Category: Market News

Hargreaves Services (LSE:HSP) expects to receive a £10 million cash inflow following Tungsten West’s recent fundraising. The total includes £3 million in accelerated deferred consideration tied to the company’s 2019 sale of the Hemerdon tungsten and tin mine, as well as a £7 million compensation payment related to the termination of its Mining Services Contract.

The immediate payment of the remaining £3 million deferred consideration will release security over the mineral lease and replaces previously anticipated annual revenues of £1 million that had been scheduled for FY27 and FY28. Meanwhile, the £7 million compensation payment—expected to be received by May 2027—will be recorded as a one-off gain in the current financial year. The revised arrangement effectively accelerates and reduces the risk associated with future cash flows. Hargreaves also noted that its overall trading performance remains in line with expectations and that the ongoing Middle East conflict has not affected its operations.

The restructuring of the Hemerdon-related cash flows decreases the group’s reliance on longer-term mining services income while strengthening near-term balance sheet flexibility. Management added that discussions with Tungsten West are continuing regarding potential future involvement at the mine, suggesting that Hargreaves could still play a strategic role even after stepping back from direct mining operations.

The company’s investment outlook is supported by strong financial performance, including robust growth and cash generation alongside relatively low leverage. Technical indicators also appear constructive, with the share price trading above key moving averages and supported by a positive MACD signal. Valuation metrics are another positive factor, reflecting a low price-to-earnings ratio and an attractive dividend yield. Management commentary from recent earnings discussions also highlighted capital return plans and operational momentum, although execution risks remain around the group’s land and renewables developments and its zinc project.

More about Hargreaves Services

Hargreaves Services plc is a diversified UK-based group operating across environmental, infrastructure and property markets in the UK and South East Asia. Its Services division provides materials handling, mechanical and electrical contracting, logistics support and large-scale earthworks. The company also operates Hargreaves Land, which focuses on brownfield site redevelopment, and maintains a German joint venture involved in specialist commodity trading and steel waste recycling.

Close Brothers Group (LSE:CBG) has said that the Financial Conduct Authority’s proposed motor finance consumer redress programme would likely result in a provision of approximately £320 million. The estimate is broadly consistent with the bank’s current IAS 37 provision of £294 million. According to the company, the potential cost can be absorbed within its existing capital resources and is expected to reduce its CET1 ratio by around 25 basis points to roughly 14.0%, still above its medium-term target range of 12–13%.

The estimate is based on around 720,000 qualifying UK motor finance loans issued between April 2007 and November 2024. The bank has assumed an average compensation payment of about £500 per customer and a claim rate of approximately 75%, alongside roughly £66 million in expected implementation costs. Close Brothers noted that it has not yet updated its existing provision and will continue to monitor legal, regulatory and industry developments before making any adjustments. Despite the potential financial impact, the group said it remains well positioned to execute its strategic plans and generate long-term shareholder value.

The company’s outlook is currently constrained by weaker profitability, including a decline in revenue and a net loss, as well as higher leverage levels. Technical indicators also reflect a broader downward trend in the share price. Some positive factors—such as a recovery in cash flow and a relatively low price-to-earnings multiple—offer partial support, but these are not sufficient to fully offset the fundamental and momentum-related risks.

More about Close Brothers Group

Close Brothers Group is a UK specialist banking organisation focused on lending and deposit-taking activities, primarily in the United Kingdom and Ireland. Listed on the London Stock Exchange and a member of the FTSE 250 index, the group employs around 2,600 people and provides tailored financing solutions across niche markets, including motor finance and asset-backed lending.

Coiled Therapeutics (LSE:COIL) has released promising interim results from its ongoing Phase I/II clinical trial evaluating AO-252. The study reported an 80% clinical benefit rate, with patients in the twice-daily dosing cohort experiencing disease control lasting more than six months. This outcome compares favourably with the once-daily dosing arm and with typical results from salvage therapies used in heavily pre-treated solid tumour patients.

The treatment has so far demonstrated a favourable safety profile, with no maximum tolerated dose reached during the study. Researchers have also observed signs of immune-modulating activity involving the cGAS/STING pathway, which may enhance the therapy’s anti-cancer potential. Based on these findings, the company plans to move quickly into dose expansion studies targeting ovarian and prostate cancers. Additional development steps include introducing a next-generation formulation of the drug and launching combination therapy studies in 2026, potentially strengthening AO-252’s clinical prospects and future commercial positioning.

Despite the encouraging clinical progress, the company’s investment outlook remains constrained by weak financial fundamentals. Coiled continues to report volatile pre-commercial revenue, ongoing losses and persistent cash burn. Technical indicators also reflect a prolonged downward trend in the share price. While the balance sheet carries relatively low leverage, the stock’s negative price-to-earnings ratio and absence of dividend yield limit its valuation appeal.

More about Coiled Therapeutics plc

Coiled Therapeutics plc is an AIM-listed clinical-stage biotechnology company developing precision oncology therapies for difficult-to-treat solid tumours. Its lead programme, AO-252, is a first-in-class orally administered TACC3 inhibitor currently undergoing Phase I trials in the United States. The company is also advancing a STAT-6 siRNA programme aimed at immunology indications and benefits from strategic support from A2A Pharmaceuticals.

Tungsten West (LSE:TUN) reported significant progress during the first quarter of 2026 toward restarting operations at its Hemerdon tungsten and tin mine in Devon. The development comes as higher market prices for tungsten and tin have strengthened the project’s underlying economics. The company is targeting the restart of fines gravity processing in the third quarter of 2026, with full plant commissioning planned for the first quarter of 2027.

Work on the project is moving forward rapidly, with major subcontractors now appointed and refurbishment activities and earthworks underway on site. The company has also reinforced its operational leadership team, appointing a new chief operating officer alongside senior managers overseeing processing, mining, maintenance and environmental, social and governance functions.

In a shift to its operating strategy, Tungsten West has ended its mining services agreement with Hargreaves and intends to bring mining operations in-house. To support this approach, the company has secured a £22.3 million equipment financing arrangement with Komatsu. On the funding side, advanced due diligence is ongoing for up to US$85 million in project debt, with lenders indicating support for an initial US$25 million tranche. Together with approximately £25.5 million in existing cash reserves, this funding is expected to support the pathway to restarting production.

Despite operational progress, the company’s outlook remains constrained by financial risk factors, including ongoing losses, continued cash burn and negative equity reported in FY2025 alongside increased debt levels. Technical indicators for the stock have recently strengthened, but valuation metrics offer only moderate support as the negative price-to-earnings ratio reflects the company’s current lack of profitability and there is no dividend yield.

More about Tungsten West Plc

Tungsten West Plc is a UK-based mining company focused on restarting production at the Hemerdon tungsten and tin project in Devon. The company aims to re-establish the site as a major Western supplier of tungsten concentrate and tin, both considered strategically important metals, at a time when global demand for critical minerals is rising.

Avacta Therapeutics (LSE:AVCT), the oncology-focused clinical-stage arm of Avacta Group plc, is advancing its proprietary pre|CISION tumour-activated drug delivery platform. The technology is designed to improve the therapeutic profile of potent cancer treatments by enabling targeted drug release within tumour tissue. Its lead candidate, faridoxorubicin (AVA6000), and second programme, FAP-Exd AVA6103, both aim to enhance the safety and effectiveness of chemotherapy by activating the drug payload specifically in cancerous tissue where fibroblast activation protein is present.

The company has announced that it will host a 2026 Science Day for investors titled “The Next Chapter of pre|CISION.” The event is scheduled for 6 May 2026 at the Royal Society of Chemistry in London. During the session, management and scientific leaders will present updates on recent research progress as well as outline the platform’s longer-term development goals. Attendance will be limited for the in-person event, though the presentation will also be recorded and made available online afterwards.

The event forms part of Avacta’s broader effort to engage with the investment community and demonstrate the potential of its expanding pre|CISION pipeline within the competitive oncology therapeutics landscape.

From an investment perspective, the company’s overall profile remains constrained by weak financial performance and negative technical momentum. While clinical development continues to advance, funding limitations and the absence of major strategic partnerships remain key risks. The stock’s valuation is also challenging due to ongoing losses and the lack of dividend support.

More about Avacta Group plc

Avacta Therapeutics, part of Avacta Group plc, is a clinical-stage biopharmaceutical company focused on developing targeted cancer therapies using its proprietary pre|CISION tumour-activated delivery platform. The approach uses a fibroblast activation protein trigger to release highly potent cytotoxic drugs directly in the tumour microenvironment while limiting systemic exposure. The company’s pipeline includes lead candidate faridoxorubicin (AVA6000) and FAP-Exd AVA6103, both aimed at treating cancers with significant unmet medical need.

Bezant Resources (LSE:BZT) has announced an updated JORC-compliant mineral resource estimate for the Hope and Gorob copper-gold project in Namibia, highlighting a substantial expansion at the Hope deposit. Open-pittable resources at Hope have increased more than sevenfold to over 3.0 million tonnes. The revision also upgrades a large share of the deposit into the Measured and Indicated categories, significantly improving geological confidence. As a result, the expected open-pit mine life has been extended from roughly one year to about 7.5 years based on a planned processing rate of 0.4 million tonnes per year.

The updated resource model also improves the project’s operating profile, reducing the strip ratio from 11:1 to 9:1, which could lower mining costs and strengthen overall economics. In addition, further mineralised material and lower-grade resources located within the pit shell provide potential for additional upside. Management noted that the larger and more defined resource base allows the company to accelerate its development strategy. Phase 2 expansion plans—including a new flotation plant near Walvis Bay designed to produce approximately 25,000 tonnes of copper annually—could now be brought forward by around five years, potentially enabling earlier production growth.

Despite the operational progress, the company’s outlook is constrained by weak financial fundamentals, including the absence of revenue, ongoing losses and continued cash burn. While the balance sheet carries relatively low leverage, these factors weigh on the overall investment case. On the positive side, technical indicators for the stock appear strong, and valuation metrics suggest the shares are inexpensive on a price-to-earnings basis, although this is tempered by the company’s limited operating cash generation.

More about Bezant Resources

Bezant Resources Plc is a mineral exploration and development company focused on copper and gold projects. Its principal asset is the Hope and Gorob project in Namibia, which it operates through its local subsidiary Hope and Gorob Mining (Pty) Ltd. Bezant is in the process of increasing its ownership stake in the project from 70% to 90% following an additional interest acquisition, strengthening its exposure to the project’s potential development and production upside.

Motorpoint (LSE:MOTR) reported record retail sales of roughly 65,000 vehicles for the financial year ended 31 March 2026, representing an 8% increase from the previous year and outperforming overall growth in the UK used car market. Profit before tax is expected to climb about 83% to approximately £7.5 million, while EBITDA is projected to rise 13% to £27 million. The company attributed the performance to more effective data-driven pricing strategies, stronger sourcing through its Sell Your Car channel, and an AI tool that re-engaged historical customer quotes and generated around 900 additional sales. Improved bulk purchasing and sourcing also contributed to record “metal margins,” helping offset inflation-driven cost pressures.

As part of its expansion strategy, Motorpoint plans to open a new store in Leeds during summer 2026, targeting a large regional market where the brand currently has limited presence. The move signals renewed momentum in physical retail growth alongside its established digital platform. Management highlighted a return on capital employed of roughly 70% and an improved Net Promoter Score of 83, emphasising that its capital-light omnichannel model, growing use of AI technology and strong customer satisfaction levels position the group to continue gaining market share despite ongoing economic uncertainty related to inflation and interest rates.

Motorpoint’s investment case is supported by solid financial performance and recent strategic developments. However, relatively high leverage and weaker technical indicators present potential risks. Valuation metrics also suggest the shares may be somewhat stretched, though the company’s market outperformance and growth initiatives contribute to a broadly constructive outlook.

More about Motorpoint

Motorpoint Group is the UK’s largest independent omnichannel retailer of nearly new vehicles, serving both retail and trade customers. The company sells, buys and finances cars through its Motorpoint.co.uk platform and a network of 21 sales and collection locations across the UK. It also operates Auction4Cars.com, an online wholesale marketplace designed for the business-to-business used vehicle sector.