Category: Market News

TotalEnergies SE (EU:TTE) has reached an agreement to combine its U.K. upstream operations with those of Repsol (TG: REP) and Hitec, forming what will become the largest independent oil and gas producer in the United Kingdom. Under the terms of the deal, TotalEnergies will take a 47.5% stake in the newly formed entity, NEO NEXT+, making it the largest shareholder. HitecVision will hold 28.875%, while Repsol will own 23.625%.

The transaction, subject to regulatory approval, is slated to close in the first half of 2026. Analysts at RBC noted that the move “reflects a continuation of the trend we’ve seen in recent years from the majors in the UK North Sea,” following Repsol’s earlier deal in March and the 2024 agreement between Shell and Equinor to merge their U.K. offshore portfolios. However, RBC also cautioned that HMRC may see diminished tax receipts, as the merged entity is expected to pay less in taxes than the companies would have individually.

The combined company is expected to produce around 250,000 barrels of oil equivalent per day in 2026, with a portfolio spanning fields such as Penguin, Mariner, Shearwater, and stakes in the Elgin/Franklin complex and Alwyn North. As part of the agreement, TotalEnergies will retain up to $2.3 billion in decommissioning liabilities tied to legacy assets, and it expects the transaction to be immediately accretive to the joint venture’s cash flow.

This deal follows March’s announcement of NEO Energy’s merger with Repsol, which similarly involved Repsol keeping $1.8 billion of funding commitments — representing 40% of decommissioning liabilities — for its legacy portfolio. Before this latest agreement, Hitec and Repsol had forecast that their joint venture would produce roughly 130,000 barrels of oil equivalent per day in 2025.

Magnum Ice Cream (LSE:MICC) began trading publicly for the first time on Monday, listing on both the Amsterdam and London exchanges. Shares opened at €12.20 in Amsterdam, coming in under the €12.80 technical reference price issued last Friday. Even so, the stock trended higher as early trading progressed.

Parent company Unilever (LSE:ULVR) also saw a modest boost following the debut, with its London-listed shares rising 0.9%.

Smith & Nephew PLC (LSE:SN.) has unveiled a new set of mid-term performance goals, outlining revenue compound annual growth of 6–7% through 2028 — well above the current analyst consensus of 5.2%. The targets were presented during the company’s Capital Markets Day in London, where management detailed its “RISE” strategy aimed at accelerating both top-line and profitability metrics over the next several years.

Under this plan, Smith+Nephew is aiming for a 9–10% trading profit CAGR, more than $1 billion in free cash flow, and a return on invested capital (ROIC) of 12–13% by 2028. For 2025, the company reaffirmed its expectation of roughly 5% revenue growth and raised its trading margin forecast to at least 19.5%. It also lifted its free cash flow target to around $800 million, citing improvements in working capital management and operational efficiency.

Management projects post-tax ROIC above 9% for 2025, excluding any effects from portfolio rationalisation. As part of its optimisation initiatives, the company believes it can reduce gross inventory by $500 million and will recognise a $200 million non-cash charge in its 2025 accounts.

Looking toward 2026, Smith+Nephew anticipates around 6% underlying revenue growth, with profits expected to grow at a faster pace due to margin expansion from operating leverage. The company also projects approximately $800 million in free cash flow for the year and ROIC above 10%.

UK equities opened the week on a firmer footing Monday, even as the pound slipped and European markets delivered a mixed start. By 08:38 GMT, the FTSE 100 was up 0.1%, while GBP/USD dipped 0.05% but stayed above 1.33. Elsewhere in Europe, Germany’s DAX gained 0.08%, whereas France’s CAC 40 eased 0.2%.

UK market highlights

Magnum Ice Cream (LSE:MICC) began trading for the first time in Amsterdam and London, opening at €12.20 on the Dutch exchange. The debut price landed below Friday’s €12.80 technical reference point, though shares later pushed higher in early dealings.

Smith & Nephew PLC (LSE:SN.) unveiled new mid-term ambitions that outpace analyst expectations, targeting a 6–7% compound annual revenue growth rate through 2028 compared with the current 5.2% consensus. At its Capital Markets Day in London, the medtech group introduced its “RISE” strategy, aiming for a 9–10% trading profit CAGR, over $1 billion in free cash flow, and a 12–13% return on invested capital by 2028. For 2025, the firm maintained its revenue growth outlook of roughly 5% but raised guidance for trading margins to at least 19.5%. Free cash flow expectations were also lifted to about $800 million, up from $750 million, supported by better working capital and operational improvements.

In corporate governance developments, Anglo American PLC (LSE:AAL) said it has withdrawn a resolution scheduled for its upcoming General Meeting that sought to amend executive incentive plans, following shareholder pushback. Resolution 2, which would have altered the Long-Term Incentive Plan Awards for 2024 and 2025, will not be put to a vote on Tuesday.

In executive news, Oxford Nanopore Technologies Ltd (LSE:ONT) appointed Francis Van Parys as its next Chief Executive Officer, effective 2 March 2026. Van Parys — currently President and CEO of Radiometer, part of Danaher Corporation — will take over from founding chief Gordon Sanghera. His career spans more than two decades across life science leadership roles at Radiometer, Cytiva, and GE Healthcare in Europe, Asia, and North America.

Wishbone Gold Plc (LSE:WSBN) has provided an update on its Red Setter Gold Dome Project, announcing that it has applied for approval to construct a new 30-kilometre access road designed to lower logistical costs and boost operational efficiency. The improved access route will connect directly to infrastructure near the Nifty Copper Mine, enhancing mobility for equipment and personnel and supporting more effective exploration activities. During the 2025 drilling campaign, Wishbone completed seven Reverse Circulation holes and six Diamond Drill holes, with assay results still pending. The company expects the new road to accelerate upcoming fieldwork and enable a broader drilling programme in 2026, with the anticipated assay results guiding the next phase of exploration.

More about Wishbone Gold

Wishbone Gold Plc is a mining exploration company focused primarily on gold assets. Its flagship project, the Red Setter Gold Dome in Western Australia, sits close to major regional operations including Greatland Gold’s Telfer mine and Cyprium Metals’ Nifty Copper Mine, providing strategic advantages for ongoing exploration and development activities.

Helium One Global Ltd (LSE:HE1) has begun new operational work at its Southern Rukwa Helium Project in Tanzania, initiating preparations for further testing using an Electrical Submersible Pump (ESP). The ESP technology is intended to improve flow rates from the Basement section, potentially boosting helium concentrations and the gas-to-water ratio as the project advances. In a further boost to operations, the company has been granted a ‘Certificate of Incentives’ for Mineral Processing by the Tanzania Investment and Special Economic Zones Authority, providing fiscal benefits such as import duty relief to support project development.

Despite these encouraging operational and regulatory developments, Helium One continues to face a challenging financial backdrop. Persistent losses, no current revenue stream, and negative valuation indicators weigh heavily on its investment outlook. Mixed technical signals add to the cautious sentiment, even as recent milestones hint at longer-term growth potential.

More about Helium One Global Limited

Helium One Global Ltd is a helium exploration company operating projects in Tanzania and holding a 50% working interest in the Galactica-Pegasus development project in Colorado, USA. The firm aims to address global helium shortages through its portfolio of licences across two continents. Its flagship Southern Rukwa Project in Tanzania has moved into appraisal and development following a confirmed helium discovery.

Avacta Group plc (LSE:AVCT) has shared preliminary findings from its Phase 1b clinical trial evaluating Faridoxorubicin in patients with salivary gland cancer. Full results will be unveiled on 17 December 2025. The early data represent an important milestone for Avacta as it continues to advance its peptide drug conjugate (PDC) platform, aimed at delivering more targeted cancer treatments with improved safety and efficacy. This progress strengthens the company’s positioning within the field of next-generation oncology therapeutics.

Despite the encouraging scientific developments, Avacta’s broader outlook remains constrained by significant financial pressures. Heavy dependence on external funding, a lack of profitability, and valuation challenges continue to weigh on sentiment, even as technical indicators and recent corporate updates offer pockets of optimism.

More about Avacta Group plc

Avacta Group plc is a clinical-stage life sciences company developing innovative oncology treatments using its proprietary pre|CISION® platform. The technology is designed to create peptide drug conjugates (PDCs) that activate selectively within tumour environments, enhancing drug effectiveness while minimising systemic toxicity and side effects.

Frontier IP Group plc (LSE:FIPP) has released its results for the year ended 30 June 2025, reporting a stable overall equity portfolio value alongside a marked reduction in its debt portfolio, driven by debt-to-equity conversions and realised losses. The company recorded a sizeable loss before tax, largely attributable to unrealised valuation movements and operating costs. During the year, Frontier IP raised £3.6 million to support working capital needs and provide further backing for its portfolio companies. A key strategic milestone was the formation of a partnership with Abstract Mid-Tech Limited to establish a new innovation hub in Cambridge — a move expected to strengthen Frontier IP’s role in the UK innovation ecosystem and support future cash generation. Despite a difficult funding environment, several portfolio companies achieved notable progress, including successful capital raises and international collaborations, showcasing continued technical and commercial advancement.

Frontier IP’s outlook remains constrained by financial performance challenges, especially in revenue generation and profitability. While some technical indicators suggest pockets of short-term strength, broader trends remain weak and valuation concerns persist due to negative earnings. Even so, recent strategic developments and positive portfolio activity offer encouraging signals for potential long-term growth.

More about Frontier IP

Frontier IP Group plc specialises in commercialising intellectual property by bridging the gap between scientific innovation and industry. The company identifies high-potential technologies and supports their development through hands-on commercialisation services, engaging industry partners early to ensure alignment with real-world needs. Frontier IP aims to build long-term value through a diversified and strategically driven equity portfolio.

Journeo plc (LSE:JNEO) has announced that its subsidiary, Crime and Fire Defence Systems Limited, has secured initial purchase orders worth £2.3 million under a four-year framework agreement with a major UK utility provider. The orders cover the deployment of high-security infrastructure protection systems across three sites, with project completion expected in 2026. The win highlights the trust placed in Journeo’s ability to deliver resilient, innovative solutions for critical national infrastructure and further strengthens its market standing.

Journeo’s overall outlook remains constructive, supported by solid financial performance and strategically meaningful contract wins that reinforce growth potential. Although technical indicators point to some short-term bearish movement, the company’s valuation appears reasonable, underpinning a favourable long-term perspective.

More about Journeo

Journeo plc specialises in intelligent systems designed for transport networks and critical national infrastructure. Its solutions support towns, cities, airports, and public transport operations, offering technologies such as access control, intrusion detection, and advanced surveillance. The group comprises six companies, including Crime and Fire Defence Systems, which focuses on safeguarding critical national infrastructure sites.

SDCL Efficiency Income Trust plc (LSE:SEIT) has published its interim results for the six months to 30 September 2025, reporting a net asset value per share of 87.6p, a decline reflecting more conservative valuation assumptions amid heightened market volatility. The trust’s portfolio value rose to £1,172 million, and profit before tax reached £2 million. Despite the challenging environment, SEIT reaffirmed its dividend strategy, paying 3.18p per share during the period and maintaining its full-year target of 6.36p per share for the year ending March 2026. Management is actively pursuing selected asset disposals to reduce gearing — currently 71.9% of NAV — and is reviewing potential structural adjustments to enhance shareholder value.

The investment outlook for the trust remains mixed. While SEIT benefits from solid equity financing, stable operations, and strategic initiatives aimed at strengthening its financial position, concerns persist over income statement performance and overall valuation. Technical indicators show limited upward momentum, and the negative price-to-earnings ratio reflects current profitability pressures. Even so, the trust’s elevated dividend yield continues to offer appeal for income-focused investors.

More about SDCL Efficiency Income Trust plc

SDCL Efficiency Income Trust plc (SEIT) is a FTSE 250-listed investment company dedicated exclusively to the energy efficiency sector. Its portfolio spans North America, the UK, and Europe, and includes cogeneration assets, solar and battery storage projects, and energy recycling initiatives. The trust seeks to deliver long-term shareholder value by investing in lower-cost, cleaner, and more resilient energy solutions across a diversified set of efficiency-focused assets.