Category: Top Story

KEFI Gold and Copper plc (LSE:KEFI) has appointed Stifel Nicolaus Europe as financial adviser and joint broker, with the firm also expected to act as sponsor for KEFI’s planned move to the Main Market of the London Stock Exchange in 2027.

The appointment reflects the company’s ambition to expand its investor base and raise its market profile as development of the Tulu Kapi Gold Project in Ethiopia moves closer to production.

Tulu Kapi development milestones remain on schedule

KEFI said implementation milestones at the Tulu Kapi project are currently progressing on or ahead of schedule, with commissioning targeted from late 2027 and full-scale production expected by mid-2028.

The company has advanced a range of critical development activities, including detailed engineering work, procurement of long-lead items such as the SAG mill, community resettlement programmes, grid power connection infrastructure and access road construction.

Major EPCM and mining contracts have also either been finalised or significantly progressed, which management said reinforces operational readiness ahead of full construction.

Funding structure revised to improve flexibility

KEFI has strengthened the project’s capital structure by replacing a proposed US$15 million short-term working capital facility with an equivalent amount of long-term subsidiary-level equity-ranking capital.

The revised package includes Ethiopian preference shares and a gold royalty arrangement involving specialist financing partners. According to the company, the new structure preserves project net present value and cash flow metrics while improving balance sheet flexibility and maintaining access to standby liquidity through the still-undrawn working capital facility.

Drawdown of senior project debt is planned for the third quarter of 2025, with management stating that the timing is intended to reduce financing costs without affecting the construction timetable.

The company believes the updated financing framework, alongside secured principal contracts and plans for a Main Market listing, strengthens the overall investment case for Tulu Kapi while reducing execution risk and improving institutional appeal.

Financial profile remains the main constraint

KEFI’s outlook continues to be constrained by weak financial fundamentals, including the absence of revenue generation, ongoing losses and continued cash burn.

However, technical indicators remain relatively supportive, with the shares trading above key moving averages and accompanied by a positive MACD signal. Valuation metrics remain challenging due to negative earnings and the absence of a stated dividend yield.

More about KEFI Gold and Copper plc

KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper assets in Ethiopia and Saudi Arabia. Listed on London’s AIM market, the company is advancing the high-grade Tulu Kapi Gold Project in Ethiopia with the aim of becoming a significant regional precious metals producer through future commercial production.

Wishbone Gold Plc (LSE:WSBN) has completed the acquisition of the high-grade Silver Lake silver project in Western Australia after exercising its exclusive option over the asset.

The transaction was completed through the issue of 3,571,777 new shares, valuing the acquisition at approximately £1.04 million. The Silver Lake project covers around 422 square kilometres within the Carnarvon Basin and contains extensive shallow silver mineralisation spread across a 35-kilometre corridor.

Management highlighted historical high-grade rock chip sampling and drilling results as encouraging indicators of the project’s exploration potential, while also noting the asset benefits from year-round accessibility and proximity to major transport infrastructure.

Exploration activities set to begin in 2026

Wishbone Gold has outlined an initial work programme for the newly acquired project, beginning with the appointment of Apex Geoscience to reinterpret historical geological and exploration data.

Field crews are expected to mobilise in June, with the company targeting a drilling campaign during the third quarter of 2026 using auger or air-core drilling rigs.

The acquisition expands Wishbone’s exposure within the precious metals sector and strengthens its pipeline of exploration assets in Western Australia, a globally recognised mining jurisdiction. Following the share issuance, the company’s total voting share capital has increased to 37,972,215 shares, resulting in modest dilution for existing shareholders.

Financial weaknesses continue to weigh on outlook

Wishbone Gold’s outlook remains constrained by weak financial fundamentals, including its pre-revenue status, ongoing losses and continued negative free cash flow, although management noted some operational improvement.

Technical indicators remain mixed, with momentum readings broadly neutral and no clearly established market trend. Valuation support is also limited due to negative earnings and the absence of dividend yield data.

More about Wishbone Gold

Wishbone Gold Plc is a precious metals exploration company listed on both London’s AIM market and the Aquis Exchange. The business focuses on gold and silver exploration projects in Western Australia and is building a broader portfolio of assets, including the Red Setter project, to benefit from rising demand for metals linked to technology development and the global energy transition.

Kingfisher plc (LSE:KGF) reported a resilient first-quarter performance against a subdued home improvement backdrop, with underlying like-for-like sales declining 0.7%, while total sales including marketplace activity increased 0.8%.

The group said demand in core product categories remained stable, supported by stronger performances at Screwfix and its Polish operations. Seasonal trading was affected by a delayed start to spring, while larger discretionary purchases such as bathrooms continued to face softer demand. Kitchens, however, delivered stronger results across both the UK and Polish markets.

Trade and e-commerce operations continue to expand

Kingfisher’s strategic growth initiatives continued to gain traction during the quarter. Trade-focused sales rose 17% excluding Screwfix and now represent 31% of total group sales, while e-commerce revenue increased 14% excluding Screwfix to account for 22% of group sales.

Marketplace gross merchandise value climbed 39% to £163 million, and the company opened five additional stores during the period, including the first standalone TradePoint location.

Management reiterated its guidance for the 2026/27 financial year, maintaining expectations for adjusted pre-tax profit in the range of £565 million to £625 million. The company also reaffirmed expectations for strong free cash flow generation and continuation of its ongoing £300 million share buyback programme, reflecting confidence in the long-term strategy despite cautious consumer spending conditions.

Valuation and cash flow remain supportive despite weaker technical backdrop

Kingfisher’s outlook continues to benefit from strong cash generation and what is viewed as an attractive valuation profile, supported by a low price-to-earnings ratio and solid dividend yield. Recent trading guidance and operational execution have also provided reassurance to investors.

However, these positives are partly offset by profitability levels that remain below those achieved in 2022, alongside weaker technical indicators characterised by a broader downtrend and subdued market momentum.

More about Kingfisher

Kingfisher plc is an international home improvement retailer operating across the UK, Ireland, France, Poland and Iberia. Its portfolio includes brands such as B&Q, Screwfix, Castorama and Brico Dépôt. The group sells DIY, trade and building products while increasingly focusing on e-commerce, marketplace expansion and trade customer growth across its European operations.

Union Jack Oil (LSE:UJO) reported a net loss of £7.0 million for 2025, reversing from a profit in the previous year, after recording impairments linked to its Biscathorpe and North Kelsey licences in the UK as well as the unsuccessful Sark well in the United States. The company also saw oil and gas revenues decline to £2.5 million during the period.

Despite the weaker financial performance, Union Jack remains debt free and has introduced a significant cost reduction programme that is expected to lower annual general and administrative expenses by approximately £500,000.

U.S. operations become increasingly central to growth plans

The company is continuing to accelerate its strategic expansion in the United States, particularly through its partnership with Reach Oil and Gas in Oklahoma. Union Jack said the collaboration has achieved an 80% drilling success rate, highlighted by the commercially successful Moccasin 1-13 well and positive returns from its mineral royalty portfolio.

At the same time, the group is reducing exposure to certain non-producing UK licences amid ongoing regulatory pressures and a challenging tax environment for domestic operators. Production from the flagship Wressle field and resumed output at Keddington are expected to remain key contributors to revenue generation as the company pursues longer-term growth in both reserves and production across its UK and US assets.

Strong balance sheet offsets weaker profitability trends

Union Jack’s overall profile continues to benefit from a strong balance sheet with no outstanding debt and a track record of profitability since 2022. However, this has been offset by the sharp deterioration in profitability during 2024 alongside negative and volatile free cash flow performance.

Technical indicators point to near-term share price strength, although momentum measures suggest overbought conditions and a softer longer-term trend. Valuation metrics also remain difficult to justify due to negative earnings and the absence of dividend yield data.

More about Union Jack Oil

Union Jack Oil is an AIM-quoted oil and gas company focused on onshore production, development, exploration and investment activities across the UK and the United States. The business is increasingly directing capital and operational focus towards opportunities in Oklahoma while maintaining a core UK production base through its flagship Wressle development and the Keddington field.

British defence and technology group QinetiQ Group Plc (LSE:QQ.) saw its shares climb more than 8% on Thursday after reporting stronger-than-expected full-year earnings and confirming it is reviewing the future of its U.S. operations, with “all options under active review”.

For the year ended 31 March, underlying operating profit increased 18% to £218 million from £185 million a year earlier, ahead of analyst expectations of £211.3 million. Underlying earnings per share rose to 31.5 pence, beating the market consensus of 30.9 pence, while revenue came in at £1.92 billion, broadly matching forecasts of £1.93 billion.

“QinetiQ’s FY results show a company fighting to regain market confidence,” said analysts at Jefferies in a note.

The board proposed a full-year dividend of 11 pence per share, up from 8.85 pence the previous year and above the consensus estimate of 9.6 pence. The increase reflects a revised dividend policy targeting payouts of between 35% and 40% of underlying earnings per share.

“We have delivered a resilient performance in more challenging markets, with organic revenue growth, margin expansion and strong cash generation driven by disciplined execution and restructuring,” chief executive Steve Wadey said in a statement.

QinetiQ said its U.S. business generated revenue of £393.4 million during the year, down from £453.9 million previously, following restructuring measures that included the disposal of its Federal IT portfolio. The company stated that the business has now been stabilised but added it is evaluating its strategic role within the wider group.

The company said it recognises the “need to deliver enhanced value for shareholders and are actively assessing the strategic fit of the US business within the Group, including a review of all options.”

“What grabs the attention more, however, is confirmation that the group is assessing the strategic fit of the US business, with “all options under review,” Jeffries added.

“Seen as lower quality, more volatile, exiting this business whilst likely painful relative to the price paid for it, would leave QinetiQ a higher quality organisation in our view, with a much cleaner strategy,” the broker added.

Within the group’s divisions, EMEA Services generated revenue of £1.53 billion and underlying operating profit of £182.3 million, producing an operating margin of 11.9%. Global Solutions reported underlying operating profit of £35.6 million and improved margins of 9%, compared with 3.6% in the prior year.

Free cash flow increased 41% to £159 million, while net debt stood at £159 million, equivalent to leverage of 0.5 times net debt to EBITDA.

Order intake reached £3.57 billion, supported by a £1.70 billion extension to the company’s Long-Term Partnering Agreement, resulting in a record year-end order backlog of £4.80 billion. Excluding LTPA-related activity, the book-to-bill ratio was 1.14 times.

QinetiQ also announced a £200 million extension to its share buyback programme, with £100 million planned annually through to the end of the 2029 financial year.

Looking ahead, the company expects revenue growth of between 3% and 5% in the coming year, alongside operating margins of 11% to 11.5% and underlying earnings per share growth of 8% to 10%. Management also forecast cash conversion above 90% and free cash flow exceeding £550 million across financial years 2027 to 2029.

More about QinetiQ

QinetiQ Group Plc is a UK-based defence and security technology company providing advanced research, testing, engineering and advisory services to government and commercial customers. The group operates across defence, aerospace, cybersecurity and critical infrastructure markets, with operations spanning the UK, Europe, Australia and the United States.

Tate & Lyle (LSE:TATE) has published its preliminary results for the financial year ended 31 March 2026, making the full report available through its website and the UK’s National Storage Mechanism. The global food ingredients group reported revenue from continuing operations of £2.0 billion, highlighting the scale of its operations and its established position within the international ingredients market.

The board has proposed a final dividend of 13.2p per share, marginally lower than the 13.4p paid last year. This brings the total dividend for the year to 19.8p per share, unchanged from the previous financial year, reflecting the company’s intention to maintain a stable approach to shareholder returns.

Management is scheduled to present the annual results through a live webcast for analysts and investors, where further detail will be provided on financial performance, operational priorities and strategic direction. Tate & Lyle said it remains focused on expanding its portfolio of healthier food and beverage ingredients, particularly solutions designed to reduce sugar, calories and fat content while enhancing nutritional value.

The company’s broader outlook reflects stable underlying financial performance alongside supportive corporate developments, including insider share purchases. However, valuation metrics, including relatively elevated price-to-earnings multiples, and more neutral technical indicators continue to suggest a degree of caution. Management commentary also pointed to ongoing market challenges, balancing the otherwise steady operational backdrop.

More about Tate & Lyle

Tate & Lyle is an international food ingredients business specialising in sweetening, texture and fortification solutions for the food and beverage industry. The company develops ingredients that help manufacturers reduce sugar, calories and fat while adding fibre and protein to products across categories such as beverages, dairy, bakery, snacks, soups, sauces and dressings. Tate & Lyle operates in more than 120 markets worldwide and employs around 5,000 people across 75 locations in 38 countries.