Author: Fiona Craig

Kering SA (EU:KER) reported fourth-quarter results that came in ahead of analyst forecasts, driving the shares more than 11% higher as the luxury group set out plans to return to growth in 2026 following a difficult year for its core Gucci brand.

The owner of Gucci, Saint Laurent and Bottega Veneta generated fourth-quarter revenue of €3.91bn, representing a 3% decline on a comparable basis. While still negative, this marked an improvement from the 5% like-for-like contraction recorded in the third quarter.

Gucci’s comparable sales were down 10% in the period, unchanged from the prior quarter and ending a run of eight consecutive quarters of worsening trends. The brand delivered €1.62bn in revenue for the quarter. For the full year, Gucci sales reached €5.99bn, a 19% decline on a comparable basis.

Morgan Stanley analysts said the figures were “slightly better than expected,” noting that Gucci’s full-year operating profit came in around 8% above consensus forecasts. The bank also estimated that group earnings before interest and tax were roughly 3% ahead of expectations on a pro-forma basis.

“Kering enters 2026 with a clear objective: to return to growth and improve margins this year,” the company said.

Performance across the rest of the portfolio was mixed but showed signs of stabilisation. Saint Laurent delivered flat comparable growth in the fourth quarter, with revenue of €735m, recovering from declines earlier in the year. Bottega Veneta recorded its strongest quarterly sales on record, with comparable revenue up 3% to €467m, while full-year like-for-like sales rose 3% to €1.71bn.

For 2025 as a whole, Kering reported total revenue of €14.68bn, down 10% on a comparable basis. Recurring operating income fell 33% to €1.63bn, reducing the operating margin to 11.10% from 14.50% a year earlier. Recurring net income from continuing operations declined 56% to €530m, and after restructuring costs the group posted a net loss of €30m, compared with a €1.03bn profit in 2024.

Geographically, trends improved across several key regions. In Western Europe, fourth-quarter comparable sales declined 7%, an improvement from a 14% fall in the previous quarter. North America returned to growth, rising 2% after three quarters of declines, while Asia-Pacific excluding Japan recorded a 6% drop, narrowing from an 11% decline in the third quarter.

Kering ended the year with net debt of €8bn, down from €10.5bn previously. Free cash flow from operations totalled €4.4bn, or €2.3bn excluding real estate transactions.

The board proposed an ordinary dividend of €3 per share, alongside an exceptional €1 dividend linked to the planned sale of Kering Beauté to L’Oréal, which is expected to complete in the first half of 2026.

British Land (LSE:BLND) has agreed a major pre-letting at its Broadgate campus in the City of London, with international law firm Herbert Smith Freehills Kramer committing to a 21-year lease for 238,000 square feet at 1 Appold Street. The agreement represents a significant milestone for the development, securing around 60% of the building’s office space ahead of completion.

The lease includes expansion rights that could increase the firm’s footprint to as much as 360,000 square feet, alongside a dedicated entrance at 8 Exchange Square. Herbert Smith Freehills Kramer is already a major occupier at Broadgate, where it currently uses 270,000 square feet at Exchange House as its headquarters.

The redevelopment of 1 Appold Street will be delivered by Skanska and is scheduled for completion in the first quarter of 2029. The scheme will offer sustainability-led office accommodation with terraces, around 48,000 square feet of leisure space and strong transport connectivity, including direct links to Liverpool Street station and the Elizabeth Line.

Kelly Cleveland, Head of Real Estate and Investment at British Land, said the deal reflects the growing appeal of Broadgate, citing its mix of global occupiers, strong transport connections, high sustainability standards and high-quality public realm. The company added that the transaction underlines continued demand for premium office space in central London, set against a backdrop of limited new supply.

Coca-Cola HBC AG (LSE:CCH) saw its shares rise more than 3% after reporting robust fourth-quarter and full-year 2025 results, underpinned by volume growth, premiumisation and effective pricing. The Europe- and Africa-focused bottler delivered organic revenue growth of 8.1% in the fourth quarter, with volumes up 2.8%, led by sparkling soft drinks and energy beverages.

For the full year, net sales revenue increased 7.9% to €11.60bn, while organic revenue per case rose 5.1%, reflecting disciplined revenue growth management and comparatively moderate inflation. Comparable operating profit (EBIT) grew 11.5% organically to €1.36bn, with comparable EBIT margins expanding by 40 basis points to 11.7% on an organic basis. Comparable net profit climbed 19.4% to €989.3m, and comparable earnings per share increased 19.7% to €2.72.

Free cash flow amounted to €700m, slightly below 2024 levels, largely due to higher capital expenditure of €827.6m, equivalent to 7.1% of revenue. Investment focused on expanding production capacity, automation, digital and AI capabilities, and rolling out more energy-efficient coolers.

Performance varied across regions. In established markets, organic revenue rose 2.3% with broadly flat volumes, as growth in Coke Zero and Sprite offset pressures elsewhere, while energy drinks recorded high double-digit growth. Comparable EBIT in these markets declined 2.8% organically to €378.6m, reflecting increased marketing and operating costs. Developing markets posted organic revenue growth of 6.1%, with volumes up 0.8% and comparable EBIT rising 5.6% to €242.2m. Emerging markets delivered the strongest performance, with organic revenue up 13.2%, volumes increasing 4.4% and comparable EBIT jumping 23.2% to €735.4m, driven by strong execution across Africa and other high-growth regions.

Management highlighted continued progress in premiumisation and customer segmentation, supported by AI-driven revenue management tools. Chief executive Zoran Bogdanovic said the group’s focus on strengthening its “24/7” portfolio had driven market share gains and volume growth in priority categories such as sparkling drinks and energy. He also confirmed that the agreed acquisition of a 75% stake in Coca-Cola Beverages Africa for US$2.6bn, announced in October 2025, remains on track to complete by the end of 2026.

The group also pointed to advances in sustainability, including expanded circular packaging initiatives in Nigeria, Austria and Poland, and community support through The Coca-Cola HBC Foundation, which committed €2.3m to disaster relief during 2025, with a further €5m earmarked for 2026.

Analysts at Jefferies noted that full-year EPS of €2.72 exceeded consensus expectations of €2.65 and said the group appears well positioned for 2026. Guidance calls for organic revenue growth of 6–7% and organic EBIT growth of 7–10%, although foreign exchange movements and financial items could partially offset underlying progress. The analysts also highlighted the strategic value of the Coca-Cola Beverages Africa transaction, citing favourable currency movements since the deal was announced.

Reflecting strong cash generation, the board proposed an ordinary dividend of €1.20 per share, up 17% from 2024. Net debt to comparable EBITDA remained conservative at 0.7x, providing capacity to fund both shareholder returns and ongoing growth investment.

Wishbone Gold (LSE:WSBN) has been awarded a 67 km² exploration tenement following a contested ballot over crown land located roughly 25 km north-west of the Telfer gold mine in Western Australia. The newly granted licence, E45/7169, will be integrated into the company’s existing access and heritage arrangements with Greatland Gold, strengthening Wishbone’s land position in the vicinity of a major producing operation.

The tenement benefits from established access via the main road linking Telfer and Marble Bar and will form part of the company’s ongoing evaluation work as it prepares for the 2026 drilling campaign at its Red Setter project, which is scheduled to commence in April. Assay results from the 2025 Red Setter drilling programme are expected shortly and are set to inform the scope and targeting of the 2026 drill plans, potentially acting as a near-term catalyst for market interest.

From an investment standpoint, the outlook continues to be constrained by the company’s early-stage financial profile, with no revenue, ongoing losses and negative free cash flow, albeit with some signs of improvement. Share price technicals are mixed, showing broadly neutral momentum without a clear trend, while valuation support remains limited due to negative earnings and the absence of a dividend.

More about Wishbone Gold

Wishbone Gold is an exploration company listed on AIM and Aquis, focused on gold and copper assets in Western Australia. Its portfolio includes the Red Setter copper-gold project and a growing suite of exploration licences surrounding the established Telfer gold mine and near the Nifty Copper Mine, placing the company within a well-known and highly prospective mining district.

Tekcapital Plc (LSE:TEK) has conditionally secured $2.05m (£1.5m) through a placing of 18.75 million new ordinary shares at 8p each, strengthening its balance sheet and providing additional capital to advance its investment programme. The funding will be directed toward both existing holdings and new opportunities, with a growing focus on generative AI, following what the group describes as solid operational and commercial progress across its portfolio.

Admission of the new shares to AIM is expected around 16 February 2026, which will increase Tekcapital’s total issued share capital to 257,178,525 ordinary shares. While the placing results in some dilution for existing investors, management views the enlarged capital base as enhancing the group’s capacity to pursue technology-led investments and providing greater flexibility to support portfolio companies at key stages of development.

From an investment perspective, the outlook continues to be constrained by weak underlying financial performance, including ongoing negative operating and free cash flow and highly volatile, low revenue levels. These factors persist despite the group’s debt-free balance sheet. Share price technicals are moderately supportive, with the stock trading above major moving averages, and headline valuation metrics appear undemanding. However, operating instability and continued cash burn remain key risks for investors to monitor.

More about Tekcapital Plc

Tekcapital Plc is a UK-based intellectual property investment company listed on AIM, focused on commercialising technologies developed within universities. The group builds and supports portfolio businesses aimed at delivering scalable products and services that can improve everyday life. In recent years, Tekcapital has increasingly targeted investments in high-growth areas such as generative artificial intelligence as part of its long-term value creation strategy.

Phoenix Copper Limited (LSE:PXC) chief executive Ryan McDermott sought to steady investor sentiment following the company’s announcement on 9 February, confirming that the board, management team and external advisers are continuing to progress internal investigations. He noted that interim management arrangements have been put in place to ensure business continuity and limit operational disruption while the review is ongoing.

McDermott reiterated that the group’s underlying asset base and long-term strategy remain unchanged. Core projects, including the Empire Project in Idaho, continue to be viewed by the board as offering significant long-term potential, and work to advance Empire alongside the evaluation of broader strategic options is continuing. Management stressed that, despite near-term governance and investigatory matters, the company remains focused on maintaining momentum across its development plans.

From a market perspective, the outlook remains weighed down by Phoenix Copper’s weak financial position, with no revenue, widening losses and increasing cash burn heightening funding and dilution risks. Share price technicals are mixed but generally soft, with the stock trading below key moving averages, while valuation offers limited support given negative earnings and the absence of a dividend.

More about Phoenix Copper Limited

Phoenix Copper Limited is a US-focused exploration and emerging production company operating in the base and precious metals sector. The company is primarily targeting copper, gold and silver from open-pit operations in Idaho, with its flagship Empire Mine near Mackay in the historic Alder Creek district, where it holds an 80% interest.

In addition to Empire, Phoenix Copper controls several former producing underground mines, including Horseshoe, White Knob and Blue Bird, as well as the Red Star silver-lead deposit and the Navarre Creek gold exploration project, covering a total of 8,434 acres. The group also holds interests in two cobalt properties on the Idaho Cobalt Belt under an earn-in arrangement and is listed on both AIM in London and the OTCQX market in the United States.

Sunda Energy Plc (LSE:SNDA) has put in place an unsecured loan facility of up to £1.5m from its chief executive, Dr Andy Butler, with an initial £400,000 drawn to fund transaction costs linked to a potential oil and gas asset acquisition and to strengthen working capital. The related-party financing was reviewed by the company’s independent directors and deemed fair and reasonable, and is intended to support an advanced-stage transaction that could broaden and enhance Sunda’s upstream asset base, subject to completion of due diligence, funding arrangements and shareholder approval.

Alongside the corporate activity, operational progress continues across the portfolio. In Timor-Leste, Sunda is working to secure a drilling rig and complete environmental approvals for the planned Chuditch-2 appraisal well, while also advancing discussions around a revised farm-in structure with state partner TIMOR GAP to help fund drilling preparations. In the Philippines, activity at the Sulu Sea Service Contracts 80 and 81 is moving into the 3D seismic reprocessing phase, supported by positive industry interest, as the company positions itself for a more active operational period in 2026.

The investment outlook remains constrained by the group’s weak financial profile, with no revenue, widening losses and ongoing cash consumption, albeit against a backdrop of relatively low leverage. Recent share price strength offers some technical support, although overbought indicators introduce near-term risk. Valuation continues to be pressured by the absence of profitability or dividend income.

More about Sunda Energy Plc

Sunda Energy Plc is an AIM-listed exploration and appraisal company focused on gas assets in Southeast Asia. Its portfolio is anchored by the Chuditch gas field offshore Timor-Leste, alongside non-operated interests in the Sulu Sea, Philippines. The company is pursuing upstream gas appraisal, development and exploration opportunities aimed at delivering long-term regional growth.