Category: Top Story

Ocado Group (LSE:OCDO) has signed a new ecommerce partnership with Asda that will see the retailer adopt Ocado’s technology platform to modernise its online grocery operations across the UK from 2027.

Under the agreement, Asda will deploy the Ocado Smart Platform throughout its digital grocery network, incorporating ecommerce storefronts, in-store fulfilment capabilities and last-mile delivery planning systems. The technology is designed to support a range of fulfilment options, including scheduled deliveries, rapid-delivery services, click-and-collect orders and purchases made through third-party delivery aggregators.

The partnership represents a significant addition to Ocado’s client base in the UK grocery market and further demonstrates the adaptability of its technology platform. For Asda, the arrangement is intended to strengthen digital operations, improve efficiency and enhance the customer experience across multiple shopping channels.

While Ocado does not expect the agreement to have a material financial impact during the 2026 financial year, management believes the deal reinforces the long-term growth potential of its technology business as adoption of the platform continues to expand. The company also reiterated its expectation of achieving positive cash flow during the second half of the current year and delivering full-year cash-flow positivity in 2027, reflecting confidence in the scalability of its business model and improving financial performance.

Despite these developments, Ocado’s outlook remains influenced by variability in operating profitability and weaker technical indicators, with the shares continuing to trade below key moving averages and momentum measures remaining subdued. However, improving cash generation trends and an undemanding valuation provide some support, while management has outlined a clear pathway toward sustainable cash generation. Investors continue to weigh these positives against the company’s debt levels and the execution risks associated with scaling its technology and retail partnerships.

More about Ocado Group

Ocado Group is a UK-based technology company specialising in ecommerce, automation and logistics solutions for the grocery sector. Its proprietary Ocado Smart Platform provides retailers with an integrated suite of tools covering online storefronts, fulfilment operations, warehouse automation and last-mile delivery management.

The company partners with supermarkets around the world to support the growth of online grocery shopping, helping retailers improve efficiency, enhance customer service and manage increasingly complex omnichannel operations. Through its technology-led approach, Ocado has established itself as a leading provider of digital infrastructure for the global grocery industry.

Blencowe Resources (LSE:BRES) has upgraded the commercial assumptions supporting its Definitive Feasibility Study for the Orom-Cross graphite project in Uganda, resulting in a significant increase in the project’s estimated value. The updated model has raised the project’s net present value (NPV10) by 15% to US$1.254 billion, while maintaining the previously forecast two-phase development capital expenditure of US$170 million.

The revised projections reflect a combination of factors, including a larger reserve base, additional offtake agreements, improved pricing assumptions for purified graphite products and a more favourable product mix. As a result, projected net free cash flow over the initial 15-year mine life has more than doubled to US$4.466 billion, representing a 120% increase from earlier estimates.

Management believes the updated economics reinforce Orom-Cross’s potential to become a major supplier of graphite outside China, particularly as demand grows for secure and diversified supply chains supporting battery manufacturing and energy transition technologies. The project’s strategy increasingly focuses on downstream processing and value-added products, including uncoated spheronised purified graphite and expandable graphite, which command higher margins than traditional concentrate sales.

To support development, Blencowe is pursuing a phased funding approach. The company is targeting approximately US$45 million of predominantly project-level equity financing for Phase 1, followed by around US$125 million of mainly debt financing for Phase 2. At the same time, management continues to progress tender submissions, engage with European battery-sector initiatives and pursue infrastructure improvements that could strengthen the project’s commercial attractiveness and strategic importance.

Despite the enhanced project economics, the company’s outlook remains influenced by its current financial position. Blencowe continues to operate without revenue and remains loss-making, with negative operating and free cash flow that deteriorated during 2025. Technical indicators also remain relatively weak, with the share price trading below key short-term moving averages and momentum measures remaining subdued. Traditional valuation metrics offer limited support given the absence of earnings.

More about Blencowe Resources Plc

Blencowe Resources Plc is a natural resources development company focused on advancing the Orom-Cross graphite project in Uganda. The project contains significant natural flake graphite resources and is being developed to supply both graphite concentrate and higher-value processed graphite products.

The company is positioning Orom-Cross as a strategically important source of non-Chinese graphite for Western markets, targeting demand from battery manufacturers, electric vehicle supply chains, energy storage applications and a range of industrial end markets seeking secure and diversified raw material supplies.

Drax (LSE:DRX) has taken commercial control of the Hirwaun Power Station in South Wales following the completion of commissioning works, marking the company’s first operational 299MW open cycle gas turbine (OCGT) facility. The asset was acquired from developer Metlen Energy & Metals and represents the first of three planned OCGT plants across England and Wales that are expected to deliver a combined capacity of approximately 900MW.

The Hirwaun facility forms part of Drax’s strategy to expand its flexible generation portfolio and will generate income through a combination of peak electricity production, grid balancing and support services, and long-term Capacity Market contracts. These index-linked agreements extend to 2039 and are valued at more than £260 million across the portfolio.

Drax will oversee the operation and dispatch of the plants from its central control functions, while Siemens Energy has been appointed to manage day-to-day site operations. The facilities have been designed to respond rapidly to fluctuations in electricity demand and will also be capable of operating as synchronous compensators, helping to maintain grid stability as renewable generation continues to increase across the UK energy system.

The company’s outlook is supported by solid cash generation, manageable debt levels and favourable valuation metrics, including an attractive earnings multiple and dividend yield. Technical indicators remain constructive, with the shares trading above key moving averages, although momentum indicators are broadly neutral. Management has also reiterated its longer-term free cash flow and shareholder return targets, though these positives are balanced by impairment charges and near-term earnings pressures associated with the UK’s new Contracts for Difference framework.

More about Drax Group plc

Drax Group plc is a UK-based energy company focused on power generation, flexible energy infrastructure and grid support services. Alongside investments in open cycle gas turbine facilities, the company is developing battery energy storage projects to help support the transition to a lower-carbon electricity system while enhancing energy security and grid resilience across the UK.

Johnson Matthey (LSE:JMAT) reported a substantial increase in cash generation for the year ended 31 March 2026, with free cash flow rising 163% to £168 million. Underlying operating profit also increased by 14%, despite a decline in precious metal-related sales across parts of the business.

The group’s Clean Air division delivered improved profitability, with margins rising to 14.5%, supporting management’s strategy of transforming Johnson Matthey into a leaner and more cash-generative organisation. However, reported operating profit declined year-on-year due to gains recorded from disposals in the prior period, while the PGM Services business was negatively affected by precious metal losses linked to its U.S. refinery operations.

Portfolio Transformation Accelerates

Johnson Matthey is continuing to reshape its business portfolio through a series of major transactions. The company recently agreed to sell its Catalyst Technologies division for £1.325 billion, with plans to return £1 billion of proceeds to shareholders.

At the same time, the group has agreed to acquire U.S.-based Cormetech in a deal valued at $360 million. The acquisition is intended to strengthen Johnson Matthey’s position in stationary emissions control systems, particularly in rapidly expanding markets such as data centres and industrial infrastructure.

Management believes the addition of Cormetech will help establish the company as a global leader in emissions control technologies outside the automotive sector, broadening its long-term growth opportunities.

Outlook Supported by Strategic Refocus

For the 2026/27 financial year, Johnson Matthey expects low-to-mid single-digit growth in underlying operating profit alongside continued progress in free cash flow generation, despite increased capital expenditure associated with the development of a new U.K. PGM refinery.

The company also confirmed that it intends to maintain its dividend while implementing board and committee changes aimed at streamlining governance and supporting long-term shareholder returns in an uncertain macroeconomic environment.

Johnson Matthey’s outlook reflects a mixed financial performance with significant operational improvements and strategic initiatives. While technical indicators and valuation metrics present challenges, positive earnings call sentiment and corporate events provide a more optimistic outlook.

More about Johnson Matthey

Johnson Matthey is a U.K.-based specialty chemicals and advanced materials group focused on emissions control, precious metals services and hydrogen technologies. Its core businesses include Clean Air catalytic solutions and PGM Services, with a growing emphasis on stationary emissions control for sectors such as data centres and industrial customers.

SSE (LSE:SSE) delivered a record level of capital investment during the year, committing £3.6bn primarily toward expanding its regulated electricity networks and renewable energy operations. Adjusted earnings per share reached 153.5p, landing near the top end of company guidance despite being slightly lower than the previous year. The board also proposed a 7% increase in the full-year dividend to 68.7p.

The company reaffirmed its earnings ambitions through to 2030, citing the continued expansion of regulated and index-linked revenue streams alongside major investments in electricity grids and offshore wind developments. SSE said these initiatives are expected to support durable long-term growth while strengthening energy security across the UK and Ireland.

Network Expansion and Renewables Development Continue

Within its core operations, SSEN Transmission delivered a significant increase in profits as investment activity and permitted revenues continued to rise. Stronger transmission performance helped offset softer contributions from distribution and flexibility businesses.

SSE’s renewables division recorded modest earnings growth during the period, despite less favorable weather conditions and lower anticipated hedged electricity prices. The company also continued advancing several major infrastructure projects, including the Dogger Bank offshore wind development, the Ferrybridge battery storage facility and the Platin Power Station.

These projects form part of SSE’s fully funded £33bn investment programme running through to 2030, positioning the company as a major participant in the UK’s ongoing energy transition and grid modernisation efforts.

Long-Term Outlook Supported by Strategic Investment

SSE’s company’s outlook is driven by a strong strategic investment plan and positive technical indicators. However, financial performance concerns, particularly in cash flow management, and a relatively high valuation temper the outlook. The company’s proactive corporate events and earnings call insights provide a positive strategic direction, supporting a favorable long-term view.

More about SSE

SSE plc is a UK-based energy company operating an integrated model across electricity networks, renewables and flexibility services. Its core activities include regulated transmission and distribution infrastructure, large-scale wind and other low-carbon generation, and flexible power assets supporting grid stability, with a strategic focus on enabling the UK and Ireland’s net-zero transition.