Category: Market News

Shares of Keller Group (LSE:KLR) dropped over 3% after Deutsche Bank downgraded the stock from “buy” to “hold,” reflecting concerns that the company’s strong investment momentum may be nearing its peak. The bank also reduced its price target from 1,800p to 1,660p, while Keller’s stock had closed at 1,434p the previous day.

Analyst Jonathan Coubrough noted that Keller’s financial transformation over the last five years has been impressive, driven by effective management and consistent earnings upgrades. The company’s share price has doubled since late 2023, supported by a 7% EBIT margin in FY24—40% above its 10-year average—and a return on capital employed of 28%, nearly double its historical norm.

However, concerns have emerged due to a significant double-digit decline in group profits during the second half of 2024. Guidance suggests a return to the company’s typical second-half earnings weighting in 2025, implying a year-on-year earnings decline for the first half. Achieving full-year consensus forecasts will depend on a strong rebound in the second half of the year.

This outlook raises questions about near-term earnings growth, contributing to the cautious stance from Deutsche Bank.

Chesnara PLC (LSE:CSN) has completed the acquisition of HSBC Life (UK) Limited for £260 million, marking a significant step in expanding its operations and market presence. The deal is expected to generate over £800 million in cash over the lifetime of the acquired business, including £140 million within the first five years. Funding for the acquisition will come from a mix of internal resources, a revolving credit facility, and a rights issue.

This strategic acquisition will increase Chesnara’s assets under administration by approximately £4 billion and add around 454,000 policies, potentially positioning the company for inclusion in the FTSE 250 index. The move supports Chesnara’s goal of delivering enhanced shareholder value through operational efficiencies, capital synergies, and access to new business opportunities. It also reinforces Chesnara’s status as a leading consolidator in the life and pensions sector.

While Chesnara’s outlook benefits from a solid financial recovery and positive corporate developments, technical indicators caution about potential overbought conditions, and valuation metrics raise some concerns about stock pricing.

About Chesnara PLC

Chesnara PLC focuses on consolidating life and pensions books primarily in the UK and the Netherlands, with additional operations in Sweden. The company pursues strategic mergers and acquisitions to boost cash generation and support sustainable dividend growth, establishing itself as a major consolidator in the life and pensions market.

Watches of Switzerland Group PLC (LSE:WOSG) announced record-breaking revenue of £1.65 billion for the fiscal year 2025, marking an 8% increase compared to the previous year. Adjusted EBIT also rose by 12%, reflecting strong operational performance. Growth in the US market was particularly notable, with sales up 16%, supported by the recent acquisition of Roberto Coin Inc. Meanwhile, the UK segment rebounded to positive growth.

The company continued its expansion strategy by opening new showrooms and refurbishing existing locations, including a new flagship Rolex boutique in London. Additionally, the acquisition of Hodinkee and the integration of Roberto Coin are expected to enhance the company’s leadership in the luxury watch and jewelry sectors. Despite macroeconomic uncertainties, Watches of Switzerland remains confident in its diversified portfolio and growth outlook.

Watches of Switzerland Group maintains a robust financial position, underpinned by steady revenue growth and a healthy balance sheet. A recent share buyback program has also boosted investor interest. However, potential operational hurdles and cash flow pressures present risks, and valuation levels suggest limited upside. Technical signals show mixed trends, with short-term gains balanced by longer-term caution.

About Watches of Switzerland Group PLC

Watches of Switzerland Group PLC operates in the luxury retail sector, specializing in high-end watches and premium branded jewelry. The company has built strong partnerships with leading global brands and commands a significant presence in both the UK and US luxury markets.

Wishbone Gold PLC (LSE:WSBN) has completed a fundraising round by issuing 230,769,230 new ordinary shares, raising £1.75 million. The fundraising saw notable involvement from the company’s directors, reflecting strong internal support. The additional capital will bolster Wishbone’s financial resources, aiding its ongoing projects and strategic objectives.

These newly issued shares will be listed and traded on both the AIM and AQSE markets, which may influence the company’s share distribution and voting dynamics.

About Wishbone Gold PLC

Wishbone Gold PLC is a precious metals company specializing in gold exploration and development. Listed on the London AIM and Aquis Exchange, the company is focused on growing its footprint through targeted investments and capital raising initiatives.

Currys plc (LSE:CURY) has reported impressive financial growth for the fiscal year ending May 3, 2025, with group adjusted profit before tax rising by 37% to £162 million and group free cash flow surging 82% to £149 million. The company ended the year with a net cash balance of £184 million, its strongest financial position in over ten years. Revenue in the UK and Ireland increased by 6%, driven by market share gains and key strategic initiatives, while profitability in the Nordics improved despite tough market conditions.

Currys remains focused on expanding its high-margin, recurring revenue services and targets growing its iD Mobile subscriber base to at least 2.5 million by the end of the year. The company is optimistic about its growth trajectory and plans to reinstate dividend payments, underscoring its commitment to providing steady and growing returns to shareholders.

About Currys plc

Currys plc is a leading technology retailer offering a broad portfolio of consumer electronics, home appliances, and tech services. Operating primarily across the UK, Ireland, and the Nordics under the Currys and Elkjøp brands, the company emphasizes enhancing customer experience through value-added services such as credit, installation, repairs, and connectivity. Known for integrating AI-driven technology solutions, Currys is positioned to capitalize on evolving consumer demands in its markets.

UK Oil & Gas PLC (LSE:UKOG) has completed the sale of its fully owned subsidiary, UKOG (GB) Limited, to Servatec Holdings Limited for £400,000. This move supports UKOG’s strategic realignment toward clean energy, with a particular emphasis on hydrogen storage and production projects. The funds generated from the divestment will be reinvested to advance its hydrogen storage developments.

This transaction underscores UKOG’s commitment to shifting away from conventional hydrocarbon operations, focusing instead on sustainable energy solutions, which may influence its future market positioning and stakeholder engagement.

About UK Oil & Gas PLC

UK Oil & Gas PLC operates within the energy sector, with a growing focus on clean hydrogen storage and production. The company is actively developing hydrogen storage projects in salt caverns located in Dorset and Yorkshire, marking its transition from traditional oil and gas activities toward renewable energy technologies.

Supermarket Income REIT plc (LSE:SUPR) has declared an interim dividend of 1.53 pence per ordinary share for the April to June 2025 period. This payout, made as a Property Income Distribution, highlights the company’s dedication to delivering reliable, inflation-linked returns to its investors. Notably, there will be no scrip dividend option this quarter, reflecting a focus on preserving cash distributions, though alternative options may be considered in the future.

The dividend announcement reinforces Supermarket Income REIT’s prudent financial approach and its strong position within the grocery property sector.

About Supermarket Income REIT Plc

Supermarket Income REIT is a real estate investment trust specializing in grocery retail properties essential to the food supply chain. The company invests primarily in omnichannel supermarkets that cater to both online and physical shoppers, leasing to major supermarket operators across the UK and Europe. Its portfolio generates long-term, inflation-linked income, supporting a strategy of progressive dividends and potential capital growth. Despite some profitability challenges, the company’s attractive valuation, solid balance sheet, and strategic initiatives make it a compelling choice for income-oriented investors.

Ascent Resources PLC (LSE:AST) has achieved a favorable ruling in its arbitration case against former Slovenian joint venture partner Geoenergo d.o.o. The tribunal awarded Ascent Slovenia Limited nearly €5 million plus accrued interest for unpaid revenues. However, the actual recovery of these funds hinges on the outcome of Geoenergo’s ongoing administration process, which may affect the total amount receivable.

In parallel, Ascent has been invited to mediation with Geoenergo’s administrator to address jurisdictional issues, while continuing legal disputes with Petrol Geo d.o.o. are expected to advance in the near term.

About Ascent Resources PLC

Ascent Resources is an energy company specializing in oil and gas exploration and production. It focuses on leveraging joint ventures and partnerships to develop and manage hydrocarbon assets efficiently, with a strategic presence in Central and Eastern Europe.

Blackbird PLC (LSE:BIRD) has launched a fundraising round targeting approximately £2 million through a mix of placing, subscription, and retail offers. The capital raised will be dedicated to advancing and speeding up the market rollout of elevate.io, its browser-based content creation platform. This funding supports elevate.io’s expansion within the rapidly growing Creator Economy, projected to double in value by 2027, and aims to solidify its position as an innovative video editing solution.

Since launch, elevate.io has demonstrated promising growth, with rising paid user numbers and lower customer acquisition costs, indicating strong momentum toward achieving product-market fit.

About Blackbird PLC

Blackbird PLC is a technology company specializing in cloud-based video editing software. Its flagship product, Blackbird®, is a leading cloud video editing platform, while elevate.io offers online collaborative video editing and content creation capabilities. The company focuses on serving the Creator Economy and corporate clients, delivering cutting-edge tools to simplify and enhance video production workflows. Despite current profitability and cash flow challenges, Blackbird’s solid equity base and strategic growth initiatives position it well for future expansion.

Peel Hunt Limited (LSE:PEEL) has reported a robust start to its financial year, driven by growth in its Institutional and Execution Services divisions alongside solid contributions from M&A activity. The firm continues to build an active pipeline of mergers and acquisitions, underpinning its strategic growth plans. To support its global ambitions, Peel Hunt has opened a new office in Abu Dhabi, aiming to broaden its reach to international investors and enhance support for UK-based companies.

Despite encouraging revenue growth and strategic expansions, Peel Hunt faces a mixed outlook due to ongoing profitability challenges, bearish technical signals, and valuation pressures. Positive corporate developments provide some balance, but investor sentiment remains cautious.

About Peel Hunt Limited

Peel Hunt is a leading UK investment bank focused on mid-cap and growth companies. It delivers a comprehensive suite of services including equity and private capital markets, M&A advisory, debt financing, investor relations, and corporate broking. Supported by strong research capabilities and an execution services hub, Peel Hunt plays a vital role in providing liquidity to UK capital markets. The company is listed on AIM and operates offices in London, New York, and Copenhagen.