Category: Market News

Rémy Cointreau (EU:RCO) reported a notable acceleration in fourth-quarter sales on Thursday, with organic growth reaching 8.9% in the three months to March 2026. However, full-year revenue of €935.3 million came in below analyst expectations and declined 5% on a reported basis.

Cognac leads quarterly growth on China strength

The Rémy Cointreau said cognac sales rose 15.5% organically in the fourth quarter, supported by strong demand in Asia-Pacific, particularly China. The performance was aided by a favorable comparison base, calendar effects, and solid consumption during the Chinese New Year period.

In EMEA, the group recorded a second consecutive quarter of growth, driven by Europe and Travel Retail. The Americas saw a slight decline, reflecting a high comparison base in the United States and timing effects in Canada.

Mixed performance across divisions

Sales in the Liqueurs and Spirits division were broadly flat in the quarter, slipping 0.1% on an organic basis, as gains in the United States and China were offset by uneven results in EMEA. Partner Brands revenue declined 6.1% organically over the same period.

Full-year results miss expectations

For the full year, group revenue reached €935.3 million, up 0.2% organically but below the consensus estimates of around €938 million.

The reported 5% decline was largely driven by a negative currency impact of 5.2%, mainly linked to the U.S. dollar and Chinese renminbi.

By segment, cognac revenue fell 6.2% on a reported basis to €573.6 million, with a slight organic decline of 0.5%. Liqueurs and Spirits revenue decreased 1.8% reported to €346.1 million but grew 2.8% organically. Partner Brands dropped 22.9% reported to €15.6 million, with an organic decline of 22.4%.

Regional trends show divergence

The Americas delivered organic growth of 7.2% over the full year, supported by an easier comparison base and improving depletion trends.

Asia-Pacific declined 4.3% organically, weighed down by difficult market conditions in China and disruptions in Travel Retail during the first half.

EMEA fell 3.1% organically, impacted by ongoing pressure in the cognac segment and weaker consumer demand.

Outlook maintained despite currency headwinds

Rémy Cointreau confirmed its full-year current operating profit outlook, expecting an organic decline in the low double-digit to mid-teens range. The company also flagged a negative currency impact of between €25 million and €30 million on operating profit.

Management said performance remains aligned with its expectations, highlighting continued investment in key markets such as China and the United States as supportive factors behind the guidance.

Standard Chartered (LSE:STAN) reported record first-quarter earnings on Thursday, driven by strong performance in its wealth management and investment banking businesses, even as it increased provisions to account for geopolitical risks.

The Standard Chartered posted operating income of $5.9 billion for the three months to March, representing a 9% increase year over year on a constant currency basis.

Profit growth led by wealth and fee-based businesses

Profit before tax rose 17% to $2.45 billion, while net profit attributable to shareholders increased 19% to $1.9 billion.

Growth was primarily driven by the Wealth Solutions division, where income surged 32% amid strong demand for investment products and bancassurance offerings. Global Banking income also increased 19%, supported by higher deal activity and strength in capital markets.

Net interest income edged up 1% to $2.9 billion, while non-interest income climbed 16%, reflecting the bank’s continued shift toward fee-generating business lines.

Higher provisions reflect geopolitical uncertainty

Credit impairment charges rose to $296 million, an increase of $79 million compared to the same period last year. The bank attributed the rise mainly to precautionary provisions linked to tensions in the Middle East.

CEO Bill Winters said the group’s “advantaged market presence” and disciplined approach to risk management helped underpin performance despite global uncertainty.

Capital strength and outlook remain stable

Return on tangible equity improved to 17.4%, up from 14.8% a year earlier, while the CET1 capital ratio stood at 13.4%.

Looking ahead, Standard Chartered left its 2026 guidance unchanged, expecting operating income growth at the lower end of its 5% to 7% target range on a constant currency basis. Net interest income is projected to remain broadly stable.

The bank also expects to keep costs largely flat, including the final phase of its “Fit for Growth” programme, while maintaining a target return on tangible equity above 12%.

More about Standard Chartered

Standard Chartered is a global banking group with a strong presence across Asia, Africa, and the Middle East. The bank provides a wide range of financial services, including corporate and investment banking, wealth management, and retail banking, with a focus on emerging markets and international trade flows.

United Utilities PLC (LSE:UU.) announced plans on Thursday to raise £800 million in equity, equivalent to around 9% of its market value, as part of efforts to fund a significant expansion of its AMP8 investment programme.

The United Utilities now intends to increase total planned investment to £11.5 billion, up from the previously outlined £9 billion. This represents an additional £2.5 billion in capital expenditure over the 2025 to 2030 regulatory period.

Higher spending set to boost asset base growth

The expanded investment plan is expected to accelerate growth in the company’s regulatory asset base, with projections rising to a compound annual growth rate of approximately 10% through 2030, compared with earlier expectations of 7%.

Alongside this, management has upgraded its financial framework targets, now aiming for regulatory returns of 10% to 11%, roughly 100 basis points higher than prior guidance.

Funding structure and balance sheet targets maintained

The planned equity raise will cover the equity component of the increased capital expenditure, while United Utilities expects to keep its gearing within its target range of 55% to 65% throughout the AMP8 period.

The share issuance will consist of new ordinary shares with a nominal value of 5 pence each and includes a £400 million cornerstone investment commitment, providing initial support for the fundraising.

More about United Utilities

United Utilities PLC is a UK-based water and wastewater services provider, supplying millions of customers across North West England. The company operates within a regulated framework and invests heavily in infrastructure to maintain and improve water quality, environmental performance, and service reliability.

Shares in The Weir Group PLC (LSE:WEIR) declined on Thursday after the mining equipment manufacturer reported a softer start to the year, with first-quarter orders falling short of expectations despite the company reaffirming its full-year outlook.

Orders for the three months to March 31 dropped 3% on an organic constant currency basis. Original equipment orders slipped 2%, while aftermarket demand declined 3%.

Minerals and ESCO divisions show mixed performance

The The Weir Group said its Minerals division saw orders decrease 3%, reflecting a 6% fall in original equipment orders due to project timing, alongside a 3% decline in aftermarket demand linked to temporary mine disruptions in Asia-Pacific and Africa.

In the ESCO division, total orders edged down 2%. However, original equipment orders surged 49% amid strong global demand for mining buckets, partially offset by a 5% decline in aftermarket orders.

Investor concerns drive sharp share price reaction

The stock dropped 7.4% following the update, as investors reacted to weaker order momentum relative to peers. The company reported a year-to-date book-to-bill ratio of 1.14.

CEO Jon Stanton commented, “During the first quarter, the Group executed strongly against our strategic growth agenda, completing the acquisition of ESEL and integrating at pace those acquisitions completed last year.”

Full-year guidance maintained despite slower start

Weir reiterated its expectations for 2026, forecasting growth in constant currency revenue, operating profit, and operating margin. It also expects free operating cash conversion to range between 90% and 100%.

Management indicated that both revenue and profit will be weighted toward the second half of the year, in line with seasonal patterns seen in 2025.

Cost savings and leadership transition underway

The company’s Performance Excellence programme has delivered cumulative savings of £66 million, keeping it on track to meet its upgraded £90 million target by 2026.

Separately, Weir announced that Stanton will step down as CEO on August 1 after a decade in the role. He will be succeeded by Andrew Neilson, currently President of the Minerals division.

More about The Weir Group

The Weir Group PLC is a UK-based engineering company specialising in mining equipment and services. Its products support minerals processing and mining operations worldwide, with a focus on improving efficiency, productivity, and sustainability for its global customer base.

KEFI Gold and Copper (LSE:KEFI) reported strong progress across its Saudi Arabian assets, with the Definitive Feasibility Study for the Jibal Qutman gold project nearing completion and a mining licence application already submitted ahead of a potential development decision in 2026.

At the Hawiah project, total resources have grown to 36.2 million tonnes across copper, gold, silver, and zinc. Expansion of the Umm Hijlan licence has doubled the project’s strike length, while a new joint venture with Hancock Prospecting covering the Al Hajar North belt highlights increasing industry interest in the region.

Strategic restructuring supports Saudi growth platform

The KEFI Gold and Copper has reorganised its structure by separating the financing and management of its Saudi operations and other growth initiatives from the recently completed Tulu Kapi funding.

Its Saudi joint venture vehicle, GMCO, is now being positioned for standalone financing through a combination of project finance and partnerships, supported by a dedicated management team and an expanded board. The company has also reappointed Jeff Rayner as head of exploration.

In addition, KEFI is seeking independent advice to assess the fair market value of its 13% stake in GMCO, which is currently carried at zero book value despite its increasing strategic importance within Saudi Arabia’s developing mining sector.

Financial constraints remain despite operational progress

While project developments continue to advance, KEFI’s outlook remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, and continued cash burn.

Technical indicators offer some support, with the stock trading above key moving averages and showing positive momentum. However, valuation remains challenging due to negative earnings and the lack of a dividend.

More about KEFI Minerals

KEFI Gold and Copper is an AIM-listed exploration and development company focused on gold and copper projects in Ethiopia and Saudi Arabia, particularly within the Arabian Nubian Shield. Through its 13% interest in the GMCO joint venture with ARTAR, the company holds multiple exploration licences and a JORC-compliant resource base of approximately 3.8 million ounces of gold equivalent. Additional partnerships with Hancock Prospecting and AJ Lan Bros further strengthen its presence in the region.

Persimmon (LSE:PSN) delivered a solid opening to 2026, with net private sales per outlet per week showing modest improvement and private forward sales increasing 7% to £1.80 billion. The growth was supported by a 5% rise in average selling prices and a disciplined approach to incentives.

Total forward sales reached £2.46 billion, while the number of active outlets, land holdings, and planning approvals all increased. These trends support Persimmon’s goal of expanding to at least 300 active outlets over time.

Resilient trading despite macroeconomic pressures

Management said trading conditions remain stable despite geopolitical tensions and broader economic uncertainty. The company noted only a slight softening in customer enquiries, alongside early indications of rising supply chain costs, which are expected to become more pronounced into 2027.

In response, Persimmon is tightening its land acquisition strategy and maintaining strict cost controls. Its diversified three-brand model, combined with strong partnerships and a substantial forward order book, is expected to support consistent delivery volumes and reinforce its position in the UK housing market.

Cash flow and technical weakness weigh on outlook

While the company benefits from a strong balance sheet with low leverage, its outlook is constrained by weaker cash flow generation, including negative free cash flow in 2025, and reduced profitability compared with previous peak years.

Technical indicators also point to a softer trend, with the stock trading below key moving averages and showing negative momentum. However, valuation provides some support, with a moderate price-to-earnings ratio and a dividend yield of around 4.7%.

More about Persimmon

Persimmon is a UK-based housebuilder operating through three brands and a vertically integrated business model. The company focuses on private housing, affordable homes, and build-to-rent developments, leveraging a large land bank and in-house capabilities to deliver residential projects at scale while targeting improved margins and long-term shareholder returns.

Iofina plc (LSE:IOF) delivered its eighth consecutive year of growth in 2025, with revenue increasing 22% to $66.5 million. The performance was driven by a 17% rise in crystalline iodine production to 743 metric tonnes and a 42% surge in iodine sales volumes.

Profitability improved significantly, with gross profit climbing 36% to $18 million and adjusted EBITDA advancing 56% to $11.8 million, supported by elevated iodine prices and strong underlying demand.

Expansion strategy gathers pace with new plant development

The Iofina ended the year with cash of $11.7 million and a net cash position of $5.2 million, while investing $8.4 million into new plants and chemical processing capabilities to drive future growth.

Construction has begun on a larger IOsorb facility in the Permian Basin, marking a strategic move into a new core production region alongside its established operations in Oklahoma. The company is targeting annualised crystalline iodine output above 1,000 metric tonnes in the near term, with longer-term ambitions to exceed 2,000 metric tonnes.

Strong start to 2026 supported by firm iodine prices

Trading momentum has carried into 2026, with first-quarter crystalline iodine production reaching 178.9 metric tonnes. The company has raised its first-half 2026 production guidance to approximately 385 metric tonnes, as global spot iodine prices remain above $70 per kilogram.

Management highlighted that its transition toward multiple, larger-scale plants — supported by strong demand and a healthy balance sheet — represents a step-change in production capacity and underpins a long-term, capital-efficient growth strategy.

Outlook supported by fundamentals despite technical caution

Iofina’s outlook is underpinned by solid financial stability and ongoing strategic expansion. While technical indicators suggest caution due to potentially overbought conditions, the company’s valuation and growth trajectory remain attractive.

More about Iofina plc

Iofina plc is a vertically integrated iodine producer and specialty chemicals manufacturer listed on AIM, with operations primarily in North America. Through its subsidiary Iofina Resources, the company operates multiple IOsorb iodine extraction plants in Oklahoma using its proprietary WET IOsorb technology. Its Iofina Chemical division produces halogen-based specialty chemicals for a range of industrial and niche markets.