Author: Fiona Craig

Vanquis Banking Group (LSE:VANQ) reported a return to statutory profitability in 2025, marking a significant turnaround from the prior year as loan growth, tighter cost control and improving credit performance strengthened results.

The specialist lender posted profit before tax of £8.3 million, compared with a £138 million loss in 2024. Performance was supported by a 22% increase in gross customer interest-earning balances to £2.82 billion, driven primarily by expansion in second charge mortgages and renewed momentum in credit card lending. The group also continued to scale back its vehicle finance portfolio ahead of the launch of a new operating platform.

Capital strength improved during the year following the issuance of Additional Tier 1 securities, leaving the bank with a CET1 ratio of 16.5% and providing capacity to support further growth initiatives.

Operating expenses fell sharply, declining by roughly one-third to £265.5 million. The reduction was aided by £28.8 million in transformation-related savings as well as a notable drop in complaint-related costs, helped by fewer unmerited claims following revisions to the Financial Ombudsman Service fee structure.

Risk-adjusted income increased 5% to £273.8 million as the cost of risk improved to 7.3%, reflecting enhanced underwriting standards, stronger credit models and resilient customer repayment behaviour. Liquidity remained robust, with a liquidity coverage ratio of 306%, while retail deposits accounted for nearly 90% of total funding, highlighting the stability of the group’s funding base.

Vanquis reported limited exposure to the Financial Conduct Authority’s proposed motor finance compensation scheme, recording only a £3 million provision due to the absence of discretionary or tied commission arrangements within its lending practices.

Management also pointed to significant progress in its “Gateway” technology transformation programme, which is already improving credit decisioning and operational efficiency. The platform is expected to support scalable, profitable growth while enabling the bank to expand lending to underserved customers.

The company has introduced a strategic framework centred on “Serve More, Serve Responsibly and Scale Profitably,” guiding capital deployment, risk management and operational execution. Following the 2025 turnaround, management expressed confidence in delivering materially higher returns on tangible equity over the next two years.

While operational momentum has improved, the overall investment outlook remains influenced by historic financial weakness, including prior losses, revenue pressures and elevated leverage. Positive technical indicators, including share price strength relative to key moving averages, provide some support, though valuation metrics remain constrained by a negative price-to-earnings profile and lack of dividend yield. Capital optimisation measures are viewed as constructive but secondary to sustained profitability improvements.

More about Vanquis Banking Group

Vanquis Banking Group is a UK-based specialist lender focused on customers underserved by mainstream banks. Its core products include credit cards, second charge mortgages and vehicle finance, supported primarily by a stable retail deposit base that funds balance sheet growth and long-term capital deployment.

CVS Group (LSE:CVSG) reported higher revenue and continued international expansion during the first half of its financial year, alongside completing its transition to the London Stock Exchange Main Market.

Revenue from continuing operations increased 5.8% to £356.9 million for the six months to 31 December 2025, while adjusted EBITDA rose 3.9% to £67.7 million despite more challenging trading conditions in the UK veterinary market. Profit before tax declined 4.4% to £15.2 million, reflecting higher non-cash depreciation charges, acquisition-related expenses and exceptional costs associated with the Competition and Markets Authority (CMA) inquiry and the company’s Main Market listing.

The group maintained momentum in Australia, completing two veterinary practice acquisitions during the reporting period and securing additional deals after the period end. CVS also invested £17.5 million in practice relocations, refurbishments and new clinical equipment aimed at increasing operational capacity and improving standards of care across its network.

Management said the move to the Main Market, alongside anticipated inclusion in the FTSE 250 index, is expected to enhance liquidity and broaden access to capital. These developments are intended to support the company’s active acquisition pipeline and underpin medium- to long-term growth plans, even as UK consumer confidence remains subdued and regulatory scrutiny of the veterinary sector persists.

CVS Group plc’s outlook is supported by steady financial performance and positive operational progress, including revenue growth and continued acquisition activity. However, valuation metrics remain elevated, with a high price-to-earnings ratio and relatively low dividend yield suggesting potential overvaluation. Technical indicators also point to possible overbought conditions, while ongoing UK market pressures and previous cyber-related challenges continue to weigh on sentiment.

More about CVS Group plc

CVS Group plc is a UK-listed veterinary services provider operating companion animal practices and associated healthcare businesses, with an expanding presence in Australia. The company focuses on delivering clinical care while pursuing growth through acquisitions and ongoing investment in facilities, equipment and technology, targeting long-term expansion in veterinary healthcare markets.

Hikma Pharmaceuticals (LSE:HIK) delivered revenue and profit growth in 2025 while unveiling a new $250 million share buyback programme and a broad leadership overhaul aimed at strengthening operational execution and long-term strategy.

Core revenue for the year increased 6% to $3.35 billion, while core operating profit rose 3% to $741 million, supported by double-digit expansion in the Branded division and solid contributions from Injectables and the Hikma Rx generics business across North America, the Middle East and North Africa (MENA), and Europe.

Reported operating profit declined year-on-year, reflecting the impact of legal settlements and margin pressures within the Injectables segment. Despite this, the company maintained a strong balance sheet position and increased its dividend by 5%, while continuing to expand its product portfolio with 84 launches during the year, including its first biosimilar product in the United States.

Looking ahead, Hikma announced plans to repurchase up to $250 million of shares in 2026 and provided guidance for modest revenue and profit growth. The company also withdrew its previous medium-term targets following a strategic review of the Injectables business, signalling a reassessment of priorities within the division.

A significant leadership restructuring was also confirmed. Executive Chairman Said Darwazah will transition to focus exclusively on the chief executive role, while a new chair will be appointed. The company will introduce regional deputy CEO positions and has named an acting chief financial officer, moves designed to enhance accountability and organisational agility as Hikma seeks to capitalise on opportunities in biosimilars and specialty injectables.

Hikma Pharmaceuticals’ outlook is supported by strong financial performance and an attractive valuation profile. While technical indicators currently point to a weaker trend, management’s strategic initiatives and positive corporate developments are viewed as supportive of future growth potential.

More about Hikma Pharmaceuticals

Hikma Pharmaceuticals is a UK-headquartered multinational pharmaceutical company specialising in generic and branded medicines. The group operates across North America, the Middle East and North Africa, and Europe, with core activities spanning injectables, branded drugs and the Hikma Rx generics segment. Hikma also invests in innovative healthcare technologies through its venture capital arm, positioning itself as both a manufacturing partner and strategic investor in emerging therapies.

Man Group (LSE:EMG) reported a sharp increase in assets under management in 2025, driven by substantial client inflows and solid investment performance, even as earnings declined amid weaker performance fee income.

Assets under management rose 35% year-on-year to $227.6 billion, supported by net inflows of $28.7 billion and strong relative returns across several strategies, particularly within long-only offerings. Despite achieving record levels of organic growth and expanding market share, the company reported lower core net revenue and a decline in profit before tax compared with the previous year.

Management highlighted the strength of Man Group’s diversified investment platform, which helped sustain shareholder returns despite softer earnings. The firm maintained its total dividend at 17.2 cents per share and completed a $100 million share buyback programme during the period, while also allocating capital to seed 12 new investment strategies.

Strategically, the group expanded its credit investment capabilities through the acquisition of Bardin Hill and reorganised its systematic investment teams to accelerate research and product innovation. Man Group also broadened its presence in the wealth market with the launch of four active exchange-traded funds and announced a partnership with artificial intelligence company Anthropic aimed at improving investment research processes and operational efficiency.

The company’s outlook is supported by strong underlying financial performance and favourable technical indicators, alongside continued strategic investment and robust cash flow generation. However, concerns around operational efficiency and uneven performance across certain strategies remain factors that could moderate near-term momentum.

More about Man Group plc

Man Group plc is a global alternative investment manager providing systematic, discretionary and solutions-based investment strategies across public and private markets. Headquartered in Jersey and listed in London as a FTSE 250 constituent, the firm manages $227.6 billion on behalf of institutional and wealth clients worldwide, combining advanced technology with research-driven investment approaches focused on alternative assets.

Savannah Resources (LSE:SAV) has reported continued development at its Barroso Lithium Project in northern Portugal, with progress across feasibility studies, permitting activities and local stakeholder engagement strengthening the pathway toward project construction.

The company said work on the Definitive Feasibility Study (DFS) and RECAPE licensing process is advancing, highlighted by submission of a revised bypass road design to Portuguese authorities and approval from grid operator E-Redes for plans to relocate an overhead power line. These developments represent key infrastructure milestones required to support future mine construction.

Operational planning has also moved forward, with updated pit designs and revised mining schedules delivered to the company, keeping Savannah on course to publish its maiden JORC-compliant Ore Reserve estimate. In parallel, rock chip sampling at the Carvalha da Bácora pegmatite returned high-grade lithium results, reinforcing the potential for additional resource growth beyond the current development scope.

Savannah is also increasing engagement with local communities and stakeholders, signing Memorandums of Understanding with four regional groups and holding a series of public consultations. The company continues to advance land acquisition and secure temporary land access permissions needed for infrastructure works, including the planned power-line realignment.

Against a more supportive lithium pricing backdrop and rising commercial interest in its uncommitted spodumene concentrate output, the developer is coordinating a significant state grant application alongside broader financing discussions. Investor outreach efforts have also intensified as the company works toward completing the DFS and preparing for construction of what it aims to establish as Europe’s leading spodumene lithium operation.

While operational progress remains strong, Savannah’s outlook continues to be constrained by its pre-revenue status, ongoing losses and elevated cash burn, resulting in negative operating and free cash flow. Technical indicators provide some support due to recent share price momentum and strength relative to key moving averages, although an overbought RSI suggests potential near-term volatility. Valuation metrics remain limited by negative earnings and the absence of dividend income.

More about Savannah Resources

Savannah Resources is a London AIM-listed lithium developer focused on advancing the Barroso Lithium Project in northern Portugal, widely regarded as Europe’s largest spodumene lithium deposit and designated a Strategic Project under the EU Critical Raw Materials Act. The company aims to supply lithium concentrate to the European battery and electric vehicle supply chain, positioning itself as a key regional source of critical raw materials supporting energy transition goals.

Eco Buildings Group (LSE:ECOB) has moved its Senegal joint venture with local partner G2 Invest Group into the implementation stage, marking progress toward establishing a modular housing manufacturing operation in the country based on its GFRG construction technology.

The transition follows completion of G2 Invest Group’s €1.75 million equity investment, representing its 35% stake in Eco Buildings Senegal LLC. The funding fully satisfies G2’s capital commitment and supports the next phase of operational development, including scaling local manufacturing capabilities and preparing for project deployment within Senegal.

Eco Buildings said mobilisation of the new production line has now begun, with the company formally appointing its engineering, procurement and construction (EPC) contractor to commence detailed planning activities covering engineering design, procurement and build execution.

As part of the rollout strategy, the joint venture plans to deliver and install a fully completed Eco Buildings show house in Senegal, financed by G2 Invest Group. The demonstration unit is intended to secure final government approvals and facilitate the formal launch of the housing programme, representing a key regulatory and commercial milestone ahead of broader project implementation.

The company’s outlook is supported by positive corporate developments that signal potential expansion opportunities, although financial performance and valuation challenges continue to weigh on the overall investment case. Technical indicators suggest a mixed picture, with longer-term upward trends offset by near-term uncertainty.

More about Eco Buildings Group

Eco Buildings Group is a UK-listed modular construction company specialising in prefabricated housing solutions built using proprietary glass fibre reinforced gypsum (GFRG) wall panel technology. The company targets both affordable housing and premium residential markets, focusing on cost efficiency, rapid construction timelines and sustainability. Eco Buildings is pursuing international expansion through manufacturing and project initiatives across Europe, Africa and Latin America.

Hardide (LSE:HDD) has won a further £1.8 million in orders from a key customer in the North American energy market, prompting the company to raise its revenue outlook for the current financial year ending 30 September 2026.

The majority of the new work is scheduled for delivery within the ongoing financial year. Alongside the order intake, Hardide said discussions are underway with the customer regarding a potential long-term framework agreement and structured supply programme aimed at supporting future demand and business expansion.

The additional contracts have led the board to anticipate a material improvement in both revenue and overall performance compared with earlier forecasts. Management believes the increased activity will accelerate progress toward its strategic objective of at least doubling 2024 revenues ahead of schedule.

Higher production volumes are also expected to drive improved capacity utilisation across operations, strengthening both operational efficiency and financial performance as the company continues to expand its presence in energy-sector coatings.

Hardide’s outlook is supported by improving financial momentum following a turnaround in FY2025 that delivered positive profitability and free cash flow, alongside strong upward technical trading indicators. However, the investment case remains balanced by a high price-to-earnings valuation and increased leverage on the balance sheet, leaving limited margin for operational setbacks.

More about Hardide

Hardide plc is a UK-based advanced materials company specialising in surface treatment technologies. The group develops and applies patented tungsten carbide and tungsten metal matrix coatings designed to enhance durability and resistance to abrasion, erosion and corrosion in engineering components. Its solutions are used by customers across the energy, valve and pump, industrial gas turbine, precision engineering and aerospace sectors, helping extend component lifespan, improve efficiency and reduce environmental impact.

Nativo Resources (LSE:NTVO) has moved forward with development plans for the La Patona Gold Ore Processing Plant in Acari, Peru, after finalising agreements to manage, complete and operate the partially constructed facility, although extended contract negotiations have pushed back the start of site works by as much as 15 weeks.

The company will utilise existing operating permits for the project and is currently reviewing three engineering, procurement and construction (EPC) proposals for the 15-hectare processing site. The plant is designed as a dual-circuit flotation and cyanidation operation with an initial processing capacity of 220 tonnes per day, while allowing for future expansion as feed supply grows.

Once operating at full capacity and assuming consistent ore availability, the facility is expected to recover between 1.4 and 1.7 kilograms of gold daily. The project will also include an on-site laboratory capable of assaying third-party ore, providing potential additional revenue opportunities alongside core processing activities.

Nativo anticipates construction and commissioning to be completed during the second half of 2026, with total development costs estimated at approximately $1.8 million. Veteran processing engineer Bernardino Alegría Aragón has been appointed to lead construction and operational delivery, reinforcing the company’s efforts to accelerate monetisation of its Peruvian gold assets at a time of strong global demand for the metal.

The company’s broader outlook remains weighed down by weak financial metrics, including ongoing losses, negative equity and elevated leverage relative to assets, alongside continued cash burn. While recent trading momentum has supported short-term technical indicators, the shares remain below their 200-day average, moderating the overall signal. Valuation metrics also remain pressured due to negative earnings and the absence of dividend support.

More about Nativo Resources

Nativo Resources plc is a UK-listed mining company focused on near-term gold production and processing opportunities in Peru. Its strategy includes primary gold mining, ore processing and recovery of gold from historic tailings deposits. The company is advancing development at the Tesoro Gold Concession and has stated plans to allocate a portion of future free cash flow and potential capital raises toward establishing a Bitcoin treasury reserve.

ECO Animal Health Group (LSE:EAH) has unveiled plans for the European launch of its ECOVAXXIN® MS poultry vaccine, following marketing authorisation from the European Commission received in late 2025.

The vaccine is designed to protect layer and breeder chickens against Mycoplasma synoviae, a disease linked to lesions and reduced egg production. With the addition of ECOVAXXIN® MS, the company aims to expand its offering beyond treatment into prevention, complementing its established Mycoplasma therapy Aivlosin® and positioning ECO Animal Health as a comprehensive solutions provider in this segment.

The company intends to utilise its existing European commercial infrastructure alongside newly secured strategic distribution agreements to reach key poultry-producing regions. These markets collectively account for more than 220 million layer birds each year across the EU.

Management plans a phased commercial rollout beginning with distributor education and training programmes, followed by a formal product launch event in Madrid scheduled for mid-2026. Regional introductions will continue through early 2027. ECO Animal Health expects the vaccine to contribute positively to margins shortly after launch, with a meaningful EBITDA impact anticipated in the 2027/28 financial year as adoption builds.

The launch is expected to strengthen the company’s competitive standing within the poultry health market, broadening its revenue mix and supporting longer-term growth ambitions.

ECO Animal Health’s overall stock score reflects strong technical momentum and supportive corporate developments, suggesting investor optimism around future expansion. However, elevated valuation levels and uneven financial performance remain factors that could present risks should projected growth fail to materialise.

More about ECO Animal Health

ECO Animal Health Group is a UK-based global animal health company specialising in branded veterinary pharmaceuticals, with a primary focus on antibiotics and vaccines for pigs and poultry. The business employs more than 200 staff worldwide and holds marketing authorisations in over 70 countries. Its flagship product, Aivlosin®, is widely used to treat respiratory and intestinal diseases affecting pigs and poultry and remains the company’s core commercial asset.