Category: Market News

Derwent London (LSE:DLN) reported higher net asset value and a modest dividend increase for the 2025 financial year, supported by leasing activity and asset management gains across its portfolio.

Net asset value reached 3,225 pence per share at year-end, representing a 2.4% increase compared with the previous year. Earnings per share totalled 98.4 pence, while the company declared a full-year dividend of 81.5 pence per share.

During FY25, Derwent London completed new leasing agreements worth £11.3 million, achieved at rents 9.9% above estimated rental value. Since the start of the new financial year, the group has secured a further £1.5 million in leases, with £14.4 million currently under offer, including all office space at Network, and an additional £4.4 million under negotiation.

Asset management initiatives generated £58.9 million of activity, delivering rental uplifts of 6.4%. The company also progressed its capital recycling strategy, completing property disposals totalling £216.1 million during the year. A further £33 million has exchanged year to date, with roughly £240 million of additional transactions under offer.

The 25 Baker Street W1 development was fully pre-let, achieving an ungeared internal rate of return of 11.3%. The project delivered an accounting return of 5%, with earnings per share of 98.4 pence excluding 3.7 pence of trading profits.

Looking ahead, Derwent London expects estimated rental value growth across its portfolio of between 4% and 7% in fiscal year 2026. The company aims to complete £1 billion of disposals over the next three years and is targeting EPRA earnings growth of 25% to 30% by 2030.

Financial leverage remained stable, with net debt to EBITDA at 9 times, an interest coverage ratio of 3.1 times and a loan-to-value ratio of 29%, unchanged from the prior period.

The chief executive said the company expects continued increases in portfolio estimated rental values and EPRA earnings, while projecting total accounting returns of between 7% and 10% over the coming years.

Getlink (EU:GET) reported mixed second-half earnings alongside an enhanced shareholder return policy and updated guidance for 2026, with investors reacting cautiously as the shares moved around 1% lower following the announcement.

Second-half EBITDA reached €493 million, exceeding market expectations by 4.9%, supported by solid contributions from Eurotunnel and the ElecLink interconnector. ElecLink performance was boosted by a €50 million one-off insurance payment, helping lift the EBITDA margin to 57.6%, well ahead of the 54.5% consensus forecast.

Group revenue for the period totalled €856 million, broadly matching analyst estimates. However, free cash flow fell short of expectations, coming in at €156 million compared with forecasts of €193 million, a miss of roughly 19%.

For 2026, Getlink reaffirmed EBITDA guidance in a range of €820 million to €860 million. According to Jefferies, the midpoint represents an approximate 1% downgrade versus consensus expectations, largely reflecting a challenging comparison against the prior year’s ElecLink insurance benefit.

Alongside the results, the company introduced a revised capital returns framework, announcing plans to pay a dividend of €0.80 per share in 2026, increasing by €0.05 annually to reach €1 per share by 2030. Jefferies analyst Graham Hunt said this payout trajectory stands around 23% to 30% above current market forecasts.

“2026 guidance is a ~1% cut at the midpoint, but all focus will be on shareholder returns, which sees dividend move ~30% above cons. to €0.8/sh, growing 5c/year to 2030 and puts GET on ~4.5% yield,” Hunt wrote.

Over the longer term, Getlink reiterated its ambition to deliver €1 billion in EBITDA by 2030, approximately 2% higher than consensus projections, while forecasting an additional 2.3 million high-speed rail passengers by the end of the decade — about 5% below prevailing market expectations.

Hunt noted that while the dividend increase represents a meaningful upgrade for investors, “no buyback will disappoint some.”

Separately, an analyst at RBC Capital Markets said they “expect an improvement rather than inflection in Eurotunnel’s performance.”

“Our FY26 forecasts are ahead of consensus, with Eleclink positioned for a return to top-line growth,” they added.

French energy group Engie SA (EU:ENGI) has agreed to acquire UK Power Networks in a deal valuing the UK electricity distribution operator at a £10.5 billion equity price, marking a major expansion of ENGIE’s regulated infrastructure portfolio.

The transaction assigns an enterprise value of approximately £15.8 billion to UK Power Networks, equivalent to around 1.5 times its projected regulated asset value as of March 2026 and roughly 10 times forecast 2027 EBITDA, including contributions from non-regulated activities.

UK Power Networks reported a regulated asset value of £9.2 billion at the end of March 2025, which is expected to increase to £10.5 billion by the conclusion of the current regulatory price control period in March 2028.

ENGIE said it will fund the acquisition through a combination of financing measures, including around €5 billion raised via debt and hybrid instruments, alongside a planned divestment programme targeting approximately €4 billion by 2028. The company also intends to raise up to €3 billion through an accelerated book-building equity offering to maintain its commitment to a strong Investment Grade credit profile.

The company expects the acquisition to deliver an immediate positive contribution to earnings and to be accretive from the first full year after completion, while supporting both its credit rating and dividend policy.

Completion of the transaction is anticipated in mid-2026, subject to regulatory clearances and approval from independent shareholders of the sellers’ Hong Kong-listed parent companies.

ENGIE estimates that, together with progress on its divestment programme, the deal will increase group employed capital by approximately €17–19 billion by the end of 2026. Net financial debt is expected to rise by between €13 billion and €15 billion over the same period.

Catherine MacGregor, CEO of ENGIE, stated that the acquisition represents a decisive step in strengthening ENGIE’s position as a leading utility for the energy transition and is fully aligned with the company’s ambition to become a key player in regulated electricity grid infrastructure. The transaction will enhance the Group’s growth trajectory and reduce its risk profile, providing greater visibility into future earnings, MacGregor stated.

Basil Scarsella, CEO of UK Power Networks, said the transaction marks a significant milestone in the history of UK Power Networks and for all its employees. By joining ENGIE, the company continues to be part of a global energy leader with the financial strength, industrial capabilities, and long-term vision to support its next phase of development, Scarsella said.

In the world of mature oil fields, “water cut”, the ratio of water produced compared to the total volume of liquids, is the silent profit killer. For Buccaneer Energy plc (LSE:BUCE), a field once considered marginal is undergoing a radical transformation thanks to a sophisticated organic oil recovery (OOR) pilot that sounds more like biotechnology than traditional drilling.

In a recent interview on The Watch List, Buccaneer Energy CEO Paul Welch detailed how the company’s pilot program at Pine Mills has achieved a near-miraculous reduction in water production while simultaneously doubling oil output.

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The Tech: Recruiting “Beneficial Microorganisms”

The standout result of the pilot was the performance of the 206 well, which saw its water cut plummet from 80% to 0% following treatment. To understand how a well goes from producing mostly waste-water to pure oil, Welch explained the biological process behind the recovery.

Rather than using harsh chemicals, the process leverages the reservoir’s existing ecosystem:

1. Sampling: Produced water is analyzed to identify indigenous “beneficial microorganisms.”
2. Feeding: A custom nutrient mix is pumped into the well, causing these microbes to “bloom” (increasing their population by up to a thousandfold).
3. Action: Once the nutrients are consumed, the starving microbes begin to eat the cellular network surrounding oil droplets stuck to the sand.
4. The Swap: This biological activity releases the oil to flow toward the well while simultaneously helping water “attach” to the sand phase.

“It’s really been a remarkable treat for us,” says Welch. “They release oil and they attach water to the sand phase… we only produced oil [from the 206 well] for a period.”

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Efficiency by the Numbers

For investors, the most compelling aspect of the OOR program isn’t just the chemistry, it’s the capital efficiency. Welsh noted that the cost of the pilot was comparable to a routine well workover, yet the returns are projected to be “exceptional.”

Financial & Operational Highlights:

Metric	Pre-Pilot	Post-Pilot (Projected/Current)
Water Cut (Well 206)	80%	0% (initially)
Production (Pilot Area)	15 bopd	30 bopd
Operating Costs (OPEX)	~$20/barrel	Targeting ~$5/barrel
Internal Rate of Return	N/A	99% (at current prices)

While the current incremental increase is a modest 15 barrels per day (bopd), the scalability is the real story. Buccaneer plans to expand the treatment across the remaining wells in “Battery 3” and the wider Pine Mills field in Q2.

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The Path to Free Cash Flow

If the expansion goes to plan, Welch targets an additional 45 to 60 barrels per day across the entire field. At current netbacks, this could translate into roughly $60,000 in additional free cash flow per month.

“That’s another $600,000 to $650,000 in cash over 10 months,” Welsh explains. “For what we described prior to this as a marginal field, that is a lot.”

The ultimate impact on the bottom line will depend on the decline rate. While the company is currently modeling a 40% decline for the incremental barrels until they hit the standard field decline of 5–8%, the reduction in OPEX remains a massive lever. By reducing the volume of water that needs to be processed and disposed of, Buccaneer hopes to bring Pine Mills’ operating costs closer to those of its “Fain” area, which operates at just $5 per barrel.

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Looking Ahead

With a 99% IRR and a successful proof-of-concept in the bag, Buccaneer Energy is no longer looking at Pine Mills as a legacy asset, but as a cash-flow engine. Partnering with Hunting plc on the technology, the company is moving quickly to turn this recovery method into a field-wide reality by the end of the year.

For more information on Buccaneer Energy visit – https://buccaneerenergy.co.uk/

Greencoat UK Wind (LSE:UKW) reported solid cash generation and stable operational performance in its 2025 full-year results, while outlining a more cautious capital allocation strategy in response to ongoing sector valuation pressures.

The renewable infrastructure fund generated net cash flow of £291 million during the year and produced 5,403GWh of electricity, despite lower average wind speeds and softer power prices. Shareholders received total dividends of £226.8 million, equivalent to 10.35p per share, representing the company’s 12th consecutive year of dividend growth in line with its inflation-linked policy.

Management placed significant emphasis on balance sheet and capital management, completing £181 million of asset disposals at net asset value while repurchasing £109 million of shares at an average discount of 23% to NAV. The company also reduced debt principal by £168 million as part of efforts to strengthen financial resilience.

Persistent headwinds across the renewable investment trust sector, including pressure on net asset valuations and weaker investor sentiment, have left Greencoat UK Wind’s shares trading at a notable discount. In response, the company’s 2026 strategy will prioritise additional selective disposals, lower gearing levels, ongoing share buybacks and disciplined reinvestment aimed at restoring shareholder value.

Operationally, the portfolio generated enough renewable power to supply approximately 2.0 million homes and avoided an estimated 2.2 million tonnes of carbon dioxide emissions during the year. The group also invested £6.7 million into community initiatives linked to its wind farm operations.

Looking ahead, management highlighted strong structural support for UK wind generation, underpinned by policy backing and rising electricity demand. The company sees opportunities emerging from secondary market transactions and new-build developments, even as the broader renewable investment trust sector continues to face challenges from lower wholesale power prices and regulatory uncertainty.

The company’s outlook is moderated by weaker profitability and revenue trends despite strong cash flow generation and a manageable balance sheet. Technical indicators currently suggest mildly negative momentum, while valuation support comes primarily from the fund’s high dividend yield, partly offset by a negative price-to-earnings profile. Share buybacks provide some positive support, though regulatory risks remain a consideration.

More about Greencoat UK Wind

Greencoat UK Wind is a listed renewable infrastructure investment company focused on owning and operating UK wind farms. Its strategy aims to deliver dividends that grow in line with CPI inflation while preserving long-term capital value through reinvestment of surplus cash flow. The fund provides investors with direct exposure to UK wind energy assets and has distributed more than £1.4 billion in dividends since inception.

Empire Metals (LSE:EEE) has obtained Depository Trust Company (DTC) eligibility for its common shares in the United States, a step expected to simplify electronic clearing and settlement for investors trading the stock on the OTCQX market under the EPMLF ticker.

The company said the change should enhance trading efficiency by enabling settlement through standard U.S. market infrastructure, improving liquidity and broadening access to its shares across American brokerage platforms. Management believes the move will make it easier for both institutional and retail investors in the U.S. to participate as the company advances development of its Pitfield titanium project.

DTC eligibility was described as a strategic milestone, reducing cross-border trading friction for existing shareholders while strengthening Empire Metals’ capital markets profile. The company is seeking to expand investor engagement at a time when its Western Australia-based titanium resource is positioned to benefit from rising global demand for critical minerals.

Despite improving market visibility, the company’s outlook remains constrained by financial fundamentals, including its pre-revenue status, widening losses and increasing cash burn. Positive technical momentum, reflected in share price strength relative to key moving averages and supportive MACD indicators, provides some counterbalance, alongside a conservative balance sheet with low leverage. Valuation metrics remain pressured due to negative earnings and the absence of a dividend yield.

More about Empire Metals

Empire Metals is an AIM-quoted and OTCQX-traded natural resources company focused on mineral exploration and development. Its flagship asset, the Pitfield Titanium Project in Western Australia, hosts one of the world’s largest and highest-grade titanium resources, with a mineral resource estimate of 2.2 billion tonnes grading 5.1% TiO₂. The project benefits from existing infrastructure and conventional processing pathways, offering significant potential for future expansion.

Tate & Lyle (LSE:TATE) reported third-quarter trading in line with expectations, supported by contributions from its recently combined CP Kelco business, although underlying demand across key markets remained subdued.

Group revenue increased 15% on a reported basis for the three months to 31 December 2025, primarily reflecting the impact of the CP Kelco acquisition. On a pro forma basis, however, revenue declined 2%, with weaker performance in the Americas and EMEA regions partially offset by modest growth in Asia Pacific.

Despite softer underlying demand conditions, the company reaffirmed its full-year outlook, continuing to expect low single-digit declines in both revenue and EBITDA.

Management said progress is being made on initiatives designed to restore sustainable top-line growth, including targeted investments in technology, capabilities and commercial execution. The expanded product portfolio created through the CP Kelco integration is also generating increased cross-selling opportunities, which the company expects to support future revenue momentum.

Synergies from the CP Kelco transaction are tracking in line with expectations across both cost efficiencies and revenue opportunities. Tate & Lyle is also selectively investing in customer framework agreements for 2026, aimed at driving volumes and strengthening longer-term commercial relationships.

The company believes these measures position the business to benefit from structural growth trends in healthier food and beverage consumption, including rising demand for ingredients that reduce sugar, calories and fat while enhancing nutrition and product functionality.

Tate & Lyle’s outlook reflects broadly stable operational performance and supportive corporate developments, including insider share purchases. However, valuation metrics remain elevated and technical indicators point to neutral market momentum, highlighting ongoing caution amid challenging trading conditions.

More about Tate & Lyle

Tate & Lyle is a London-listed global ingredients specialist focused on sweetening, mouthfeel and fortification solutions for food and beverage manufacturers. Building on more than 165 years of ingredient innovation and an expanded portfolio following the CP Kelco acquisition, the company supplies nature-based ingredients that help reduce sugar, calories and fat, add fibre and protein, and improve texture and stability across categories including beverages, dairy, bakery and snacks worldwide.

Jadestone Energy (LSE:JSE) has outlined its 2026 operational guidance alongside a year-end 2025 reserves update, signalling a stronger focus on capital discipline as weaker oil price assumptions reshape its near-term financial outlook.

The Asia-Pacific upstream producer said it will prioritise high-return infill drilling at the PM323 licence offshore Malaysia, targeting approximately 2 million barrels of oil with relatively quick payback periods. The programme is also expected to support efforts to secure a licence extension, aligning with Jadestone’s longer-term ambition to establish itself as a leading independent oil and gas operator in the region.

Production for 2026 is forecast at between 18,000 and 21,000 barrels of oil equivalent per day, broadly unchanged from the previous year. Output gains from PM323 are expected to offset natural field decline, the divestment of the Sinphuhorm asset and scheduled downtime linked to dry-docking work on the Okha floating production storage and offloading vessel.

Total production costs are projected to rise temporarily to between US$260 million and US$300 million, reflecting planned maintenance activity and contract renewals. Capital expenditure, however, has been reduced to a range of US$50 million to US$80 million, with roughly two-thirds allocated to development projects in Malaysia and Vietnam. The company has revised its forecast for unlevered free cash flow between 2025 and 2027 to US$200 million–US$240 million, assuming an oil price of US$70 per barrel.

Jadestone also expects to recognise a non-cash impairment charge of around US$90 million in its 2025 accounts, largely attributable to lower commodity price assumptions applied by its independent reserves auditor. Proved and probable (2P) reserves at the end of 2025 declined to 56.2 million barrels of oil equivalent, while associated net present value (NPV10) fell to US$519 million from US$799 million a year earlier. Despite the reduction, management noted that the valuation remains substantially above the company’s current market capitalisation after accounting for net debt.

Looking ahead, Jadestone continues to advance approval of a field development plan for its Vietnam gas project, a step that would enable reserves booking and accelerate engagement with potential partners. The company has also commissioned an updated Competent Person’s Report covering the Nam Du/U Minh discoveries and surrounding exploration potential, while progressing refinancing discussions for its reserves-based lending facility to improve financial flexibility and support future growth opportunities, including potential acquisitions.

The company’s outlook remains constrained by financial pressures including declining revenue, negative profitability, elevated leverage and negative cash flow generation. Technical indicators present a mixed picture but lean weaker, while valuation metrics provide some support due to a relatively low price-to-earnings ratio.

More about Jadestone Energy Inc

Jadestone Energy plc is an independent upstream oil and gas company focused on the Asia-Pacific region, with producing and development assets across Australia, Malaysia, Indonesia and Vietnam. The company aims to expand and diversify its portfolio through organic developments — including the Nam Du/U Minh gas project in Vietnam and the Puteri Cluster in Malaysia — as well as acquisitions where it can apply operational expertise in mature asset optimisation and cost efficiency.

Made Tech (LSE:MTEC) delivered a strong first-half performance for the six months to 30 November 2025, reporting record revenue and profit growth as execution of its contracted backlog and improved cost discipline supported margins and cash generation.

Revenue rose 28% year-on-year to £27.8 million, while adjusted EBITDA increased 35% to £2.4 million. The performance was driven by delivery against a substantial pipeline of secured contracts and a strategic reduction in contractor usage, which contributed to improved operational efficiency and higher profitability.

Although new sales bookings declined sharply compared with an unusually strong prior-year period and contracted backlog eased slightly, the company said trading remains ahead of recently upgraded market expectations. Momentum has been supported by a recovery in UK government procurement activity, increasing demand for large-scale, long-term digital transformation programmes and growing interest in artificial intelligence solutions.

Made Tech also strengthened its financial position during the period, ending the half year with £11.9 million in net cash and no debt. The company further enhanced its leadership team with the appointment of a new chief financial officer, aimed at supporting the next phase of growth.

The group’s outlook is underpinned by improving financial performance, including a return to profitability, stronger cash flows and low leverage, alongside supportive technical trading momentum. However, valuation remains elevated, with a high price-to-earnings ratio and a track record of earnings and cash-flow volatility tempering investor sentiment, despite recent positive corporate developments.

More about Made Tech Group PLC

Made Tech Group plc is a UK-based provider of digital, data and technology services focused primarily on the public sector. The company supports government departments, healthcare organisations, education providers and public safety bodies with modernisation programmes spanning cloud infrastructure, artificial intelligence and managed services, positioning itself as a long-term partner for public-sector digital transformation.

Macfarlane Group (LSE:MACF) reported higher sales in 2025 but lower profitability, as rising costs, softer demand in parts of its business and operational disruption following a fatal incident at its recently acquired Pitreavie facility impacted earnings.

Revenue increased 11% year-on-year to £300.8 million, reflecting continued activity across the group. However, operating profit and earnings fell sharply, primarily due to weaker conditions within the Packaging Distribution division alongside cost pressures and the operational effects linked to the Pitreavie corrugated packaging business.

By contrast, Manufacturing Operations delivered more resilient performance, supported by contributions from the Polyformes acquisition and strong demand from defence and aerospace customers. The company maintained its dividend during the year and progressed a £4 million share buyback programme, while managing net bank debt conservatively within its £40 million financing facility. Macfarlane is also preparing its pension scheme for a potential buy-in transaction.

Looking ahead, management has set out priorities for 2026 centred on rebuilding margins in Packaging Distribution and restoring performance at the Pitreavie site. A £1.2 million investment in new equipment is planned to reinstate full production capacity by the second quarter of 2026. Additional initiatives include improving operational efficiency and refining sourcing strategies to mitigate input cost pressures.

Although acquisition activity will pause in the near term, the board said it continues to develop a future pipeline of opportunities and remains confident that operational improvements, sustainability initiatives and support for customers navigating new packaging regulations will help restore growth momentum despite challenging market conditions.

Macfarlane’s outlook benefits from solid underlying financial performance and an attractive valuation profile, although technical indicators currently point to weaker share price momentum. Recent corporate developments also highlight execution risks, placing emphasis on management’s ability to deliver operational recovery in the year ahead.

More about Macfarlane Group

Macfarlane Group PLC is a UK-based packaging specialist with more than 75 years of operating history and a premium listing on the London Stock Exchange. The company operates through Packaging Distribution and Manufacturing Operations divisions, supplying protective packaging, corrugated products and specialised packaging solutions to industrial, defence, space, aerospace and retail markets, with an increasing focus on higher-value sectors.