertible loan notes to help fund CyanConnode’s Goa smart metering project. Those instruments, however, are excluded from the proposed equity valuation. The approach remains subject to due diligence and other requirements under the UK Takeover Code.

From a financial standpoint, CyanConnode continues to face headwinds, including declining revenues, ongoing losses and negative operating cash flow. Valuation metrics remain constrained by negative earnings. Technical indicators offer some support, with the shares trading above key moving averages and showing positive MACD momentum, though elevated RSI and stochastic readings suggest the stock may be overbought, increasing near-term downside risk.

More about CyanConnode Holdings

CyanConnode Holdings is a UK-listed technology group focused on smart metering and narrowband radio frequency communications solutions. The company maintains a long-standing strategic relationship with Esyasoft and its affiliates, particularly in large-scale smart metering deployments in India and other global markets, where Esyasoft plays an important commercial and financial partner role.

XP Power (LSE:XPP) recorded a sharp recovery in order intake during 2025, with bookings rising 28% at constant currency to £225.9 million. The improvement reflects a reduction in customer destocking across industrial technology and healthcare markets, alongside a gradual pickup in semiconductor equipment demand.

Group revenue declined 4% at constant currency to £230.1 million, with the weakness largely confined to the first half of the year. Trading conditions improved in the second half, delivering 7% sequential revenue growth as end markets began to stabilise.

Adjusted operating profit fell 20% at constant currency to £17.3 million, as lower volumes weighed on overall earnings. However, restructuring measures and margin initiatives drove a 170-basis-point improvement in adjusted gross margin. Operating profit strengthened materially in the second half, rising from £4.8 million in H1 to £12.5 million in H2.

Balance sheet metrics improved significantly. Net debt was reduced to £41.5 million, cutting leverage to 1.2 times adjusted EBITDA following robust cash generation and a share placing. During the year, the company streamlined its operations, completed a new manufacturing facility in Malaysia, exited the RF market and indicated that recovering demand should help offset the impact of U.S. export restrictions to China through 2026.

Management highlighted 24 new product launches, improved supply chain performance and rising customer satisfaction as structural positives. The shift of manufacturing capacity from China to Malaysia, combined with tighter inventory discipline and cost control, is intended to support gross margins in the mid-40% range once markets normalise and to reinforce the group’s competitive standing in its core sectors.

From an investment standpoint, XP Power presents a mixed picture. Strong cash generation and improving gross margins are positive factors, but declining revenue, continued losses and previously elevated leverage temper the outlook. Technical indicators suggest the shares are in an uptrend, though potentially overbought in the near term. Valuation remains constrained by negative earnings and the absence of dividend yield data.

More about XP Power

XP Power is a Singapore-headquartered designer and manufacturer of power control solutions used in semiconductor production equipment, industrial technology systems and healthcare devices. The company integrates its products into blue-chip OEM platforms, generating multi-year revenue streams.

It operates manufacturing facilities in Vietnam, North America and Germany, serving customers across Europe, North America and Asia. Listed on the London Stock Exchange’s Main Market as part of the FTSE SmallCap index, XP Power specialises in IP-rich solutions that convert grid electricity into the precise power formats required by complex equipment. While representing a relatively small portion of total system cost, its components are critical to performance and reliability in demanding environments.

The group also maintains a global sales and support network spanning more than 20 locations, enabling close collaboration with customers throughout design cycles and supporting long-term partnerships across semiconductor, industrial and medical markets.

Kier Group plc (LSE:KIE) has outlined a forthcoming change in board responsibilities, confirming that Non-Executive Director Margaret Hassall will retire and relinquish her role as Chair of the Remuneration Committee on 29 May 2026. She will be replaced by Anne Baldock, a fellow Non-Executive Director who joined the board in July 2025 and currently chairs the Remuneration Committee at Pantheon Infrastructure plc.

The succession plan is designed to ensure stability in the company’s governance framework, particularly in relation to executive compensation oversight. Chair Matthew Lester acknowledged Hassall’s contribution in reinforcing Kier’s remuneration policies during her tenure. Baldock’s appointment brings additional experience in remuneration governance, reinforcing the board’s emphasis on aligning leadership incentives with long-term corporate performance.

Maintaining robust oversight of pay structures is expected to support Kier’s broader strategic objectives across the UK infrastructure and construction sectors, where disciplined execution and stakeholder confidence are critical.

From a market perspective, Kier’s recent earnings call and solid financial delivery have been central to its equity performance. Constructive technical indicators and a valuation viewed as reasonable provide additional support, although elevated leverage levels remain a point of consideration for investors.

More about Kier Group plc

Kier Group plc is a major UK-based infrastructure services, construction and property development group. The company focuses on delivering essential national infrastructure through integrated design-and-build expertise and project management capabilities, drawing on specialist technical skills to manage complex, large-scale projects sustainably.

Insig AI (LSE:INSG) has entered into a new enterprise licence and revenue-sharing agreement with an existing customer, enabling deployment of its Generative Intelligence Engine to streamline document processing and analytical workflows. The £60,000 contract not only adds immediate revenue but also provides Insig AI with direct access to the client’s wider customer network, creating a potential new route to market.

Under the arrangement, the company’s AI platform will be integrated more extensively into the client’s operations to automate document handling and generate structured analytical outputs. Crucially, Insig AI now has the right to engage with the client’s broader customer base, offering an opportunity to secure further contracts and scale recurring revenues.

The deal reflects increasing institutional interest in AI-driven document intelligence solutions. If the company succeeds in converting this expanded access into additional enterprise agreements, it could strengthen its competitive positioning and accelerate commercial traction.

Despite the strategic progress, Insig AI’s financial profile remains under strain. The business continues to report losses, negative operating and free cash flow, and notably negative shareholders’ equity. Technical indicators also signal weakness, with the share price trading below key moving averages and momentum indicators such as MACD remaining negative. Valuation support is limited given the negative earnings profile and absence of dividend yield visibility.

More about Insig AI PLC

Insig AI plc is a London-listed provider of artificial intelligence and machine learning-based analytics solutions for enterprise customers. Its flagship Generative Intelligence Engine transforms unstructured client documents into structured, machine-readable data, delivering auditable insights and customised recommendations designed to automate workflows and enhance consistency across reporting and analysis processes.

Intertek (LSE:ITRK) delivered record earnings in 2025, reporting revenue of £3.43 billion, representing 4.3% growth at constant currency. The performance was supported by like-for-like expansion across most business lines and a rise in adjusted operating margin to 18.1%.

Adjusted operating profit increased 9.3% at constant currency, marking a third straight year of double-digit growth in earnings per share. Return on invested capital exceeded 21%, reflecting disciplined capital allocation and operational efficiency.

Cash generation remained a highlight, with cash conversion reaching 110%. During the year, the group deployed £300 million into capital expenditure and acquisitions, focusing on higher-margin segments to strengthen its portfolio. Shareholders benefited from total returns of £602 million, including dividends and the completion of a £350 million share buyback programme.

Management stated that progress under its AAA strategy is running ahead of its 2023–25 objectives. For 2026, the company guided to mid-single-digit like-for-like revenue growth, additional margin improvement and continued strong cash flow, signalling confidence in sustained quality-led expansion and reinforcing its position in risk-based quality assurance markets.

From an investment standpoint, Intertek’s robust financial results and active capital management — including strategic acquisitions and significant buybacks — represent core strengths. However, recent technical indicators point to bearish momentum in the shares, which may create short-term volatility. Valuation appears balanced, supported by a reasonable dividend yield.

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Intertek Group PLC is a global provider of Total Quality Assurance solutions, operating more than 1,000 laboratories and offices across over 100 countries. The company delivers assurance, testing, inspection and certification services focused on quality, safety and sustainability throughout clients’ operations and supply chains worldwide.

Johnson Service Group (LSE:JSG) delivered solid progress in 2025, posting a 4.3% increase in revenue to £535.4 million. Growth was supported by steady organic gains across its HORECA and workwear divisions, alongside pricing initiatives and operational efficiencies.

Adjusted operating profit rose 16.4% to £72.5 million, pushing the operating margin up to 13.5%. Adjusted EBITDA margin strengthened to 31.2%, while leverage remained conservative at 0.95x, reflecting disciplined balance sheet management despite ongoing investment.

The company rewarded shareholders with a 20% uplift in its full-year dividend and executed £55 million in share buybacks in early 2026. This brings cumulative repurchases since 2022 to £90.3 million. Net debt increased to £159.2 million, primarily due to capital expenditure and capital returns, but management emphasised that the balance sheet remains robust.

Executives highlighted stable customer volumes despite macroeconomic pressures, continued reductions in energy intensity and sustained operational improvements. Looking ahead, the Group expects further progress in 2026 and is targeting an adjusted operating margin of at least 14%.

From an investment perspective, the company’s improved profitability and constructive tone in its earnings commentary stand out as key positives. The ongoing buyback programme adds further support to shareholder value. Although technical signals appear neutral, current valuation levels underpin a favourable medium-term outlook.

More about Johnson Service

Johnson Service Group is a UK-based provider of textile services, operating mainly in the hotel, restaurant and catering (HORECA) and workwear segments. The company supplies, launders and maintains linen and specialist garments for hospitality and industrial clients, with a focus on service reliability, operational efficiency and disciplined investment to reinforce its market position.

Harvest Minerals (LSE:HMI) has strengthened its board with the addition of Mark Reilly as a non-executive director. Reilly brings more than 30 years of leadership experience spanning mining, energy, technology and professional services, enhancing the company’s governance and strategic capabilities as it advances its growth agenda.

Reilly has held senior roles at companies listed on both the ASX and AIM markets, building expertise in corporate governance, capital markets engagement, cross-border expansion and financial restructuring. His experience is expected to contribute to Harvest’s corporate development initiatives and expand its investor outreach efforts.

Among his previous achievements, Reilly led the international expansion of IODM Limited’s accounts receivable technology platform and played a key role in advancing resource projects in Africa during his time at Forte Energy. These credentials align with Harvest’s ambitions as a growth-oriented resources company. Chairman Brian McMaster noted that the appointment should reinforce delivery of the company’s strategy and strengthen stakeholder engagement, potentially enhancing Harvest’s standing in the organic fertiliser market and improving access to funding.

Despite the strategic addition to the board, Harvest’s financial profile remains under pressure. The company has reported significant losses, a sharp decline in margins and a return to cash outflows, alongside increasing leverage. While technical indicators show some resilience — with the share price trading above key moving averages and momentum appearing neutral — valuation metrics remain weak due to ongoing losses and the absence of a dividend.

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Harvest Minerals Limited is an AIM-listed producer of organic fertiliser with operations in Brazil, supplying nutrient solutions to the agricultural sector. Listed within the mining segment of the London Stock Exchange, the company focuses on utilising its mineral resource base to meet rising demand for sustainable fertiliser products in major farming regions.