Category: Market News

Centrica (LSE:CNA) has released its interim results for the six months ended 30 June 2026, publishing the full report through its corporate website and the UK Financial Conduct Authority’s National Storage Mechanism. The energy group will also present its first-half performance to analysts and institutional investors via a live webcast, continuing its regular engagement with the investment community.

Board confirms interim shareholder payout

The board has declared an interim dividend of 2.0 pence per share, which will be paid on 22 September 2026 to shareholders on the register at the close of business on 21 August 2026. The shares will trade ex-dividend from 20 August 2026.

Centrica also confirmed that the parent company has sufficient distributable reserves to support the payment, providing reassurance over its ability to continue returning capital to shareholders.

Outlook supported by cash generation and dividend

The company’s outlook reflects a balanced financial profile. Strong revenue growth and consistently positive free cash flow continue to support the investment case, although earnings remain affected by the net loss reported during 2025 and a balance sheet that remains moderately leveraged.

Technical indicators remain broadly constructive, with the shares trading above key longer-term moving averages and momentum remaining largely neutral. Valuation also appears reasonable, supported by a moderate price-to-earnings ratio and an established dividend yield.

About Centrica

Centrica plc is a UK-based energy company operating across the utilities sector, supplying gas, electricity and related energy services to residential and business customers. The group has a significant presence in the UK energy market and continues to focus on delivering reliable energy supply while generating sustainable returns for shareholders.

Eleco (LSE:ELCO) reported a strong first-half performance, achieving record annualised recurring revenue as demand for its software portfolio continued to grow. Annualised recurring revenue (ARR) increased 16% to approximately £35.5 million, while organic ARR rose 23%, marking a new high for the group. Total recurring revenue climbed 14% to around £16.9 million and now accounts for 85% of overall revenue. Headline revenue also increased 8% to approximately £19.9 million, supported by solid organic growth and healthy cash generation.

AI innovation and portfolio reshaping strengthen strategic focus

The company ended the period debt-free with cash of £15.4 million, demonstrating strong financial discipline despite acquisition-related spending, dividend payments and other non-operational cash outflows.

During the first half, Eleco streamlined its business by disposing of its non-core Veeuze visualisation unit, allowing management to concentrate on its core software operations. The group also expanded its artificial intelligence offering through the launch of Asta Vision Plus and Asta Estimate, while Pemac continued to grow its presence in the US medical manufacturing market. In addition, the business completed its rebranding under the Eleco name to strengthen its identity across international markets.

Strong balance sheet supports long-term outlook

Eleco’s outlook remains underpinned by a strong financial position, with no debt, robust free cash flow generation and continued recurring revenue growth providing a solid platform for future expansion. However, these strengths are partly offset by a significant decline in net income recorded during 2025.

From a technical perspective, the shares continue to exhibit positive long-term momentum, although indicators suggest the stock is approaching overbought territory. Valuation appears broadly in line with the wider market, while investors also benefit from a modest dividend yield.

About Eleco

Eleco plc is an AIM-listed software provider focused on the built environment, offering solutions for project management, estimating, building information modelling (BIM), property management and facilities management. Through brands including Eleco, Elecosoft, BestOutcome, Pemac and Eleco Technologies, the company delivers software supporting every stage of the building lifecycle.

Its products are used by customers across construction, engineering and asset-intensive industries from project planning and design through construction, fit-out and long-term facilities management, helping organisations improve digitalisation, efficiency and regulatory compliance.

Anglo American (LSE:AAL) delivered a steady operational performance during the second quarter, maintaining copper production at 173,200 tonnes while premium iron ore output declined only modestly following planned maintenance at Kumba and lower grades at Minas-Rio. The miner also reduced its 2026 unit cost guidance for its copper operations in Chile and Peru, lowering overall production costs through stronger by-product credits and continued cost discipline despite rising fuel and consumables expenses linked to geopolitical tensions in the Middle East.

Asset reshaping continues alongside operational progress

Production increased significantly across the manganese and rough diamond businesses, while steelmaking coal and nickel volumes were broadly flat to slightly lower. Preliminary guidance indicates that both the De Beers and steelmaking coal divisions are expected to report negative underlying EBITDA for the first half of the year.

Anglo American also continued to execute its portfolio transformation strategy. During the quarter, the company agreed the sale of its Australian steelmaking coal business, progressed planned divestments of its De Beers and nickel operations, and continued advancing the proposed merger with Teck. The transaction is intended to strengthen Anglo American’s position as a copper-focused mining company while reducing its exposure to non-core assets.

Mixed financial backdrop balanced by strategic momentum

The company’s outlook continues to reflect weaker recent financial performance, with declining revenue and consecutive net losses weighing on sentiment. However, positive free cash flow generation, ongoing cost-saving initiatives and progress on debt reduction provide important support.

Technical indicators also remain favourable, with the shares continuing to trade above key moving averages and maintaining positive momentum. Management commentary highlighted continued operational improvements and strategic progress, although valuation remains mixed due to the company’s negative price-to-earnings ratio despite an attractive dividend yield.

About Anglo American

Anglo American is a global diversified mining company producing copper, premium iron ore, manganese, diamonds, steelmaking coal and nickel. The group is repositioning its portfolio towards higher-margin commodities that are expected to benefit from long-term demand trends, particularly copper, while divesting businesses that are considered non-core to its future strategy.

Fonix plc (LSE:FNX) delivered another year of growth in FY26, reporting higher profitability, rising payment volumes and continued strong cash generation. Gross profit increased 12.9% to £21.0 million, while adjusted EBITDA rose 11.0% to £16.2 million, slightly ahead of market expectations. Total payment volume grew 8.0% to £303.3 million, enabling the company to increase its final dividend and launch a £2.0 million share buyback programme, highlighting the board’s confidence in the group’s financial position.

International expansion gathers pace with new product launches

During the year, Fonix strengthened partnerships with major UK media customers including Global and ITV while continuing to expand across Europe. The company launched commercial operations in Portugal, began pilot programmes in Switzerland and continued building its presence in France as well as a fifth European market.

Product innovation also remained a key growth driver. Fonix expanded the rollout of its PayFlex platform, advanced trials of its RichMessaging solution and continued promoting its award-winning CompsPortal offering. Combined with 100% platform uptime throughout the year, these developments position the business for further growth in FY27 as it broadens its international reach and enhances its mobile engagement services.

Strong financial position supports outlook

Fonix enters the new financial year with solid underlying financial momentum, supported by growing profitability, healthy cash generation and an attractive valuation. Recent strategic developments, including international expansion and continued shareholder returns through dividends and share buybacks, reinforce confidence in the company’s long-term growth strategy.

Technical indicators point to positive short-term momentum, although longer-term resistance levels could limit further gains. While management has provided limited additional commentary beyond the trading update, the company’s operational progress and expanding pipeline suggest continued opportunities for growth.

About Fonix

Fonix plc is a London-based provider of mobile payments and messaging technology, enabling organisations to generate revenue and increase customer engagement through mobile channels. Founded in 2006, the company serves clients across the media, charity, entertainment and enterprise sectors, including ITV, Global, Bauer Media, RTÉ, Comic Relief and BBC Children in Need. Its technology platform focuses on delivering secure, consumer-focused mobile payment and communication solutions.

RELX (LSE:REL) delivered a strong set of first-half results for 2026, with underlying growth across all four of its core divisions helping lift revenue, profitability and shareholder returns. Revenue increased to £4.87 billion, representing 7% underlying growth, while adjusted operating profit rose 9%, pushing the adjusted operating margin up to 35.5%. Adjusted earnings per share climbed 11% at constant currency, reported EPS reached 65.7p, and the interim dividend was increased by 7% to 20.9p. The group also maintained strong cash conversion, with net debt standing at 2.3 times EBITDA.

AI and analytics strategy continues to support expansion

Management highlighted broad-based growth across the Risk, Scientific, Technical & Medical, Legal and Exhibitions divisions, reflecting continued demand for higher-value analytics and decision-support solutions. The company said its long-standing investment in artificial intelligence continues to enhance its products, improve customer offerings and increase operational efficiency through lower costs.

RELX also remained active on capital allocation during the period, completing £103 million of acquisitions while continuing progress on its £2.25 billion share buyback programme. The company reaffirmed its expectation of delivering another year of strong underlying growth in revenue, operating profit and earnings per share, while maintaining its leading environmental, social and governance credentials, including its long-standing AAA MSCI rating.

Strong fundamentals underpin positive outlook

RELX’s outlook remains supported by robust financial performance, including high operating margins, strong free cash flow generation and positive management guidance, alongside ongoing capital returns to shareholders through dividends and share buybacks.

These strengths are balanced against weaker technical indicators, with the shares currently trading in a broader downtrend and exhibiting negative momentum signals. Investors also continue to monitor balance sheet leverage, although the company’s valuation remains broadly supportive relative to its long-term growth profile.

About RELX

RELX plc is a global provider of information-based analytics, data and decision-support tools serving professional and business customers. The company operates across risk management, scientific, technical and medical publishing, legal information and exhibitions, increasingly focusing on higher-growth analytics platforms that combine proprietary content, large datasets and advanced technologies, including artificial intelligence.

Auction Technology Group (LSE:ATG) reported solid trading during the third quarter, prompting management to increase its full-year revenue growth guidance. Pro forma revenue at constant currency rose 7.8%, supported by continued strength in the Arts & Antiques division, where LiveAuctioneers delivered robust performance alongside strong momentum at Chairish. The company also maintained healthy cash generation, with disciplined capital allocation helping reduce adjusted net debt to adjusted EBITDA to 1.7 times.

Improved guidance reflects confidence in growth strategy

Following the stronger-than-expected performance, Auction Technology Group increased its full-year revenue growth forecast to between 5.5% and 6.5%. The company maintained its adjusted EBITDA margin guidance of 34.5% to 35.5%, although management expects margins to finish towards the lower end of that range as higher revenue from lower-margin value-added services and a full year’s contribution from Chairish influence profitability.

The group also reaffirmed expectations for solid free cash flow generation and forecast leverage to decline to around 1.5 times by the end of the financial year, highlighting confidence in the resilience of its marketplace platform despite ongoing softer trading within its Industrial & Commercial business.

Mixed financial backdrop despite positive operational momentum

Auction Technology Group’s outlook reflects a combination of encouraging operational performance and continuing financial challenges. Revenue growth and a stable balance sheet provide a supportive foundation, while technical indicators remain favourable, with the shares continuing to trade in an established uptrend supported by positive MACD signals.

However, recent losses and weaker free cash flow growth continue to weigh on the investment case. Momentum indicators also suggest the shares may be approaching overbought territory, increasing the potential for near-term volatility. Valuation remains difficult to assess due to the company’s negative price-to-earnings ratio and the absence of a dividend.

About Auction Technology Group

Auction Technology Group plc operates a portfolio of ten online marketplaces serving the Arts & Antiques and Industrial & Commercial sectors. Using proprietary technology, the company connects millions of buyers and sellers worldwide, helping digitise fragmented auction and fixed-price markets. Its operations span North America, the UK, Germany and Mexico, supporting the sale of unique and specialist items through scalable online platforms.

Serica Energy (LSE:SQZ) has strengthened its financial position after securing an oversubscribed six-year senior secured reserves-based lending (RBL) facility worth $750 million. The UK-focused oil and gas producer said the package comprises a $500 million revolving credit facility and a $250 million letter of credit facility, replacing its previous $525 million borrowing arrangement on improved terms while extending the maturity profile of its debt.

The refinancing follows strong cash generation during the first half of the year and builds on the company’s recent $300 million Nordic bond issue. Combined with an accordion feature that provides access to a further $750 million if required, the new facilities give Serica substantial financial flexibility to support drilling programmes, organic development projects and future acquisition opportunities while continuing to target shareholder returns.

Strong liquidity supports long-term growth strategy

Serica said the new lending facility is initially undrawn and requires no amortisation payments until mid-2029, providing significant headroom as it advances its investment plans across the UK Continental Shelf.

The company’s banking syndicate now comprises 11 international lenders, all of which participated in the previous financing arrangement, reflecting continued support for Serica’s asset portfolio and long-term strategy. Management intends to use the strengthened balance sheet to fund upcoming drilling activity, support development projects and capitalise on additional growth opportunities, including the planned acquisition of assets from Spirit Energy.

Serica also continues to prepare for the planned transfer of its listing from AIM to the London Stock Exchange’s Main Market in 2026 as part of its broader strategy to expand both organically and through acquisitions.

Outlook balances financial recovery with strong strategic momentum

The company’s near-term outlook reflects mixed underlying fundamentals. Financial performance weakened during 2025, with lower revenue, a net loss and negative free cash flow. However, these factors are partly offset by positive technical momentum in the shares and constructive management guidance, including reaffirmed 2026 production expectations, an improving net debt profile and a maintained dividend.

While the dividend yield remains an attractive feature of the investment case, the company’s loss-making position continues to result in a negative price-to-earnings ratio.

About Serica Energy

Serica Energy is an independent British oil and gas producer focused on the UK Continental Shelf, where it supplies around 10% of the UK’s natural gas production. Its portfolio includes the Bruce, Keith and Rhum fields in the Northern North Sea, interests in fields linked to the Triton FPSO in the Central North Sea, and a 40% operated stake in the Greater Laggan Area and Shetland Gas Plant. The company is expanding its portfolio through the planned acquisition of assets from Spirit Energy while pursuing long-term growth through organic investment, exploration and acquisitions. Since 2020, Serica has invested more than £1 billion in the UK supply chain.

Spectra Systems (LSE:SPSY) has secured an expansion of its agreement with Swiss Post after the postal operator decided to roll out hybrid stamps featuring data matrix codes following a successful pilot programme. The new stamps are designed to improve security, traceability and customer interaction, reflecting a broader industry trend as postal operators increasingly adopt digital technologies to enhance postal services and combat fraud.

Contract expansion increases revenue opportunity

The wider deployment is expected to increase revenue from Spectra’s Swiss Post contract by approximately 40% over the initial five-year term. If the optional one-year extension is exercised, the total value of the agreement is expected to reach around $1.6 million.

Management said the decision demonstrates confidence in the company’s technology while reinforcing its expectation that hybrid stamp solutions will see wider adoption among postal operators worldwide as demand for secure, digitally enabled postal products continues to grow.

Strong fundamentals support long-term outlook

Spectra Systems’ outlook continues to be supported by strong financial performance, including high operating margins, improving revenue growth and lower financial leverage. The shares also appear attractively valued, trading on a relatively low price-to-earnings multiple while offering a comparatively high dividend yield.

Technical indicators remain supportive, with the stock trading above its major moving averages and maintaining an established upward trend. The principal area of caution remains the company’s operating cash flow, which has been less consistent than reported net income in recent years.

About Spectra Systems

Spectra Systems Corporation develops security technologies for banknote authentication, security printing, brand protection and gaming security applications. The company supplies advanced authentication and traceability solutions to central banks, postal operators and other organisations seeking to strengthen security, improve verification processes and increase digital engagement.

City of London Investment Group (LSE:CLIG) reported a strong increase in funds under management for the year ended 30 June 2026, with assets rising 13.9% year-on-year to an estimated $12.3 billion. The growth was driven primarily by $2.8 billion of positive market movements and investment performance, more than offsetting net client outflows of $1.3 billion. Management attributed the withdrawals largely to broader industry trends, including pension de-risking and investor liquidity requirements, while highlighting continued demand for its international equity and fixed income strategies alongside the group’s strong cash position and investment-focused approach.

Board signals stable dividend as client engagement increases

The board indicated that the final dividend for the financial year is expected to remain in line with the previous year’s payment, with formal confirmation scheduled alongside the release of full-year results in mid-September.

Management also outlined plans to strengthen future growth through expanded marketing and business development initiatives, closer engagement with clients and consultants, and greater collaboration across investment teams. These measures are intended to convert improving client interest into sustained asset growth as market conditions continue to stabilise.

Strong fundamentals support long-term outlook

City of London Investment Group’s outlook remains underpinned by solid financial performance, including healthy asset growth, strong operating margins, robust cash generation and low financial leverage. The shares also continue to appear attractively valued, combining a relatively low price-to-earnings multiple with an established dividend.

The principal near-term risk comes from technical indicators, which point to overbought momentum following the recent share price advance despite the stock remaining in a broader upward trend.

About City of London Investment Group

City of London Investment Group PLC is a London-listed asset manager specialising in actively managed investment strategies for institutional and wealth management clients. The company manages portfolios across emerging markets, international equities, balanced mandates and fixed income, using a disciplined active investment approach designed to generate long-term alpha for investors.