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  • Markets Steady as Applied Materials Slips, SMIC Surges and Oil Climbs: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Steady as Applied Materials Slips, SMIC Surges and Oil Climbs: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. stock futures were largely flat on Friday as investors weighed easing inflation pressures against a fresh batch of technology earnings, renewed semiconductor volatility and persistent geopolitical risks in energy markets.

    Applied Materials (NASDAQ:AMAT) delivered stronger-than-expected fourth-quarter revenue guidance, but its shares still fell in extended trading as investors judged the outlook against lofty expectations for AI-related companies.

    At the same time, Semiconductor Manufacturing International Corp rallied after reporting a sharp improvement in second-quarter revenue and profit, while oil prices moved higher amid uncertainty surrounding the Strait of Hormuz.

    U.S. futures little changed after Wall Street gains

    By 03:18 ET (07:18 GMT), Dow futures were down 72 points, or 0.1%, while S&P 500 and Nasdaq 100 futures were broadly unchanged.

    Wall Street’s main indices had advanced on Thursday, supported by another wave of results from companies linked to artificial intelligence spending.

    Vital Knowledge analysts noted that several AI-exposed businesses, including Cisco Systems and Cerebras Systems, saw their shares fall despite quarterly updates because expectations had become particularly demanding.

    Sandisk (NASDAQ:SNDK) also struck an optimistic tone at an analyst event, forecasting mid-to-high-teens percentage revenue growth between fiscal 2028 and 2030, helped by longer-term AI demand.

    Meanwhile, softer annual producer price inflation in July strengthened expectations that the Federal Reserve could keep interest rates unchanged at its September meeting rather than resume tightening.

    Applied Materials outlook fails to satisfy elevated expectations

    Applied Materials forecast fourth-quarter revenue of around $10.25 billion, plus or minus $500 million, exceeding market expectations as investment in AI infrastructure continues to support demand for advanced semiconductor manufacturing equipment.

    The rapid build-out of AI computing infrastructure has increased demand for both sophisticated chipmaking tools and additional wafer capacity, providing a strong backdrop for semiconductor equipment suppliers.

    Applied Materials said it is also working to expand manufacturing capacity to meet customer demand.

    Even so, the shares fell more than 5% in extended-hours trading as investors focused on whether the company’s guidance was strong enough relative to already elevated Wall Street forecasts.

    SMIC earnings surprise drives shares higher

    Semiconductor Manufacturing International Corp posted a strong second quarter, with revenue climbing 36.1% year on year to $3.01 billion.

    Profit attributable to shareholders surged 261.7% to $479.2 million, while gross margin improved to 25.3% from 20.4% a year earlier.

    Wafer shipments increased 20.1% and capacity utilisation rose to 93.7% from 92.5%.

    For the third quarter, SMIC expects revenue to grow 2% to 4% sequentially, with gross margin forecast between 26% and 28%.

    Management said AI-related industrial momentum should continue to support broad semiconductor demand during the second half, while the company plans to speed up qualification of newly added production capacity.

    Oil advances as Hormuz risks remain unresolved

    Oil prices rose on Friday and were on track for their first weekly gain in three weeks as uncertainty over U.S.-Iran tensions and Persian Gulf shipping continued to support a geopolitical risk premium.

    Brent crude futures gained 1.6% to $88.43 a barrel, while U.S. West Texas Intermediate advanced 1.9% to $82.72 by 03:36 ET. Both benchmarks were up roughly 5% for the week.

    The rally was partly restrained by weaker demand forecasts from major industry bodies and a larger-than-expected increase in U.S. crude inventories.

    The Strait of Hormuz remained a key source of uncertainty, with Washington and Tehran making conflicting claims over control and commercial access.

    U.S. Treasury Secretary Scott Bessent said Washington would impose “measures like have never been seen in the history of economic isolation on a country.”

    Workday jumps on Silver Lake takeover report

    Workday (NASDAQ:WDAY) shares surged 25% on Thursday after Reuters reported that private equity firm Silver Lake was holding discussions over a possible acquisition of the software company.

    The talks have reportedly taken place over recent months, although negotiations remain ongoing and there is no certainty that a deal will be completed.

    A potential acquisition would likely value Workday above its roughly $43 billion market capitalisation and could rank among the largest software buyouts on record.

    Before the report, Workday shares had fallen around 15% year to date and more than 40% from their 2024 peak.

    Reuters said neither Silver Lake nor Workday responded to requests for comment.

  • European Shares Flat but Head for Weekly Loss as Iran Tensions Push Oil Higher: DAX, CAC, FTSE100

    European Shares Flat but Head for Weekly Loss as Iran Tensions Push Oil Higher: DAX, CAC, FTSE100

    European equities were little changed on Friday and remained on track for a modest weekly decline as investors balanced a strong corporate earnings season against rising oil prices and continued uncertainty surrounding the U.S.-Iran conflict.

    The STOXX 600 edged 0.05% higher to 659.65 by 0710 GMT, keeping the index close to record levels despite losses earlier in the week.

    Corporate earnings have provided underlying support, with second-quarter profit forecasts for Europe’s blue-chip companies rising for an eighth consecutive week. Aggregate earnings across the STOXX 600 are now expected to increase 23.4%, driven particularly by strong growth in the energy and materials sectors.

    Iran tensions keep pressure on sentiment

    Geopolitical developments continued to limit risk appetite as efforts to resolve the U.S.-Iran conflict remained stalled.

    Oil futures gained around 1% to $87.93 a barrel after the United States threatened an indefinite naval blockade of Iran, renewing concerns about potential disruption to global crude supplies.

    Negotiations between Washington and Tehran remained deadlocked, with increasingly firm rhetoric from both sides reducing expectations of an imminent resolution.

    Meanwhile, softer U.S. consumer and producer inflation readings released during the week reinforced expectations that the Federal Reserve could avoid further aggressive monetary tightening.

    Investors were also awaiting euro zone employment and GDP figures scheduled for 0900 GMT for further indications about the health of the regional economy.

    Technology leads while basic resources retreat

    European technology stocks led sector gains, advancing 1.4%, while basic resources represented the weakest part of the market with a decline of 1.6%.

    Company-specific news was relatively limited as the European earnings season moved towards its conclusion, leaving macroeconomic and geopolitical developments as the main drivers of market sentiment.

    Oil heads for first weekly gain in three weeks

    Energy markets remained one of the biggest obstacles to a broader European equity rally.

    Crude oil was on course for a weekly increase of around 4%, putting prices on track to end a two-week losing streak after a volatile period of trading.

    Brent crude moved back towards multi-week highs as Washington adopted a more aggressive stance towards Tehran.

    The United States threatened to intensify maximum economic pressure against Iran, including the possibility of maintaining a naval blockade if commercial shipping access through the Strait of Hormuz is not restored.

    The escalation reduced hopes for an immediate peace agreement and maintained pressure on European industries vulnerable to higher energy and raw material costs.

    Investors digest heavy week of economic data

    European markets also absorbed a series of important economic releases during the week.

    UK gross domestic product expanded 0.4% during the second quarter, matching expectations, while Germany’s final July consumer inflation figures confirmed that annual inflation accelerated to 2.8%.

    In the United States, July consumer prices increased 3.4% year on year, in line with expectations, while the headline Producer Price Index was unchanged from the previous month.

    Combined with the unexpected contraction in U.S. payrolls reported the previous week, the softer inflation signals helped reduce concerns that the Federal Reserve would need to tighten monetary policy aggressively heading into the autumn.

    Money markets subsequently lowered the implied probability of a 25-basis-point Fed rate increase in September to around 35%, compared with almost 67% a week earlier.

    The reduction in interest-rate risk provided some support for equities, although continued disruption in energy markets prevented a more substantial rally. With Persian Gulf tensions unresolved and the European earnings season winding down, investors remained cautious even as major indices traded close to record highs.

    Energiekontor falls while NKT rallies

    Among individual stocks, Energiekontor (TG:EKT) dropped 15% after lowering its full-year outlook.

    NKT (TG:NKT) moved sharply in the opposite direction, gaining 10% after raising its annual guidance.

  • European Software Stocks Rally on Report of Silver Lake’s Workday Takeover Talks

    European Software Stocks Rally on Report of Silver Lake’s Workday Takeover Talks

    European software shares moved sharply higher on Friday after Reuters reported, citing people familiar with the matter, that private equity firm Silver Lake is holding discussions over a potential acquisition of Workday (NASDAQ:WDAY).

    A transaction involving the human resources and financial management software provider could become one of the largest software buyouts ever completed. Silver Lake and Workday have reportedly been discussing a possible deal in recent months, although negotiations remain ongoing and there is no certainty that an agreement will be reached.

    German and European software shares surge

    The takeover report triggered widespread gains across the European technology sector. By 04:01 ET (08:01 GMT), SAP (TG:SAP) had climbed 4.7%, TeamViewer (TG:TVM) was up 6.8% and Nemetschek (TG:NEM) had surged 8.8%.

    Elsewhere, Capgemini (EU:CAP), Dassault Systemes (EU:DSY), Temenos (TG:TE8N) and Wolters Kluwer (EU:WKL) advanced between 2.5% and 4.5%.

    OVH (EU:OVH) and Sopra Steria (EU:SOP) both gained 2.7%, while Planisware (EU:PLNW) rose 3.4%, reflecting a broader reassessment of valuations across the software industry.

    UK technology stocks join the rally

    The positive sentiment extended to London-listed technology and software-related companies.

    Softcat (LSE:SCT) gained 1.6%, Bytes Technology (LSE:BYIT) advanced 1.9% and Sage (LSE:SGE) jumped 4.5%.

    RELX (LSE:REL) climbed 3.3%, while Kainos (LSE:KNOS) added 4.2%, as investors responded to the possibility that private equity interest could highlight value across the wider software sector.

    Workday surges as potential deal attracts attention

    Workday shares jumped almost 18% following the report. The company had a market capitalisation of approximately $43 billion before the news emerged.

    Workday shares had closed at $206.45 on Thursday, corresponding to a valuation of around $51.1 billion.

    Given the potential size of any transaction, Silver Lake could seek additional investors to participate in financing the acquisition, according to the report.

    Citi sees potential catalyst for software valuations

    Citi analysts said the reported interest from Silver Lake could renew investor attention on software companies and encourage the market to reconsider concerns about disruption from artificial intelligence that contributed to the sector’s recent selloff.

    The analysts noted that application software businesses have generally continued to produce resilient financial results despite the rapid development of AI technologies.

    Citi also argued that current software valuations continue to reflect a “growth-cratering” scenario, even though the number of companies that could realistically become potential “go private” candidates may be relatively limited.

    The Workday report therefore provided a fresh catalyst for investors to reassess whether recent declines across software stocks have adequately reflected their underlying financial performance and longer-term growth prospects.

  • FTSE 100 Slips as Mining Stocks Fall and Hormuz Oil Risks Persist

    FTSE 100 Slips as Mining Stocks Fall and Hormuz Oil Risks Persist

    The FTSE 100 edged lower on Thursday as weakness across major mining stocks outweighed support from softer U.S. inflation data, while continuing disruption around the Strait of Hormuz kept energy markets and geopolitical risks firmly in focus.

    The FTSE 100 was down 0.10% at 03:28 ET (07:28 GMT). Elsewhere in Europe, Germany’s DAX gained 0.61%, while France’s CAC 40 advanced 0.03%. Sterling strengthened against the U.S. dollar, with GBP/USD rising 0.13% to 1.3504.

    Miners weigh on London market

    Mining and commodity-related shares were among the biggest sources of pressure on the FTSE 100 as base metal prices retreated.

    Antofagasta (LSE:ANTO) led the decline, falling 3.9%, while Endeavour Mining (LSE:EDV), Fresnillo (LSE:FRES), Glencore (LSE:GLEN), Anglo American (LSE:AAL) and Rio Tinto (LSE:RIO) also traded lower.

    The losses followed weaker metals markets, with copper falling 0.21%, nickel declining 0.39% and aluminium slipping 0.28%.

    Softer U.S. inflation reduces rate hike expectations

    The decline in metals came despite U.S. producer price data providing a more supportive signal for global markets.

    Producer prices were unchanged in July, below expectations for a 0.2% increase. Annual producer price inflation also slowed to 4.7% from 5.5% in June.

    Following the data, Fed funds futures indicated an approximately 35% probability of another Federal Reserve interest rate increase, compared with around 55% a week earlier.

    Lower expectations for additional monetary tightening would typically support risk assets, but the impact on UK equities was overshadowed by commodity-specific weakness and continuing uncertainty surrounding Gulf shipping routes.

    Strait of Hormuz tensions keep oil markets on edge

    Energy security remained a major focus after the UAE’s Foreign Ministry strongly condemned an attack on two ADNOC tankers travelling through the Strait of Hormuz. No injuries were reported in the incident.

    Separately, oil from the Russian-flagged tanker Caroline Bezengi has reportedly reached the coastline of Oman. The vessel was carrying more than 800,000 barrels of sanctioned crude when it was attacked several weeks ago.

    The developments followed comments from U.S. War Secretary Pete Hegseth that Washington could maintain its naval blockade of Iranian ports indefinitely through the rotation of vessels.

    U.S. President Donald Trump separately claimed that the U.S. had total control of the Strait of Hormuz. Iran’s Persian Gulf Strait Authority rejected that position and maintained that the waterway would remain blocked until Tehran’s conditions were satisfied.

    The continuing uncertainty surrounding one of the world’s most important energy shipping routes kept upward pressure on crude prices.

    Oil rises while gold retreats

    Brent crude gained 1.46% to $88.35 a barrel, while U.S. West Texas Intermediate advanced 1.77% to $82.69 a barrel as traders continued to price in supply risks linked to disruption around Hormuz.

    Precious metals moved in the opposite direction. Gold futures declined 0.68% to $4,390.25 an ounce, while spot gold fell 0.39% to $4,334.28.

    UK company round-up

    BP (LSE:BP.) was in focus after Venezuelan officials signed an agreement involving the British energy major, Abu Dhabi National Oil Company-owned investment company XRG and the oil and gas division of Qatar’s UCC Holding to develop the offshore Loran gas field, according to oil minister Paula Henao.

    Aviva (LSE:AV.) also attracted attention after the insurer exceeded first-half profit expectations. Earnings benefited from the integration of motor insurer Direct Line alongside strong growth within Aviva’s wealth management operations.

  • Aviva Operating Profit Jumps 24% as Direct Line Integration Advances

    Aviva Operating Profit Jumps 24% as Direct Line Integration Advances

    Aviva PLC (LSE:AV.) reported a strong first-half performance, with operating profit climbing 24% to £1.33 billion as its insurance operations expanded and the integration of Direct Line continued to advance. The insurer also increased its interim dividend by 7%. Operating earnings per share increased 10% to 31.8p, while IFRS return on equity improved to 20.3% from 18.2%. Cash remittances surged 47% to £1.50 billion, and Aviva lifted its interim dividend to 14.0p per share from 13.1p.

    However, IFRS profit for the period declined to £418 million from £819 million. The reduction reflected adverse investment variances alongside integration expenses, restructuring charges and other non-operating costs.

    General Insurance delivers strong profit growth

    General Insurance was a major contributor to the improved performance, with operating profit rising to £905 million from £648 million. Within the division, UK and Ireland operating profit jumped 50% to £643 million.

    Gross written premiums across the UK and Ireland increased 42% on a constant-currency basis to £5.91 billion, helped by the addition of Direct Line. UK personal lines premiums nearly doubled to £3.68 billion, while the undiscounted combined operating ratio strengthened to 93.4%.

    Aviva’s Wealth business also gained momentum during the period. Net flows increased 32% to £7.6 billion, while assets under management reached £261 billion.

    Direct Line integration moves forward

    Aviva reported further progress with the integration of Direct Line, with all employees from the acquired business now transferred into the wider group. Almost £5 billion of assets have also been moved to Aviva Investors.

    The company has so far achieved £100 million of annualised cost synergies as it works towards its £225 million target. It also remains on course to generate more than £350 million of capital synergies by the end of the year.

    Looking ahead, Aviva expects operating EPS growth in 2026 to be broadly consistent with its 11% target rate. The insurer also remains on track to meet its 2028 objectives, including an IFRS return on equity of more than 20% and cumulative cash remittances exceeding £7 billion between 2026 and 2028.

  • Central Asia Metals Sets Timetable for Proposed Cygnus Metals Acquisition

    Central Asia Metals Sets Timetable for Proposed Cygnus Metals Acquisition

    Central Asia Metals (LSE:CAML) has advanced its proposed acquisition of Australia-listed Cygnus Metals following the publication of the Cygnus Scheme Booklet and a shareholder circular outlining the next stages of the transaction.

    The recommended deal is structured as a court-approved scheme of arrangement under which Cygnus shareholders would receive 0.06 new Central Asia Metals shares for every Cygnus share they hold. Completion remains subject to the necessary shareholder, court and regulatory approvals.

    The release of the transaction documents establishes a clearer timetable for investors as both companies move towards votes on the proposed combination.

    Shareholder votes scheduled as deal progresses

    The Cygnus board has unanimously recommended that its shareholders vote in favour of the scheme.

    Central Asia Metals is separately seeking shareholder approval for the issuance of the new shares required to complete the acquisition. Its directors are recommending that investors support the proposal at an extraordinary general meeting scheduled for 4 September 2026.

    Provided all conditions and approvals are satisfied, the transaction is expected to complete in early October 2026.

    Central Asia Metals is also pursuing an application for a concurrent listing on the Toronto Stock Exchange, potentially expanding the combined group’s access to North American capital markets and increasing its visibility among international mining investors.

    Acquisition could broaden metals portfolio

    The proposed combination with Cygnus Metals would expand Central Asia Metals’ existing portfolio and provide additional exposure to development and exploration opportunities.

    The transaction comes against a relatively strong underlying financial backdrop for Central Asia Metals, with low leverage and solid cash generation providing support. However, earnings have been volatile, and the company’s latest reported annual result included a net loss.

    Operational and cost risks at the Sasa mine also remain important considerations, alongside the impact of a substantial impairment charge on reported earnings.

    Technical indicators are comparatively supportive, with positive momentum and the shares trading above important short- and medium-term moving averages. However, the price remains below its 200-day moving average. A high dividend yield provides some valuation support, although negative reported earnings result in a negative price-to-earnings ratio.

    More about Central Asia Metals

    Central Asia Metals is an AIM-quoted UK-based base metals producer with operations and investments spanning copper, zinc and lead.

    The company owns the Kounrad SX-EW copper operation in Kazakhstan and the Sasa zinc-lead mine in North Macedonia. Its portfolio also includes exploration-focused subsidiaries in Kazakhstan and a significant investment in Scotland-focused Aberdeen Minerals.

    Central Asia Metals’ strategy is centred on maintaining exposure to base metals while pursuing opportunities capable of expanding and diversifying its portfolio. The proposed Cygnus Metals acquisition represents a further step in that strategy and could broaden the company’s international market presence if completed.

  • Chemring Announces Legal Leadership Change as Sarah Ellard Prepares to Depart

    Chemring Announces Legal Leadership Change as Sarah Ellard Prepares to Depart

    Chemring Group PLC (LSE:CHG) has announced a planned change to its senior legal leadership, with Group Legal Director and Company Secretary Sarah Ellard set to step down from the board at the end of 2026.

    Ellard will leave the board on 31 December 2026 before departing Chemring entirely at the end of February 2027. The extended timetable provides the defence and aerospace technology group with a transition period as it prepares for a change in its legal and company secretarial leadership.

    The planned departure represents another step in Chemring’s ongoing governance development, while the structured handover timetable should help minimise disruption to the group’s operations and strategic priorities.

    Financial position remains solid despite cash flow pressure

    Chemring’s broader outlook continues to benefit from solid profitability and a manageable balance sheet, providing financial support as the company operates across growing defence and security markets.

    However, weakening revenue growth and pressure on free cash flow remain areas of concern. These factors could limit financial flexibility if the trends persist, despite the group’s underlying profitability.

    Technical indicators present a mixed picture, with negative MACD and a weaker longer-term share-price trend providing limited momentum support. Valuation is also relatively demanding, with a high price-to-earnings ratio and only a modest dividend yield.

    More about Chemring

    Chemring Group PLC is a UK-based technology company supplying specialist products and services to the global defence, security and aerospace industries.

    The group employs approximately 2,700 people worldwide, operates manufacturing facilities across four countries and supplies customers in more than 50 nations.

    Chemring conducts its activities through two principal segments: Countermeasures & Energetics and Sensors & Information. These businesses provide technologies designed to protect personnel, military platforms, missions and sensitive information against evolving threats.

    Its portfolio of advanced defence and security technologies gives Chemring a significant role within international aerospace and defence supply chains, serving government and commercial customers across a broad geographic footprint.

  • 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.