Category: Top Story

Centrica (LSE:CNA) said its British Gas division will contribute £20 million to the Ofgem Voluntary Redress Fund after the UK energy regulator concluded its investigation into historic warrant-based prepayment meter installations carried out between 2018 and 2023.

The investigation found that some vulnerable customers had prepayment meters installed involuntarily without receiving the appropriate level of care and support. British Gas apologised for the failings, suspended the practice of warrant-based installations, stopped using third-party field debt collection agencies, and introduced enhanced governance procedures and protections for vulnerable customers.

Debt Relief and Customer Compensation Measures

As part of the settlement, British Gas will conduct a review of historical customer cases and extend compensation to affected customers covering the 2018–2021 period. The company also plans to write off as much as £70 million in energy debt owed by vulnerable households.

British Gas stated that eligible customers will not need to take any action to receive compensation or debt relief. In addition, the company will establish a Vulnerable Energy Customers Debt Advisory Panel for a two-year period to help develop industry best practices as household energy debt across the UK is projected to approach £7 billion.

Centrica said the measures are not expected to alter its 2026 financial guidance, limiting the immediate financial effect on the business while reinforcing its focus on regulatory compliance and customer protection.

Financial Performance and Market Outlook

The company’s outlook reflects mixed financial fundamentals. Strong revenue growth and consistently positive free cash flow have been offset by volatile earnings performance, including a net loss reported in 2025.

Technical indicators remain moderately supportive, with the stock trading above key longer-term moving averages and momentum indicators remaining broadly neutral. Valuation metrics also appear balanced, supported by a moderate price-to-earnings ratio and dividend yield.

More About Centrica

Centrica is a UK-based energy group listed on the London Stock Exchange, operating primarily through its British Gas subsidiary. The company supplies gas and electricity to residential customers across the UK and provides related energy services.

The group has increasingly focused on supporting vulnerable customers amid rising levels of household energy debt across the sector.

Mkango Resources (LSE:MKA) has scheduled its annual general and special meeting for 5 June 2026, where shareholders will be asked to approve amendments to the company’s stock option plan, including proposals to extend the expiry period of certain insider-held options from 10 years to 15 years, subject to approval from the TSX Venture Exchange.

If shareholders do not approve the amendments, nearly 6.9 million options due to expire in 2026 would either need to be exercised before expiry or lapse altogether, potentially impacting long-term management and insider incentive arrangements.

Proposal to Remove TSX-V Oversight of Subsidiary

The company is also seeking shareholder support for a waiver that would remove TSX Venture Exchange oversight of subsidiary Mkango Rare Earths Limited following its proposed merger with Crown Proptech Acquisitions and subsequent Nasdaq listing.

Mkango said regulatory supervision from the U.S. Securities and Exchange Commission and Nasdaq would provide adequate investor protections while eliminating overlapping regulatory requirements that could hinder operational efficiency and strategic execution at MKAR.

More About Mkango Resources

Mkango Resources is dual-listed on AIM and the TSX Venture Exchange and is focused on becoming a leading supplier of recycled rare earth magnets, alloys, and oxides through its majority stake in Maginito. The company is also developing primary rare earth projects in Malawi and Poland, targeting strategic materials including neodymium and dysprosium used in electric vehicles, wind turbines, and other clean energy applications.

Through Maginito, Mkango controls HyProMag operations in the UK and Germany focused on short-loop magnet recycling, alongside Mkango Rare Earths UK, which is developing long-loop recycling through chemical processing technologies. The company is additionally advancing the Songwe Hill and Pulawy projects, both recognised as Strategic Projects under the European Union Critical Raw Materials Act, with plans to bring these assets to Nasdaq through the proposed SPAC merger involving Mkango Rare Earths Limited.

Aviva Plc (LSE:AV.) reported a strong rise in wealth inflows during the first quarter of 2026, although weaker-than-expected general insurance premiums weighed on the overall performance. Goldman Sachs described the update as “a bit of a mixed bag.”

Wealth net flows for the three months to 31 March reached £3.35 billion, representing a 49% increase year on year and exceeding Goldman Sachs forecasts of £2.67 billion by around 25%.

According to Goldman Sachs data, workplace pension flows climbed 71% year on year to £1.99 billion, while platform net flows increased 24% to £1.59 billion.

In contrast, total general insurance gross written premiums came in at £3.43 billion, approximately 8% below the Goldman Sachs estimate of £3.72 billion.

UK commercial lines premiums fell 8% year on year to £834 million and were 6% below Goldman Sachs expectations of £887 million. Aviva said the decline reflected “deliberate underwriting actions to manage profitability in softer market conditions.”

UK personal lines gross written premiums totalled £1.53 billion, falling 14% short of Goldman Sachs estimates of £1.78 billion. However, Goldman Sachs noted that part of the variance related to its own assumptions regarding the quarterly split of Direct Line figures.

In Canada, gross written premiums of £907 million came in slightly ahead of expectations, exceeding the Goldman Sachs forecast of £897 million by 1%.

The UK undiscounted combined operating ratio was reported at 94.8%, which was 80 basis points weaker than Goldman Sachs projections. By comparison, Canada’s COR of 91.8% outperformed forecasts by 2.5 percentage points against Goldman Sachs expectations of 94.3%.

Aviva reiterated its full-year guidance, continuing to target a UK and Ireland combined operating ratio below 94% and a Canada COR approaching 94%.

Within retirement operations, bulk purchase annuity flows totalled £619 million, comfortably ahead of the Goldman Sachs estimate of £260 million. However, the value of new business margin in retirement came in at 1.2%, below Goldman Sachs expectations of 3.5% by 2.3 percentage points.

Aviva stated that internal rates of return of at least low teens had been achieved, while Citi noted the annuity and equity release margin was “reflecting volume pressure.”

Protection and health annual premium equivalent sales reached £113 million, 6% below the Goldman Sachs estimate of £120 million. Value of new business in protection and health declined 16% to £54 million, compared with Citi forecasts of £62 million.

The company’s Solvency II ratio stood at 171%, broadly matching expectations from both Goldman Sachs and Citi. Aviva said it expects the ratio to exceed 180% by the end of 2026.

Following the update, Goldman Sachs reduced its earnings per share forecasts for 2026 to 2030 by an average of approximately 0.7% and lowered its 12-month price target by around 1% to 756 pence.

ITV (LSE:ITV) reported broadly stable trading for the first quarter of 2026, with flat group revenue and a 1% increase in external revenue as growth in ITV Studios and digital operations helped offset continued weakness in traditional linear advertising.

Revenue at ITV Studios increased 4% during the quarter, supported by an 8% rise in external sales to global streaming platforms. Internal studio revenue declined, however, reflecting previously planned reductions in soap and daytime programming following earlier scheduling and production adjustments.

Within the Media & Entertainment division, revenue fell 2%, although digital advertising revenue increased 14% as streaming platform ITVX delivered record viewing figures. Total digital revenue rose 12%, while streaming hours increased 13% year on year.

The broadcaster also confirmed it remains in active discussions with Sky regarding a potential transaction involving the Media & Entertainment business. ITV said it continues to expect full-year performance to remain in line with guidance, supported by anticipated advertising demand linked to the men’s football World Cup and ongoing expansion across digital platforms.

The company’s broader outlook reflects a mixed financial profile, with improving revenue trends offset by weaker margins and softer cash flow performance, although leverage metrics have improved. Technical indicators remain relatively balanced, with the shares showing a modest upward trend but neutral momentum overall.

Valuation continues to provide support through a mid-range price-to-earnings ratio and an attractive dividend yield. Management commentary around ITV Studios, digital growth initiatives and cost discipline was generally constructive, though investors remain cautious regarding ongoing pressure in linear advertising markets, profitability mix challenges, weaker cash conversion and uncertainty surrounding the strategic discussions over the Media & Entertainment division.

More about ITV plc

ITV plc is a UK-based broadcasting and entertainment group operating free-to-air television channels, the ITV Studios production business and digital platforms including ITVX and advertising technology platform Planet V. The company generates revenue from television and digital advertising, content production and international licensing, maintaining a strong presence in both UK broadcasting and global media distribution.

National Grid (LSE:NG.) reported a 4% decline in annual revenue to £17.6 billion, while operating profit increased 10% to £5.4 billion as the company outlined plans to invest at least £70 billion across its energy networks over the next five years.

During the year, the utility group completed a series of asset disposals aimed at streamlining operations and lowering costs. This included the sale of National Grid Renewables and the divestment of the Grain LNG terminal.

Earlier in the year, National Grid agreed to sell its US onshore renewables business to Brookfield Asset Management for $1.74 billion, including debt. The company also finalised the sale of the Grain LNG facility in November to a consortium formed by Centrica plc and Energy Capital Partners.

Chief executive Zoë Yujnovich said the company delivered strong financial performance during the year, including underlying earnings per share growth of 8% at constant currency and record capital investment of £11.6 billion.

Capital expenditure increased from £9.8 billion in the previous year and contributed to asset growth of 10.9%. Management said the company’s updated Five-Year Financial Framework through to 2030/31 now targets at least £70 billion of capital investment, reflecting increased visibility across its operations and developments linked to the RIIO-T3 regulatory framework.

More than £30 billion of the planned investment has been allocated to UK electricity transmission infrastructure as the group seeks to strengthen energy security, support decarbonisation targets and accommodate rising electricity demand linked to artificial intelligence and broader electrification trends.

The RIIO-T3 price control framework governs revenue and regulation for Britain’s electricity and gas transmission networks, with final determinations from Ofgem expected later in 2025.

Zoë Yujnovich said the company is embarking on the largest investment programme in its history, focused on modernising and expanding energy infrastructure across both the UK and the northeastern United States. She added that the initiative is also expected to support large-scale job creation as National Grid expands the skilled workforce required to deliver the programme.

More about National Grid

National Grid is a multinational energy infrastructure company operating electricity and gas transmission networks across the UK and the northeastern United States. The group plays a central role in energy distribution, grid modernisation and decarbonisation efforts, with major ongoing investment focused on strengthening energy security and supporting the transition toward cleaner energy systems.

Costain (LSE:COST) said trading during 2026 has continued in line with expectations, with both revenue and adjusted operating profit anticipated to increase over the year. The company expects adjusted operating margins of around 4%, with performance weighted more heavily toward the second half as recently awarded contracts move into mobilisation and delivery phases.

The infrastructure and engineering group also highlighted its strong cash generation profile, forecasting a year-end net cash position of approximately £175 million. Costain additionally retains access to an undrawn £100 million revolving credit facility, which has now been extended through to 2030.

Shareholder returns remain a priority for the company, with management continuing a £20 million share buyback programme alongside increased dividend distributions.

Costain said momentum across its target markets remains positive, supported by rising infrastructure investment commitments including United Utilities’ enlarged AMP8 spending programme and the UK government’s £27 billion roads investment initiative.

The group’s £7 billion forward work position has also become increasingly diversified, with more than half of future revenue now linked to private sector and regulated customers. Recent framework agreements and project wins across airports, water, energy and road infrastructure have further strengthened the company’s pipeline and are expected to support what management described as a significant step-up in performance from 2027 onward.

The company’s broader outlook is supported by improving financial stability, stronger earnings quality, expanding margins, low leverage levels and healthy cash conversion. Technical indicators also remain favourable, reflecting a positive share price trend.

However, management acknowledged that a multi-year decline in revenue remains a risk factor that could constrain future growth if the trend continues over the longer term.

More about Costain Group

Costain Group is a UK-based infrastructure and engineering group delivering complex projects across transport, water, energy and defence markets. The company provides consultancy, design and construction services focused on improving connectivity, sustainability and resilience within the UK’s infrastructure network while supporting long-term decarbonisation goals.

Ariana Resources (LSE:AAU) has received all assay results from its 2025–2026 reverse circulation drilling programme at the Dokwe Gold Project in Zimbabwe, with results confirming that gold mineralisation extends at least 150 metres beyond the current resource boundary at Dokwe North and remains open along strike.

The drilling campaign identified shallow oxide-hosted gold intercepts at Dokwe North, while additional extensions at Dokwe Central may potentially fall within the limits of the proposed pit shell. The nearby Sinkwe prospect also returned encouraging shallow mineralisation results, adding further support to the broader development potential of the project.

The company said the latest findings will contribute to an updated JORC-compliant mineral resource estimate expected during the second half of 2026. Ongoing diamond drilling and feasibility study activities are also continuing as Ariana works to improve project reserves and optimise future mine planning.

Dokwe currently hosts a gold resource exceeding 1.1 million ounces, and management believes the latest drilling results strengthen the long-term development case for the asset.

Despite operational progress at Dokwe, the company’s broader outlook remains constrained by weak underlying financial fundamentals, including the absence of revenue generation, recurring losses and continued negative operating and free cash flow trends, all of which contribute to elevated sustainability risk.

However, Ariana maintains a relatively low-leverage balance sheet, which provides some financial support. Market technical indicators remain broadly neutral, while valuation metrics appear stretched due to a high price-to-earnings ratio and the lack of dividend income.

More about Ariana Resources

Ariana Resources is a mineral exploration and development group focused on gold assets across Africa and Europe. Listed on both AIM and the ASX, the company currently holds a 100% interest in the Dokwe Gold Project in Zimbabwe, where it is advancing resource expansion, drilling and feasibility work on a deposit containing more than one million ounces of gold.