Author: Fiona Craig

UK stocks opened the week on a positive note Monday, with the FTSE 100 edging higher while the pound continued to lose ground against the U.S. dollar. As of 08:04 GMT, the blue-chip index was up 0.2%, while sterling slipped 0.2% to trade just above $1.31.

Across Europe, markets were mixed — Germany’s DAX gained 0.3%, while France’s CAC 40 fell 0.2%.

UK Market Highlights:

• Ryanair Holdings PLC (LSE:0RYA) reported a 42% rise in first-half profit to €2.54 billion, buoyed by strong summer demand. Second-quarter profit after tax climbed 20% to €1.72 billion from €1.43 billion a year earlier, while revenue rose 13% to €9.82 billion on a 3% increase in passenger traffic to 119 million. The airline noted a 13% rise in average fares to €58 but cautioned that tougher comparisons and geopolitical risks could weigh on second-half results.
• Optima Health PLC (LSE:OPT) posted first-half fiscal 2026 revenue of roughly £59 million, up 17% year over year from £50.8 million. The company reaffirmed that it is on track to meet consensus estimates, targeting full-year revenue of around £125.4 million.
• Empiric Student Property PLC (LSE:ESP) said it had reached 89% occupancy for the 2025/26 academic year, with like-for-like rental growth of 4.5%. The company noted slower booking activity since early September, citing lower Chinese student numbers and supply-demand imbalances in key cities such as Nottingham, Sheffield, and Glasgow — making its 97% occupancy target difficult to achieve.
• BP PLC (LSE:BP.) announced a $1.5 billion deal to sell minority stakes in its U.S. onshore midstream assets to private investor Sixth Street. The assets include BP’s pipelines and processing facilities in the Eagle Ford and Permian basins — Grand Slam, Bingo, Checkmate, and Crossroads — which link wells to third-party pipeline systems.

The mixed tone in Europe came as investors assessed a busy week ahead for corporate earnings and central bank commentary, while currency traders watched the pound’s continued weakness following last week’s decline.

Optima Health (LSE:OPT) reported first-half fiscal 2026 revenue of approximately £59 million, up 17% from £50.8 million in the same period a year earlier. The company said it remains on track to meet market expectations for the full year, with analysts forecasting total revenue of around £125.4 million.

During the first half, Optima completed two strategic acquisitions to expand its operations and strengthen its service portfolio. In April, the company acquired Cognate Health for €9 million, marking its entry into Ireland and extending its international footprint. The business, now rebranded as Optima Health Ireland, operates roughly 30 clinic sites and is expected to contribute between £6 million and £7 million in annualized revenue.

In May 2025, Optima also completed the £15,000 acquisition of Care First, which added Employee Assistance Program (EAP) capabilities to its platform, contributing an estimated £3.7 million in yearly revenue.

New business wins for the period totaled approximately £1.9 million on an annualized basis, down from £3.6 million in the first half of fiscal 2025. The company is currently mobilizing its £210 million contract to provide medical assessment services for the UK Armed Forces, which began in April 2025. Full service delivery is expected to commence by early 2027.

Optima reported a solid financial position, with net debt of about £4.7 million and cash reserves of £8.3 million as of the end of the reporting period.

BP Plc (LSE:BP.) traded higher on Monday after revealing a $1.5 billion agreement to divest minority stakes in its U.S. midstream operations to private investment firm Sixth Street — a deal analysts say will reduce leverage slightly and help unlock balance sheet value.

The transaction covers BP’s onshore pipeline and processing assets in the Eagle Ford and Permian basins. This includes four key central facilities in the Permian — Grand Slam, Bingo, Checkmate, and Crossroads — which link production sites to third-party pipeline networks.

The sale will take place in two tranches: roughly $1 billion will be paid at signing, with the balance expected before year-end, pending regulatory approval.

Once completed, BP’s ownership in the Permian midstream system will fall from 100% to 51%, and its stake in the Eagle Ford assets will decline from 75% to 25%. Sixth Street will hold the remaining interests, though BP will continue to operate all assets.

BP expects the deal to boost non-controlling interests on its balance sheet and generate an annual income statement benefit of between $100 million and $200 million. The divestment also advances BP’s goal of securing $20 billion in asset sales by the end of 2027, a target laid out during its February Capital Markets Update.

UBS called the transaction a modest positive, citing the valuation uplift and an implied 1.1% reduction in leverage. The bank noted the estimated earnings contribution values the deal at around 10x earnings — broadly in line with BP’s own fiscal 2026 multiple and slightly below the 10x to 15x range typical for independent operators. UBS also anticipates the full payout to be completed before year-end.

Morgan Stanley & Co. LLC acted as financial adviser to BP, while Hunton Andrews Kurth LLP served as lead legal counsel.

Frasers Group Plc (LSE:FRAS) came under pressure after RBC Capital Markets cut its rating on the stock to “sector perform” from “outperform,” cautioning that the retailer’s strong share price rally has left “less to play for on valuation.” Shares slipped 1.5% in early trading at 08:22 GMT.

Despite the downgrade, RBC lifted its price target to 800p from 775p, reflecting an updated valuation outlook. Frasers shares last closed at 729p, up about 24% since the start of the year.

In a research note dated Monday, RBC analysts led by Richard Chamberlain said Frasers remains “one of the more diverse and resilient retailers in the sector,” but warned that “its valuation is likely to continue to be constrained by a lack of liquidity.” The analysts also removed the firm’s “Speculative Risk” designation, citing Frasers’ “diversity and robust balance sheet.”

RBC credited the company — which owns Sports Direct, Flannels, and House of Fraser — for maintaining a strong competitive position but noted that “its relative complexity and lack of liquidity may continue to weigh on its valuation.” The analysts added, “Following a strong run in the share price, we think there is now less valuation upside compared to some other retailers in the sector, e.g., Dunelm.”

The brokerage forecasts adjusted profit before tax of £573 million for FY26, up 2% year on year, and adjusted earnings per share of 99.5p, compared with 98.1p in FY25. Revenue is projected to rise 10% to £5.42 billion in FY26 and £5.60 billion in FY27. Frasers has guided for “a relatively stable outcome for PBT for FY26 as it is battling to offset £50mn of UK cost headwinds.”

RBC’s new 800p price target is derived from a discounted cash flow valuation of £7.60 per share and a sum-of-the-parts analysis of £8.40 per share, using a 9% weighted average cost of capital and a 1% terminal growth rate. The analysts’ downside scenario assumes a share price of 450p, while an upside case of 1,050p would require stronger revenue and margin performance.

While the firm acknowledged Frasers’ solid fundamentals, it said valuation upside has narrowed as the shares now trade around 7.5x CY26e EV/EBIT, toward the lower end of their historical range. “We mark to market our SOTP and roll forward our DCF, including stakes in other retailers, and come to an implied share price of c.800p,” RBC said.

Frasers continues to invest in its five core own brands — Everlast, Jack Wills, USA Pro, Slazenger, and Karrimor — which together generate more than half of its own-brand sales. The group is also expanding its Flannels luxury arm and introducing AI-driven retail and media tools to improve operational efficiency and profitability.

RBC concluded that Frasers’ diversified portfolio and strong balance sheet offer resilience, but recent share price gains have largely priced in the near-term potential. “There is now less valuation upside,” the analysts wrote, signaling a pause in momentum after a year of strong performance.

Brave Bison (LSE:BBSN) has submitted a non-binding proposal to acquire M&C Saatchi Performance for £50 million, as part of its strategy to create one of the largest independent performance marketing businesses outside the United States. The proposed deal would integrate M&C Saatchi Performance with Brave Bison’s existing operations, expanding its reach across key markets in the UK and Asia-Pacific.

If completed, the acquisition is expected to enhance Brave Bison’s scale and profitability, potentially boosting adjusted EBITDA by more than 80%. The transaction would be financed through a combination of a new bank facility and a share placement. However, the company emphasized that there is currently no certainty that the deal will proceed.

Brave Bison’s financial outlook remains strong, underpinned by solid profitability, a robust balance sheet, and stable valuation metrics. While technical indicators show limited momentum, the company’s disciplined growth strategy and acquisition ambitions support a broadly positive market view.

More about Brave Bison

Brave Bison is a global marketing and technology company partnering with major international brands across eight countries, including the UK, India, Australia, and Egypt. The group operates through two main divisions — Digital Services and Digital Content.

The Digital Services division provides expertise in performance media, social and influencer marketing, and strategic insights, working with clients such as New Balance, Primark, and Google. The Digital Content division focuses on monetizing digital media through advertising and education, including the company’s own media network and the MiniMBA training platform for marketing professionals.

M&C Saatchi PLC (LSE:SAA) has confirmed that it received an unsolicited acquisition proposal from Brave Bison Plc for its M&C Saatchi Performance division. After careful consideration, the Board concluded that the offer significantly undervalued the division, which plays a central role in the company’s long-term growth strategy. As a result, the Board has declined the approach, and no further discussions are taking place.

The company reaffirmed its commitment to enhancing shareholder value through strategic execution and operational focus rather than divestiture.

M&C Saatchi’s outlook reflects solid financial improvements, particularly in profitability and cash generation, although these strengths are partially offset by bearish technical signals and a relatively high valuation. The absence of recent earnings or corporate event updates limits additional visibility into near-term performance.

More about M&C Saatchi plc

M&C Saatchi plc is a global creative and communications company specializing in brand strategy, advertising, PR, consulting, and media services. With major operations across the UK, Europe, the Middle East, Asia-Pacific, and the Americas, the group helps clients maximize brand reach and business potential through data-driven creativity. M&C Saatchi is listed on the FTSE AIM index of the London Stock Exchange.

Anglo Asian Mining plc (LSE:AAZ) has finalized a copper concentrate sales agreement with global commodities trader Trafigura, covering production from its Demirli mine in Karabakh, Azerbaijan. The deal includes a $25 million revolving prepayment facility, providing additional liquidity to support the company’s growth initiatives.

The Azerbaijani government has granted all necessary licenses for the operation of the Demirli processing plant and tailings dam, marking a key milestone in Anglo Asian’s expansion strategy. The first shipment of copper concentrate is expected to take place by mid-November 2025, strengthening the company’s production base and revenue potential.

While Anglo Asian continues to face financial challenges, including weak profitability and valuation pressures, short-term technical indicators point to mild bullish momentum. The agreement with Trafigura and the operational ramp-up at Demirli position the company for improved output and strategic progress in the coming quarters.

More about Anglo Asian Mining plc

Anglo Asian Mining plc is an established copper and gold producer with a diverse portfolio of producing and exploration assets in Azerbaijan. In 2024, the company produced 377 tonnes of copper and 15,073 ounces of gold, followed by 3,475 tonnes of copper and 18,912 ounces of gold in the first nine months of 2025.

Anglo Asian aims to evolve into a multi-asset, mid-tier copper and gold producer by 2030, with copper expected to become its primary revenue driver as new projects come online and production capacity expands.

EnSilica plc (LSE:ENSI) has announced major operational progress, marked by new customer contract wins and project milestones that underscore the company’s execution strength and expanding market footprint. The company recently secured more than £1.6 million in new contracts spanning feasibility studies and design services, each with strong potential for future revenue growth.

A notable achievement includes the successful delivery of over ten million ASICs to a leading premium automotive manufacturer, demonstrating EnSilica’s ability to scale production and generate recurring income. The company also continues to advance projects in high-growth sectors such as space communications and has developed an enhanced RF vehicle tolling prototype chip, further strengthening its position in specialized semiconductor markets.

While EnSilica’s valuation remains constrained by its current lack of profitability and a negative P/E ratio, strong contract momentum, improving cash flow, and strategic expansion initiatives highlight its long-term growth potential. Technical indicators show modest positive momentum, supported by a series of encouraging corporate developments.

More about EnSilica plc

EnSilica plc is a leading fabless semiconductor design company specializing in custom ASIC design and supply for OEMs and system houses worldwide. The company provides advanced RF, mmWave, mixed-signal, and digital integrated circuit (IC) solutions for clients in the automotive, industrial, healthcare, and communications sectors.

Headquartered near Oxford, UK, EnSilica operates additional design centers in India, Brazil, and Hungary, serving a global customer base with innovative, high-performance chip design and engineering expertise.

Renalytix (LSE:RENX) has released its audited financial results for fiscal year 2025, reporting a 30% increase in total revenues to $3 million and a 54% reduction in underlying EBITDA loss. The company credited these gains to enhanced operational efficiency, including a 50% cut in laboratory test turnaround time, and to new strategic collaborations with Tempus AI and MVP Health Care aimed at broadening access to its kidneyintelX.dkd diagnostic test.

These initiatives reinforce Renalytix’s leadership position in chronic kidney disease (CKD) diagnostics and pave the way for further expansion into additional U.S. markets. The company also continues to integrate its technology with major electronic medical record systems to streamline patient identification and increase test adoption across healthcare providers.

Although Renalytix’s financial position remains strained, with ongoing losses and liquidity pressures, the recent improvements and strategic partnerships highlight meaningful progress toward long-term sustainability. Market sentiment remains cautious given valuation and solvency concerns, but operational momentum offers a basis for optimism.

More about Renalytix

Renalytix is an AI-enabled diagnostics company dedicated to improving clinical management of chronic kidney disease. Its flagship product, kidneyintelX.dkd, is an FDA-approved and Medicare-reimbursed prognostic tool that supports early risk assessment and personalized treatment planning for CKD patients.

Operating primarily in the United States, Renalytix partners with large physician networks and healthcare systems to expand access to advanced kidney diagnostics and enhance patient outcomes through data-driven innovation.

Fusion Antibodies plc (LSE:FAB) has successfully validated its OptiMAL® platform, achieving a major milestone in its collaboration with the U.S. National Cancer Institute (NCI). The validation confirms the platform’s ability to isolate specific antibodies against both protein and peptide targets, significantly broadening its potential applications in therapeutic antibody discovery.

The company is preparing for the commercial launch of OptiMAL® in December 2025, positioning the platform as a next-generation solution in the antibody engineering market. The NCI has expressed interest in extending its partnership with Fusion, reflecting confidence in OptiMAL®’s capabilities and commercial promise.

Despite this scientific progress, Fusion Antibodies continues to face financial challenges, including persistent losses and limited cash flow. Technical indicators point to bearish momentum, and valuation metrics underscore ongoing unprofitability. Nevertheless, the company’s pipeline and partnerships offer a foundation for potential long-term recovery.

More about Fusion Antibodies plc

Fusion Antibodies plc is a Belfast-based contract research organization specializing in advanced antibody engineering services for therapeutic and diagnostic use. Founded in 2001 as a spin-out from Queen’s University Belfast, the company provides end-to-end services in antibody generation, development, characterization, and optimization.

Fusion’s global client base includes eight of the world’s top ten pharmaceutical companies, and it continues to focus on accelerating biologic drug development through innovative technologies such as its OptiMAL® platform.