Author: Fiona Craig

Crest Nicholson (LSE:CRST) reported an interim operating loss after weaker housing market conditions reduced revenue and home completions during the first half of the year. In response, the housebuilder is prioritising cash preservation, reducing investment activity and working with lenders to strengthen its financial flexibility while preparing for an eventual recovery in the UK housing market.

Weaker trading weighs on first-half results

The company reported lower revenue and fewer home completions as subdued buyer demand and ongoing economic uncertainty continued to affect the UK residential property market.

Adjusted gross margin declined significantly, while completions fell to 584 homes during the period. Net debt also increased sharply, leading the board to suspend the interim dividend as it focuses on preserving cash and maintaining balance sheet resilience.

Management acknowledged that market conditions remain challenging and adopted a cautious outlook for the remainder of the financial year.

Cash preservation becomes strategic priority

To improve liquidity, Crest Nicholson is reducing land purchases, slowing the pace of new site launches and disposing of selected non-core land assets.

The company also continues to implement its Project Elevate transformation programme, which is intended to improve operational efficiency and strengthen long-term profitability.

Alongside these initiatives, Crest Nicholson is in advanced discussions with its lending banks to amend the financial covenants attached to its revolving credit facility. A key covenant waiver has already been extended while negotiations continue, helping to provide additional financial flexibility.

Management believes these actions will strengthen the balance sheet and position the company to benefit when conditions across the UK housing market improve.

Investment outlook

Crest Nicholson remains focused on restoring profitability through tighter cost control, stronger cash management and operational improvements. However, the company continues to face pressure from weak housing demand, declining cash generation and elevated debt levels.

Although the shares offer an attractive dividend yield under normal trading conditions, valuation metrics remain distorted by lower earnings, while weak technical indicators reflect continued investor caution towards the UK housebuilding sector.

About Crest Nicholson Holdings

Crest Nicholson Holdings is a UK residential housebuilder focused on open market housing, private rented sector developments and affordable homes. The company primarily operates in the mid-premium segment and has placed increasing emphasis on construction quality, customer satisfaction and sustainability. Crest Nicholson holds an MSCI AAA sustainability rating and is a constituent of the FTSE4Good Index.

Metals Exploration (LSE:MTL) delivered another quarter of solid cash generation from its Runruno gold mine while making significant progress on the construction of its La India development project in Nicaragua. The company also continued to expand its long-term growth pipeline through exploration activity and the addition of a new copper-gold project in the Philippines.

Runruno delivers strong cash flow

During the second quarter, the Runruno mine generated gold revenue of US$47.1 million and pre-tax free cash flow of US$25.2 million. Improved gold recoveries helped support performance despite lower ore grades and reduced mining volumes during the period.

The operation reported an all-in sustaining cost of US$2,019 per ounce and finished June with US$9 million in cash and no debt, providing a strong financial position as the company prepares for its next phase of growth. Management also plans to introduce a US$27 million equipment loan to support future development activities.

La India construction moves beyond halfway stage

Construction of the La India gold project reached 56% completion during the quarter, with the company continuing to target first gold production in December 2026.

The project’s total development budget has been revised to US$177 million, reflecting higher logistics expenses and additional import duties. Despite the increased cost estimate, management reaffirmed its development timetable.

Alongside construction, Metals Exploration continued drilling programmes at La India to support future resource growth and also secured the rights to develop the Batong Buhay porphyry copper-gold project in the Philippines, adding another potential long-term growth asset to its portfolio.

Investment outlook

Metals Exploration continues to benefit from strong operational cash generation, healthy profit margins and a debt-free balance sheet, providing financial flexibility to fund its growth projects. The ongoing development of La India, combined with expanding exploration activities, offers the potential to increase production and extend the company’s operating life over the coming years.

While the shares trade on an attractive earnings valuation, technical indicators remain mixed, with weaker momentum limiting investor sentiment despite improving operational fundamentals.

About Metals Exploration

Metals Exploration is a gold production, development and exploration company with operations in the Philippines and Nicaragua. Its producing Runruno Gold Mine generates the cash flow supporting construction of the La India Gold Project, while the company is also advancing the Batong Buhay copper-gold exploration project in the Philippines as part of its strategy to build a diversified portfolio of precious and base metal assets.

Ramsdens Holdings (LSE:RFX) has upgraded its full-year profit expectations for a second time, citing continued strong trading across its diversified operations despite recent fluctuations in gold prices. The improved outlook comes as the company progresses the recommended cash acquisition by FirstCash’s Bidco subsidiary and updates its forecasts in connection with the proposed scheme of arrangement.

Strong trading supports higher earnings outlook

The board now expects profit before tax for FY2026 to be between £32 million and £35 million, reflecting stronger-than-anticipated trading across several of the group’s core business lines.

Performance has been supported by elevated gold prices, continued demand for pawnbroking loans, resilient jewellery sales and higher foreign currency exchange volumes. Travel-related demand also benefited from Scotland’s and England’s participation in the FIFA World Cup, contributing to increased currency transactions.

The latest guidance upgrade highlights the resilience of Ramsdens’ diversified operating model, with strength across multiple revenue streams helping to offset volatility in individual markets.

Diversified model continues to drive growth

Alongside favourable trading conditions, the company has continued to expand its loan book, benefiting from sustained demand for secured lending services.

Activity within its precious metals business has also exceeded expectations, while its ongoing store expansion programme continues to support future earnings growth. Management believes these factors will provide momentum into the next financial year and further strengthen the business ahead of the proposed takeover.

The updated guidance follows the previously announced recommended acquisition by FirstCash and forms part of the board’s revised financial assessment during the transaction process.

Investment outlook

Ramsdens continues to demonstrate strong operational performance, supported by improving profitability, multiple revenue streams and an attractive valuation relative to earnings. The group’s diversified business model has helped reduce dependence on any single source of income while allowing it to benefit from favourable conditions across pawnbroking, jewellery retail, foreign exchange and precious metals.

Although technical indicators remain positive following a sustained share price rally, momentum measures suggest the shares have become relatively overbought, which may temper near-term upside despite the improved earnings outlook.

About Ramsdens Holdings

Ramsdens Holdings is a UK financial services and retail group offering foreign currency exchange, pawnbroking, precious metals trading and the sale of new and pre-owned jewellery. Headquartered in Teesside, the company operates 175 stores across the UK alongside an expanding online platform and is authorised by the Financial Conduct Authority to provide pawnbroking, credit broking and payment services.

Dunelm Group (LSE:DLMN) delivered another year of resilient growth, with higher sales, stable profitability and continued investment in its digital platform and store estate. The homewares retailer maintained strong cash generation despite a challenging consumer backdrop, leaving full-year profit broadly in line with market expectations while continuing to return significant capital to shareholders.

Sales and digital channels continue to expand

Full-year sales increased 3.1% to £1.83 billion, supported by steady customer demand and continued growth across digital channels, which accounted for 42% of total revenue during the year.

Gross margin improved slightly to 52.5%, while disciplined cost management helped offset inflationary pressures. Strong cash generation enabled Dunelm to fund ongoing capital investment, pay £141 million in dividends and still finish the year with a modest net cash inflow.

Management said full-year profit before tax is expected to be broadly in line with market forecasts, reflecting another year of consistent operational execution.

Investment in stores and technology continues

Dunelm continued to expand its physical retail network by opening a new 34,000-square-foot superstore in Kingston-upon-Thames and relaunching its refurbished St Albans store.

The company also indicated that its pipeline of new store openings for FY27 is expected to be at the upper end of its medium-term target range, underlining confidence in further expansion opportunities.

On the digital side, Dunelm introduced a beta version of an AI-powered shopping assistant within its mobile app, aimed at improving customer engagement and enhancing the online shopping experience.

Management believes the group’s leadership position in the fragmented UK homewares market provides significant opportunities for future growth, with a broader strategic update scheduled for September.

Investment outlook

Dunelm continues to demonstrate resilient financial performance through consistent revenue growth, stable margins and strong cash generation. The combination of digital investment, store expansion and disciplined capital allocation supports confidence in the company’s long-term growth strategy.

The shares also benefit from an attractive valuation, supported by a relatively low earnings multiple and a strong dividend yield. However, weaker technical indicators and slower free cash flow growth remain factors that investors will continue to monitor.

About Dunelm Group

Dunelm Group is the UK’s leading homewares retailer, offering more than 100,000 products across categories including furniture, textiles, kitchenware, lighting, outdoor living and home accessories. Founded in 1979, the company operates 204 stores alongside a growing online platform featuring home delivery and Click & Collect services. Its predominantly own-brand product range, value-focused proposition and in-store Pausa coffee shops have helped establish Dunelm as one of the UK’s largest home furnishing retailers.

Capital Limited (LSE:CAPD) delivered record first-half revenue as strong growth across its drilling, mining and laboratory services businesses offset the impact of contract exits in Mali and the United States. The mining services group also reaffirmed its full-year revenue guidance, supported by expanding operations and continued investment in higher-return projects.

Record revenue driven by diversified growth

Second-quarter revenue reached a record $117.3 million, while first-half revenue increased 37.6% year on year to $219.0 million. Growth was supported by strong performances across Capital Drilling, Capital Mining and MSALABS, highlighting the benefits of the group’s diversified business model.

Capital is also reallocating equipment and capital previously deployed on discontinued contracts in Mali and the US towards projects offering stronger long-term returns. Although these changes will result in one-off demobilisation costs, management maintained its full-year revenue guidance of between $410 million and $440 million.

The company also continued to deliver solid operational safety performance during the period.

New contracts and expansion support outlook

Capital Drilling benefited from higher fleet utilisation and improved revenue per rig, supported by new contracts across Côte d’Ivoire, Guinea, Egypt and Tanzania. These gains helped offset the planned wind-down of work at Nevada Gold Mines and the Sadiola project.

Within Capital Mining, work at the Reko Diq project continued broadly in line with expectations despite a slower development schedule, while waste mining activities at the Sukari mine expanded faster than originally anticipated.

MSALABS also continued to grow its global footprint through the launch of new laboratories and a joint venture in Pakistan, strengthening its position in the mining laboratory testing market. In addition, the company’s portfolio of strategic mining investments outperformed broader sector benchmarks during the period.

Investment outlook

Capital Limited continues to benefit from strong revenue growth, healthy operating profitability and an improving balance sheet. The group’s strategy of shifting resources towards higher-margin projects and expanding its laboratory services business provides additional opportunities for long-term earnings growth.

Although technical indicators remain relatively weak, the shares trade on an attractive valuation based on earnings, while improving operational performance and a diversified project pipeline support the company’s longer-term investment case.

About Capital Limited

Capital Limited is a London-listed mining services company providing drilling, mining and laboratory testing services to gold and base metals producers across emerging mining regions. Its operations are organised through three core divisions—Capital Drilling, Capital Mining and MSALABS—and are complemented by a portfolio of strategic equity investments in junior mining companies. The group has a growing presence across West Africa, North Africa, Pakistan and other international mining markets.

Experian (LSE:EXPN) began its 2027 financial year with solid revenue growth, supported by continued demand for its AI-powered analytics, fraud prevention and data services. Growth was broad-based across the group’s geographic markets and business segments, reinforcing the strength of its technology platform and expanding portfolio of data-driven solutions.

Broad-based growth across global markets

First-quarter revenue increased 10% at actual exchange rates, 8% at constant currency and 7% on an organic basis, in line with the company’s guidance.

North America, which accounts for around two-thirds of group revenue, delivered 7% organic growth. The region benefited from double-digit expansion across business-to-business operations, including Ascend analytics, fraud prevention, automotive and healthcare solutions. Consumer Services declined, reflecting the planned wind-down of major data breach-related contracts.

Latin America remained one of the strongest-performing regions, with organic revenue rising 12%. Growth was driven by robust demand for credit and fraud solutions in Brazil, alongside the contribution from digital identity specialist idwall following its acquisition.

In the UK and Ireland, organic revenue increased 5%, supported by demand for KYC360 services and new credit-scoring products. Meanwhile, Europe, the Middle East, Africa and Asia Pacific recorded more modest growth against a particularly strong comparative period that included significant software deliveries in the prior year.

AI and analytics remain key growth drivers

Business-to-business operations continued to outperform, with Financial Services and Verticals delivering 9% organic growth as demand remained strong for analytics, credit risk and fraud management solutions.

Consumer Services also continued to expand overall, helped by strong subscription growth in several core markets and particularly robust performance across Latin America.

Management left its full-year guidance unchanged, signalling confidence that continued investment in artificial intelligence, identity verification and fraud prevention technologies will support further growth while strengthening Experian’s competitive position.

Investment outlook

Experian continues to benefit from profitable revenue growth, improving cash generation and a resilient business model built around recurring demand for data and analytics services. Ongoing investment in AI-enabled products and digital identity solutions provides additional opportunities for long-term expansion.

Although the shares currently trade around fair valuation levels and technical indicators remain relatively weak, the company’s consistent execution, strong cash conversion and disciplined capital allocation continue to support its investment case.

About Experian

Experian is a global data and technology company providing information, analytics and software solutions across lending, fraud prevention, healthcare, digital marketing and automotive markets. Listed on the London Stock Exchange and a constituent of the FTSE 100, the company operates in 33 countries, serving businesses, financial institutions, governments and consumers with data-driven decision-making tools.

Empire Metals (LSE:EEE) has launched a new Long-Term Incentive Plan (LTIP) designed to align management and employee rewards with shareholder value creation. The scheme includes a combination of nil-cost share awards and share options granted to directors, senior management and employees, representing approximately 2.67% of the company’s issued share capital.

Incentives linked to long-term share price performance

The majority of the awards are structured to minimise immediate shareholder dilution. They comprise 8.25 million shares held within the company’s Employee Benefit Trust alongside options over 12 million new shares with an exercise price of 40p.

Rather than vesting automatically, the awards are tied to a series of demanding share price performance targets. Four separate tranches will vest only if Empire Metals’ shares trade at prices ranging from 50p to 98p for 10 consecutive trading days, directly linking employee rewards to sustained share price appreciation.

Plan aims to retain talent and align shareholder interests

The incentive programme allocates significant awards to the company’s managing director and finance director while also extending participation across the wider workforce.

Independent directors said the structure provides a fair balance between rewarding key personnel and promoting long-term shareholder value. By making vesting dependent on sustained market performance, the company aims to retain experienced staff while encouraging management to focus on delivering long-term growth.

Investment outlook

Empire Metals remains a development-stage resource company and therefore continues to report no revenue while investing heavily in advancing its flagship project. As a result, profitability remains negative and cash burn continues as development work progresses.

However, the company maintains a relatively low-debt balance sheet, providing financial flexibility as it advances the Pitfield Titanium Project. Positive technical momentum has also supported the shares in recent months, although valuation metrics remain difficult to assess given the absence of earnings and dividend payments.

About Empire Metals

Empire Metals is an AIM-listed exploration and resource development company focused on advancing the Pitfield Titanium Project in Western Australia. The project hosts one of the world’s largest reported titanium resources, with a Mineral Resource Estimate of 2.2 billion tonnes grading 5.1% TiO₂. The company is working to develop high-purity titanium products to meet growing global demand across a range of industrial applications.