Author: Fiona Craig

Shield Therapeutics (LSE:STX) reported unaudited first-half 2026 revenue of $30.4 million, compared with $21.5 million in the same period last year, supported by a $7.9 million milestone payment from its Chinese partner ASK and higher royalty income. The stronger performance enabled the company to remain profitable during the first half of the year.

Second-quarter net revenue totaled $11.9 million, with ACCRUFeR contributing $10.3 million. However, net pricing was affected by stricter Medicaid prior authorization requirements introduced in New York, which reduced reimbursement levels during the period.

Commercial Focus Shifts to Offset Medicaid Changes

In response to the changes in Medicaid reimbursement, Shield accelerated its strategy of expanding its commercial business. Prescription volumes increased 21% during the first half, while total revenue rose 27% compared with the first six months of 2025.

The company also signed its first group purchasing organization (GPO) agreement, providing access to more than 400 clinics and supporting wider adoption of ACCRUFeR across the U.S. healthcare market.

Pipeline Advances and New CFO Appointed

Shield continued to expand its development pipeline, progressing regulatory submissions for pediatric label extensions in the United States, the UK and the European Union. In Japan, a Phase II clinical study evaluating ferric maltol in patients with pulmonary arterial hypertension (PAH) has also commenced.

To strengthen its leadership team, the company appointed healthcare finance executive Michael Jensen as Chief Financial Officer. Management believes the combination of commercial growth, expanding market access and pipeline development positions Shield to achieve full-year profitability during 2026.

Investment Outlook

Shield Therapeutics continues to demonstrate improving commercial momentum through higher revenue, growing prescription volumes and expanding market access. However, the company remains exposed to financial risks associated with its development stage, including a history of losses, ongoing cash burn and negative shareholders’ equity. Technical indicators also remain weak, with the shares trading in a longer-term downtrend despite appearing oversold. While valuation may improve as profitability strengthens, investors are likely to remain focused on the company’s ability to deliver sustainable earnings growth.

About Shield Therapeutics

Shield Therapeutics plc (LSE:STX) is a commercial-stage specialty pharmaceutical company focused on the treatment of iron deficiency and iron deficiency anemia. Its lead product, ACCRUFeR, marketed as FeRACCRU outside the United States, is an oral ferric maltol therapy approved by the U.S. Food and Drug Administration and commercialized through partners across Europe, Canada, China, Japan and other international markets.

The company estimates that around 20 million patients in the United States could benefit from its therapy, representing a market opportunity valued at approximately $2.3 billion. Shield continues to expand the product’s global reach through partnerships with companies including Viatris, Norgine, Kye Pharmaceuticals, Beijing Aosaikang, Korea Pharma and Medleap Pharma, while pursuing additional indications, including pediatric use, to broaden its commercial potential.

British American Tobacco (LSE:BATS) reported first-half 2026 results that were broadly in line with expectations, with smokeless products accounting for 19.8% of total group revenue. Revenue from the company’s New Categories portfolio increased 18% at constant exchange rates, helping lift overall revenue by 2.9% on the same basis. Strong performance in the U.S. and the Americas, Middle East and Europe (AME) region helped offset a slower recovery across Asia-Pacific, the Middle East and Africa (APMEA).

Adjusted operating profit rose 3.5% during the period, while adjusted diluted earnings per share increased 7.9%. Reported profit and earnings were lower than the previous year, primarily due to the impact of Canadian legal settlement charges recorded in the prior period rather than underlying trading performance.

Smokeless Strategy Continues to Gain Momentum

BAT reaffirmed its full-year 2026 guidance, although it expects results to come in at the lower end of its medium-term growth targets. Management continues to forecast New Categories revenue growth in the mid-teens and highlighted ongoing progress in reducing debt, maintaining strong cash conversion and returning capital to shareholders.

The company also confirmed plans to complete a £1.3 billion share buyback programme, reflecting confidence in its financial position and long-term strategy.

Modern Oral Products Lead Expansion

BAT said it continues to strengthen its position in the global modern oral nicotine market, with market share gains supported by products such as Velo Plus in the United States. Double-digit growth across both the AME and APMEA regions also contributed to the expansion of its smokeless portfolio.

Within the traditional combustible business, higher pricing and product mix improvements continued to support revenue, while targeted investments in key markets are helping finance the company’s transition toward reduced-risk nicotine products.

Management also welcomed recent regulatory developments in the U.S. relating to vapour and modern oral products, which it believes provide a favorable environment for the planned nationwide rollout of Velo Max and selected Vuse flavours.

Investment Outlook

BAT continues to benefit from solid underlying profitability, healthy cash generation and a clear strategy to expand its smokeless product portfolio. The company’s attractive dividend yield, moderate valuation and ongoing share buyback programme remain key strengths. However, investors continue to monitor leverage levels, softer cash flow compared with the previous year, pressure within the vapour category, illicit trade and uneven regional market performance, which could affect near-term growth.

About British American Tobacco

British American Tobacco (LSE:BATS) is one of the world’s largest tobacco and nicotine companies, with a portfolio spanning traditional combustible products and a growing range of reduced-risk alternatives. Its New Categories business includes modern oral nicotine products, vapour devices and heated tobacco products, supporting the group’s long-term transition toward a multi-category business model.

The company is focused on expanding smokeless products across major international markets while maintaining the profitability of its combustible brands. Through its Reynolds business in the United States and continued investment in products such as Velo and Vuse, BAT aims to strengthen its leadership in next-generation nicotine products while generating sustainable returns for shareholders.

Watkin Jones (LSE:WJG) said it continued to deliver projects in line with expectations during the third quarter ended June 30, 2026, while maintaining margins across its construction pipeline. The company remained focused on controlling costs and preserving cash, including using early procurement strategies to help offset inflationary pressures.

Management warned that geopolitical uncertainty and broader economic conditions continue to affect confidence and funding availability across its core real estate markets, creating uncertainty around the timing and completion of development transactions.

New Projects Support Revenue Diversification

As part of its strategy to broaden its revenue base across development and asset management, Watkin Jones secured six new contracts worth approximately £60 million during the second half of the financial year.

The new work includes five Refresh refurbishment projects for existing purpose-built student accommodation assets, together with a Staycity aparthotel development in Oxford for Marick Real Estate. The company said these projects demonstrate continued demand for refurbishment and alternative living assets despite challenging market conditions.

Focus Remains on Second-Half Performance

Watkin Jones is continuing discussions with investors on a limited number of transactions that could be completed during the fourth quarter. Management said the successful completion of these deals will be important if second-half adjusted operating profit is to exceed that reported in the first half of the year.

The board acknowledged that access to funding remains one of the biggest challenges facing the sector, with liquidity constraints continuing to influence investment decisions across the UK real estate market.

Investment Outlook

Watkin Jones continues to operate in a difficult market environment, with lower revenue, ongoing losses and negative operating and free cash flow weighing on financial performance. Technical indicators also remain weak, with the shares trading below key moving averages and momentum remaining negative. The lack of earnings and dividend support also limits the company’s valuation appeal, leaving future performance closely tied to improving market conditions and the successful completion of new development transactions.

About Watkin Jones

Watkin Jones plc (LSE:WJG) is a UK developer and manager of residential rental properties, specialising in purpose-built student accommodation and other professionally managed living schemes. The company also operates its Refresh business, which delivers refurbishment, remediation and sustainability upgrades for existing residential assets.

Alongside developing new projects, Watkin Jones works with institutional investors to enhance the quality and performance of rental properties, supporting demand for modern, energy-efficient accommodation across the UK managed living sector.

ZOO Digital (LSE:ZOO) reported audited results for the year ended March 31, 2026, showing a significant improvement in profitability despite lower revenue. Revenue declined 14.7% year over year to $42.3 million, while adjusted EBITDA increased to $4.0 million from $1.1 million. Operating losses were substantially reduced, and cash generation improved as a result of higher gross margins, a streamlined cost base and the selective use of invoice financing to optimise working capital.

Cost Reduction Programme Drives Operational Improvement

During the year, ZOO completed a wide-ranging restructuring programme aimed at lowering fixed costs and simplifying its global operations. The company integrated several international functions while expanding the use of artificial intelligence across its production workflows to improve efficiency and productivity.

The business also secured new framework agreements with two customers, introduced its premium Fast Track service for live and near-live content, and continued to achieve strong quality ratings from clients. Management believes these developments position the company to return to revenue growth and further profit improvement during the 2027 financial year as customer demand continues to recover.

Strategic Reset Supports Future Growth

The board said recent leadership changes have reinforced the company’s transformation strategy. Over the past two years, ZOO has reduced annual fixed costs by approximately $14.4 million while restoring positive cash generation.

Management believes the restructuring has strengthened ZOO’s position as a technology-driven localisation partner for major film studios and streaming platforms. By combining proprietary technology with artificial intelligence, the company aims to improve efficiency and support the growing demand for high-quality multilingual content as global streaming services continue expanding their international audiences.

Investment Outlook

ZOO has made meaningful progress in improving profitability, reducing costs and strengthening operating margins following its restructuring programme. However, investors may remain cautious as revenue has yet to return to growth, cash balances have declined and the company continues to recover from previous losses. Technical indicators also remain weak, with the shares trading below key moving averages and momentum remaining negative. Continued execution of the company’s growth strategy and sustained improvements in customer activity will be key to strengthening its long-term outlook.

About ZOO Digital

ZOO Digital Group plc (LSE:ZOO) provides technology-enabled localisation and digital media services for the global entertainment industry. The company works with leading Hollywood studios and streaming platforms, including Disney, NBCUniversal, Netflix and Paramount Global, delivering dubbing, subtitling, captioning, metadata management and media processing services to help content reach audiences around the world.

Founded in 2001, ZOO operates an asset-light business model supported by proprietary cloud-based technology and a global network of more than 12,000 freelance professionals. The company has operations across North America, Europe, the Middle East and Asia, with offices including Los Angeles, London, Dubai, Turkey, South Korea, India, Spain, Italy, Germany and a development centre in Sheffield.

Lords Group Trading PLC (LSE:LORD) reported first-half 2026 revenue of £232.0 million, broadly unchanged from the same period last year despite continued weakness across the UK housing market and wholesale plumbing sector. While Merchanting revenue declined overall, trading improved during the second quarter, and the group’s digital business continued to perform strongly, with online revenue increasing 17.5%. The CMO platform, acquired in 2025, also delivered positive EBITDA during the period.

Plumbing Division Restructured to Improve Efficiency

The Plumbing and Heating division experienced a significant like-for-like decline in revenue following exceptionally strong trading in the prior year. In response, Lords streamlined its distribution network, reducing the number of distribution centres from seven to four.

The restructuring is expected to generate annual cost savings of approximately £1.4 million while creating a more efficient platform to support future market share growth once demand improves.

Guidance Reduced as Market Conditions Remain Challenging

With little evidence of a near-term recovery in construction and housing activity, Lords lowered its expectations for the full year. The company now forecasts revenue of between £475 million and £495 million, alongside adjusted EBITDA of £17 million to £18 million.

Management said the business has spent the past 18 months simplifying its operating structure, reducing costs and strengthening cash generation. Chief Executive Shanker Patel pointed to improving trends within the Merchanting business, the successful turnaround of CMO and decisive action within Plumbing and Heating as important milestones that position the company for stronger performance when market conditions recover.

Investment Outlook

Lords continues to operate in a difficult trading environment, with pressure on profitability and a relatively leveraged balance sheet weighing on the investment case. Technical indicators also remain weak, with the share price trading below key moving averages and momentum remaining negative. However, improving cash generation, ongoing cost reductions and a dividend yield of around 5% provide some support as the company prepares for an eventual recovery in UK construction activity.

About Lords Group Trading PLC

Lords Group Trading PLC (LSE:LORDS) is a UK distributor of building materials, plumbing, heating and DIY products, serving both trade professionals and retail customers through a nationwide branch network and an expanding digital platform.

The company has broadened its Merchanting operations through new branch openings while strengthening its online presence following the acquisition and turnaround of CMO. Lords is reshaping its business by increasing exposure to higher-growth markets, improving operational efficiency and streamlining its Plumbing and Heating network to adapt to changing demand within the UK boiler market.

At the end of the first half of 2026, net debt stood at £29 million, with approximately £30 million of available liquidity. Management remains focused on cash generation, disciplined cost control and operational improvements to position the business for long-term growth as construction and housing markets recover.

Haleon plc (LSE:HLN) has released its half-year 2026 results, publishing the full report through the London Stock Exchange and on its corporate website. The update provides investors with the group’s latest financial performance while reaffirming its commitment to maintaining transparent communication with shareholders and the market.

Interim Dividend Increased by 9%

The board approved an interim dividend of 2.4 pence per ordinary share for the first half of 2026, representing a 9% increase compared with the interim dividend paid a year earlier. The dividend is scheduled to be paid in mid-September to holders of ordinary shares and American Depositary Shares (ADSs).

Haleon also reaffirmed its policy of growing the ordinary dividend at least in line with adjusted earnings over time. In addition, the company announced that a recorded presentation of its results, followed by a question-and-answer session for analysts and investors, will be made available as part of its ongoing shareholder engagement programme.

Outlook Remains Positive

Management continues to target sustainable earnings growth, supported by improving profitability, healthy free cash flow generation and ongoing cost-efficiency initiatives. While short-term share price momentum has been relatively subdued and valuation metrics remain balanced, the company’s earnings outlook and commitment to increasing shareholder returns continue to support its long-term investment case.

About Haleon

Haleon plc (LSE:HLN) is a global consumer healthcare company focused on everyday health products across categories including oral care, vitamins, minerals and supplements, pain relief, respiratory and digestive health, and therapeutic skincare.

Its portfolio includes globally recognised brands such as Advil, Centrum, Panadol, Sensodyne, Theraflu and Voltaren, serving more than one billion consumers worldwide. Listed on both the London Stock Exchange and the New York Stock Exchange under the ticker HLN, Haleon continues to invest in research, innovation and product development to strengthen its leadership position in the global over-the-counter healthcare market.

Robert Walters (LSE:RWA) reported first-half 2026 results in line with management expectations, with group net fee income declining 3% at constant currency to £134.6 million. The recruitment specialist also reduced its operating loss to £4.5 million as efficiency measures and improved trading momentum began to take effect.

Although net fee income remained under pressure and the group’s net cash position fell to £17.2 million, management said business performance improved compared with 2025. The company now expects full-year results to come in toward the upper end of current market expectations.

Cost Reduction Programme Advances

Robert Walters continued to execute its strategic plan focused on improving costs, cash generation and long-term growth. The company remains on track to deliver £12 million of structural cost savings by 2027 while strengthening cash management through enhanced forecasting and greater use of local financing facilities.

Growth initiatives also showed encouraging progress. Productivity improved across several key recruitment markets, recruitment process outsourcing (RPO) and managed service provider (MSP) activities returned to growth, and consultancy net fee income increased 41% during the period.

Headcount was reduced by 11% year over year as part of the company’s efficiency programme. To preserve financial flexibility and support the ongoing transformation, the board decided not to declare an interim dividend.

Outlook Improves Despite Challenging Market Conditions

Management believes the business is well positioned to continue improving performance during the second half of the year. The combination of cost reductions, operational improvements and stronger performance in higher-growth business lines is expected to support earnings, despite continued uncertainty across global recruitment markets.

Investment Outlook

Robert Walters has made progress in narrowing losses and improving operational performance, while maintaining positive operating and free cash flow. Technical indicators have also strengthened, with the shares trading above key moving averages and supported by positive momentum. However, the company continues to face headwinds from several years of declining revenue, ongoing losses and a weaker balance sheet. The absence of a dividend and a negative price-to-earnings ratio also make valuation more difficult to assess.

About Robert Walters

Robert Walters PLC (LSE:RWA) is an international specialist recruitment and talent outsourcing company operating across Asia-Pacific, Europe, the UK and other global markets. The group provides permanent and temporary recruitment services alongside recruitment process outsourcing (RPO), managed service provider (MSP) solutions and consultancy services.

Asia-Pacific remains the company’s largest contributor to net fee income, while its outsourcing and consultancy businesses continue to represent an increasing share of overall revenue. Robert Walters is focused on improving productivity, expanding higher-value services and strengthening operational efficiency to support long-term growth.

Vesuvius (LSE:VSVS) delivered a modest increase in first-half 2026 revenue, with adjusted sales rising at constant currency, while free cash flow improved significantly, helping reduce the group’s leverage. However, statutory operating profit and earnings declined as temporary operational issues within the Steel division and weaker performance in the Advanced Refractories business weighed on overall profitability.

Although steel markets outside China continued to recover, the company said operational disruptions prevented its Steel division from fully benefiting from stronger demand. Pricing discipline and ongoing structural cost-saving measures provided some support during the period but were not enough to offset the impact of these challenges.

Foundry Division Delivers Strong Performance

The Foundry division was the standout performer during the first half, recording solid growth in both revenue and trading profit. The improvement was driven by positive pricing, continued cost reductions, market share gains and the contribution from the MMS acquisition.

Management also highlighted progress in improving cash management, investing in research and development, and delivering additional structural efficiency initiatives. The company maintained its interim dividend and said actions are underway to resolve the operational issues affecting the Steel division.

Full-Year Outlook Remains Positive

Despite the softer first-half earnings performance, Vesuvius expects full-year trading profit to be slightly ahead of 2025 on a constant currency basis. Management believes improving operational execution, combined with ongoing efficiency measures and stronger end-market conditions outside China, should support performance during the remainder of the year.

Investment Outlook

Vesuvius continues to benefit from its strong market position and improving cash generation, while its dividend yield and moderate valuation provide support for investors. However, pressure on profit margins, lower returns on equity, softer cash conversion and weaker short-term technical indicators remain areas of concern. The company’s ability to resolve operational issues within the Steel division will be an important factor in delivering its full-year expectations.

About Vesuvius

Vesuvius plc (LSE:VSVS) is a global provider of molten metal flow engineering solutions, supplying advanced refractories, flow control products and related technologies to customers operating in high-temperature industrial processes. The company also provides technical services and data-driven solutions through an international network of manufacturing facilities and technology centres located close to customer operations.

Vesuvius serves customers across the global steel and foundry industries, focusing on improving manufacturing efficiency, safety and sustainability. Its strategy is built on technological leadership, long-standing customer relationships, a strong presence in developing markets and continued investment in innovation to support long-term profitable growth.