ADVFN UK Market News

Category: Market News

  • Diversified Energy Confirms Preliminary Talks Over Potential Birch Resources Acquisition

    Diversified Energy Confirms Preliminary Talks Over Potential Birch Resources Acquisition

    Diversified Energy (LSE:DEC) has confirmed that it is holding early-stage discussions regarding a potential acquisition of Birch Resources after responding to recent media speculation surrounding a possible transaction.

    The energy producer stressed that discussions remain preliminary and that no agreement has been reached. There is currently no certainty that a transaction will proceed or, if it does, what terms might ultimately be agreed.

    As a result, the potential acquisition remains at an exploratory stage, with limited immediate implications for shareholders until further progress is made or a formal agreement is announced.

    Potential deal aligns with acquisition-led strategy

    A possible purchase of Birch Resources would be consistent with Diversified Energy’s established strategy of expanding through disciplined acquisitions of producing, cash-generating energy assets.

    Since its initial public offering in 2017, the company has completed 35 transactions representing a combined value of more than $7 billion. Acquisitions have played a central role in building the group’s portfolio and expanding its production base.

    Diversified Energy focuses on acquiring established, long-life assets where it believes operational improvements and disciplined management can enhance cash generation and long-term value.

    More about Diversified Energy Company

    Diversified Energy Company is a publicly traded energy producer listed on both the New York Stock Exchange and London Stock Exchange.

    The company specialises in acquiring, operating and optimising existing energy assets that are capable of generating cash flow over extended periods. Its operating model focuses on improving the efficiency, environmental performance and economic life of acquired assets.

    Diversified Energy also incorporates the eventual retirement of assets into its operating strategy, seeking to manage them responsibly throughout their productive lives while generating cash flow and creating value for shareholders.

  • GB Group Cuts Revenue Growth Outlook as Americas Identity Business Slows

    GB Group Cuts Revenue Growth Outlook as Americas Identity Business Slows

    GB Group plc (LSE:GBG) has lowered its full-year revenue growth expectations after higher-than-anticipated customer volume attrition affected its Americas Identity business, prompting the identity technology specialist to revise its outlook and make changes to regional leadership.

    The FTSE 250 company now expects total revenue growth of between 1% and 3% for FY27, compared with its previous forecast for mid-single-digit growth. The downgrade reflects weaker momentum in the Americas after several significant customers reduced volumes by more than the company had anticipated.

    Despite the near-term slowdown, GBG continues to see growth from its GBG Go platform in EMEA, supported by demand for digital identity verification and data-driven fraud prevention services.

    GBG maintains £6 million investment in innovation

    GBG intends to proceed with a previously planned £6 million one-off investment designed to accelerate innovation and development of the GBG Go platform.

    The company is prioritising its longer-term technology strategy despite the reduced revenue forecast, with artificial intelligence and trust intelligence remaining important areas of investment as customers seek more sophisticated tools for identity verification and digital crime prevention.

    At the same time, management is targeting an adjusted operating profit margin of approximately 21%, with disciplined cost management expected to help protect profitability against slower top-line growth.

    Leadership changes target Americas recovery

    GBG has also reshaped the leadership of its Americas operation as it seeks to improve regional performance. Tom Schutz, Chief Revenue Officer for the Americas, is leaving the business, while Chief Operating Officer James Gothard will assume interim responsibility for the region.

    Gothard’s appointment places an experienced operational executive in charge of the Americas business while GBG works to stabilise customer volumes and improve growth.

    The company continues to point to a strong regional sales pipeline, although converting those opportunities into revenue is expected to take time. Management’s immediate priorities include strengthening execution, preserving margins and rebuilding momentum in the Americas.

    Cash generation provides support despite earnings volatility

    GBG’s wider financial position benefits from solid and improving free cash flow alongside manageable leverage. However, these strengths are offset by considerable earnings volatility, a substantial net loss recorded in 2026 and weaker gross margins.

    From a technical perspective, the shares have shown some improvement over the short to medium term, although there is limited confirmation of a sustained longer-term upward trend. Valuation also remains challenging because of negative earnings, despite the shares offering a modest dividend yield.

    More about GB Group plc

    GB Group plc is a global identity and location technology company specialising in digital identity verification, fraud prevention and trust intelligence. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 index.

    Drawing on more than 30 years of industry experience, GBG combines global datasets with technology to help more than 20,000 customers verify people, locations and businesses while reducing exposure to digital crime.

    Its technology processes billions of interactions involving individuals, places and organisations to generate signals that businesses can use to support secure digital transactions, improve customer onboarding and manage fraud risks.

    GBG is increasingly incorporating artificial intelligence into its services, including through the GBG Go platform, as it seeks to provide businesses with integrated tools for building trusted digital relationships while supporting sustainable growth.

  • Arrow Exploration Acquires Producing Alberta Oil Asset to Expand Reserves and Cash Flow

    Arrow Exploration Acquires Producing Alberta Oil Asset to Expand Reserves and Cash Flow

    Arrow Exploration Corp. (LSE:AXL) has expanded its operations beyond its core Colombian portfolio through the acquisition of a producing oil property in Thorsby, Central Alberta, Canada, adding immediate production, reserves and cash flow to the business.

    The company has acquired a 100% working interest in the asset for C$12.15 million, funded entirely from existing cash resources. The property currently produces approximately 550 barrels of oil equivalent per day and is characterised by a relatively low production decline rate.

    The acquisition adds 4.973 million boe of proved reserves and 7.537 million boe of proved plus probable reserves. Arrow will also gain 9,501 net acres containing a number of identified future drilling opportunities.

    Despite funding the transaction with cash, Arrow expects to remain debt-free, preserving balance-sheet flexibility while increasing its production base and development inventory.

    Thorsby asset brings established cash generation

    The acquired property generated approximately C$2.0 million of operating income during the past 12 months, providing Arrow with an additional source of cash flow from the outset.

    The asset has a pre-tax NPV10 of approximately C$38 million for proved reserves and C$71 million for proved plus probable reserves. As part of the transaction, Arrow will assume approximately C$8.7 million of associated decommissioning liabilities.

    The combination of existing production, substantial reserves and identified development opportunities gives the company scope to increase the value of the asset through further drilling.

    Arrow targets Sparky reservoir development

    Management intends to pursue a development programme focused on the Lower Cretaceous Sparky reservoir, using two-mile horizontal wells to access additional oil resources.

    Arrow has initially identified 22 drilling locations across the acreage. The company expects these wells to offer attractive economics, including strong initial production rates and relatively rapid investment payback periods.

    The Canadian development inventory is expected to complement Arrow’s existing Colombian operations, giving the group greater geographic diversification while adding another portfolio of potentially high-return drilling opportunities.

    More about Arrow Exploration Corp.

    Arrow Exploration Corp. is a publicly traded oil and gas exploration and production company focused primarily on underexploited hydrocarbon assets in Colombia.

    Its Colombian operations are concentrated across the Llanos, Middle Magdalena Valley and Putumayo basins. The portfolio benefits from Brent-linked light oil pricing, relatively low royalty rates and a high proportion of operated assets with substantial working interests.

    Arrow is listed on AIM and the TSX Venture Exchange under the symbol AXL. The addition of the Thorsby property introduces a producing Canadian asset to its portfolio while maintaining the company’s broader strategy of pursuing production growth, cash generation and high-return development opportunities.

  • Cohort’s ELAC SONAR Secures €140.7m Saab Contract for Polish Submarine Programme

    Cohort’s ELAC SONAR Secures €140.7m Saab Contract for Polish Submarine Programme

    Cohort (LSE:CHRT) has secured a major contract through its German subsidiary ELAC SONAR, which has been selected by Saab to provide integrated sonar systems for Poland’s Orka Submarine Programme.

    The contract is valued at €140.7 million, with work starting immediately and deliveries scheduled to continue into the mid-2030s. ELAC SONAR will supply advanced active and passive sonar technology for the Polish Navy’s new A26 submarines.

    The long-term award further strengthens ELAC SONAR’s position within the European submarine market and gives Cohort increased exposure to defence investment associated with maritime security in the Baltic Sea region.

    Contract expected to support future earnings

    Cohort said the contract, together with other recently secured orders, is expected to make a positive contribution to adjusted earnings per share from the next financial year onwards.

    The scale and duration of the programme also provide additional visibility for Cohort’s Sensors and Effectors division, strengthening its order book and supporting longer-term revenue generation.

    Management said the award reinforces ELAC SONAR’s standing as a specialist in naval hydroacoustic technology as the German business marks its centenary.

    Saab partnership expands Cohort’s European defence presence

    The agreement with Saab strengthens Cohort’s participation in major European defence programmes and expands its presence in the international submarine systems market.

    Supplying sonar systems for the Polish Navy’s A26 submarines also gives Cohort a role in a strategically important regional defence programme at a time of heightened focus on underwater capabilities and Baltic Sea security.

    The contract builds on ELAC SONAR’s expertise in sophisticated underwater detection technology and further establishes Cohort as a specialist supplier of naval sensors and defence systems.

    Growth and order momentum offset cash flow pressures

    Cohort’s wider outlook is supported by continued growth and a generally sound balance sheet, although weaker cash generation remains a concern after free cash flow moved into negative territory in 2026.

    Technical indicators remain supportive, with the shares continuing to trade within an established upward trend. Valuation is less favourable, however, due to a relatively high price-to-earnings ratio and a modest dividend yield.

    More about Cohort plc

    Cohort plc is an AIM-listed independent technology group serving defence and security markets through seven businesses operating across the UK, Australia, Germany, Italy, Canada and Portugal.

    The group is organised around its Communications and Intelligence and Sensors and Effectors divisions, supplying technologies including naval communications, electronic warfare, surveillance systems, sonar and other specialist defence capabilities.

    Its portfolio includes EID, EM Solutions, MASS, MCL, Chess Dynamics, ELAC SONAR and SEA, which together employ more than 1,700 core staff. Their capabilities range from satellite communications terminals and hydroacoustic systems to tracking, fire-control and training support services.

    Headquartered in Reading, Berkshire, Cohort has expanded through acquisitions since joining London’s Alternative Investment Market in 2006. Its combination of secure communications, intelligence, sonar, surveillance and sensor technologies positions the group as a specialist supplier to naval and military programmes internationally.

  • Touchstone Exploration Returns to Q2 Profit as Higher Prices Boost Cash Flow

    Touchstone Exploration Returns to Q2 Profit as Higher Prices Boost Cash Flow

    Touchstone Exploration (LSE:TXP) delivered a significant improvement in its second-quarter 2026 financial performance, returning to profitability as stronger commodity pricing lifted revenue, operating margins and cash generation.

    Funds flow from operations increased to $7.13 million, while net income reached $2.34 million, reversing the loss recorded in the previous quarter. Petroleum and natural gas sales climbed 39% sequentially to $17.47 million as realised prices strengthened across crude oil, natural gas liquids and natural gas.

    The improvement came despite average production declining 5% from the previous quarter to 4,433 barrels of oil equivalent per day, largely reflecting planned maintenance at Atlantic LNG.

    Stronger netbacks support debt reduction

    Touchstone’s operating netback increased 77% to $24.37 per boe, providing additional cash generation and helping the company reduce net debt by 10% to $68.71 million.

    Capital expenditure totalled $1.52 million during the quarter, with investment directed towards projects including the FR-1836 oil well and the Cascadura booster compressor.

    Touchstone also completed a multi-jurisdictional financing during the period. The subsequent repayment and full conversion into equity of an $8.40 million debenture simplified the group’s capital structure and provided additional financial flexibility to pursue future growth initiatives.

    Cascadura compressor begins operations

    Operational activity progressed across several of Touchstone’s Trinidad and Tobago assets. The Cascadura booster compressor was commissioned and started operations, while two development oil wells were completed on the WD-8 block.

    The company also successfully recompleted the BRE-1 well on the Central block, adding to efforts to strengthen production capacity and optimise its existing asset base.

    Gas output from Cascadura and Coho was temporarily restricted by third-party pipeline constraints associated with the Atlantic LNG Train 4 outage. However, early performance from the Cascadura compressor has exceeded expectations.

    Touchstone is carrying out several optimisation programmes across its operations and expects to have the potential to increase production as regional pipeline pressures return to more normal levels.

    More about Touchstone Exploration

    Touchstone Exploration Inc. is a Calgary-based oil and gas producer focused primarily on operations in Trinidad and Tobago, where it produces crude oil, natural gas and natural gas liquids.

    Its portfolio includes the Ortoire and Central blocks as well as gas-focused developments such as Cascadura and Coho. The company targets both liquids-rich and dry natural gas reservoirs while selling production into regional energy markets, including infrastructure connected to Atlantic LNG.

    Touchstone’s strategy combines onshore oil development with natural gas projects, production optimisation and investment in supporting infrastructure. The company is also focused on reducing leverage and strengthening its balance sheet to support longer-term growth.

    Its production mix is approximately one-third liquids and two-thirds natural gas, giving Touchstone exposure to both international oil prices and Caribbean gas market conditions. As a result, regional pipeline availability and LNG infrastructure uptime remain important factors affecting production and financial performance.

  • Iomart Names NatWest Veteran Matthew Waymark as New CFO

    Iomart Names NatWest Veteran Matthew Waymark as New CFO

    Iomart Group plc (LSE:IOM) has appointed Matthew Waymark as Chief Financial Officer and a director of the company, strengthening its senior leadership team as the secure cloud services provider looks to restore growth momentum and advance its strategic priorities.

    Waymark will formally take up the roles on 14 September 2026. A chartered accountant, he brings extensive financial experience from senior positions at NatWest as well as previous experience serving as CFO of a start-up bank.

    Waymark said he is joining Iomart at an important stage in the group’s development, with the business focused on rebuilding growth and delivering against its strategic objectives.

    Appointment follows extensive selection process

    Iomart’s board, led by Executive Chair Richard Last, said Waymark was selected following a rigorous recruitment process and is expected to bring additional financial leadership and expertise to the group.

    His arrival comes as Iomart seeks to sharpen strategic execution and strengthen financial discipline while pursuing opportunities within the competitive cloud services market.

    The company is aiming to use its existing technical credentials, customer relationships and extensive technology partner network to support future growth and ultimately enhance shareholder value.

    Financial and technical pressures weigh on outlook

    Iomart’s broader outlook remains affected by weaker financial performance, including continuing operating and net losses, margin pressure and substantially higher leverage following an erosion of equity. Free cash flow remains positive, although recent trends indicate some weakening.

    Technical indicators also remain under pressure, with Iomart shares trading below key moving averages and MACD in negative territory. Oversold readings provide some potential support but do not fully offset the weaker trend.

    Traditional valuation measures remain difficult to apply given the company’s negative earnings and resulting negative price-to-earnings ratio, while no dividend yield data is currently available.

    More about Iomart Group plc

    Iomart Group plc is a U.K.-based secure cloud managed services provider listed on AIM. Its services cover cloud infrastructure, modern workplace management and managed security, with the majority of its revenue generated from customers in the domestic market.

    The company holds a range of Microsoft credentials, including Azure Expert MSP status and multiple advanced specialisations. It is also a high-level partner of VMware Cloud and Commvault, supporting its capabilities across hybrid cloud infrastructure, data protection and cyber resilience.

    Iomart employs more than 600 specialists and focuses on helping businesses manage increasingly complex technology environments while scaling and operating securely. Its technology partnerships and certifications underpin a broad offering across cloud, data and cybersecurity services for U.K. organisations.

  • Kelso Urges The Works Shareholders to Back Board Appointment for Graeme Coulthard

    Kelso Urges The Works Shareholders to Back Board Appointment for Graeme Coulthard

    Kelso Group Holdings Plc (LSE:KLSO) is calling on shareholders of TheWorks.co.uk plc to support the appointment of major investor Graeme Coulthard to the retailer’s board at its forthcoming Annual General Meeting.

    Kelso is encouraging investors to vote in favour of Resolution 15, which proposes Coulthard’s election as a director. Kelso itself owns 10% of The Works, while Coulthard holds an 8% stake, giving the two shareholders significant exposure to the company’s future performance.

    Kelso challenges concerns over Coulthard’s retail experience

    Kelso has disputed The Works board’s assessment of Coulthard’s retail credentials, pointing to his previous involvement with Card Factory as evidence of his ability to contribute to shareholder value creation.

    The investment group argues that appointing Coulthard would represent a relatively modest governance change, expanding The Works board to six directors while introducing the perspective of a substantial shareholder.

    Kelso believes greater shareholder representation at board level could strengthen decision-making and help align the company’s strategic direction and capital allocation with the interests of its wider investor base.

    Financial performance remains a key concern

    Kelso’s own outlook continues to be constrained by weaker financial performance, including declining revenue, continuing losses and deterioration in operating and free cash flow.

    Technical indicators are relatively neutral, with some positive momentum but no clear directional trend. Valuation metrics offer limited additional support, with a reported price-to-earnings figure of 0.0 and no dividend yield data available.

    More about Kelso Group Holdings Plc

    Kelso Group Holdings Plc is a UK-listed investment company established in January 2023 to identify opportunities among undervalued small and mid-cap businesses.

    The company is backed by more than 80 business associates of its board alongside a small number of institutional investors. Its directors collectively have around 150 years of experience across UK-listed companies, including expertise in fund management, corporate broking, mergers and acquisitions, private equity and law. The board owns close to 20% of Kelso.

    Kelso typically maintains a concentrated portfolio of fewer than ten investments. Rather than operating as a passive shareholder, it seeks to engage with investee companies on areas including corporate strategy, capital allocation and investor relations.

    Through this activist-style approach, Kelso aims to identify and unlock value it believes is not adequately reflected in the market valuations of selected UK-listed businesses.

  • Mpac Group Confirms Half-Year Results Date and Investor Presentation

    Mpac Group Confirms Half-Year Results Date and Investor Presentation

    Mpac Group plc (LSE:MPAC) has confirmed that it will release its unaudited financial results for the six months ended 30 June 2026 on 15 September 2026, providing investors with an update on the engineering and automation group’s first-half performance.

    Management will also hold a briefing for analysts on the same day, continuing the company’s regular engagement with the professional investment community.

    Online investor presentation scheduled for 15 September

    Current and prospective shareholders will have an opportunity to hear directly from management through a live online presentation hosted on the Investor Meet Company platform.

    The presentation is scheduled to begin at 16:00 BST on 15 September 2026. Investors will be able to submit questions in advance of the event as well as during the live session.

    The online format is intended to make management commentary more widely accessible to shareholders and provide investors with further insight into Mpac’s financial performance, operations and strategic priorities.

    Financial pressures offset improving revenue trends

    Mpac’s broader outlook remains affected by financial pressures, including a net loss, negative operating and free cash flow and increased leverage. These factors are partly balanced by improving revenue growth and stronger gross margins.

    Technical indicators provide some support, with the share price trading above major moving averages and MACD remaining positive. However, elevated RSI and stochastic readings indicate potentially overbought conditions. Valuation also remains constrained by negative earnings, resulting in a negative price-to-earnings ratio, while no dividend yield data is available.

    More about Mpac Group PLC

    Mpac Group plc is an AIM-listed global engineering and technology company specialising in the design, precision engineering, manufacture and support of high-speed packaging machinery and end-of-line automation systems.

    The group serves customers across around 80 countries in the Americas, EMEA and Asia-Pacific, with a particular focus on the Food & Beverage and Healthcare markets. Its business combines original equipment sales with recurring service revenues.

    Through the BCA, Langen, Switchback and CSi product lines, Mpac provides automated packaging solutions covering processes from product assembly through to case packing and palletising. The group employs more than 900 people worldwide, including over 500 engineers and designers.

    Headquartered in Coventry, U.K., Mpac also has operations in the U.S., Mexico, Canada, the Netherlands, Romania, Malaysia and Singapore, supporting its strategy of using engineering innovation and automation technology to drive long-term growth.

  • Residential Secure Income Begins £38m Capital and Income Return Through B Share Scheme

    Residential Secure Income Begins £38m Capital and Income Return Through B Share Scheme

    Residential Secure Income plc (LSE:RESI) has launched the first stage of its B Share Scheme to return proceeds to shareholders following the disposal of its Retirement Group to Living REIT plc.

    The Retirement Group was sold for £108.3 million, including £45 million in cash. After accounting for transaction costs and settling historic expenses, Residential Secure Income plans to distribute approximately £35.2 million through redeemable B shares, equivalent to 19 pence for each ordinary share.

    Alongside the capital return, the company will make a property income distribution of approximately £2.8 million, representing 1.53 pence per share. Together, the two payments amount to an initial capital and income return of around £38 million.

    Shared Ownership disposal could lead to further distributions

    Residential Secure Income is also advancing the proposed sale of its Shared Ownership portfolio, which is expected to generate net proceeds of approximately £13.5 million.

    Once that transaction has completed, the company intends to make additional capital or income distributions to shareholders as it continues implementing its orderly wind-down strategy.

    The B Share Scheme uses unlisted redeemable shares to facilitate the return of substantial disposal proceeds. The structure forms a central part of RESI’s plan to distribute available cash to investors as its remaining assets are sold.

    Balance sheet strengthens as wind-down progresses

    Residential Secure Income’s financial position presents a mixed picture. Consistent cash generation and a significantly strengthened, debt-free balance sheet provide support, while declining revenue and continuing net losses remain areas of weakness.

    Technical indicators are moderately positive, with the share price trading above important moving averages. The company’s valuation also benefits from a high dividend yield, although negative earnings limit support from conventional earnings-based valuation measures.

    More about Residential Secure Income

    Residential Secure Income plc is a UK-listed real estate investment trust focused on residential property assets, historically including retirement housing and shared ownership homes.

    The company operates a tax-exempt property rental business and is currently pursuing an orderly wind-down. As assets are disposed of, RESI intends to return available proceeds to shareholders through mechanisms including its structured B Share Scheme.

  • TwentyFour Select Monthly Income Fund Releases July 2026 Factsheet and Commentary

    TwentyFour Select Monthly Income Fund Releases July 2026 Factsheet and Commentary

    TwentyFour Select Monthly Income Fund Limited (LSE:SMIF) has published its latest monthly factsheet and investment commentary, providing an update on the fund’s performance, portfolio positioning and market perspective through the end of July 2026.

    The newly released materials give professional and institutional investors further insight into the fund’s investment strategy and exposure to less liquid areas of the fixed-income market.

    Regular disclosures support investor transparency

    The publication forms part of TwentyFour Select Monthly Income Fund’s regular investor reporting programme, giving shareholders timely information on portfolio developments and the broader market environment.

    Consistent monthly reporting provides investors with greater visibility into the fund’s positioning and performance while supporting its role as an income-focused vehicle within the listed closed-ended investment fund sector.

    Financial position and dividend yield support outlook

    TwentyFour Select Monthly Income Fund’s investment profile is supported by a debt-free balance sheet and solid recent profitability, although historical fluctuations in earnings and cash generation remain factors for investors to consider.

    Technical indicators are also relatively supportive, with the share price trading above major moving averages and momentum remaining positive. From a valuation perspective, the fund offers a high dividend yield alongside a price-to-earnings ratio that sits within a more moderate range.

    More about TwentyFour Select Monthly Income Limited

    TwentyFour Select Monthly Income Fund Limited is a London-listed closed-ended investment company specialising in fixed-income markets.

    The fund seeks to generate attractive returns and income by investing across the debt spectrum, with a particular focus on less liquid fixed-income instruments. Its strategy is designed primarily for professional and institutional investors seeking income-oriented exposure to specialist areas of the credit market.