Author: Fiona Craig

Hercules plc (LSE:HERC) has reported that trading for the financial year ended 30 September 2026 was ahead of market expectations, with group revenue forecast to exceed £130 million, representing approximately 7.3% growth compared with the previous year.

The UK infrastructure services group also reported improvements in operating margins and cash generation, supported by activity across its Labour Supply, Power & Energy and Construction Services divisions.

Management said its operational priorities remain focused on cost management, improving efficiency and increasing collaboration between business units to support profitability and future growth.

The Labour Supply division recorded a 10% increase in client numbers during the year, alongside growth in white-collar recruitment activities.

The division continued to provide personnel for the HS2 infrastructure programme while expanding its customer base across the power, utilities and water sectors.

In Power & Energy, revenue increased by approximately 11%, supported by the contribution of Advantage NRG. Hercules identified planned investment of more than £30 billion in UK electricity transmission infrastructure as a potential source of future business opportunities.

The company expects Power & Energy to account for an increasing proportion of group revenue and profitability as it develops its activities in electricity transmission and related infrastructure services.

Within Construction Services, the Civil Projects business is expected to deliver approximately 25% revenue growth for the financial year, which would represent a record annual performance for the operation.

Hercules attributed the increase primarily to activity associated with AMP8, the UK water industry’s eighth asset management investment period, which is supporting infrastructure projects across the sector.

The group also reported increased cooperation between its operating divisions, including opportunities to provide multiple services to existing customers through cross-selling arrangements.

Management said its project pipeline continues to expand across water, power and energy infrastructure, reflecting opportunities associated with ongoing UK investment programmes.

Hercules provides specialist labour, civil engineering services and power infrastructure support to contractors and infrastructure operators. Its operations include skilled workforce provision, civil project delivery, overhead electricity line services and specialist field teams.

Looking ahead, the company intends to continue integrating its divisions, managing operating costs and pursuing opportunities across its principal infrastructure markets.

The group expects investment programmes in electricity transmission, water infrastructure and transport to remain central to its business development strategy, with Power & Energy identified as a particular area of focus.

Cloudbreak Discovery PLC (LSE:CDL) has identified seven gold exploration targets at its Crofton Gold Project in Western Australia following a review of historical geological data and a programme of field mapping and sampling.

The company has classified four targets as high priority and three as lower priority, based on structural interpretation, magnetic survey data, historical gold occurrences and geochemical results.

The exploration work involved analysing historical geophysical and geochemical information alongside new field observations to identify geological structures potentially associated with gold mineralisation.

Cloudbreak reported that the assessment identified several prospective structural corridors near historical gold workings. Target selection was based on intersecting geological structures, magnetic gradients and anomalous gold concentrations in soil and rock-chip samples.

Field investigations also identified hydrothermal quartz veining, felsic and mafic intrusive dykes, and localised copper mineralisation. The company said these geological features support further investigation of potential gold-bearing zones outside previously identified workings.

Historical mining records from Crofton indicate reported average gold grades of approximately 150 grams per tonne during production in the early 20th century.

More recent sampling has returned results of up to 253 grams per tonne of gold and 215 grams per tonne of silver. These historical and sampling figures form part of the geological dataset being used to guide the company’s current exploration programme.

Cloudbreak has incorporated updated aeromagnetic interpretations and additional soil geochemistry into its exploration model to refine the locations of potential mineralised structures.

The company has completed its current field mapping and sampling activities across the identified priority areas at Crofton. The information collected will be used to assess potential drilling locations and determine the next phase of exploration.

Separately, Cloudbreak is progressing preparations for an air-core drilling programme at its Darlot West Gold Project, also located in Western Australia.

Regulatory approvals for the planned drilling activities at Darlot West have been obtained, while heritage surveys remain outstanding before the programme can proceed.

Cloudbreak stated that it has sufficient funding in place to carry out its current exploration plans across its Western Australian project portfolio.

The company’s exploration strategy involves combining historical mining records with modern geophysical interpretation, structural mapping and geochemical sampling to identify potential drilling targets.

Further work at Crofton will focus on evaluating the seven identified targets and refining the geological information required to plan future drilling activities.

Gelion plc (LSE:GELN) has reported total income of £2.5 million for the financial year ended 30 June 2026, alongside an adjusted EBITDA loss of £4.4 million, as the battery materials developer continued work on its Nano-Encapsulated Sulfur (NES™) cathode technology and expanded its industrial partnerships.

The company ended the financial year with pro forma cash of £9.6 million and no debt, following an oversubscribed capital raise generating net proceeds of £9.9 million.

Government grants and research and development tax incentives from the UK and Australia accounted for a substantial proportion of the group’s income during the period, providing funding equivalent to more than 60% of its research expenditure.

Gelion said the additional capital would support continued technology development, manufacturing scale-up and commercialisation activities.

During the financial year, the company progressed development of its NES™ sulfur cathode platform, including the launch of a programme funded by the Australian Renewable Energy Agency (ARENA). Technical work included achieving performance milestones in sulfur coin cells and advancing lithium-sulfur patent applications in the United States.

Gelion also expanded its research and development collaborations with TDK, QinetiQ, Nissan Technical Centre Europe and the University of Oxford.

In the United States, the company established a partnership with the National Laboratory of the Rockies to support NES™ technology development and investigate opportunities for a domestic battery materials supply chain.

Manufacturing activities included completing a technology transfer from the Max Planck Institute and increasing NES™ cathode active material production capacity in Australia.

Gelion also secured an exclusive global licence covering its NES™ cathode intellectual property. The technology is being developed for integration into existing lithium-ion and sodium-ion battery manufacturing processes, with the company seeking to reduce the need for changes to established production infrastructure.

Management changes during the period included the appointment of Matt Wood as chief executive officer and Professor Rachid Yazami as Technology Advisor. Founder John Wood transitioned to a Senior Advisor position.

Since the financial year-end, Gelion has entered into a £2.0 million funded development and scale-up agreement with Mitsui Kinzoku. The programme will evaluate NES™ technology for applications including automotive batteries, stationary energy storage, consumer electronics, aerospace and defence.

The company has also signed testing and proof-of-concept agreements with two automotive manufacturers, described as being among the world’s top 15 and top five manufacturers, respectively. The programmes will assess the suitability of NES™ sulfur cathode technology for electric vehicle batteries.

In defence-related development, Gelion completed the Advanced Propulsion Centre-funded ARMD4 programme, which evaluated lithium-sulfur pouch cells incorporating NES™ technology under operating conditions representative of drone missions.

According to the company, testing demonstrated stable cycling and high-power performance under the programme’s specified conditions.

Additional independent testing conducted by the National Laboratory of the Rockies showed that cells retained 92% of their reference capacity when operated at a cycling rate 20 times higher than the reference rate. Gelion said the findings support further evaluation of the technology for defence, aerospace and unmanned aerial vehicle applications.

The group also expanded its intellectual property portfolio with six new patents across the United States, Europe and Asia.

Gelion’s NES™ technology uses sulfur-based cathode materials designed to offer an alternative to conventional battery cathodes containing critical minerals. The company is targeting applications across automotive, industrial, consumer electronics, energy storage and defence markets.

Looking ahead, management is concentrating on progressing customer development programmes, increasing production capabilities and pursuing commercial agreements with battery manufacturers and industrial partners.

The company is seeking to move its NES™ platform from technical validation towards commercial adoption, with ongoing development and testing programmes intended to establish its suitability for different battery applications.

Tavistock Investments Plc (LSE:TAVI) has agreed to sell the business and assets of King Financial Planning for £3 million and entered into an exclusivity arrangement with Atomos regarding the potential disposal of Tavistock Group Holdings, as part of a strategic shift towards technology-enabled financial advice services.

The proposed transaction involving Tavistock Group Holdings, which owns Tavistock Private Client, would involve the disposal of a wealth management business serving higher net worth individuals. Tavistock has granted Atomos a period of exclusivity to pursue the acquisition, although no completed sale has been announced.

The company said the disposals form part of its strategy to move away from certain traditional wealth management activities and concentrate on developing financial services infrastructure designed to reduce the cost of providing regulated retail financial advice.

Tavistock intends to use proceeds from business disposals to support this transition, with investment directed towards asset management capabilities and financial technology partnerships.

A central element of the strategy involves integrating artificial intelligence into financial advisory processes to reduce administrative workloads and operating costs. The company aims to combine technology-based systems with continued adviser involvement and compliance with regulatory requirements.

Tavistock is pursuing this approach through relationships with businesses including Alpha Beta Partners, Lifetime Financial Management and Plus Group. These companies operate across asset management and financial advice, incorporating technology intended to improve operational efficiency.

Management’s stated objective is to establish an advisory model that reduces the cost of delivering financial advice, potentially allowing services to be offered to a broader range of retail clients.

The agreed £3 million disposal of King Financial Planning and the potential sale of Tavistock Group Holdings represent separate transactions. Completion of the latter remains subject to further discussions with Atomos.

Tavistock continues to reposition its operations around asset management and technology-supported financial advice as it progresses its disposal programme.

Titon Holdings (LSE:TON) has reported an 8.1% increase in revenue to £17.1 million for the financial year ended 2026, supported by growth in its mechanical ventilation systems business, while its gross profit margin declined compared with the previous year.

Revenue from mechanical ventilation systems (MVS) increased 18% to £10.1 million, marking a second consecutive year of double-digit growth for the division. The performance reflected increased sales of ventilation products within the residential construction market.

The company’s window and door hardware division, which includes the recently acquired G-Pack business, recorded a 4.2% decline in annual revenue to £7.0 million. However, Titon reported a return to year-on-year growth in the division during the second half of the financial year, ahead of planned product range launches.

Group gross margin decreased to 28.5% from 32.9% in the previous year. Titon attributed the reduction to changes in its sales mix, including a greater contribution from newer mechanical ventilation products carrying initially lower margins, alongside reduced hardware sales volumes.

The company’s cash balance stood at £1.4 million at the end of the financial year, following expenditure that included the £1.0 million acquisition of G-Pack and investment in manufacturing capabilities and product development.

Looking ahead to FY2027, management expects gross margins to improve as product redesign initiatives reduce manufacturing costs and sales of higher-margin products increase.

Titon also plans to transfer G-Pack production to its existing manufacturing facility in Haverhill, with the integration forming part of its operational plans for the coming financial year.

The company’s stated priorities include improving profitability within the mechanical ventilation systems division and returning its window and door hardware business to sustained revenue growth.

Titon supplies ventilation systems and window and door hardware to the residential construction sector, with its product development and manufacturing activities supporting both divisions.

Guardian Metal Resources (LSE:GMET) has announced two senior management appointments as the company progresses development activities at its Pilot Mountain and Tempiute tungsten projects in Nevada, United States.

David Hendriks has been appointed chief operating officer, while Ron Espell will take up the position of vice-president for environment and permitting. Both executives have more than 30 years of experience in the mining industry, including operational and regulatory work in Nevada.

Hendriks, a mining engineer, brings experience in mine development, operations and large-scale expansion projects. His appointment adds operational management expertise as Guardian Metal works towards advancing its tungsten assets into production.

Espell, a geologist and environmental specialist, has experience in environmental management and regulatory permitting. His responsibilities will focus on environmental oversight and permitting activities associated with the company’s Nevada projects.

The appointments form part of Guardian Metal’s preparations for further development at Pilot Mountain and Tempiute, where the company is pursuing opportunities to establish domestic tungsten production.

Guardian Metal is currently undertaking prefeasibility work at Pilot Mountain with support from the US government. The company also holds a listing on the NYSE American.

Pilot Mountain contains one of the largest undeveloped tungsten deposits in the United States, while Tempiute is a former tungsten-producing operation. Both projects form part of the company’s strategy to develop domestic sources of the metal.

Tungsten is used in defence, industrial, technology and energy-related applications. Guardian Metal is seeking to establish a US-based supply of the mineral against a backdrop of Chinese export restrictions and changes in international supply chains.

The company has not provided a revised production timetable or additional financial guidance in connection with the management appointments.

Gold prices fell for a third consecutive session on Tuesday as higher crude oil prices increased concerns about persistent US inflation and the possibility of further interest rate increases by the Federal Reserve.

Spot gold declined 0.4% to $4,123.32 per ounce by 04:46 ET (08:46 GMT), while gold futures dropped 0.5% to $4,141.09 an ounce.

The declines followed a 0.6% fall in the previous session and a weekly loss, as investors reassessed the outlook for monetary policy ahead of the Federal Reserve’s October 27–28 meeting.

Key Investor Takeaways

• Gold prices fell for a third session, with spot bullion declining to $4,123.32 per ounce.
• Brent crude remained above $110 a barrel, increasing concerns about the inflationary effects of higher energy costs.
• Traders assigned an 83% probability to the Federal Reserve keeping interest rates unchanged at its October meeting.
• CME FedWatch data cited in the report indicated a 94% probability of a December rate increase.
• Upcoming US inflation figures, particularly the PCE price index, could influence expectations for future monetary policy decisions.

Why Gold Prices Are in Focus

The latest decline in bullion reflects concerns that rising energy costs could keep US inflation elevated and limit the Federal Reserve’s ability to ease monetary conditions.

Gold typically becomes less attractive when interest rates rise because it does not generate interest income.

Higher borrowing costs can increase the opportunity cost of holding precious metals compared with interest-bearing assets.

This relationship has become particularly relevant as traders evaluate whether the Federal Reserve may need to maintain restrictive policy for longer than previously anticipated.

The recent losses suggest that interest rate expectations are currently exerting greater influence on gold prices than potential demand associated with geopolitical uncertainty.

Higher Oil Prices Complicate the Inflation Outlook

Brent crude traded above $110 a barrel on Tuesday, remaining close to a five-month high amid concerns about possible disruptions to Middle Eastern energy supplies.

The latest uncertainty followed reports of attacks against vessels near the Strait of Hormuz, a strategically important shipping route.

Yemen’s Iran-aligned Houthi movement also claimed on Monday that it had carried out strikes against Saudi Arabian energy, airport and military facilities, including an Aramco installation.

The reported developments have increased concerns about regional energy security and the reliability of oil transportation routes.

Higher crude prices can contribute to inflation by increasing fuel, transportation and production expenses.

Recent US consumer price data already showed a larger-than-expected increase in inflation, driven substantially by higher gasoline and diesel prices.

The combination of elevated oil prices and recent inflation readings could make it more difficult for the Federal Reserve to return inflation to its 2% target.

For gold markets, the central question is whether those pressures will result in interest rates remaining elevated or rising further.

Federal Reserve Rate Decision Approaches

The Federal Reserve is scheduled to announce its next monetary policy decision following its October 27–28 meeting.

According to the CME FedWatch probabilities reported in the source, traders were pricing in an 83% chance that policymakers would leave interest rates unchanged.

However, market expectations also indicated a 94% probability of a rate increase in December.

These figures represent market-implied probabilities rather than confirmed decisions and can change as economic conditions develop.

In September, the Fed raised its benchmark interest rate for the first time in three years, citing the need to address inflationary pressures.

The October meeting will therefore be important for assessing whether policymakers continue to view inflation as requiring restrictive monetary policy.

Any changes in expectations about the timing of future rate adjustments could influence demand for gold and other non-yielding assets.

US PCE Inflation Data Remains an Important Catalyst

Investors are also awaiting the personal consumption expenditures (PCE) price index, one of the Federal Reserve’s preferred measures of inflation.

The report is expected later this month, after the central bank has announced its October policy decision.

As a result, policymakers will not have access to the latest PCE figures when making their upcoming decision.

Nevertheless, the release could shape expectations for subsequent meetings, particularly if it shows that price pressures remain elevated.

The data will also provide another indication of whether higher energy costs are contributing to broader inflationary pressures.

Why This Matters for Investors

Gold’s recent decline illustrates how monetary policy expectations can affect precious metals even during periods of geopolitical uncertainty.

While concerns about energy supply disruptions may increase demand for defensive assets, higher inflation can also strengthen expectations of restrictive interest rates.

Those competing influences create uncertainty for bullion prices.

The relationship between oil prices, inflation and Federal Reserve policy may therefore remain an important factor for investors evaluating precious metals, bonds and other interest-rate-sensitive assets.

What to Watch Next

The Federal Reserve’s October 27–28 meeting is the immediate monetary policy event for gold markets.

Investors will also be monitoring Brent crude prices and developments around the Strait of Hormuz for signs of further energy supply disruption.

Following the Fed decision, the upcoming PCE inflation report will provide additional information about US price pressures and could influence expectations for December’s interest rate decision.

Brent crude oil prices climbed to their highest level since May on Tuesday as reported attacks on commercial vessels and Houthi claims of strikes against Saudi Arabian infrastructure increased concerns about energy supplies from the Middle East.

Brent futures reached $111.05 a barrel before trading at $110.80 at 08:10 GMT, an increase of $1.25, or 1.1%.

US West Texas Intermediate (WTI) crude rose to $104.94, its highest level since September, before easing to $104.80, up $1.14, or 1.1%.

The gains reflected renewed geopolitical uncertainty as traders assessed the potential impact of regional security threats on oil shipments and production facilities.

Key Investor Takeaways

• Brent crude reached a five-month high of $111.05 a barrel, while WTI approached $105.
• Yemen’s Houthi movement claimed attacks on Saudi energy and transport infrastructure, although the claims remain unverified.
• Shipping intelligence firm Kpler reported that at least 18 vessels had allegedly been attacked over two weeks.
• ING analysts identified a significant geopolitical risk premium in oil prices, linked to uncertainty over supply flows.
• US crude and refined product inventories were expected to decline, according to a preliminary Reuters survey.

Why Oil Markets Are in Focus

The latest price increase followed claims by Yemen’s Iran-aligned Houthi movement that it had launched several attacks on Saudi Arabian facilities on Monday.

The group identified an Aramco site in Yanbu, the Shaybah oilfield, Riyadh’s King Khalid International Airport and Abha airport among its targets.

Saudi authorities did not immediately confirm the claims, and Reuters said it was unable to independently verify them.

Consequently, the announcement does not establish whether the reported strikes caused damage to oil infrastructure or interrupted production.

Separately, an attack attributed to the Houthis on a government security forces training camp in Yemen’s Shabwa province reportedly killed 58 people and injured more than 200.

The incidents added to concerns about regional security and the potential consequences for energy transportation.

Shipping Attacks Add to Geopolitical Risk Premium

Maritime security has become another factor influencing crude prices.

Kpler said in a note published Monday that at least 18 vessels had reportedly been attacked during the previous two weeks.

The reported incidents have increased uncertainty surrounding commercial shipping routes and the movement of oil through the region.

Even without confirmed supply losses, traders may incorporate additional risk into crude prices when transportation routes or energy facilities face potential disruption.

However, the size and persistence of that premium depend partly on whether physical shipments continue.

ING analysts addressed this distinction in a Tuesday research note:

“Oil prices remain well-supported … This suggests the market is pricing in a significant risk premium, given the situation’s volatility.”

They added:

“However, if flows continue uninhibited despite the geopolitical environment, the risk premium would likely erode slowly. Clearly, there are no signs of this yet.”

Their assessment indicates that continued oil deliveries could eventually reduce the premium associated with geopolitical uncertainty.

For now, reported attacks and the possibility of further disruption remain central to market pricing.

US Inventory Expectations Provide Additional Market Context

Oil traders are also awaiting updated US inventory figures.

A preliminary Reuters survey published Monday indicated that analysts expected American crude oil stockpiles to have declined during the previous week.

Inventories of refined petroleum products were also forecast to decrease.

The expectations provide an additional consideration for supply and demand assessments, although actual inventory changes had not yet been confirmed in the supplied information.

A decline in inventories could influence market sentiment, but its significance would depend on the reported figures and broader supply conditions.

Why This Matters for Investors

The increase in Brent and WTI prices highlights the sensitivity of energy markets to geopolitical developments involving major oil-producing regions and transportation routes.

Higher crude prices may support revenues for oil producers selling into international markets, while increasing feedstock costs for refiners and fuel expenses for transportation companies.

The impact on individual businesses will depend on their production exposure, purchasing arrangements and ability to manage changes in energy costs.

The current uncertainty also means that a rise in oil prices should not be interpreted as evidence of confirmed physical supply shortages.

Instead, part of the price movement reflects the possibility that future attacks could interfere with oil transportation or infrastructure.

What to Watch Next

Investors will be monitoring confirmation of the reported attacks, developments affecting commercial shipping and any evidence of disruption to Saudi oil production or regional exports.

Updated US crude and refined product inventory data will provide another indication of market supply conditions.

The continuation of physical oil shipments will be particularly important in determining whether the geopolitical risk premium persists or gradually declines.