Author: Fiona Craig

Pernod Ricard (EU:RI) reported lower sales for fiscal 2026 as challenging conditions in the United States and China weighed on performance, although trading improved during the second half and the French spirits group delivered stronger cash generation.

Net sales totalled €9.40 billion, compared with €10.96 billion in the previous financial year. This represented an organic decline of 3.9% and a decrease of 14.2% on a reported basis.

Profit from recurring operations reached €2.42 billion, down 5.2% organically, while the operating margin eased by 35 basis points on an organic basis to 25.8%.

Performance in the United States remained affected by a softer spirits market, cautious consumer spending and inventory adjustments, resulting in a 14% decline in sales.

China also remained challenging, with sales falling 19% as subdued consumer confidence affected demand for premium spirits, particularly cognac.

However, Pernod Ricard highlighted a meaningful improvement in trading as the year progressed. The organic sales decline narrowed from 5.9% during the first half to just 1.3% in the second half, providing encouraging momentum heading into the new financial year.

India continued to deliver strong growth, with sales increasing 7%, demonstrating the potential of one of the group’s key long-term growth markets. Pernod Ricard’s ready-to-drink portfolio also performed well, recording a 12% increase in sales.

The company proposed maintaining its dividend at €4.70 per share, continuing its commitment to shareholder returns despite the more challenging trading environment in its two largest pressured markets.

Looking ahead to fiscal 2027, Pernod Ricard expects organic sales to remain broadly stable. Continued softness in the United States and China is expected to be balanced by growth across other markets, with India anticipated to remain an important contributor.

The improving second-half trajectory, continued expansion in growth markets and stronger cash generation provide Pernod Ricard with a more supportive foundation as it enters fiscal 2027.

Aminex (LSE:AEX) is continuing discussions with key Tanzanian government and industry bodies as it works to advance the strategically important Ntorya Gas Development.

The company said it is actively engaged with Tanzania’s Ministry of Energy, the Tanzania Petroleum Development Corporation and the Petroleum Upstream Regulatory Authority, alongside project partner ARA Petroleum Tanzania.

The discussions are focused on coordinating the implementation and continued progress of the Ntorya development, which represents an important potential source of domestic natural gas for Tanzania.

Aminex welcomed the renewed engagement from the Tanzanian authorities, highlighting the strategic importance of progressing the project in collaboration with government agencies and its operating partner.

The ongoing dialogue represents a positive step towards coordinating the various elements required to move Ntorya forward and unlock the project’s potential contribution to Tanzania’s domestic energy supply and wider gas infrastructure.

Aminex said it will provide further updates as discussions progress and the development moves through its next stages.

More about Aminex plc

Aminex plc is an oil and gas company focused on exploration and development opportunities, with a significant presence in Tanzania’s natural gas sector.

Its principal interests include the Ntorya Gas Development within the Ruvuma Basin, where the company works alongside project partners and Tanzanian state entities to advance gas resources towards commercial development.

The project has the potential to contribute additional domestic gas production while supporting Tanzania’s longer-term energy requirements and associated infrastructure development.

hVIVO (LSE:HVO) has expanded its clinical research capabilities into dermatology and women’s health through the acquisition of CRS Clinical Research Services Berlin, strengthening the group’s presence in Germany and broadening its exposure to new therapeutic markets.

CRS Berlin operates a specialist Phase I/II clinical research unit with particular expertise in dermatology and women’s health. The business has completed more than 350 studies and generated revenue of €10 million during 2025, bringing an established operational platform and pharmaceutical client relationships into the hVIVO group.

The acquisition has been structured with a nominal upfront consideration alongside a three-year earnout linked to future revenue performance. This structure provides hVIVO with an opportunity to expand its capabilities while aligning additional consideration with the performance of the acquired business.

CRS Berlin will be integrated into hVIVO’s existing German network, giving the group greater access to specialist patient populations and increasing its capacity to undertake larger and more complex early-phase clinical trials across multiple sites.

Management expects the transaction to be immediately earnings accretive and to make a positive contribution to both revenue and EBITDA from FY26. CRS Berlin also brings an orderbook of approximately €10 million, providing visibility over its initial contribution to the enlarged group.

Strategically, the acquisition extends hVIVO into the growing dermatology and women’s health clinical research markets while further diversifying the group’s therapeutic exposure. The additional capabilities complement its established activities across infectious diseases, respiratory, cardiometabolic, immunology and other primary care indications.

Combining CRS Berlin with hVIVO’s wider operations also creates opportunities to offer clients a broader range of integrated services and potentially cross-sell capabilities across its clinical trials, laboratory, consulting and human challenge businesses.

The transaction further strengthens hVIVO’s multi-site operating model across the UK and Germany, providing additional scale and specialist expertise as the company continues to develop its position as an international early-phase clinical development partner.

More about hVIVO plc

hVIVO plc is a purpose-built, full-service international clinical development partner specialising in early-phase research for pharmaceutical and biotechnology companies.

The company is a global leader in human challenge trials and also provides conventional clinical trial services, laboratory capabilities and consulting.

Its therapeutic expertise spans infectious diseases, respiratory conditions, cardiometabolic diseases, immunology and primary care indications, with the acquisition of CRS Berlin adding specialist capabilities in dermatology and women’s health.

KEFI Gold and Copper (LSE:KEFI) has approved detailed planning for an underground mine at its Tulu Kapi gold project in Ethiopia following positive results from a standalone Preliminary Economic Assessment, adding another potential source of production alongside the open pit development already under way.

The proposed underground operation is designed to utilise existing mineral resources and largely share the processing infrastructure being developed for the open pit, with only minor plant modifications required. Once both operations reach steady state, KEFI is targeting combined production of approximately 180,000 ounces of gold per year from the integrated Tulu Kapi complex.

The updated PEA identifies an underground mining inventory of 2.38 million tonnes grading 3.30 grams per tonne of gold. This is projected to deliver approximately 237,000 ounces of recovered gold, complementing around 985,000 ounces expected from the open pit over an eight-year period.

On a standalone basis, the underground development has an estimated post-tax net present value at a 5% discount rate of approximately US$274 million and an internal rate of return of 220%, based on an assumed gold price of US$2,350 per ounce.

Pre-production capital for the underground mine is estimated at just over US$8 million. KEFI expects this expenditure to be funded from cash flow generated by the open pit operation, potentially allowing the company to expand Tulu Kapi without requiring substantial additional external development capital.

Under the current schedule, construction of the underground decline would begin as the open pit moves through commissioning in mid-2028. Trial underground production is planned during the first year, followed by a ramp-up towards steady-state stoping around 2029.

The underground infrastructure would also provide platforms for additional drilling aimed at testing the deposit’s potential at depth. Successful exploration could support future resource updates and potentially extend the operating life of the wider Tulu Kapi project.

KEFI estimates that the combined open pit and underground operation could achieve all-in sustaining costs of approximately US$1,100 to US$1,300 per ounce at higher gold prices, providing the potential for attractive operating margins.

The company has emphasised that the PEA remains preliminary and that the underground mining inventory has not yet been classified as an Ore Reserve. As a result, the production forecasts and economic assumptions remain subject to further technical work and development milestones.

Advancing the underground plan nevertheless represents an important step in KEFI’s strategy to increase production, extend Tulu Kapi’s economic life and maximise the value of infrastructure already being developed at the project. Further resource growth at depth could provide additional expansion potential as the company progresses towards becoming a larger regional gold producer.

More about KEFI Gold and Copper plc

KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper opportunities within the Arabian-Nubian Shield, with principal projects in Ethiopia and Saudi Arabia.

Its flagship Tulu Kapi project in Ethiopia comprises an open pit gold mine and processing facility, with the proposed underground operation offering the potential to increase long-term production while leveraging shared infrastructure.

KEFI’s development strategy focuses on advancing high-value mineral deposits while managing capital requirements through phased investment and, where possible, funding expansion from operating cash flow.

By combining open pit and underground production at Tulu Kapi, the company aims to improve project economics, extend mine life and strengthen its position within the regional gold industry.

Rockhopper Exploration (LS:RKH) is seeking to raise up to US$200 million in new equity as it moves to secure funding for the next phase of development at its flagship Sea Lion project in the Falkland Islands.

The company plans to raise approximately US$180 million through a placing of new ordinary shares, alongside an open offer that could generate a further US$20 million. The shares are being offered at 70 pence each, representing a modest discount to the recent 30-day average share price.

The fundraising has received support from major institutional shareholders and is being structured through a non-pre-emptive cashbox placing accompanied by the open offer. While the issuance will increase Rockhopper’s share capital, the additional funding is intended to provide greater financial certainty as Sea Lion advances towards production.

Net proceeds are expected to fund Rockhopper’s share of expenditure on the Sea Lion central development area and the OSX-1 acquisition through to mid-2028. Capital will also support exploration activity and well deepening under NDA Phase 1.

Part of the proceeds will provide coverage for contingent liabilities associated with potential early project failure, while additional funds will be retained as contingency for the company’s wider Falkland Islands activities.

Rockhopper is targeting first oil from Sea Lion in the first quarter of 2028, making the proposed capital raise an important step in maintaining momentum towards that objective.

The financing follows a recent independent NSAI assessment that indicated a significant increase in the net present value associated with Rockhopper’s interest in Sea Lion. The updated valuation provides additional support for the company’s strategy of progressing the field while retaining exposure to further exploration and development upside.

With funding intended to cover key commitments through mid-2028, the proposed equity raise could place Rockhopper in a stronger position to deliver upcoming development milestones and capture potential longer-term value from Sea Lion and its wider North Falkland Basin portfolio.

More about Rockhopper Exploration

Rockhopper Exploration is an oil and gas company focused primarily on the North Falkland Basin, where its principal asset is the Sea Lion oil field and associated central development area.

The company’s strategy centres on progressing Sea Lion towards phased offshore production while maintaining exposure to additional exploration opportunities across its Falkland Islands portfolio.

Through continued development and exploration activity, Rockhopper aims to build long-term value from its resource base while benefiting from the potential production and cash flow generated by Sea Lion.