Author: Fiona Craig

Kelso Group Holdings Plc (LSE:KLSO) has announced robust valuation gains across its portfolio, driven by strong performances from key holdings such as The Works, Angling Direct, and Selkirk. The company attributes much of this success to its proactive, hands-on approach in supporting portfolio companies and driving strategic value.

With a bullish outlook on the UK small-cap sector, Kelso views current market conditions as offering a rare, long-term opportunity to uncover undervalued assets. The group believes that disciplined capital allocation and active shareholder engagement can unlock significant upside in this space.

Looking ahead, Kelso intends to broaden its investment footprint, targeting opportunities it believes could deliver annualized returns exceeding 25%. The company’s approach continues to focus on identifying fundamentally sound but overlooked businesses and working closely with management teams to realize their full potential.

About Kelso Group Holdings Plc

Kelso Group Holdings is an investment firm focused on small-cap companies listed in the UK. Operating as an acquisition and engagement vehicle, Kelso aims to unlock shareholder value by influencing corporate strategy, improving investor relations, and optimizing capital deployment. The firm specializes in working with underappreciated public companies where it sees a clear path to value creation through strategic insight and active involvement.

Scancell Holdings plc (LSE:SCLP) has taken a significant step in its ongoing Phase 2 SCOPE trial by initiating Cohort 4 to assess a new intradermal delivery method and an accelerated dosing schedule for its iSCIB1+ cancer immunotherapy. A total of eight patients have received initial doses without experiencing any notable adverse effects, underscoring the treatment’s early safety profile.

The company anticipates releasing interim results by the end of 2025, marking a pivotal point in the development of iSCIB1+, which is being tested in patients with advanced melanoma. This phase of the study is designed to determine whether altering the administration route and dosing frequency can boost the therapy’s effectiveness while maintaining tolerability.

This progress highlights Scancell’s commitment to advancing novel immunotherapies that could offer more effective and safer treatment options for melanoma. Success in this trial could strengthen the company’s clinical portfolio and enhance its positioning in the competitive oncology space.

Company Outlook

Despite facing ongoing financial headwinds — including a lack of revenue and continued operating losses — Scancell’s recent clinical momentum offers a glimmer of optimism. Encouraging data from its cancer vaccine studies, including iSCIB1+ and Modi-1, could lay the groundwork for future growth. From a market perspective, technical trends show mixed signals: while short-term indicators suggest some upward momentum, overbought conditions raise concerns for potential pullbacks. The company’s valuation remains depressed, reflecting investor caution due to financial risk.

About Scancell Holdings

Scancell Holdings is a UK-based biotech firm specializing in the development of next-generation immunotherapies designed to stimulate durable, tumor-specific immune responses. Its lead candidate, iSCIB1+, targets melanoma and other cancers, while its second product, Modi-1, focuses on peptide-based cancer vaccines. In addition, the company is advancing its proprietary GlyMab® antibody platform aimed at tumor-specific glycans — a promising frontier in cancer targeting. As a clinical-stage company, Scancell continues to pursue innovative cancer treatment solutions with a pipeline aimed at addressing significant unmet medical needs.

Hargreaves Services plc (LSE:HSP) has announced that it expects both revenue and pre-tax profit for the fiscal year ended 31 May 2025 to surpass current market forecasts. The positive outlook is largely driven by strong performance in its core Services division and continued profitability growth from its German joint venture, Hargreaves Raw Materials Services (HRMS).

In the UK, the Services segment has benefited from securing new contracts, particularly in large-scale earthmoving operations, and ongoing progress on major infrastructure projects, including HS2 and Sizewell C. Meanwhile, HRMS has delivered robust financial results thanks to increased efficiencies and improved returns from its steel waste recycling activities.

Financially, Hargreaves remains in a strong position, reporting cash reserves of £23.3 million and minimal net debt. This solid foundation provides the company with flexibility to pursue future opportunities and invest in long-term growth.

Market indicators remain favorable, with the company’s shares trading at attractive valuation levels and supported by a solid dividend yield. Combined with a healthy balance sheet and strong project pipeline, recent developments enhance confidence in Hargreaves’ strategic trajectory.

About Hargreaves Services plc

Headquartered in County Durham, Hargreaves Services is a diversified industrial group operating across the UK and South East Asia. The company is structured around three key segments:

• Services: Offers materials handling, engineering, logistics, and large-scale earthworks for infrastructure and industrial clients.
• Hargreaves Land: Focuses on the sustainable redevelopment of brownfield sites for residential and commercial use.
• HRMS (Germany): Engaged in commodity trading and recycling, particularly in the steel sector.

With operational hubs in the UK, Hong Kong, and Germany, Hargreaves is positioned as a key player in infrastructure, industrial services, and sustainable land development.

Sanderson Design Group PLC (LSE:SDG) has reported that current trading remains on track with its full-year expectations, showing resilience despite early headwinds from tariffs that initially affected order volumes. The company has since experienced a rebound in demand across key markets, including the UK, the US, and Northern Europe.

A recent highlight has been the successful debut of the Highgrove by Sanderson collection, which has received a strong market response. The company’s licensing division also continues to deliver robust performance, adding to overall revenue stability.

Operational efficiency measures are progressing well, with cost-cutting initiatives in manufacturing expected to bring operations close to break-even. Sanderson is also making headway on reducing inventory levels, contributing to an improved net cash position.

Financially, the company remains on solid footing, characterized by low debt and healthy operating metrics. Although technical analysis suggests some bearish trends in the stock price, fundamental indicators point to a potentially undervalued share, further supported by a generous dividend yield. While macroeconomic challenges persist, recent leadership actions reflect confidence in long-term growth, resulting in a cautiously optimistic outlook.

About Sanderson Design Group PLC

Sanderson Design Group is a British-based luxury interiors company known for its premium wallpapers, fabrics, and paints. It also licenses its renowned designs for use on home products such as bedding, rugs, blinds, and tableware. The company’s iconic brands include Zoffany, Morris & Co., Harlequin, Clarke & Clarke, Scion, and its namesake Sanderson.

With manufacturing sites in Loughborough and Lancaster and a team of around 550 employees, Sanderson Design Group maintains a strong presence in both the UK and international markets. The firm operates showrooms in major design hubs such as London, New York, and Chicago, and trades on London’s AIM market under the ticker SDG.

Ondine Biomedical Inc. (LSE:OBI) has announced a major milestone in the adoption of its Steriwave® technology, with British Columbia’s Interior Health Authority implementing the nasal photodisinfection therapy as the standard of care for all hip and knee replacement surgeries. This move makes Interior Health the second provincial health system in Canada to formally adopt the treatment.

The decision reflects growing recognition of Steriwave’s effectiveness in preventing post-surgical infections and delivering measurable cost efficiencies. By reducing infection rates and associated healthcare expenses, Steriwave aligns with provincial health objectives and strengthens Ondine’s foothold in the Canadian healthcare market.

This expanded adoption not only demonstrates the clinical value of Ondine’s light-based antimicrobial approach but also supports the company’s growth trajectory and long-term value proposition to shareholders.

About Ondine Biomedical Inc.

Based in Canada, Ondine Biomedical is a life sciences company at the forefront of antimicrobial innovation. The company develops and commercializes light-activated therapies—also known as photodisinfection—to combat infections, particularly those caused by antibiotic-resistant organisms. Its flagship product, Steriwave®, has received international regulatory approvals and is currently being deployed in healthcare settings to reduce surgical infection risks.

Zephyr Energy PLC (LSE:ZPHR) has secured £10.5 million in new funding through an oversubscribed equity offering, signaling strong investor confidence in the company’s strategic direction. The raise comprises a £9.8 million institutional placing and an additional £0.7 million contributed by company directors.

The fresh capital will be directed toward accelerating development of Zephyr’s key U.S.-based projects, particularly the Paradox Basin in Utah and the Williston Basin in North Dakota. These funds are expected to boost production capacity, support the formation of strategic alliances, and open avenues for alternative gas monetization strategies — including potential ventures in cryptocurrency mining.

The funding follows recent operational successes, including a positive production test at the State 36-2R well, and comes on the heels of a substantial US$100 million investment commitment from a prominent U.S. backer. With these developments, Zephyr Energy is well-positioned to scale its operations and tap into new revenue opportunities.

About Zephyr Energy

Headquartered in the UK, Zephyr Energy focuses on oil and gas exploration and production with a strong presence in the United States. Its core assets lie in the Paradox and Williston Basins, where the company is working to optimize extraction and maximize shareholder value through innovation and strategic collaboration.

U.S. stocks climbed on Tuesday as hopes for a ceasefire between Israel and Iran lifted market sentiment. Meanwhile, Federal Reserve Chair Jerome Powell reiterated a cautious stance on monetary policy, emphasizing patience amid ongoing economic uncertainties.

By 09:35 ET, the Dow Jones Industrial Average had gained 320 points (0.8%), the S&P 500 rose 43 points (0.7%), and the NASDAQ Composite advanced 200 points (1.0%).

Ceasefire Triggers Market Optimism

Markets responded positively after President Donald Trump announced via social media that a ceasefire between Israel and Iran was officially in place. He warned both nations against violating the agreement, raising hopes for an end to nearly two weeks of escalating hostilities.

However, the situation remained tense. Just hours after the announcement, Trump criticized Israel’s military response and suggested both parties had already breached the truce. “I didn’t like the fact that Israel unloaded right after we made the deal,” Trump told reporters. “The retaliation was very strong.”

Israeli Defense Minister Israel Katz confirmed new strikes targeting Tehran, alleging Iranian missile attacks in violation of the ceasefire. Iran denied launching any missiles and accused Israel of continuing its assaults beyond the agreed start time.

Powell: Fed Will Wait and Watch

In Washington, Fed Chair Jerome Powell delivered testimony before Congress as part of the central bank’s semiannual report. He signaled no rush to adjust interest rates, noting uncertainty around the inflationary impact of recent tariff increases.

“Tariff hikes this year are likely to push up prices and weigh on economic activity,” Powell said. “The inflationary effects may be temporary, but could also prove more persistent. For now, we are in a good position to wait and see.”

The Fed recently opted to keep interest rates steady in the 4.25% to 4.5% range, with no indication of imminent changes. Still, two Trump-appointed governors have suggested that rate cuts could be considered by July if inflation remains weak.

Trump continues to call for aggressive rate reductions, posting on social media that rates should be “at least two to three points lower” and calling Powell “a very dumb, hardheaded person.”

Corporate Highlights: Tesla Rises, Chewy and KB Home Slide

Tesla (NASDAQ: TSLA) extended its upward momentum after launching its long-awaited Robotaxi service in Austin, Texas, deploying 10–20 Model Y vehicles for the pilot.

Chewy (NYSE: CHWY) shares fell after the company announced a $1 billion public offering of Class A shares through JPMorgan. It also unveiled a $100 million share repurchase plan.

KB Home (NYSE: KBH) declined after revising its full-year revenue forecast downward to between $6.3 billion and $6.5 billion, from a previous range of $6.6 billion to $7 billion.

Oil Prices Drop Amid Easing Tensions

Crude oil prices fell as signs of a de-escalation between Israel and Iran reduced fears of major supply disruptions in the Middle East.

As of 09:35 ET, Brent crude was down 4.7% to $67.24 per barrel, and U.S. West Texas Intermediate dropped 4.6% to $65.36. Both benchmarks had plunged more than 7% in the previous session following U.S. airstrikes on Iranian nuclear sites, which had briefly sent prices to five-month highs.

With Iran being the third-largest crude producer in OPEC, easing geopolitical tensions could pave the way for more stable oil exports and a steadier global supply outlook.

European stock markets climbed on Tuesday, buoyed by news of a ceasefire agreement between Israel and Iran, which was verified by both Israeli Prime Minister Benjamin Netanyahu’s office and Iranian state media outlet Press TV.

Investors also reacted positively to stronger-than-expected business sentiment data out of Germany. According to a new survey from the Ifo Institute, German business confidence rose in June, signaling improved expectations among companies. The institute’s closely watched business climate index increased to 88.4, up from 87.5 in May, suggesting optimism is gaining ground in Europe’s largest economy.

Attention across the continent is now shifting to Federal Reserve Chair Jerome Powell, who is set to testify before U.S. lawmakers later today. Markets are keenly watching for clues on interest rate policy and the Fed’s outlook amid global economic uncertainty.

By midday trading, the DAX in Germany had jumped 1.9%, the CAC 40 in France gained 1.2%, and London’s FTSE 100 rose a more modest 0.4%.

Travel and leisure stocks were among the top performers, with Carnival and EasyJet rallying between 6% and 7% as investors turned back to risk-on sentiment.

In contrast, defense sector shares retreated on the news of easing geopolitical tensions. Hensoldt dropped 2.8%, and Rheinmetall declined 1.4%.

Among individual movers, Volvo AB climbed 2.6% after its construction equipment division announced plans to divest its stake in Chinese company Shandong Lingong Construction Machinery Co. (SDLG). The buyer is a fund largely controlled by Volvo’s local partner, the Lingong Group (LGG).

Meanwhile, RM Plc, a provider of educational tech and resources, surged 9% after reaffirming that it remains on course to meet full-year financial goals.

Packaging and distribution company Bunzl rose 1.5% after unveiling a new acquisition – a deal to purchase Solupack, a Brazilian firm specializing in food packaging solutions.

U.S. stock index futures tied to the Dow Jones, S&P 500, and Nasdaq are signaling a positive start on Tuesday, as investors respond favorably to developments in the Middle East and remain hopeful for continued gains after Monday’s rally.

Market sentiment received a notable boost after former President Donald Trump announced that a truce between Israel and Iran had been established.

“On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called ‘THE 12-DAY WAR,’” Trump wrote on Truth Social.

Despite claims from Israeli officials accusing Iran of not fully honoring the ceasefire, traders appear encouraged by the potential for a cooling of tensions in the region.

The upbeat tone in the futures market also held steady after Federal Reserve Chair Jerome Powell reiterated the Fed’s patient stance on monetary policy, resisting calls—particularly from Trump—for an immediate rate cut.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell stated during his address to lawmakers on the House Financial Services Committee.

Stocks finished firmly in the green on Monday, as investors shrugged off initial uncertainty. The Dow Jones Industrial Average surged 374.96 points, or 0.9%, closing at 42,581.78. The Nasdaq Composite climbed 183.56 points, also up 0.9%, to end at 19,630.97, while the S&P 500 gained 57.33 points, rising 1.0% to 6,025.17.

Markets spent most of the earlier session fluctuating near the flatline as investors monitored potential fallout from recent U.S. strikes on Iranian nuclear sites. Tensions briefly reignited after reports surfaced that Iran might shut down the Strait of Hormuz and that a U.S. military installation in Qatar had come under attack.

However, equities rebounded strongly in the final hour of trading, following comments from Fed Vice Chair Michelle Bowman, who expressed openness to easing interest rates in July if labor market weakness persists and inflation expectations continue to soften.

Investors were further reassured by speculation that tariff reductions in ongoing U.S.-China trade talks may be on the table, helping to counterbalance earlier geopolitical concerns.

In housing market news, the National Association of Realtors reported that existing home sales increased by 0.8% in May, accompanied by a 6.2% rise in available inventory. However, on a year-over-year basis, sales were down 0.7%.

U.S. stock futures pointed toward gains Tuesday as optimism grew following President Donald Trump’s announcement of a ceasefire between Israel and Iran. Despite positive market momentum, uncertainty remains about how durable the truce will be. Oil prices declined sharply after the news, while gold slipped as investors moved away from traditional safe-haven assets. Meanwhile, attention is turning to Federal Reserve Chair Jerome Powell, who is set to testify before Congress this week amid growing criticism from Trump.

U.S. Futures Rise on Ceasefire News

Futures contracts on major U.S. indexes climbed in early trading, reflecting investor relief over the potential de-escalation in the Middle East conflict. By 3:40 a.m. ET, Dow futures had increased by 347 points (0.7%), S&P 500 futures rose 48 points (0.8%), and Nasdaq 100 futures advanced 234 points (1.0%).

The previous session on Wall Street closed higher, fueled by hopes that the U.S. military’s involvement in the recent Israel-Iran air exchanges would not escalate further. There had been significant concern that U.S. strikes on Iranian nuclear sites could spark a broader conflict threatening vital oil shipments from the region.

Iran retaliated to the U.S. attacks with missile strikes on a U.S. base in Qatar on Monday night, causing no casualties. Trump dismissed the retaliation as “weak.”

Trump Confirms Ceasefire, But Violence Continues

Trump declared that the ceasefire between Israel and Iran “is now in effect,” urging both sides to honor the truce. This statement raised hopes that the 12-day confrontation, which saw deadly air strikes on both sides, might be coming to an end.

However, Trump indicated the ceasefire might be phased in gradually, allowing some ongoing military actions to conclude. Reuters reported that an Iranian missile strike on Israel on Tuesday resulted in four deaths, while Iranian officials said an Israeli attack on northern Iran killed nine people.

Questions persist about the ceasefire’s durability. Israel, backed by the U.S. in its efforts to halt Iran’s nuclear and missile programs, agreed to pause hostilities, with Prime Minister Benjamin Netanyahu asserting that key objectives had been met.

Iranian Foreign Minister Abbas Araqchi echoed a similar stance, stating that Tehran would not continue retaliatory strikes but remains ready to respond if Israel initiates further aggression—a position Netanyahu also affirmed.

Oil Prices Drop on Reduced Tensions

Oil prices fell sharply following the ceasefire announcement as fears of disruption to Middle Eastern oil supplies eased. Traders had been watching for potential Iranian attempts to block crude shipments through the strategic Strait of Hormuz.

Although oil had spiked earlier amid these concerns, the perceived mildness of Iran’s missile response in Qatar signaled a de-escalation. By 3:16 a.m. ET, Brent crude futures had slipped 3.7% to $67.93 a barrel, and West Texas Intermediate futures fell 3.6% to $66.04 a barrel—the lowest levels since before Israel’s recent strikes on Iran. Oil prices had already dropped 9% on Monday.

Gold Declines as Investors Move Away from Safe Havens

Gold prices retreated by over 1% in European trading as geopolitical worries faded. Spot gold dropped 1.4% to $3,320.57 an ounce, touching the lowest price since June 11, while August gold futures fell 1.8% to $3,334.87 an ounce.

The ceasefire news weighed on the U.S. dollar, with the dollar index falling 0.4% to 98.06, while the euro and Japanese yen strengthened due to the oil price decline. Both the EU and Japan are net oil importers, unlike the U.S., which exports oil.

Benchmark 10-year U.S. Treasury yields remained steady, after slipping slightly on Monday amid signals from a Federal Reserve official supporting a potential rate cut next month. Treasury yields typically move inversely to bond prices.

All Eyes on Powell’s Congressional Appearance

Investor focus is now shifting to Washington, where Federal Reserve Chair Jerome Powell is scheduled to testify before Congress over two days starting Tuesday. Markets will be closely watching his remarks on the Fed’s recent decision to hold interest rates steady and its cautious stance on future rate changes, given uncertainties related to President Trump’s aggressive trade policies.

Trump continued his public criticism of Powell on Tuesday, calling him “a very dumb, hardheaded person” on social media and urging the Fed to cut rates by “two to three points,” blaming Powell’s “incompetence” for potential economic pain.

Analysts at ING warned that any perceived change in Powell’s stance could be interpreted as the Fed yielding to political pressure, potentially triggering a significant weakening of the U.S. dollar.