Category: Market News

Gateley (LSE:GTLY) delivered a record financial performance for FY26, marking its eleventh consecutive year of revenue growth. Total revenue increased 8.2% to £194.3 million, including organic growth of 6.2%, while contribution margin improved despite a slight decline in adjusted operating margin. Statutory operating profit almost doubled during the year and profit before tax rose 20.4%. However, higher working capital requirements, acquisition-related spending and increased net debt contributed to a 44.2% reduction in the total dividend per share as the company rebased its shareholder distribution policy.

During the year, Gateley completed the integration of Groom Wilkes & Wright ahead of schedule, expanded investment in Austen Hays and its Dubai office, and strengthened its team through 13 senior lateral hires while reducing overall fee-earner numbers. Looking ahead, the group is targeting an adjusted operating margin of at least 13.5% through tighter pricing, cost management and improved returns from recent growth investments. Management said trading in FY27 has started in line with expectations.

The company also announced that Chief Executive Officer Rod Waldie will step down from his role and leave the board on 1 August 2026 for personal health reasons. He will remain available during a transition period to support the business. Independent non-executive director Martin Pike has been appointed Interim CEO while the board begins the search for a permanent chief executive and an additional independent non-executive director to chair the audit committee.

Chair Edward Knapp said the board remains focused on improving margins, strengthening the balance sheet and working capital management, delivering profitable growth and generating attractive returns for shareholders. Martin Pike said he intends to work closely with the existing leadership team to continue executing Gateley’s long-term growth strategy during the transition.

Gateley’s outlook is tempered by pressure on profitability, cash flow and weak technical market indicators. However, the company’s relatively low valuation and attractive dividend yield continue to provide support for the investment case.

About Gateley (Holdings) Plc

Gateley (Holdings) Plc is a UK-listed professional services group providing legal, property, corporate finance and consultancy services. The company has built a diversified business model that combines legal expertise with complementary advisory services, serving clients across a broad range of sectors.

The group continues to expand through strategic acquisitions and investment in specialist businesses, including Austen Hays and its international operations in Dubai. By broadening its service offering and strengthening its professional advisory capabilities, Gateley aims to deliver sustainable long-term growth while adapting to changing client needs and market conditions.

Jadestone Energy plc (LSE:JSE) has confirmed it will release its trading update for the first half of 2026 on 29 July. The announcement will provide investors with an overview of the company’s operational and financial performance as it continues to expand its upstream oil and gas portfolio across the Asia-Pacific region.

The upcoming update is expected to offer further insight into Jadestone’s production performance, development projects and strategic initiatives across Australia, Malaysia, Indonesia and Vietnam. Investors will also be looking for progress on the company’s growth strategy, which combines acquisitions with organic development while improving operating efficiency and advancing its commitment to achieving Net Zero Scope 1 and 2 emissions by 2040.

Jadestone’s outlook continues to be weighed down by a relatively weak financial position, including elevated leverage and negative equity, although improving operating cash flow provides some support. Market sentiment has also been helped by positive technical momentum, while the company’s low price-to-earnings ratio offers an attractive valuation for investors.

About Jadestone Energy plc

Jadestone Energy plc is an independent upstream oil and gas producer focused on the Asia-Pacific region, with producing and development assets across Australia, Malaysia, Indonesia and Vietnam. Headquartered in Singapore and listed on AIM in London, the company seeks to grow production through a combination of acquisitions and organic developments, concentrating on mature oil and gas fields where it can apply its operational expertise.

Alongside production growth, Jadestone is pursuing a strategy centred on operational efficiency, increasing natural gas output and maximising value from existing assets. The company has committed to achieving Net Zero Scope 1 and 2 emissions from its operated assets by 2040, aligning its long-term strategy with the energy transition while supporting regional energy security.

Compass Group (LSE:CPG) delivered another strong third-quarter performance, with organic revenue increasing 7.1% as net new business growth accelerated into the company’s target range of 4% to 5%. The group’s client retention rate remained high at 96%, while North America benefited from additional demand linked to the Football World Cup. Although growth across International markets moderated, Compass reaffirmed its expectation that underlying operating profit will increase by more than 11% in constant currency during 2026, supported by organic expansion, acquisitions and ongoing margin improvement.

The company continues to strengthen its position in the highly fragmented $360 billion outsourced food services market, securing $4.3 billion of new business over the past year, with around half of those contracts coming from organisations outsourcing food services for the first time. Demand remained particularly strong across business and industry, sports and leisure, education, healthcare and senior living. Compass also continued to invest for long-term growth through higher capital expenditure and approximately $2.4 billion of mergers and acquisitions completed year to date, supporting expansion into fast-growing markets such as data centres, defence, energy infrastructure, healthcare and integrated campus services.

Compass Group’s outlook remains underpinned by strong cash generation, a resilient balance sheet and continued momentum in new business wins. Positive technical indicators and a relatively attractive valuation also support the investment case. However, investors continue to monitor revenue trends, leverage levels, client retention, inflationary pressures and broader economic conditions, which could affect near-term performance.

About Compass Group PLC

Compass Group PLC is one of the world’s largest providers of outsourced food services and support services, operating in more than 25 countries and employing over 590,000 people. The company serves clients across sectors including business and industry, healthcare, senior living, education, sports and leisure, and defence, offshore and remote operations.

Through a portfolio of specialist business-to-business brands, Compass delivers tailored catering and support solutions to organisations around the world. The group generated underlying revenue of more than $46 billion in fiscal 2025 and continues to expand its market share through a combination of organic growth, strategic acquisitions and long-term outsourcing opportunities.

Kier Group (LSE:KIE) expects to deliver full-year revenue and profit at the top end of market forecasts for the year ended 30 June 2026, supported by a strong second-half performance across its infrastructure, construction and property businesses. Increased activity in water, highways and rail projects, together with progress on major developments such as HMP Glasgow and stronger property operations, helped drive growth despite a challenging economic backdrop.

The company’s order book expanded 8% to approximately £11.9 billion, providing visibility over more than 90% of anticipated revenue for 2027. The increase reflects a series of significant contract awards that align with the UK Government’s long-term infrastructure investment plans. Kier also expects to report a substantially stronger balance sheet, moving from an average net debt position in the previous financial year to an average month-end cash position during FY26, with period-end net cash expected to reach around £232 million.

During the year, Kier secured major contracts across sectors including nuclear, water and environmental infrastructure, with projects such as Sizewell C and the STEP fusion programme joining education, justice and healthcare developments, including HMP Wandsworth and NHS hospital schemes. The company also strengthened its long-term pipeline through appointments to major frameworks, including the £37 billion Hospital 2.0 Alliance and the £15 billion Education Construction Framework 2025, reinforcing its position as a key delivery partner for UK infrastructure projects.

Kier’s outlook continues to benefit from strong operational performance, robust cash generation and excellent visibility provided by its growing order book. While leverage, remediation costs and seasonal cash flow fluctuations remain considerations, management believes the group’s improving financial position provides a solid platform for future growth and shareholder returns.

About Kier Group plc

Kier Group plc is a leading UK infrastructure services, construction and property company delivering projects for both public and private sector clients. The group offers integrated design, construction and project management services across sectors including water, highways, rail, education, healthcare, justice and defence.

Its expertise includes civil engineering, building construction, mechanical and electrical services, and property development. Through long-term framework agreements and strategic infrastructure contracts, Kier plays a significant role in delivering major UK public infrastructure while supporting sustainable growth across its core markets.

RentGuarantor (LSE:RGG) delivered a strong first-half performance in 2026, reporting revenue growth of 250% year on year to £3.39 million as demand for its rent guarantee services accelerated across the UK private rental market. The company also recorded a 179% increase in the number of contracts written, benefiting from higher application volumes and rising average contract values. This growth enabled RentGuarantor to return to profitability, generating adjusted EBITDA of approximately £110,000 and adjusted net profit of around £250,000.

The company also strengthened its financial position during the period by repaying all outstanding directors’ loans and convertible loan notes, while raising £1.0 million through an equity placing. As a result, cash balances increased to approximately £2.4 million at the end of June 2026. Looking ahead, management expects performance to improve further in the second half of the year, supported by a growing pipeline of applications, the launch of a new AI-focused technology lab in Bristol and continued demand driven by the UK’s Renters’ Rights Act. The company now expects full-year revenue and adjusted profit before tax to come in materially ahead of market expectations.

About RentGuarantor Holdings PLC

RentGuarantor Holdings PLC is a specialist provider of rent guarantee and property protection services for the UK private rental market. The company offers digital solutions designed to simplify the rental application process, enabling tenants to secure professional guarantor services while providing landlords and letting agents with greater financial security.

Its customer base includes letting agents, landlords, local authorities and tenants, with the business positioned to benefit from evolving rental market regulations, including the Renters’ Rights Act. Through continued investment in technology, artificial intelligence and automation, RentGuarantor aims to improve operational efficiency, enhance customer experience and support the growing demand for professional rent guarantee services.

Galliford Try (LSE:GFRD) has been appointed to the new £9.5 billion Crescent Purchasing Consortium (CPC) Construction and Capital Works framework, securing positions across all five regional lots covering England, Wales and Scotland. The framework, which can run for up to eight years, will support the delivery of education and wider public sector construction projects, including new-build developments and refurbishment work for schools, colleges, universities, healthcare facilities and civic buildings.

The appointment strengthens Galliford Try’s presence in the public sector construction market and reinforces its long-standing position in the education sector. The company believes the framework will create opportunities to deliver major community infrastructure projects across the UK while enhancing the visibility of future revenues through a steady pipeline of public sector work.

Galliford Try’s outlook continues to benefit from stable financial performance, strong cash generation and positive technical momentum in its share price. The company also trades on a relatively moderate valuation, supported by a price-to-earnings ratio of 12.44 and a dividend yield of 3.32%. However, slower revenue growth and relatively narrow operating margins remain areas for investors to monitor.

About Galliford Try

Galliford Try Holdings plc is a leading UK construction company listed on the London Stock Exchange and a constituent of the FTSE 250 Index. Operating through the Galliford Try and Morrison Construction brands, the group delivers building and infrastructure projects for public, private and regulated sector clients throughout the UK.

Its expertise spans education, healthcare, defence, water, highways and environmental infrastructure, with a strong focus on delivering complex construction projects and long-term public sector partnerships. The company continues to build its order book through strategic framework appointments and major infrastructure opportunities across the UK.

Sintana Energy (LSE:SEI) has reached two important milestones in its Latin American offshore exploration portfolio, securing additional time for seismic work in Uruguay while progressing a new exploration opportunity in Argentina. The developments strengthen the company’s presence across emerging offshore basins and support its long-term exploration strategy in the South Atlantic region.

In Uruguay, authorities have approved a one-year suspension of the initial exploration sub-period for the AREA OFF-1 offshore licence, extending the deadline to 23 August 2027. The extension follows delays in obtaining environmental approvals for a planned 3D seismic survey and provides operator Chevron with additional time to complete a two-season programme of seismic acquisition, processing and interpretation. The work is expected to improve the understanding of the block’s resource potential and help optimise future drilling decisions while reducing exploration risk.

Meanwhile, in Argentina, Sintana’s affiliate Challenger Energy Group has advanced its plans in the North Argentine Basin after initiating an International Public Tender for the CAN-200 offshore exploration permit. The process follows the publication of Decree 590/2026 and Challenger’s earlier expression of interest submitted in 2025. If successful, the tender would expand Sintana’s offshore exploration portfolio in Latin America and further strengthen its exposure to frontier hydrocarbon basins with long-term development potential.

About Sintana Energy

Sintana Energy Inc. is an Atlantic Margin-focused oil and gas exploration company with interests in several frontier offshore basins, including Namibia, Uruguay and Angola, alongside legacy assets in Colombia and The Bahamas. The company is listed in Canada, the UK and the United States.

Sintana’s exploration strategy centres on partnering with major international energy companies and benefiting from carried interests on key licences, allowing it to pursue high-impact exploration opportunities while limiting capital exposure. Its portfolio is focused on the Southern Atlantic conjugate margin, where the company believes significant long-term hydrocarbon potential remains to be unlocked.

SThree (LSE:STEM) reported lower first-half FY26 results as softer trading conditions across key European markets weighed on performance, with net fees declining 7% year on year to £147.7 million. Revenue and profit also fell during the period, although strong performances in the U.S. and Japan, together with resilient contract renewals and a contractor order book that increased 3%, helped cushion the overall slowdown. The contractor book now represents approximately five months of net fees, providing good visibility for future revenue.

Operating profit declined significantly, reflecting lower net fees and £6.4 million of one-off costs associated with the company’s cost optimisation programme. Despite these pressures, disciplined expense management enabled SThree to maintain its interim dividend at 5.1 pence per share. The group also continues to invest in its cloud-based operating platform, using AI-enabled sales tools and technology to improve productivity. Management reaffirmed its full-year profit guidance, citing improving new business activity and strengthening momentum across a growing number of markets.

SThree’s outlook continues to benefit from solid cash generation and a healthy balance sheet, although recent declines in revenue growth and operating margins remain a challenge. Technical indicators have improved, suggesting strengthening market momentum, even though the shares continue to trade just below their long-term trend. Valuation also remains relatively attractive, supported by a reasonable earnings multiple and an above-average dividend yield.

About SThree plc

SThree plc is a global STEM talent consultancy specialising in recruitment across engineering, life sciences and technology sectors. The company operates in 11 countries, providing permanent and contract staffing solutions to approximately 6,000 clients in industries where demand for highly skilled professionals remains strong.

With four decades of experience focused exclusively on STEM recruitment, SThree has built leading positions in markets including the United States, Germany, the Netherlands and Japan. Its cloud-based global operating platform supports greater efficiency through shared services, advanced data capabilities and technology-enabled recruitment, helping clients meet increasingly complex workforce requirements.

Billington Holdings (LSE:BILN) has been awarded three major structural steel contracts with a combined value of approximately £28 million, with the majority of the work scheduled to be delivered during 2027. The projects include a multi-storey education campus in North-West London, an energy-from-waste facility in Eastern England for an existing customer, and an initial award for a defence project in South-East England that is expected to progress into a full contract.

According to management, the latest contract wins reflect the company’s strategy of focusing on technically complex, high-value structural steel projects. The new awards strengthen Billington’s order book, support expectations for 2027 and reinforce its position across sectors including education, renewable energy and critical national infrastructure. The company also highlighted a healthy pipeline of opportunities across its core markets, allowing it to remain selective in pursuing commercially attractive projects.

Billington’s outlook continues to be supported by its strong balance sheet and low levels of debt. However, softer profitability during 2025 and weaker free cash flow conversion remain areas of focus. Technical indicators continue to point to positive share price momentum, while valuation presents a mixed picture, with a relatively high price-to-earnings ratio balanced by an attractive dividend yield.

About Billington Holdings

Billington Holdings is a UK-based engineering group specialising in structural steelwork and construction safety solutions. The company supplies products and services for infrastructure, commercial, industrial and specialist construction projects across the UK and Europe.

Its expertise spans complex structural steel fabrication, installation and safety systems, serving customers in sectors including education, energy, defence and wider infrastructure. Billington’s strategy centres on delivering technically demanding projects while building long-term relationships with clients and maintaining high standards of quality and engineering excellence.

Midwich Group plc (LSE:MIDW) expects adjusted profit before tax for the first half of 2026 to increase around 10% year on year to £10.6 million, supported by revenue growth of approximately 3% to £640 million. Excluding the impact of its Middle East operations and businesses that have since been exited, adjusted profit growth reached 20%, demonstrating the strength of the group’s core operations despite a modest decline in gross margins and disruption in conflict-affected markets.

Performance varied across regions during the period. The UK and Ireland, together with Australia and New Zealand, delivered revenue growth of more than 10%, while North America recorded a 5% increase. These gains were partly offset by a 5% decline across EMEA, reflecting weaker trading conditions in the Middle East and Germany. Cash generation remained in line with expectations, and leverage improved to 2.3 times adjusted EBITDA, with management targeting a reduction to around 2.0 times by year end. The company also continues to expand relationships with technology vendors, improve operational efficiency and introduce AI-driven productivity initiatives, while maintaining guidance that full-year performance will be broadly in line with market expectations for 2025.

Management said uncertainty surrounding the global economic environment and the ongoing conflict in the Middle East could continue to affect trading during the remainder of 2026. Even so, Midwich remains focused on expanding its presence in higher-margin specialist audiovisual markets, protecting and growing market share in key regions, and pursuing both organic growth opportunities and strategic acquisitions to support its long-term development plans.

The company’s outlook is tempered by weaker financial quality, following a period of negative profitability and relatively high leverage, although revenue growth and cash generation remain resilient. Technical indicators also continue to suggest a cautious market outlook, with the shares trading below key moving averages. While the dividend yield offers some valuation support, the absence of positive earnings limits the company’s overall valuation appeal.

About Midwich Group plc

Midwich Group plc is a specialist distributor of professional audiovisual technology, supplying equipment and services to trade customers across more than 50 countries through a network of 23 locations. The company works with over 24,000 customers, including AV integrators, event production companies and IT resellers serving sectors such as education, corporate, retail and live events.

Its services extend beyond product distribution to include system design, marketing support, financing solutions, industry events and investment in emerging technology businesses. Employing around 1,700 people across the UK and Ireland, EMEA, Asia-Pacific and North America, Midwich focuses on specialist, higher-margin audiovisual products while promoting sustainable business practices.

The company combines long-standing relationships with leading global technology vendors and a strategy of targeted acquisitions to expand its international footprint and product offering. This approach supports Midwich’s ambition to strengthen its position in the growing professional audiovisual market while delivering sustainable long-term growth.