Author: Fiona Craig

Smith+Nephew Plc (LSE:SN.) reported fourth-quarter revenue ahead of market expectations on Monday but cautioned that its 2026 trading profit outlook of roughly $1.3 billion will be affected by a recent acquisition and changes to U.S. reimbursement policies impacting its wound bioactives segment.

Fourth-quarter revenue reached $1.70 billion, exceeding consensus forecasts by 1.6%, while underlying growth came in at 6.2% — around 150 basis points above expectations. Company-compiled consensus estimates had projected 2026 trading profit of $1.27 billion, compared with management guidance of about $1.3 billion.

The medical technology group said its acquisition of Integrity Orthopaedics, completed on January 21, 2026, involved an initial payment of $225 million with up to an additional $225 million tied to performance milestones. The deal is expected to slightly dilute trading profit in 2026, be broadly neutral in 2027 and become earnings accretive by 2028.

The Orthopaedics division delivered its strongest quarterly performance in more than two years, posting underlying growth of 7.9%, ahead of RBC Capital Markets’ 5% forecast. U.S. Knee Implants recorded underlying growth of 3.6%. Management indicated that the first quarter of 2026 could be softer as the company makes strategic adjustments ahead of the planned second-half launch of the LANDMARK Knee System.

Advanced Wound Management reported underlying growth of 2.8%, falling short of RBC Capital Markets’ expectation of 5.5%. Within the segment, Advanced Wound Bioactives revenues declined 0.2% on an underlying basis against a strong comparison period. The company expects U.S. reimbursement changes affecting its skin substitutes portfolio to create an additional earnings headwind of between $20 million and $40 million in 2026.

Sports Medicine and ENT delivered underlying growth of 5.2% during the quarter despite a 250-basis-point drag from China. ENT grew 2.3% underlying as the market prepared for the rollout of China’s Volume-Based Procurement programme, which alone reduced growth by 530 basis points. Excluding China, Sports Medicine and ENT expanded by 9.5%.

For the full year, Smith+Nephew generated revenue of $6.16 billion, representing underlying growth of 5.3% compared with $5.81 billion in 2024. Trading profit increased 15.5% to $1.21 billion, lifting the trading margin by 160 basis points to 19.7%.

Operating profit rose 20.7% to $794 million, while free cash flow improved to $840 million from $551 million in 2024, supported by a one-off $26 million benefit from a property transaction. Adjusted earnings per share climbed 21% to 102 cents.

Revenue from China declined to $128 million in 2025 from $210 million the previous year, and tariffs are expected to create an additional headwind of roughly $60 million in 2026.

Chief Executive Deepak Nath said the company had “transformed Smith+Nephew into a fundamentally stronger business” through its 12-Point Plan, adding that its new RISE strategy was “our roadmap to Reach more patients, unlock new categories through strategic investment, and Execute efficiently.”

Looking ahead, Smith+Nephew expects underlying revenue growth of around 6% in 2026, with reported growth of approximately 7.8% based on exchange rates as of February 2026. Free cash flow is forecast at about $800 million, and the company reaffirmed its medium-term targets of 6–7% annual revenue growth and 9–10% compound annual trading profit growth through 2028.

RBC Capital Markets, which maintains a “sector perform” rating and a 1,350 pence price target, said it did not consider the results sufficient to fully support the company’s 2026 outlook, warning of “a material risk of guidance downgrades through the year.”

The board proposed a final dividend of 24.1 cents per share, bringing the total annual payout to 39.1 cents — an increase of 4.3%. Adjusted net debt to EBITDA stood at 1.7 times at the end of the year.

Shares in Big Yellow Group PLC (LSE:BYG) slipped 1.1% on Monday after the self-storage operator revealed that Chief Executive Officer Jim Gibson intends to retire in July.

Gibson, a co-founder of Big Yellow who has led the company as CEO since 2003, will step down from both his executive position and the board following the company’s Annual General Meeting on July 20, 2026, ending a 23-year tenure in the role.

The company announced that current Chief Operating Officer John Hunter will succeed Gibson as chief executive. Hunter joined Big Yellow in April 2024 as COO and became a board member in July 2025. Before joining the group, he served as UK COO at HomeServe PLC and held senior leadership positions at Dixons Carphone PLC, bringing more than two decades of experience across the retail and consumer services sectors. He qualified as a Chartered Accountant with Arthur Andersen in 2001.

Executive Chair Nicholas Vetch said succession planning for the leadership transition has been underway for nearly four years. Gibson co-founded Big Yellow in September 1998 and played a central role in developing the business into a leading UK self-storage company with a market capitalisation of around £2 billion.

The UK government has awarded a £1 billion contract to Leonardo (BIT:LDO) for the production of a new generation of military helicopters, safeguarding around 3,300 jobs at the company’s manufacturing site in Yeovil, southwest England.

Under the agreement, Leonardo will deliver 23 medium-lift helicopters for the UK Armed Forces, designed to operate in coordination with unmanned aerial systems, according to government officials.

The contract is also expected to support future export opportunities, with more than 40% of manufacturing activity set to take place at the Yeovil facility. Officials said the programme positions the UK as a potential production hub for additional international orders.

Leonardo had previously cautioned that failure to secure the deal could put the country’s last remaining military helicopter assembly plant at risk.

Defence Secretary John Healey said the agreement would enhance military capability while protecting skilled employment and opening the door to significant export potential for the UK defence sector.

Delta Gold Technologies PLC (AQSE:DGQ) (USOTC:DGQTF), a company focused on developing intellectual property in quantum computing, has agreed to bring forward C$269,000 in research funding to the University of Toronto, advancing part of its Year 2 sponsorship commitment ahead of the planned July 2026 timetable. The payment forms part of a broader C$1 million second-year funding obligation and reflects encouraging progress achieved by the university’s research team.

The early release of funds will support the integration of an additional component into the project’s cryogenic refrigeration system. This specialised system enables experiments to be conducted at ultra-low temperatures, creating stable environments required to test nano-scale material structures. Researchers are aiming to demonstrate foundational elements of a stable qubit using nano-scale gold combined with other materials. Achieving qubit stability remains one of the major technical challenges in quantum computing, underscoring the significance of the ongoing programme supported by Delta Gold.

Chief executive R. Michael Jones said: “We are pleased with the progress being made at the University of Toronto in our research using gold and other materials. Because of this, we have made the decision to make this advance which allows the research team to accelerate the experiments using the materials we have been designing and fabricating. I recently visited the lab at University of Toronto with our Principal Investigator Prof. Harry Ruda and it was amazing to see materials being worked on at the atomic level.”

Research partnership framework

Under the research sponsorship agreement, Delta Gold has committed to providing CAD $3 million in funding over three years to the University of Toronto. The arrangement grants the company exclusive rights to a 100% global licence for any intellectual property generated through the programme. The first-year payment of C$1 million has already been completed.

Leadership update

Delta Gold has also invited current non-executive director James Tosh to take on the role of executive director. In the expanded position, he is expected to work closely with CEO Michael Jones to advance operational execution and strategic development as the company moves toward commercialising its quantum computing technologies.

About Delta Gold Technologies

Delta Gold Technologies is developing intellectual property for applications within the quantum computing sector, centred on nano-scale gold and other advanced materials. The company collaborates with leading nanotechnology and quantum research groups worldwide to create patentable innovations intended for global licensing and commercial deployment within the rapidly evolving quantum computing industry.

SkinBioTherapeutics (LSE:SBTX), an AIM-listed UK life sciences company focused on skin health and microbiome-driven technologies, has appointed industry executive Rachel Parsonage as interim chief executive officer for an initial six-month period. Her appointment includes a planned position on the board, subject to standard regulatory approvals. The company develops cosmetic skincare products through its SkinBiotix platform and gut–skin health supplements under the AxisBiotix brand, while collaborating with Croda on the Zenakine active ingredient and expanding its capabilities through acquisitions that enhance manufacturing and distribution.

Executive chairman Martin Hunt said Parsonage’s experience in business turnaround and stakeholder engagement will support efforts to stabilise operations, oversee an ongoing forensic review into current business issues and reposition the group for renewed growth. Management expects the leadership transition to help restore operational focus and rebuild momentum as the company seeks to accelerate commercial progress.

SkinBioTherapeutics’ outlook remains shaped largely by financial challenges, including ongoing losses and negative cash flow, alongside a pronounced technical downtrend reflected in share price performance below major moving averages and negative MACD indicators. Strong revenue growth and a relatively conservative balance sheet provide some offset, though valuation remains constrained by a lack of profitability and the absence of dividend support.

More about SkinBioTherapeutics

SkinBioTherapeutics is a UK-based life sciences company specialising in skin health technologies built around its proprietary SkinBiotix platform, originally developed in collaboration with the University of Manchester. The company targets the skin healthcare market through cosmetic skincare products, gut–skin axis nutritional supplements and related dermatological applications.

Arrow Exploration (LSE:AXL) has reported higher production at the Mateguafa Attic field within Colombia’s Tapir block after successfully drilling and bringing online the M-10 vertical well and the M-9HZ horizontal appraisal well. Both wells are currently producing at restricted rates but have demonstrated the potential to deliver higher output as operations are further optimised.

The company is also advancing infrastructure improvements across the field, including converting the M-8 well into a water disposal facility to support ongoing development activity. Production from previously drilled Mateguafa wells remains strong, while additional drilling is planned at the M-11 location and at the Icaco exploration prospect. Arrow reported cash reserves of approximately US$7.2 million with no outstanding debt and confirmed ongoing constructive discussions regarding a potential extension of the Tapir block licence, highlighting the asset’s increasing importance within its Colombian growth strategy.

More about Arrow Exploration Corp

Arrow Exploration Corp. is a publicly listed oil and gas company focused on developing underexploited, high-growth light oil assets across Colombia’s Llanos, Middle Magdalena Valley and Putumayo basins. The company operates a predominantly operated portfolio with high working interests, Brent-linked pricing exposure and relatively low royalty structures, and holds entitlement to 50% of production from the Tapir block, subject to approval from Ecopetrol.

Power Metal Resources (LSE:POW) has completed a US$1.5 million strategic investment in Canadian exploration company Greyridge Exploration, securing an initial 4.6% equity stake. Greyridge holds 25 copper and gold exploration licences in Saudi Arabia, and the investment is accompanied by a memorandum of understanding that may lead to future joint ventures or earn-in arrangements across the licence portfolio, strengthening Power Metal’s exposure to exploration opportunities in the kingdom.

The new funding is expected to support exploration activity and drilling programmes at Greyridge’s Ad Dawadimi copper-gold project and the Al Amar gold-enriched volcanogenic massive sulphide (VMS) project, both situated close to established mining operations. Power Metal views the transaction as a step toward expanding its footprint in Saudi Arabia, a jurisdiction it considers increasingly attractive for mining investment due to supportive government policies and significant underexplored mineral potential. For Greyridge, the partnership provides capital backing and regional expertise aimed at accelerating development across its early-stage assets.

Power Metal Resources Plc’s outlook reflects improving revenue momentum and a relatively strong balance sheet, although operational challenges and ongoing negative cash flows continue to weigh on performance. The shares appear undervalued on certain measures, while technical indicators suggest a cautious stance amid broader bearish trends.

More about Power Metal Resources Plc

Power Metal Resources Plc is a London-listed mineral exploration and project incubation company with a diversified global portfolio of early-stage resource assets. Through its majority-owned subsidiary Power Arabia, the group has been expanding its presence within Saudi Arabia’s Arabian Shield, targeting precious and base metals as part of the country’s Vision 2030 strategy to diversify its economy and develop its mining sector.