Author: Fiona Craig

Airbus (EU:AIR) and Leonardo (BIT:LDO) are investigating a coating issue affecting around 500 A321neo aircraft, according to people familiar with the matter, as engineering teams work to identify the cause and support repairs.

Airbus confirmed the quality issue on Friday following an earlier report by the Air Current. According to the sources, the problem was discovered after an Airbus technician removed paint from a fuselage component and identified gaps in the protective primer underneath.

Engineering teams from Airbus and Leonardo are working at coatings supplier TESI, a Leonardo subcontractor located south of Naples, as part of the investigation and recovery effort.

The cause of the coating issue has not yet been identified, according to the sources.

TESI did not respond to requests for comment. Airbus declined to identify the suppliers involved. Leonardo confirmed that TESI is one of its suppliers but did not say whether the company is involved in its Airbus-related work.

Issue Affects A321neo Fuselage Stringers

The problem involves stringers, structural reinforcing components located in a section of the A321neo’s forward fuselage.

Airbus uses two suppliers for the relevant fuselage section: Leonardo and its internal supplier Airbus Atlantic, formerly known as Stelia. Airbus Atlantic also has overall responsibility for the forward section of the aircraft, according to the sources.

Leonardo has one supplier for the coatings involved, the sources said.

Airbus has said approximately 500 aircraft are affected, including about 250 at different stages of production. The company said the issue does not affect aircraft safety.

Airlines Given Two Years to Complete Repairs

Airlines that continue accepting deliveries of affected aircraft will have two years to complete the required repair, rather than following the usual four-year maintenance cycle, according to the sources.

The work is expected to take up to nine days, including approximately two to three days for the main repair.

The affected components will not need to be removed from the fuselage panel, reducing the extent of the required work compared with scenarios that had been considered by some analysts.

The primer is intended to protect against corrosion that can develop over time in the lowest part of the aircraft fuselage, an area known as the “bilge”, where moisture can accumulate.

Its absence does not represent an immediate safety risk for a new aircraft, according to the source.

Supply Chain Remains in Focus

The coating issue is the second fuselage-related problem to affect Airbus in less than a year and comes as the manufacturer works to increase aircraft deliveries during the second half of 2026.

Aviation analyst Rob Morris said the incident illustrated the continuing sensitivity of aircraft manufacturing to individual suppliers.

“The supply chain is still not under control; we thought it was but it isn’t,” Morris said.

“It just takes one company and suddenly you have a problem.”

Airbus reaffirmed its 2026 aircraft delivery target on Friday.

Capricorn Energy (LSE:CNE) shares fell after DNO ASA confirmed it will not increase its revised all-cash offer of $5.214 per Capricorn share following a higher competing proposal from Genel Energy (LSE:GENL).

DNO and its subsidiary DNO Bidco said on 28 September that the financial terms of their revised offer are final and will not be increased. The announcement follows DNO’s revised all-cash proposal announced earlier in September.

DNO Rules Out Higher Capricorn Bid

DNO said it would maintain its approach to mergers and acquisitions and confirmed that it will not elect to implement its proposed acquisition through a contractual offer.

The decision follows Genel Energy’s increased cash proposal for Capricorn announced on 25 September. Genel increased its offer to $5.74 per Capricorn share, valuing Capricorn’s fully diluted issued share capital at approximately $436 million.

Genel Bidco has secured irrevocable undertakings representing approximately 39.1% of Capricorn’s issued share capital, according to DNO’s statement.

Competing Offers Remain in Focus

DNO said it continues to evaluate investment opportunities across the North Sea, the Kurdistan Region of Iraq and other markets.

The Norwegian company also said it has had positive interactions with Egyptian authorities in connection with its Capricorn proposal and continues to consider potential investments in Egypt.

DNO additionally noted its existing relationship with Genel through the Tawke licence in the Kurdistan Region of Iraq, where the two companies are partners.

With DNO stating that its $5.214-per-share terms are final, its proposal remains below Genel’s $5.74-per-share cash offer. The competing proposals remain subject to their respective terms, conditions and applicable takeover processes.

About Capricorn Energy

Capricorn Energy is a UK-listed oil and gas exploration and production company with operations focused on Egypt.

Sanderson Design Group PLC (LSE:SDG) has received a formal shareholder requisition calling for a general meeting to consider the removal of one director and the appointment of a new board member.

The requisition was submitted by shareholder LBV Actio Limited through its nominee, Ropemaker Nominees Limited.

The proposed resolutions seek to remove Dame Dianne Thompson as a director of Sanderson Design and appoint Stephen Brooke to the board.

Board Plans to Recommend Shareholders Reject Resolutions

Sanderson Design said it is legally required to convene a general meeting in accordance with the applicable statutory deadlines following receipt of the requisition.

The board said it does not consider the proposed changes to be in the best interests of shareholders and intends to recommend that investors vote against both resolutions.

The company plans to issue a shareholder circular containing further information on the requisition, the board’s response and details of the general meeting.

Sanderson Design advised shareholders to take no action until they have received the circular.

Further Announcement to Follow

The company said a further announcement will be issued once the circular and arrangements for the general meeting have been finalised.

Shareholders will then be asked to vote on the two resolutions concerning the composition of the company’s board.

No outcome has yet been determined, and the proposed changes remain subject to the shareholder vote.

About Sanderson Design Group

Sanderson Design Group is a UK-based interior furnishings company that designs, manufactures and markets wallpapers, fabrics and paints. It also generates licensing revenue from the use of its designs across products including bed and bath collections, rugs, blinds and tableware.

The group’s portfolio includes Zoffany, Sanderson, Morris & Co., Harlequin, Clarke & Clarke and Scion. It operates UK manufacturing facilities in Loughborough and Lancaster and showrooms in London, New York and Chicago.

Sanderson Design is listed on AIM under the ticker SDG and employs approximately 500 people.

Blackbird plc (LSE:BIRD) reported an 8% decline in group revenue to £0.53 million for the first half of 2026, while reducing operating costs and progressing development of its elevate.io browser-based video editing platform.

Operating expenses fell to £1.43 million, while the company’s EBITDA loss narrowed to £0.99 million. Blackbird reported a net loss of £1.50 million for the period.

Cash burn declined 14% to £1.29 million. At the half-year end, Blackbird held £1.90 million in cash and short-term investments and reported no debt.

elevate.io Subscribers Reach 914

Blackbird continued to develop elevate.io during the period, with its commercial strategy increasingly focused on in-house corporate and marketing teams.

Management said these customers have demonstrated higher conversion and retention rates and a greater willingness to pay than individual creators.

Following the end of the reporting period, elevate.io subscribers increased to 914. The platform’s estimated annualised recurring revenue rose from £40,000 at the end of June to £91,000 by the end of September.

Annual recurring revenue from Blackbird’s legacy platform declined following previously reported contract losses.

Blackbird Expands elevate.io Features

During the first half, Blackbird added a range of functionality to elevate.io, including AI-based voice isolation, additional browser support, expanded font options and recovery points.

The company also introduced integrations covering features such as subtitles and a stock music library.

Blackbird is seeking to develop a scalable commercial model for elevate.io, with subscriber conversion and recurring revenue among the measures being used to assess the platform’s progress.

Equity Subscription Supports Cash Position

Blackbird completed a £0.50 million equity subscription in January.

The company said its cost reductions and available cash resources are intended to support continued development and commercialisation of elevate.io.

Alongside the newer platform, Blackbird continued its technology licensing and original equipment manufacturer activities. Its Blackbird platform was again used by EVS SA at a major global winter sporting event during the period.

The company also participated in trade missions and accelerator collaborations as part of its efforts to expand its market reach.

About Blackbird

Blackbird is a UK-based software company operating across video editing, media and content creation markets.

The company develops and licenses cloud-native video editing technology through its Blackbird platform and its elevate.io collaborative content creation service. It also licenses its underlying technology to third-party video companies through its Powered by Blackbird model.

Tullow Oil (LSE:TLW) reported group working interest production of 43.7 kboepd for the first half of 2026 and raised its full-year free cash flow expectations following production performance from its Ghana operations.

Revenue reached $496 million, based on realised oil prices of $95 per barrel before hedging, while gross profit was $276 million.

The company generated modestly positive free cash flow during the period. Tullow nevertheless reported a net loss, which included one-off fees associated with its refinancing activities.

Ghana Production Supports Full-Year Guidance

Tullow reported high operational uptime in Ghana, with production from the Jubilee and TEN fields exceeding its previous expectations.

The company now expects 2026 production to be at the upper end of its existing guidance range.

Tullow also increased its full-year free cash flow forecast to between $170 million and $250 million.

The group is preparing a drilling programme covering 2027 and 2028 and is progressing plans to acquire the TEN FPSO.

2P Reserves Increase to 121.7 Million Barrels of Oil Equivalent

Tullow reported an increase in 2P reserves to 121.7 million barrels of oil equivalent, with a reserves replacement ratio of more than 380%.

The company attributed the increase to factors including drilling results, licence extensions and well performance.

Licence extensions covering the company’s Ghana operations have been ratified through 2040.

Tullow is also progressing subsea pump projects, development drilling, well interventions and gas monetisation initiatives as it seeks to convert additional resources at Jubilee and TEN into reserves.

Net Debt Reduced to $1.4 Billion

Tullow reported net debt of $1.4 billion, while gearing declined to 1.9 times net debt to EBITDAX.

The company also recovered historical gas receivables from the Government of Ghana during the period.

Management said the debt reduction and receipt of the outstanding gas payments increased the group’s liquidity headroom as it continues investment across its Ghana operations.

About Tullow Oil

Tullow Oil is an independent oil and gas exploration and production company focused primarily on offshore assets in West Africa.

Its portfolio includes the Jubilee and TEN fields in Ghana, with activities spanning oil production, development drilling, gas monetisation and infrastructure-led exploration around its existing operations.