Author: Fiona Craig

Severfield plc (LSE:SFR) said trading at the beginning of FY27 has been in line with expectations, with the company maintaining guidance for underlying pre-tax profit of between £12 million and £15 million. A series of new contract wins, particularly in the data centre sector across the UK, Germany and Sweden, has increased the group’s UK and European order book to £534 million, providing strong revenue visibility for the current financial year and beyond.

The company said Continental Europe now represents almost one-third of its regional order book, supported by an increasing proportion of higher-quality projects that are expected to deliver stronger margins over time. Management reiterated that FY27 will remain a transition year, with first-half profitability continuing to be affected by legacy lower-margin contracts before newer, higher-margin projects make a more significant contribution during FY28.

Severfield also reported a positive start to the year for its Indian joint venture, JSSL, which increased both revenue and production while expanding its order book to £327 million. Growth has been driven by additional data centre projects and repeat business linked to JSW’s investment programmes. Management believes the strengthening pipeline in India will allow JSSL to make an increasingly important contribution to group earnings and profitability over the medium term ahead of the company’s half-year results in November.

Although recent financial performance has been impacted by net losses and weaker profitability, the company’s operational outlook has improved thanks to a growing order book and increasing exposure to higher-margin work. Technical indicators also remain supportive, with the shares trading above key moving averages and maintaining positive momentum. However, valuation remains constrained while the company continues to report losses, and the absence of a dividend yield provides limited additional support.

About Severfield

Severfield plc is one of Europe’s leading structural steel specialists, providing the design, fabrication and construction of large-scale steel structures across the UK and continental Europe. The company operates six fabrication facilities with a combined annual production capacity of approximately 150,000 tonnes and employs around 1,800 people. Its projects span a range of sectors, including data centres, commercial developments and major infrastructure.

The group also has a significant presence in India through its joint venture with JSW Steel, JSSL, which operates two fabrication facilities and is expected to increase annual production capacity to more than 224,000 tonnes by the end of FY27. This international footprint supports Severfield’s long-term strategy of expanding its presence in high-growth markets while delivering increasingly complex structural steel projects.

Sage (LSE:SGE) reported total revenue of £2.062 billion for the nine months ended 30 June 2026, an increase of 11% compared with the same period last year, as demand from both new and existing small and medium-sized business customers remained strong. Growth was recorded across all major regions, with North America delivering a 14% increase in revenue, the UK and Ireland growing 10%, and Europe advancing 7%. The performance was supported by continued momentum for Sage Intacct alongside stable demand for Sage 50, Sage 200 and Sage X3.

Cloud solutions continued to drive the company’s expansion, with Sage Business Cloud revenue rising 15% to £1.762 billion and cloud-native revenue increasing 25% to £794 million. Recurring revenue reached £2.002 billion, while subscription-based products accounted for 84% of total revenue. Management said trading strengthened further during the third quarter, helped by the continued rollout of artificial intelligence capabilities across its software platform. The company reaffirmed its expectation of delivering organic total revenue growth of more than 9% for the full year, alongside further improvements in operating margins as the business continues to scale.

The latest results highlight Sage’s ongoing transition towards an AI-powered, cloud-first subscription model, strengthening its position in the market for finance, accounting, payroll and HR software for small and medium-sized businesses. Continued growth in recurring revenue and cloud-based products demonstrates increasing customer adoption and supports the company’s strategy of building a more predictable, higher-margin business with global scale.

Sage’s outlook remains supported by strong financial performance, continued revenue momentum, expanding margins and healthy cash generation. Management also maintained its positive full-year guidance, reflecting confidence in the group’s growth trajectory. While the company’s valuation remains balanced, supported by a reasonable price-to-earnings ratio and a consistent dividend yield, technical indicators remain mixed, with the share price still trading below its 100-day and 200-day moving averages.

About Sage Group plc

Sage Group plc is a leading provider of accounting, financial management, payroll and human resources software for small and medium-sized businesses. Listed on the FTSE under the ticker SGE, the company offers a portfolio of cloud-based and AI-enabled solutions, including Sage Intacct, Sage 50, Sage 200 and Sage X3, serving customers across North America, the UK and Ireland, and Europe.

The company’s strategy is centred on expanding its cloud-native subscription platform while helping businesses simplify financial management, workforce administration and regulatory compliance. Through ongoing investment in artificial intelligence and digital innovation, Sage aims to improve productivity, automate workflows and strengthen connections between businesses, employees, financial institutions and government agencies. The company also supports initiatives focused on digital inclusion, economic opportunity and environmental sustainability.

PayPoint (LSE:PAY) reported a steady start to FY27, generating first-quarter net revenue of £39.5 million despite a difficult comparison with the prior year and a subdued consumer spending environment. Group net revenue declined 6.4%, but management said the company’s restructuring programme has now been largely completed, with early improvements in accountability, operational efficiency and product focus already becoming evident. Performance remains in line with internal expectations, with a stronger contribution anticipated during the second half of the financial year.

Network Services generated net revenue of £21.6 million as parcel volumes continued to adjust following the new InPost agreement and weaker store-to-store traffic. However, retailer engagement improved, customer service performance strengthened through significantly shorter call waiting times, and businesses including Retail Technology and Digital Content recorded growth. Digital Payments & Open Banking increased net revenue to £3.2 million, supported by higher transaction volumes and the acquisition of Aperidata in June, which enhances the group’s real-time financial assessment capabilities and strengthens its offering across PayByBank and variable recurring payment solutions.

Merchant Services reported net revenue of £7.7 million as the company continued its planned transition towards a more focused sales strategy targeting higher-value merchants. While the overall merchant base became more selective, Merchant Rentals and Business Finance both delivered growth, and the average value processed per merchant increased. Love2shop also recorded encouraging operational performance despite net revenue easing to £7.0 million because of revenue timing differences. Billings rose to £44.9 million, supported by double-digit growth in its business division, the launch of a new employee benefits proposition, a successful “Thank You Teacher” campaign and wider in-store distribution through major retail partners.

PayPoint also reaffirmed its commitment to shareholder returns, confirming a final dividend of 20.0p per share, 2% higher than the previous year, to be paid in two instalments. The company has continued its share buyback programme, which has already returned £50 million to shareholders and reduced the number of shares in issue by 17.7%. A third tranche is now underway, with total buybacks expected to reach £30 million during FY27. Management also announced a Capital Markets Day on 29 September 2026, where it plans to present its simplified investment strategy, outline expected business synergies and discuss growth opportunities over the next three years.

The company’s outlook continues to benefit from improving operating performance and recovering cash generation, although higher leverage and a reduction in shareholders’ equity remain factors to monitor. PayPoint’s valuation remains attractive, supported by a relatively low price-to-earnings ratio and a strong dividend yield, while positive technical indicators provide additional support as the shares continue to trade above key moving averages.

About PayPoint

PayPoint Group is a UK-listed technology, payments and retail services company that provides essential payment infrastructure for millions of consumer and business transactions every day. Through its four operating divisions—Network Services, Digital Payments & Open Banking, Love2shop and Merchant Services—the company delivers payment solutions, parcel services, rewards, gifting products and merchant services through a network of more than 30,000 convenience stores and over 65,000 partner locations.

The group works with retailers, financial institutions, government organisations, fintech companies and corporate customers, offering services that include bill payments, parcel collection and delivery, banking solutions, Open Banking technology, Confirmation of Payee services, digital payment platforms and employee reward programmes. Its broad portfolio positions PayPoint as a key provider of payments and retail technology across the UK market.

Premier African Minerals (LSE:PREM) has secured approximately £550,000 before expenses through a direct subscription of 4 billion new ordinary shares priced at 0.01375 pence each. The capital will primarily be used to strengthen working capital and support ongoing activities at the Zulu Lithium and Tantalum Project in Zimbabwe, including mining operations, stockpiling, payments to key creditors and general corporate requirements.

The company said the fundraising is designed to ensure operational continuity at both Premier and the Zulu project while discussions continue with offtake partner Canmax Technologies regarding an extension to the existing Long Stop Date. The new shares are expected to be admitted to trading on AIM on or around 3 August 2026, increasing the company’s total issued share capital to just over 50 billion shares. As a result, shareholders may see changes to their voting interests and disclosure obligations under FCA regulations.

Management reiterated that its priority remains progressing the Zulu project towards stable commercial production. The additional funding is expected to support preparations for the next production and optimisation phase once an updated operating schedule has been agreed. Premier also confirmed that it will provide further updates once negotiations with Canmax have concluded or if any significant developments occur, highlighting the importance of the Zulu project to the company’s long-term strategy.

Premier’s investment outlook continues to be constrained by weak financial fundamentals, including the absence of revenue, ongoing losses and continued cash outflows, although its relatively modest debt levels provide some support. Technical indicators suggest limited short-term stabilisation but continue to point to a broader long-term downward trend, with the share price remaining below its 200-day moving average. Valuation also remains challenging as the company is loss-making and does not currently offer a dividend.

About Premier African Minerals

Premier African Minerals Limited is a multi-commodity mining and natural resources company focused on developing projects across Southern Africa. Its portfolio includes the RHA Tungsten Mine and the Zulu Lithium and Tantalum Project in Zimbabwe, alongside interests in rare earth elements, gold and other strategic minerals in Zimbabwe and Mozambique. The company manages a mix of advanced development projects and earlier-stage exploration assets.

Listed on AIM under the ticker PREM, Premier African Minerals is focused on supplying critical minerals that play an important role in battery technologies and industrial applications. The Zulu Lithium and Tantalum Project represents the company’s principal development asset and is expected to play a central role in its future commercial production and long-term growth strategy.

Nichols (LSE:NICL) reported continued growth during the first half of 2026, with group revenue rising 4.7% to £89.5 million and adjusted operating profit increasing 3.7% to £14.1 million. Revenue growth was delivered across all business divisions, while statutory operating profit jumped more than 35% as exceptional ERP-related costs recorded in the previous year did not recur. Strong gross margins and record operating cash flow also helped lift cash and cash equivalents to £66.2 million.

The UK Packaged division generated value growth through wider distribution, product innovation and stronger sales in the energy drinks and carbonates categories. International Packaged recorded double-digit revenue growth, supported by robust demand across Africa and a successful Ramadan trading period in the Middle East. Meanwhile, the Out of Home business achieved modest revenue growth through profitable customer wins in premium food venues and cinemas. The company also began benefiting from efficiency improvements linked to its ERP system rollout and the consolidation of its UK distribution network.

Reflecting its strong cash generation, Nichols increased its interim dividend by 34.7% to 20.2p per share after introducing a revised dividend policy that reduces dividend cover to 1.5 times adjusted earnings. The company also expanded its presence in the fast-growing functional beverages market through the launch of Myprotein Clear Whey Protein Water in partnership with THG, reinforcing its focus on innovation and adjacent growth opportunities.

Management said the business remains well positioned for sustainable long-term growth, supported by improving international margins as concentrate production shifts closer to customers in Africa and by a strong balance sheet that provides flexibility for future investment. The board left full-year guidance unchanged and reiterated confidence in delivering its medium-term financial objectives despite ongoing geopolitical and macroeconomic uncertainty.

Nichols’ outlook continues to be supported by strong profitability, healthy margins and a balance sheet with minimal debt. While technical indicators remain weaker, reflecting a broader downward share price trend and negative momentum, the company’s attractive valuation, solid dividend yield and recent operational progress provide positive support for the investment case.

About Nichols

Nichols plc is a diversified soft drinks company founded in 1908 and best known for its flagship Vimto brand. The group operates across three core divisions—UK Packaged, International Packaged and Out of Home—offering a broad portfolio of carbonated soft drinks, energy beverages, dispense solutions and functional drinks. Its products are sold across a wide range of international markets, with particularly strong positions in Africa and the Middle East.

The company continues to focus on expanding its branded drinks portfolio through innovation, strategic partnerships and wider distribution while increasing its exposure to faster-growing categories such as health, wellness and functional beverages. Supported by strong cash generation and a robust balance sheet, Nichols aims to deliver sustainable long-term growth while continuing to invest in its brands and enhance shareholder returns.

SDI Group (LSE:SDI) reported strong results for the year ended 30 April 2026, with revenue increasing 12.6% to £74.5 million, driven by a combination of organic growth and contributions from recently acquired businesses. Adjusted operating profit rose 16.1% to £11.6 million, while operating margins improved as the company benefited from healthy demand across its core markets and increasing collaboration between businesses within the group.

During the year, SDI continued to expand through acquisitions, completing the purchases of Severn Thermal Solutions and PRP Optoelectronics as part of its long-term buy-and-build strategy. The company also renewed its £25 million revolving credit facility, which includes a £15 million accordion option, providing additional financial flexibility to pursue future acquisition opportunities. Management said the group enters the new financial year with strong momentum, supported by a broader market presence, a growing pipeline of opportunities and a strategy designed to deliver sustainable long-term shareholder value.

While SDI’s financial performance and growth strategy remain key strengths, the company noted that technical market indicators continue to be less supportive and valuation appears more balanced. Continued revenue growth, successful acquisitions and positive operational performance provide a solid foundation for future expansion, although competitive market conditions and higher borrowing levels following acquisitions remain factors to monitor.

About SDI Group

SDI Group plc owns and operates a portfolio of specialist industrial and scientific technology businesses focused on laboratory equipment, sensing technologies and other niche instrumentation products. Its subsidiaries supply customers across a wide range of industries, including aerospace, defence, semiconductor manufacturing, precision engineering, life sciences, healthcare and astronomy.

The group’s strategy centres on acquiring profitable, specialist technology companies with established positions in their respective markets while allowing them to retain operational independence. SDI supports its businesses with financial resources, strategic guidance and opportunities for collaboration across the wider group, aiming to generate long-term growth through a combination of organic expansion and carefully selected acquisitions.

Mobico Group (LSE:MCG) reported audited results for the extended 15-month period ended 31 March 2026, with adjusted revenue increasing 5.9% year over year to £3.42 billion and adjusted operating profit rising to £231 million. The improvement was driven by strong trading at Alsa and the return of full rail services in Germany, although tougher competition in the UK coach market continued to pressure passenger volumes and ticket yields.

Statutory operating profit declined to £12 million after the business recognised a range of one-off non-cash items, including asset impairments and higher provisions. The group also reported a statutory loss before tax of £89.2 million. Despite these charges, Mobico maintained a stable covenant leverage ratio of 2.9x and ended the period with liquidity of £0.8 billion, supported by £242 million in net cash and an undrawn £600 million revolving credit facility.

Management said it had made further progress in simplifying the business, completing the disposal of NASB and National Express Transport Solutions while securing revised agreements with German public transport authorities that are expected to improve future EBITDA. The company is also continuing to monetise selected UK Bus assets ahead of franchising changes. During the reporting period, Mobico won 28 new contracts with annualised revenue of £109 million and a combined contract value of £682 million, highlighting continued momentum in new business.

Reflecting improved trading, Mobico increased its adjusted operating profit guidance for calendar year 2026 to between £215 million and £230 million. The company also reaffirmed its target of delivering £100 million in annualised operating cost savings while reducing capital expenditure to below £120 million by 2027. Although debt reduction remains a key priority, legacy liabilities continue to slow deleveraging efforts, prompting the group to work with advisers on strategic and financial initiatives aimed at accelerating balance sheet improvement. Further updates are expected later this year.

Mobico’s outlook remains influenced by ongoing financial challenges, including statutory losses, negative equity and inconsistent free cash flow generation. However, these concerns are partly balanced by improving operational performance, a more constructive earnings outlook driven by cost-saving initiatives and debt reduction plans, and gradually strengthening technical indicators. Valuation remains constrained while earnings remain negative.

About Mobico Group

Mobico Group is an international public transport operator providing bus, coach and rail services across the UK, the United States, continental Europe, North Africa and the Middle East. The company operates a combination of contracted and commercial passenger transport services through businesses including Alsa, UK Bus and Coach, German rail operations and a range of mobility services in the U.S.

Its portfolio includes urban and regional bus networks, long-distance coach services and rail operations, serving both public-sector transport authorities and commercial passengers. Mobico focuses on delivering reliable, efficient and sustainable transport solutions while competing across regulated and deregulated markets through operational expertise, broad network coverage and long-term transport partnerships.

Hargreaves Services (LSE:HSP) reported strong results for the year ended 31 May 2026, with revenue increasing 32.9% to £351.4 million and underlying profit before tax rising to £34.0 million, almost double the previous year’s figure. Statutory profit before tax reached £40.3 million, marking the company’s highest level in twelve years, while basic underlying earnings per share climbed 75% to 79.1p. The performance was supported by growth across the Services division, Hargreaves Land and its German joint venture.

The Services business recorded its fifth consecutive year of double-digit growth, benefiting from increased activity on major UK infrastructure projects and an expanding portfolio of more than 75 term and framework agreements. These contracts provide visibility over more than 70% of the division’s anticipated revenue for the coming financial year. Hargreaves Land also achieved a significant milestone by completing its first sales of renewable energy development sites, generating proceeds of £15.6 million and supporting a £20 million capital return to shareholders through a tender offer. Meanwhile, the German joint venture delivered stronger profits and cash generation, enabling the board to recommend a higher final dividend of 20.5p while maintaining the group’s debt-free balance sheet.

Hargreaves’ outlook continues to be supported by strong financial performance, healthy cash generation and a conservative balance sheet with no debt. Technical indicators also remain favourable, with the shares trading above key moving averages and momentum remaining positive. The company’s valuation is further strengthened by a relatively low price-to-earnings ratio and an attractive dividend yield. Management’s commitment to shareholder returns and continued operational momentum provides additional confidence, although progress at renewable energy developments and the zinc project remains subject to execution and timing risks.

About Hargreaves Services

Hargreaves Services plc is a diversified UK-based group operating across the environmental, infrastructure and property sectors, with activities spanning the United Kingdom, South East Asia and a joint venture in Germany. Its operations are organised into three core divisions: Services, which provides materials handling, engineering, logistics and earthworks for infrastructure, environmental and clean energy projects; Hargreaves Land, which develops brownfield land for residential, commercial and renewable energy uses; and HRMS in Germany, which specialises in commodity trading and steel recycling through its interest in DK Recycling und Roheisen.

The group has established a strong presence on major UK infrastructure projects, including HS2 and Sizewell C, and has recently secured additional work linked to the Lower Thames Crossing and engineering projects at Drax Power Station. Alongside its infrastructure activities, Hargreaves is expanding the value of its land portfolio through renewable energy developments while benefiting from improving profitability and cash generation at its German joint venture, supporting its long-term strategy of delivering sustainable growth and shareholder value.

Kooth (LSE:KOO) expects to report revenue of £30.8 million for the six months ended 30 June 2026, compared with £32.1 million in the same period last year. The modest decline reflects the planned reduction in California product development income and the impact of unfavourable foreign exchange movements. Despite lower revenue, adjusted EBITDA is forecast to increase significantly to between £5.0 million and £5.4 million, up from £1.6 million a year earlier, driven by strong engagement with its California programmes and the benefits of previous investment. Unaudited net cash also strengthened to £23.1 million.

The company reported continued progress during the fourth year of its California contract, where its Soluna platform has now reached 187,000 registrations. Kooth said the programme has received independent recognition from California state authorities and academic research and has also been included in Governor Gavin Newsom’s Children and Youth Behavioral Health Initiative. In the UK, the company is expanding its reach through a new integrated employment and mental health pathfinder programme in the West Midlands while also extending the rollout of Soluna to students. These initiatives support Kooth’s strategy of driving long-term growth through its State Alliance model and deeper partnerships with public health and education organisations.

Improved profitability and a stronger cash position, together with increasing recognition of its digital mental health platforms within government-backed programmes, further strengthen Kooth’s position in the sector. The company believes growing adoption by public-sector organisations provides a solid platform for future expansion ahead of the release of its full half-year results in September 2026.

Kooth’s outlook continues to be supported by strong financial quality, including a debt-free balance sheet and improving profitability, alongside an attractive valuation based on earnings. These strengths are partially offset by softer revenue and cash flow compared with 2024, while technical indicators suggest the shares may be approaching overbought levels despite maintaining a positive longer-term trend.

About Kooth

Kooth Plc is an AIM-listed provider of digital mental health services specialising in support for children, teenagers and young adults. The company delivers accessible online mental health platforms across the UK and several U.S. states, including California, Michigan and New Jersey, while continuing to expand services such as its Soluna platform into education and employment-focused programmes.

Operating within the growing digital healthcare sector, Kooth works with government agencies, healthcare providers, schools and community organisations to deliver preventative and accessible mental health support. Its strong financial position enables continued investment in product innovation, platform development and international growth.

Celebrating its 25th anniversary, Kooth continues to strengthen its role in publicly funded behavioural health initiatives. As its services become more deeply embedded within government-supported programmes, the company is expanding its presence as a long-term partner in improving youth mental health and supporting participation in education and employment.