Category: Market News

Higher margins offset lower revenue in FY2026

Carclo (LSE:CAR) reported lower revenue for the year ended 2026, but delivered a significant improvement in profitability as the precision engineering group continued its shift away from lower-margin business towards higher-value engineered solutions.

Revenue declined to £114.2 million, while underlying operating profit increased 28.1% to £12.6 million. Return on sales improved to 11% and return on capital employed reached 29.1%, supported by operational efficiencies and the renewal of a key long-term contract in the life sciences sector despite mixed trading conditions across its end markets.

Precision 2030 plan targets long-term organic growth

Following the completion of its three-year turnaround programme, Carclo has introduced its new Precision 2030 strategy, setting long-term targets of more than 8% compound annual organic revenue growth, net debt below 0.5 times EBITDA, and minimum returns of 10% return on sales and 25% return on capital employed.

Management expects future growth to be driven by expanding relationships with existing customers, entering adjacent high-growth markets including drug delivery and wearable technologies, and developing new precision engineering solutions. The company also expects continued strength in aerospace demand, while anticipating a recovery in life sciences volumes later this year.

Operational progress balanced by financial challenges

Carclo’s investment outlook continues to be constrained by financial risks, including negative shareholder equity and relatively weak net profitability.

Technical indicators also remain negative, with the shares trading below key moving averages and supported by a negative MACD signal. These factors outweigh encouraging operational improvements and positive management commentary. In addition, the company’s valuation remains relatively demanding, with a price-to-earnings ratio of around 29 and no dividend yield to support the investment case.

More about Carclo plc

Carclo plc is a global precision engineering company supplying highly engineered components and assemblies for the life sciences, aerospace, safety and security sectors. Through its Carclo Technical Plastics and Speciality divisions, the group designs and manufactures precision injection-moulded products for customers operating in highly regulated and mission-critical industries.

Strong institutional demand drives upgraded outlook

CMC Markets (LSE:CMCX) has raised its guidance for FY2027 after reporting rapid growth across its business-to-business trading platform operations, highlighting increasing demand from institutional and financial services partners.

The company now expects net operating income of at least £550 million for FY2027, significantly above its previous guidance range of £460 million to £480 million. At the same time, CMC Markets reaffirmed its operating expense guidance, excluding variable remuneration, at approximately £280 million.

Scalable platform supports higher margins

Management said the improved outlook reflects exceptional growth in the group’s B2B platform business, where its established online and mobile trading infrastructure is supporting a growing network of institutional partnerships.

The company believes the expansion is generating greater operational leverage and improving profit margins while creating a strong pipeline of future opportunities that are expected to deliver additional milestones over the next 12 months. CMC Markets continues to invest in its technology platform and broad product offering as it seeks to strengthen its position across global financial markets.

Strong balance sheet offset by cash flow volatility

CMC Markets’ investment outlook is supported by healthy profitability, a strong balance sheet and relatively low leverage, providing a solid financial foundation for future growth.

Technical indicators also remain constructive, with the shares continuing to trade in an established upward trend. However, an elevated Relative Strength Index (RSI) suggests the stock may be approaching overbought levels, increasing the potential for near-term volatility. While valuation appears reasonable, the cyclical nature of the business limits its overall attractiveness.

More about CMC Markets

CMC Markets is a London-listed online trading and investment services provider founded in 1989. The company serves both retail and institutional clients through regulated operations in 12 countries, with major markets including the UK, Australia, Germany and Singapore. Its online and mobile platforms provide access to more than 12,000 financial instruments, including contracts for difference (CFDs), spread betting in selected markets and stockbroking services in the UK, Australia and Singapore.

New financing strengthens balance sheet and supports deleveraging (PHP)

Primary Health Properties (LSE:PHP) has secured a new £800 million unsecured term loan and multi-currency revolving credit facility, replacing a number of existing borrowings as part of its strategy to simplify its financing structure and transition towards becoming a fully unsecured borrower.

The facility has been arranged with a syndicate of eight banks, including three new lending partners, and is divided into three tranches with initial maturities of three and five years, together with extension options.

Refinancing lowers borrowing costs and increases liquidity

The company expects the refinancing to reduce its average cost of debt by around 40 basis points compared with the facilities being replaced once leverage returns to its target range.

An initial £500 million has been drawn under the new facility and will be used to partially refinance the £1 billion bridge loan that funded the acquisition of Assura, while also repaying several secured and unsecured borrowing facilities. Following the refinancing, Primary Health Properties will have approximately £300 million of undrawn liquidity available, providing additional financial flexibility as it continues to reduce leverage.

Attractive income profile balanced by leverage concerns

Primary Health Properties’ investment outlook continues to benefit from an attractive valuation, supported by a moderate price-to-earnings ratio and a relatively high dividend yield.

However, these strengths are offset by a mixed financial profile, with higher leverage levels and a significant deterioration in free cash flow during 2025. Technical indicators also remain weak, with the shares trading below key moving averages and a negative MACD signal pointing to subdued market momentum.

More about Primary Health Properties plc R.E.I.T

Primary Health Properties plc is a real estate investment trust specialising in healthcare properties across the UK and Ireland. The company owns, manages and finances primary care centres and other healthcare facilities, providing long-term property solutions for healthcare providers while generating rental income from a diversified portfolio of medical assets.

Sales reach new high despite margin pressure

Supreme plc (LSE:SUP) reported record revenue for the year ended FY26, with sales increasing 17% to £270.2 million as recent acquisitions and continued growth in its Vaping division drove expansion across the business.

Adjusted EBITDA remained broadly unchanged at £40.6 million despite lower margins and a decline in earnings per share. The company also generated strong operating cash flow, returned to an adjusted net cash position and increased its total dividend by 4%, highlighting the strength of its balance sheet and supporting continued investment in manufacturing capacity and brand development.

Acquisitions expand drinks and wellness portfolio

The group’s Drinks & Wellness division recorded revenue growth of 60% to £69.3 million, benefiting from the additions of SlimFast and Clearly Drinks.

During the year, Supreme invested around £6 million in new production facilities, including its wellness manufacturing site, The Hive, and expanded tea production through Typhoo. The company also strengthened its portfolio through the acquisitions of SlimFast and 1001, secured new drinks licensing agreements with Carabao and Tonino Lamborghini, and continued expanding its international footprint. Management believes these initiatives position the business to benefit from consolidation within the vaping market while increasing diversification across multiple fast-moving consumer goods categories.

Strong fundamentals offset weaker technical signals

Supreme’s investment outlook is supported by robust financial performance, successful acquisitions and continued strategic expansion, all of which have contributed to strong revenue growth.

The shares also benefit from an attractive valuation. However, technical indicators remain weaker, with recent price action pointing to negative short-term momentum that may temper investor sentiment.

More about Supreme PLC

Supreme plc is a UK-based manufacturer, distributor and brand owner operating across the Vaping, Drinks & Wellness, and Electricals & Household sectors. The company manages a vertically integrated business model spanning product development, manufacturing and distribution, supplying more than 3,000 business customers and approximately 55,000 retail outlets with a combination of proprietary and third-party consumer brands.

Capital raise to support commercial progress and technology validation

Clean Power Hydrogen (LSE:CPH2) has announced plans to raise up to £7.5 million through a multi-stage equity fundraising priced at 1.5 pence per share.

The fundraising includes a £2.54 million firm placing, a £0.46 million conditional placing, a proposed subscription of up to £4 million from West Hill clients, a £10,000 directors’ subscription and a retail offer targeting at least £0.5 million. The firm placing is expected to complete in early July, while the remaining elements are subject to shareholder approval later this month.

The proceeds will be used to support the company’s capital-light strategy and continue the development and validation of its membrane-free electrolysis technology following the recent testing incident involving its 1MW MFE220 system.

Membrane-free technology remains central to growth plans

CPH2’s proprietary Membrane-Free Electrolyser technology is designed to eliminate the need for expensive membranes and critical raw materials while producing hydrogen with a purity of 99.999 mol% alongside 99.7% oxygen.

The fundraising follows the company’s investigation into a non-injury incident during final factory testing of the MFE220 unit. Management said the review concluded that the core electrolyser stack was not responsible for the incident and confirmed that the company is seeking a manufacturing partner to complete the remaining testing programme. These steps are expected to be important in rebuilding market confidence, advancing commercialisation and strengthening CPH2’s position within the growing green hydrogen sector.

Financial pressures continue despite improving technical outlook

Clean Power Hydrogen’s investment outlook remains constrained by a weak financial profile, characterised by minimal revenue, widening losses, significant cash burn and a substantially reduced equity base.

Technical indicators have improved, with the shares showing a positive trend and stronger market momentum. However, an elevated Relative Strength Index (RSI) suggests there is an increased risk of short-term share price volatility. Valuation remains difficult to assess given the company’s ongoing losses and the absence of a dividend.

More about Clean Power Hydrogen PLC

Clean Power Hydrogen plc is a UK-based developer of green hydrogen technologies specialising in patented membrane-free electrolysers capable of producing high-purity hydrogen and medical-grade oxygen. Its modular systems are designed for customers requiring advanced electrolysis and gas handling solutions, addressing a global electrolyser market estimated to be worth more than $14 billion.

Strong investment performance lifts assets to new high

Polar Capital (LSE:POLR) delivered a strong performance for the year ended 31 March 2026, with assets under management (AuM) increasing 43% to a record £30.6 billion.

Average AuM rose 14% to £26.0 billion, supported by £8.8 billion of investment performance and market appreciation, alongside net inflows of £902 million. Technology and artificial intelligence strategies generated the strongest investor demand, helping technology-focused funds account for 55% of total assets. The group also continued to diversify its client base geographically, with a lower proportion of assets originating from the UK and increased contributions from Europe and Asia.

Higher profits support dividend and share buyback

Financial performance improved during the year, with core operating profit rising 11% to £62.8 million and statutory profit before tax increasing 49% to £76.9 million.

The company maintained its total dividend at 46.0p per share and announced a new £15 million share buyback programme. Management also introduced an updated corporate strategy focused on expanding through differentiated active investment strategies, increasing investment in data and artificial intelligence capabilities, and implementing a revised capital allocation policy that aims to return at least 50% of adjusted core profits to shareholders. The measures reflect confidence in the group’s long-term prospects despite continuing industry challenges facing active equity managers.

Strong fundamentals support investment outlook

Polar Capital’s investment outlook is underpinned by a strong balance sheet, low leverage, solid return on equity and an attractive valuation, supported by a relatively low price-to-earnings ratio and a high dividend yield.

Technical indicators also remain favourable, with the shares trading above key moving averages and supported by a positive MACD signal. However, relatively high share price volatility and some pressure on profit margins temper the overall outlook.

More about Polar Capital Holdings

Polar Capital Holdings is a specialist active asset manager offering a range of investment strategies focused on sectors including technology, artificial intelligence, healthcare and smart energy. The company manages open-ended funds, investment trusts and segregated mandates for institutional and retail clients, with a growing international investor base spanning Europe, Asia and other global markets.

Primark expansion supports steady third-quarter performance

Associated British Foods (LSE:ABF) reported a resilient third-quarter trading performance, with group revenue broadly unchanged at constant exchange rates as growth in Primark, Ingredients and Grocery helped offset weaker results from its Sugar and Agriculture businesses.

Primark delivered a 3% increase in sales, supported by new store openings across Europe, the United States and the Middle East. However, like-for-like sales declined as consumer demand remained subdued, particularly in continental Europe.

Sugar outlook weakens despite progress across other divisions

The group reaffirmed its full-year guidance for all businesses excluding Sugar. Within the Sugar division, however, higher natural gas costs linked to tensions in the Middle East, together with operational uncertainty in Africa, have led the company to forecast an adjusted operating loss of between £25 million and £60 million for the current financial year.

Associated British Foods said it continues to invest in Primark’s product offering, competitive pricing and digital marketing initiatives, while Grocery and Ingredients delivered steady growth. The company also highlighted continued progress with the acquisition of Hovis, reflecting confidence in its long-term strategy despite ongoing challenges in European sugar operations and softer revenue from Agriculture.

Attractive valuation balanced by cautious earnings outlook

Associated British Foods’ investment outlook reflects generally stable financial performance, although management expects profit and earnings per share to remain below 2025 levels, largely due to the anticipated losses within the Sugar business.

The shares continue to benefit from an attractive valuation, supported by a relatively low price-to-earnings ratio and a solid dividend yield. However, technical indicators remain neutral to slightly negative, suggesting limited momentum in the near term.

More about Associated British Foods

Associated British Foods is an international food, ingredients and retail group whose largest consumer business is value fashion retailer Primark. The company also operates across grocery, sugar, agriculture and specialty ingredients, supplying branded and private-label products to customers in Europe, the UK, the US, Africa and other international markets.

Strong trading driven by robust gold market and processing volumes

Goldplat plc (LSE:GDP) has announced that it expects its financial results for the year ended 30 June 2026 to materially exceed current market expectations.

The company said the stronger-than-anticipated performance has been supported by sustained high gold prices alongside strong processing volumes across its gold recovery operations in South Africa and Ghana.

Higher commodity prices boost profitability outlook

The trading update highlights the sensitivity of Goldplat’s recovery business to favourable commodity price movements and increased processing throughput.

Classified as inside information under the UK Market Abuse Regulation (MAR), the announcement points to stronger profitability than previously anticipated and reinforces the company’s position as a specialist provider of gold recovery services within the mining sector.

Strong balance sheet offsets operational challenges

Goldplat’s investment outlook is supported by a solid financial position, healthy cash generation, a very low price-to-earnings ratio and a modest dividend yield.

These strengths are balanced by declining revenue and pressure on profit margins, while technical indicators remain positive but suggest the shares may be approaching overbought territory, potentially increasing short-term price volatility.

More about Goldplat

Goldplat plc is an AIM-listed mining services company specialising in gold recovery operations. The group operates processing facilities in South Africa and Ghana, recovering gold from mining by-products and residual materials for customers across the African and South American mining industries. Its business model provides an alternative to traditional gold mining by extracting additional value from existing mining waste streams.