Category: Top Story

Standard Chartered plc (LSE:STAN) shares declined 1.0% to 1,989.5p during Tuesday’s trading session, as selling pressure across UK banking stocks coincided with investor attention turning to the company’s third-quarter earnings announcement scheduled for Wednesday, 28 October 2026.

The decline followed quarterly results from HSBC Holdings (LSE:HSBA), whose shares fell after revenue missed analyst expectations. The market reaction contributed to broader weakness among London-listed financial stocks, including Standard Chartered.

Investors were also assessing the potential impact of interest rates, UK banking taxation and recent analyst commentary ahead of Standard Chartered’s own financial update.

The bank’s ongoing $1.3 billion share buyback programme and wealth management activities remain among the factors relevant to its financial outlook.

How Did HSBC’s Results Affect Standard Chartered Shares?

HSBC’s third-quarter earnings announcement was a significant development for the UK banking sector on Tuesday.

The bank reported pretax profit of $9.6 billion, an increase of 32% year on year and broadly in line with analyst expectations. However, revenue of $18.6 billion fell below forecasts of approximately $19 billion.

HSBC’s wealth management revenue was unchanged at $2.7 billion, following growth of 15% and 23% in the first two quarters of 2026, respectively.

The revenue shortfall contributed to a decline in HSBC’s Hong Kong-listed shares of approximately 6%.

Standard Chartered, which also has substantial exposure to Asian banking and wealth management markets, traded lower during the same session.

Although HSBC’s results do not directly determine Standard Chartered’s financial performance, the two banks share exposure to several regional markets and banking activities.

As a result, HSBC’s earnings announcement provided investors with additional information to consider ahead of Standard Chartered’s quarterly results.

Why Are Investors Focused on Standard Chartered’s Upcoming Earnings?

Standard Chartered is scheduled to publish its third-quarter 2026 results on Wednesday morning, 28 October.

The announcement will provide updated information on the bank’s revenue, profitability, lending activity and capital position.

Investors will also be able to assess developments in net interest income and wealth management, two areas relevant to the bank’s financial performance.

The timing of HSBC’s results, one day before Standard Chartered’s scheduled announcement, has placed additional attention on the forthcoming figures.

HSBC’s revenue shortfall has also highlighted the distinction between profit growth and underlying revenue performance.

However, Standard Chartered’s quarterly results have not yet been released, and HSBC’s performance does not establish whether Standard Chartered will report a similar outcome.

The company’s own financial disclosures will provide a clearer basis for assessing its third-quarter trading performance.

What Did UBS Say About Standard Chartered’s Outlook?

UBS recently reduced its price target for Standard Chartered’s London-listed shares while maintaining a Neutral investment rating.

The bank identified narrowing net interest margins and the possibility of higher UK banking surcharge taxes as factors relevant to Standard Chartered’s near-term outlook.

Net interest margin measures the difference between interest income earned on assets and interest paid on funding, relative to average interest-earning assets.

Changes in this measure can affect profitability even when lending volumes increase.

UBS also acknowledged potential support from accelerating loan growth and the bank’s valuation.

The revised price target added to the information investors were assessing ahead of the third-quarter earnings announcement.

The source material did not specify the previous or revised UBS price target.

How Are Interest Rates Affecting the Banking Sector?

Interest rate developments remain an important consideration for Standard Chartered and other internationally active banks.

The yield on the benchmark 10-year US Treasury note had recently stabilised around 5.11%, after reaching approximately 5.34%.

Higher bond yields can affect the valuation of fixed-income assets, funding costs and broader financial market conditions.

For banks, the effect depends on the composition of their assets and liabilities, interest rate sensitivity and funding arrangements.

Standard Chartered’s exposure to Asian and international markets means its financial performance is influenced by monetary conditions across multiple jurisdictions.

Investors are also monitoring the Federal Reserve’s two-day monetary policy meeting, which begins on Tuesday.

The meeting may provide further information on the direction of US interest rates and the central bank’s assessment of inflation and economic activity.

Is the UK Autumn Budget Adding to Pressure on Bank Shares?

The UK Autumn Budget, scheduled for Wednesday, 28 October, is another event attracting attention across the banking sector.

Market participants are assessing the possibility of changes to taxes applied to UK banks, including the banking surcharge.

Additional taxation could affect the after-tax earnings of banks with relevant UK operations, depending on the measures introduced.

Banking industry representatives have argued against increases in sector-specific taxes, citing potential implications for lending and competitiveness.

No new measures had been confirmed in the source material ahead of the Budget.

The uncertainty surrounding potential policy changes has coincided with broader weakness in London-listed financial shares.

Why Is the FTSE 100 Also Trading Lower?

The FTSE 100 declined approximately 1% during Tuesday’s session, with banking stocks among the contributors to the index’s performance.

HSBC’s share price decline was a factor in the broader market movement.

Investors were also assessing energy-related inflation pressures, developments in bond markets and the forthcoming UK Budget.

The Federal Reserve’s monetary policy meeting added another scheduled event to the week’s financial calendar.

These developments contributed to a wider decline in UK equities, rather than selling being confined to Standard Chartered.

The bank’s 1% share price fall therefore occurred against a backdrop of broader market weakness.

What Role Could Wealth Management Play in Standard Chartered’s Results?

Wealth management is an important business area for Standard Chartered, particularly given its presence across Asian markets.

The bank’s recent wealth management momentum has been identified as one of the factors supporting its broader operating outlook.

HSBC’s third-quarter results brought renewed attention to the sector after its wealth management revenue remained flat year on year.

However, differences in business mix, customer activity and regional exposure mean the two banks may report different outcomes.

Standard Chartered’s forthcoming results will provide further information on its own wealth management performance, including any developments in revenue and customer activity.

The source material did not provide updated third-quarter wealth management figures for Standard Chartered.

How Does Standard Chartered’s $1.3 Billion Buyback Fit Into Its Outlook?

Standard Chartered has an ongoing $1.3 billion share buyback programme.

Share repurchases are one mechanism through which banks return capital to shareholders, subject to their financial position and regulatory capital requirements.

The programme remains relevant to investors assessing Standard Chartered’s capital allocation strategy.

The bank’s upcoming results may also provide additional information on its capital position and the progress of shareholder distributions.

However, the existence of a buyback does not prevent share prices from declining in response to earnings developments or changes in market conditions.

Investors will be assessing the programme alongside profitability, capital ratios and management’s outlook.

What Will Investors Be Watching in Wednesday’s Results?

Standard Chartered’s third-quarter earnings announcement will provide the next company-specific financial update.

Particular areas of attention include revenue growth, net interest margins, wealth management performance and credit conditions.

The bank’s capital position and ongoing shareholder distributions will also be relevant.

Investors may compare the results with HSBC’s recently reported figures, although differences between the banks’ operations and regional exposures will remain important.

Management commentary on lending growth, interest rates and future profitability could also provide further context for the bank’s outlook.

For now, Standard Chartered’s share price movement reflects trading ahead of its scheduled results and a session of broader weakness across UK financial stocks.

More About Standard Chartered

Standard Chartered plc (LSE:STAN) is an international banking group headquartered in London, with operations concentrated across Asia, Africa and the Middle East.

The company provides corporate and investment banking, wealth management and retail banking services to individual and institutional customers.

Its financial performance is influenced by lending activity, interest rates, wealth management revenue, credit conditions and regulatory capital requirements.

Standard Chartered is scheduled to publish its third-quarter 2026 results on 28 October.

The bank’s shares declined approximately 1% to 1,989.5p during Tuesday’s session, ahead of the announcement and amid broader selling pressure across UK banking stocks.

HSBC Holdings plc (LSE:HSBA) reported a 32% increase in third-quarter pretax profit to $9.6 billion, meeting analyst expectations, although revenue came in below forecasts as growth in its wealth management business slowed.

The London-headquartered banking group generated revenue of $18.6 billion for the July-to-September 2026 period, an increase of 5% from a year earlier but below analyst estimates of approximately $19 billion.

HSBC also announced a new share buyback programme of up to $1 billion and maintained its quarterly interim dividend at $0.10 per share.

Shares in the bank fell approximately 6% in Hong Kong following the results announcement, although they remained around 9% higher since the beginning of the year.

Third-Quarter Pretax Profit Increases to $9.6 Billion

HSBC reported pretax profit of $9.6 billion for Q3 2026, representing a 32% increase compared with the corresponding period in 2025.

The result was in line with market expectations and benefited partly from the absence of legal provisions recorded during the previous year’s third quarter.

Revenue increased 5% year on year to $18.6 billion, compared with analyst forecasts of approximately $19 billion.

The difference between reported revenue and market expectations contributed to the decline in HSBC’s Hong Kong-listed shares following publication of the results.

The bank’s quarterly performance also reflected changes in expected credit losses, which declined from the previous year.

HSBC reiterated that it remains on track to meet its principal profitability targets through 2028.

Wealth Management Revenue Remains Flat at $2.7 Billion

HSBC reported revenue of $2.7 billion from its wealth management business during the third quarter, broadly unchanged from the corresponding period a year earlier.

The result represented a moderation from the growth recorded earlier in 2026.

Wealth revenue had increased 15% year on year during the first quarter and 23% during the second quarter.

The absence of growth in Q3 contributed to group revenue falling below analyst forecasts.

Analysts at Citi and Jefferies described the results as slightly below expectations but identified underlying trends in wealth balances and private banking as indicators of continued business activity.

Their assessments suggested that developments in customer assets and private banking operations were more favourable than the flat quarterly wealth revenue figure alone indicated.

HSBC did not announce a change to its longer-term wealth management strategy alongside the results.

Expected Credit Losses Decline 17% to $800 Million

HSBC reported expected credit losses of approximately $800 million during the third quarter, representing a 17% reduction from the previous year.

The decrease reflected lower credit-related charges associated with Hong Kong’s property market and the bank’s wealth businesses in the UK and Mexico.

The reduction contributed to the group’s quarterly profitability.

Hong Kong commercial real estate has been an area of credit exposure for HSBC, making changes in related provisions relevant to its reported financial performance.

The bank also benefited from the absence of legal provisions that had affected the prior-year comparison.

Together, these factors contributed to the increase in pretax profit despite revenue coming in below market expectations.

HSBC Announces $1 Billion Share Buyback

HSBC announced a further share repurchase programme of up to $1 billion following its third-quarter results.

The amount matches the buyback announced for the preceding quarter.

The programme represents a continuation of the bank’s capital return activities.

HSBC also declared an interim dividend of $0.10 per share, unchanged from the previous quarter.

The bank did not announce an increase in its dividend or buyback allocation as part of the results.

The capital distribution announcements accompanied management’s confirmation that its profitability objectives through 2028 remain unchanged.

Basel 3.1 Reforms Expected to Benefit Capital Ratio

HSBC provided additional detail on the anticipated impact of Basel 3.1 banking capital regulations.

The bank said the regulatory changes could increase its core capital ratio by up to 0.5 percentage points.

This represents a more specific assessment than its previous indication that the reforms would provide a modest benefit.

Basel 3.1 introduces changes to the calculation of risk-weighted assets and regulatory capital requirements for banks.

The potential benefit identified by HSBC relates to its capital position under the revised regulatory framework.

The bank did not announce a corresponding change to its shareholder distribution plans.

Hong Kong Shares Decline Following Results

HSBC’s Hong Kong-listed shares fell approximately 6% following the publication of its third-quarter results.

The decline occurred despite the 32% increase in pretax profit and the announcement of a further share buyback.

Revenue falling short of expectations, together with slower growth in wealth management, were among the factors cited in the market reaction.

HSBC shares nevertheless remained approximately 9% higher for the year to date.

Chief Financial Officer Pam Kaur addressed expectations surrounding the bank’s financial outlook during a conference call with reporters.

“There is sometimes a market expectation that we upgrade guidance or targets,” Kaur said when asked about the share price decline.

HSBC maintained its existing profitability objectives rather than announcing an upgrade.

UK Banking Tax Debate Adds to Sector Outlook

HSBC’s results were published ahead of the UK government’s Budget, scheduled for Wednesday, 28 October 2026.

The banking sector has faced calls from campaign groups for increased taxation following a period of profitability across major European lenders.

Bank executives have opposed additional sector-specific levies, arguing that higher taxation could affect lending activity and the UK’s competitiveness as a financial centre.

The debate comes as banks assess the effects of inflation, interest rates and geopolitical developments on their operating environments.

HSBC did not announce any changes to its financial targets in response to the potential tax measures.

The impact of any future changes to UK banking taxation would depend on the measures ultimately adopted by the government.

Profitability Targets Through 2028 Maintained

HSBC confirmed that it remains on track to meet its core profitability objectives through 2028.

The bank’s third-quarter results showed higher pretax profit, lower expected credit losses and continued revenue growth, although the pace of expansion in wealth management moderated.

Management did not announce revised financial targets following the quarterly performance.

The group also maintained its shareholder distribution approach, with a $1 billion share buyback and an interim dividend of $0.10 per share.

Future performance will be influenced by lending conditions, wealth management activity, interest rates and credit developments across HSBC’s international markets.

The bank’s assessment of Basel 3.1 also indicates a potential improvement in its regulatory capital ratio as the reforms take effect.

More About HSBC Holdings

HSBC Holdings plc (LSE:HSBA) is an international banking and financial services group headquartered in London.

The company provides personal banking, commercial banking, wealth management and institutional financial services across multiple international markets.

Its operations include significant businesses in Asia, Europe and the Americas.

For the third quarter of 2026, HSBC reported pretax profit of $9.6 billion, an increase of 32%, and revenue of $18.6 billion, up 5% year on year.

Expected credit losses declined 17% to $800 million, while wealth management revenue remained unchanged at $2.7 billion.

HSBC announced a further share buyback of up to $1 billion and maintained its interim dividend at $0.10 per share.

The bank continues to target its existing profitability objectives through 2028.

Primary Health Properties PLC (LSE:PHP) announced an increase in the target size of its existing joint venture with Universities Superannuation Scheme (USS) to £400 million from £250 million, alongside an agreement to transfer approximately £67 million of primary healthcare properties into the partnership.

The joint venture, in which PHP holds a 20% equity interest and USS owns the remaining 80%, could expand to £800 million over time, subject to additional approval.

PHP has exchanged contracts for the disposal of nine primary care assets to the joint venture at book value, with the net proceeds intended to reduce the company’s net debt.

The company also reported that Fitch Ratings has reaffirmed Assura Limited’s BBB+ credit rating and revised its outlook to Stable from Negative.

Joint Venture Investment Target Increases to £400 Million

PHP and USS have agreed to raise the target size of their existing healthcare property joint venture from £250 million to £400 million.

The partnership has also identified the potential to increase its investment portfolio to £800 million over time, although this would require further approval.

The joint venture focuses on UK community healthcare properties leased directly to NHS organisations or general practitioner tenants.

Its investment criteria require rental agreements with inflation-linked increases or fixed contractual uplifts.

The enlarged investment target is intended to support additional investment in primary care infrastructure, including new Neighbourhood Health Centres and other healthcare facilities.

According to PHP, these investments are aligned with the NHS’s strategy of providing more healthcare services in community settings.

The partnership will consider further transfers of existing properties alongside new investment opportunities, including developments with controlled risk exposure.

PHP Agrees £67 Million Transfer of Nine Healthcare Properties

PHP has exchanged contracts to dispose of nine primary care properties to the joint venture for gross consideration of approximately £67 million.

The agreed consideration is in line with the assets’ book value.

Following completion of the transfer, the joint venture’s property portfolio is expected to exceed £250 million, surpassing its original investment target.

PHP said the portfolio is approaching £300 million as the partnership progresses its expansion.

The company will retain its 20% equity interest in the joint venture, while USS will continue to hold 80%.

PHP intends to use the net proceeds from the property disposals to reduce net debt.

The announcement did not specify the expected completion date for the transfer or the precise amount of net proceeds after transaction costs and the effects of its retained joint venture interest.

Partnership Targets Further NHS Healthcare Investment

The enlarged joint venture is expected to continue investing in healthcare properties occupied by NHS organisations and GP practices.

PHP identified Neighbourhood Health Centres as a potential area for future investment, alongside other facilities supporting the delivery of healthcare services outside hospitals.

The company said the investment strategy reflects demand for healthcare infrastructure associated with the UK’s ageing population and the increasing prevalence of chronic medical conditions.

The joint venture’s focus on properties with inflation-linked rents or fixed rental increases forms part of its investment criteria.

Future portfolio growth is expected to come from additional transfers of existing properties, property acquisitions and selected development opportunities.

USS has indicated its intention to increase its investment in the partnership as further opportunities are identified.

Joint Venture Provides Additional Capital for PHP

The expansion of the USS partnership provides PHP with an additional source of capital for healthcare property investment.

Under the existing ownership structure, USS supplies the majority of the joint venture’s equity capital, while PHP maintains a minority investment interest.

The transfer of properties into the vehicle allows PHP to realise proceeds from existing assets while retaining exposure to the joint venture’s portfolio through its 20% holding.

PHP intends to apply the net proceeds from the latest disposals towards reducing its debt.

The company has not disclosed a revised group net debt figure or quantified the expected effect of the transaction on its leverage ratios.

The partnership’s potential expansion to £800 million remains subject to future approvals and investment decisions.

Fitch Reaffirms Assura BBB+ Rating and Improves Outlook

PHP also announced that Fitch Ratings has reaffirmed the credit rating of Assura Limited at BBB+.

The rating agency revised its outlook on Assura to Stable from Negative.

According to PHP, the change follows progress made in establishing and developing its private hospital and primary care joint ventures.

The announcement did not provide additional details of Fitch’s assessment or specify any further changes to Assura’s credit profile.

The rating reaffirmation and outlook revision were disclosed alongside the expansion of PHP’s partnership with USS.

Chief Executive Comments on Joint Venture Expansion

Mark Davies, chief executive officer of Primary Health Properties, commented on the increased investment target and the partnership’s future plans:

“We are delighted to be extending our successful joint venture with USS, which will enable significant further investment into critical healthcare infrastructure in the UK.

“With a portfolio approaching £300 million, the JV will focus on funding new Neighbourhood Health Centres and other healthcare assets let to the NHS that help deliver the NHS 10-year plan. Future growth in the JV will come from further transfers of existing assets and new investment opportunities, including risk-controlled developments.

“We value the partnership that we have with USS, who are expressing their confidence in primary care by committing additional equity to the joint venture.”

Alex Turner, head of property at USS Investment Management, also commented:

“We are happy to announce the expansion of our established joint venture with PHP”.

“As the UK’s demographics evolve, we continue to believe in the robustness of the healthcare sector, and we’re delighted to invest further into primary care.”

The partnership will continue evaluating additional healthcare property investments as it works towards its revised £400 million target.

More About Primary Health Properties

Primary Health Properties PLC (LSE:PHP) is a healthcare property investment company focused on infrastructure in the United Kingdom and Ireland.

Its investment activities include properties used to deliver primary and community healthcare services.

The company participates in a joint venture with Universities Superannuation Scheme, structured with 20% ownership by PHP and 80% by USS.

The partnership invests in healthcare buildings leased directly to NHS organisations and GP tenants, with rental agreements incorporating inflation-linked increases or fixed uplifts.

Following the latest announcement, the joint venture’s investment target has increased to £400 million, with potential longer-term expansion to £800 million subject to additional approval.

PHP has also agreed to transfer nine primary healthcare properties into the partnership for approximately £67 million, with net proceeds intended to reduce group debt.

Luceco plc (LSE:LUCE) reported a 17% increase in like-for-like revenue for the third quarter ended 30 September 2026, supported by growth in its Energy Transition business and demand for core electrical products.

The manufacturer of residential and commercial electrification products also reported a 60% year-on-year improvement in adjusted operating profit, reflecting changes in revenue mix and operational efficiencies.

Luceco reaffirmed its full-year profitability expectations, with company-compiled analyst consensus forecasting adjusted operating profit of £41.8 million for FY2026.

Third-Quarter Revenue Increases 17%

Luceco reported like-for-like revenue growth of 17.0% for the three months ended 30 September 2026, compared with the corresponding period in the previous year.

The increase reflected contributions from the company’s Energy Transition activities and its established electrical products business.

For the first nine months of 2026, like-for-like revenue increased 15.0% year on year.

The company said demand for its core product categories remained consistent during the quarter, while its Energy Transition operations contributed a larger proportion of growth.

Management also reported an order book providing visibility over deliveries scheduled for the fourth quarter.

The trading statement did not disclose an absolute revenue figure for Q3 or the nine-month period.

Energy Transition Revenue Rises Approximately 220%

Luceco’s Energy Transition business recorded approximately 220% year-on-year revenue growth during the third quarter.

The division includes electric vehicle charging products and Demand Flexibility activities.

The company reported that Demand Flexibility enrolments exceeded 31,000 at the end of September 2026.

Growth in the division contributed to the group’s overall revenue performance and changes in its sales mix during the period.

Luceco identified both EV charging and Demand Flexibility as contributors to its current trading performance.

The announcement did not provide separate revenue figures for either activity or specify their individual contributions to group profitability.

Core Electrical Products Record 3.4% Revenue Growth

Alongside the increase in Energy Transition revenue, Luceco reported 3.4% year-on-year revenue growth in its core products business during Q3.

The company’s established product portfolio includes wiring accessories, LED lighting and portable power products.

These products are distributed through professional, wholesale and retail channels.

Management reported continued demand across the group’s core product categories and expects the trading trends identified in its September interim results to continue through the remainder of 2026.

The company did not provide individual revenue growth rates for its core product categories.

Adjusted Operating Profit Increases 60%

Luceco reported a 60% year-on-year increase in adjusted operating profit for the third quarter.

The company attributed the improvement to a change in revenue mix and further operational efficiencies.

Revenue growth in Energy Transition and core products contributed to the overall increase in trading activity.

The group did not disclose the absolute value of quarterly adjusted operating profit or provide a detailed breakdown of the contribution from each business area.

Management expects the factors supporting profitability during Q3 to continue influencing performance during the final quarter of the financial year.

Net Debt Rises to £74.6 Million as Leverage Declines

Luceco reported bank net debt of £74.6 million at 30 September 2026, compared with £68.4 million at the corresponding point in 2025.

The £6.2 million increase was described by the company as consistent with the growth in revenue.

Despite the higher absolute debt balance, the group’s bank net debt-to-EBITDA leverage ratio declined to 1.4 times from 1.6 times a year earlier.

The ratio remains within Luceco’s stated target range of 1.0 to 2.0 times.

The company said its balance sheet and cash generation provide capacity for continued investment in organic growth initiatives and potential selective bolt-on acquisitions.

Any acquisitions would be considered under the group’s existing capital allocation policy.

No new acquisition agreements were announced in the trading update.

FY2026 Adjusted Operating Profit Expected to Meet Market Forecasts

Luceco maintained its full-year adjusted operating profit outlook following the third-quarter trading performance.

Company-compiled analyst consensus as of 26 October 2026 indicates expected FY2026 adjusted operating profit of £41.8 million, with individual forecasts ranging from £41.3 million to £42.5 million.

The company said market expectations had increased following the publication of its interim results on 22 September 2026.

Management expects the operating trends reported at the interim stage to continue during the final three months of the year.

The board also referred to its existing fourth-quarter order book as providing visibility over scheduled deliveries.

Luceco expects full-year adjusted operating profit to be in line with the current market consensus.

Chief Executive Comments on Q3 Performance

Dr Thorsten Müller, chief executive officer of Luceco, commented on the company’s quarterly trading performance:

“Luceco delivered a strong third-quarter performance, with revenue growth of approximately 17%, against what was a strong prior-year comparative. This performance demonstrates the strength of our competitive advantages and positioning in attractive market segments, including the significant opportunity afforded within Energy Transition. We remain confident in the outturn for the year.”

The company continues to identify Energy Transition activities, including EV charging and Demand Flexibility, alongside its core electrical products business as contributors to its financial performance.

More About Luceco

Luceco plc (LSE:LUCE) designs and manufactures electrical products and systems for residential and commercial applications.

Its product portfolio includes wiring accessories, electric vehicle chargers, LED lighting and portable power products, distributed through professional, wholesale and retail channels.

The company’s Energy Transition activities include EV charging equipment and associated services, alongside Demand Flexibility operations.

For Q3 2026, Luceco reported 17.0% like-for-like revenue growth, including approximately 220% growth in Energy Transition and 3.4% growth in core products.

Adjusted operating profit increased 60% year on year, while bank net debt stood at £74.6 million and leverage declined to 1.4 times EBITDA.

The group continues to expect FY2026 adjusted operating profit in line with company-compiled analyst consensus of £41.8 million.

KEFI Gold and Copper PLC (LSE:KEFI) announced that its Saudi Arabian joint venture, Gold and Minerals Company Limited (GMCO), has conditionally approved an approximately US$87 million development programme for Stage 1 of the Jibal Qutman Gold Project.

The development is expected to begin during the fourth quarter of 2026, subject to outstanding procedural requirements, principally the granting of a mining licence by Saudi Arabia’s newly appointed Minister of Industry and Mineral Resources.

KEFI holds a 13% interest in GMCO, while its Saudi Arabian partner, industrial conglomerate ARTAR, owns the remaining 87%. The proposed development represents the joint venture’s first planned mining operation within its Saudi Arabian portfolio.

Jibal Qutman Stage 1 Development Receives Conditional Approval

GMCO’s board has approved the approximately US$87 million capital development programme for Jibal Qutman Stage 1, known as JQ1.

The decision remains conditional upon completion of the outstanding procedural requirements, including the award of the project’s mining licence.

Management expects these requirements to be completed shortly, allowing development activities to commence during Q4 2026.

JQ1 is planned as an oxide-ore gold mining operation using conventional carbon-in-leach processing technology.

The project has an estimated operating life of seven years, during which approximately 258,000 ounces of gold are expected to be recovered.

The development would be the first operating project within GMCO’s portfolio, which also includes the Hawiah Copper-Gold Project.

Project Economics Indicate NPV of $141 Million to $275 Million

KEFI reported estimated economic returns for Jibal Qutman Stage 1 based on gold price assumptions ranging from US$3,000 to US$5,000 per ounce.

Under these assumptions, the project has an estimated post-tax net present value, calculated using a 5% discount rate, of between US$141 million and US$275 million.

The corresponding internal rate of return is estimated at between 23% and 60%.

These figures represent projected financial outcomes rather than realised returns and depend on the underlying gold price assumptions and successful project development.

The estimated capital expenditure required to develop JQ1 is approximately US$87 million.

The announcement did not provide a detailed breakdown of projected annual production, operating costs or the expected construction timetable beyond the targeted development commencement in Q4 2026.

KEFI’s Funding Contribution Estimated at $10 Million to $12 Million

Under its existing 13% ownership interest in GMCO, KEFI’s potential equity contribution towards the JQ1 development is estimated at approximately US$10 million to US$12 million over a 24-month period, assuming the capital requirements are funded entirely through shareholder equity.

Based on current discussions, the company expects approximately half of its total funding requirement to be provided when development begins.

The remaining US$5 million to US$6 million would be assessed after approximately 12 months, taking into account available financing alternatives and the amount of additional equity required.

KEFI retains the option to participate in future equity funding rounds or accept a proportionate reduction in its ownership interest in GMCO.

The joint venture operates through a standalone management and operational structure, with oversight provided by its shareholders.

The final funding arrangements have not yet been confirmed.

Saudi Arabian Portfolio Contains 4 Million Ounces of Gold Equivalent Resources

GMCO’s Saudi Arabian mining portfolio contains aggregate Mineral Resources of approximately 4.0 million ounces of gold equivalent.

The portfolio comprises the Jibal Qutman Gold Project and the Hawiah Copper-Gold Project, both of which are expected to be developed through multiple stages.

Jibal Qutman Stage 1 is intended to establish an initial operating and financial base for subsequent development activities.

According to KEFI, cash flow generated from the first operation could support future exploration programmes and additional project developments at Jibal Qutman and Hawiah.

The joint venture has established a longer-term aggregate production target of approximately 350,000 ounces of gold and gold equivalent annually across its Saudi Arabian projects.

This target relates to the wider portfolio rather than the initial JQ1 development and remains dependent on future project implementation.

Jibal Qutman Development Forms Part of Wider Mining Strategy

KEFI’s participation in GMCO provides an interest in the planned development of gold and copper projects in Saudi Arabia alongside its mining activities in Ethiopia.

The company identified Jibal Qutman Stage 1 as the proposed first phase of a broader development programme within the Saudi Arabian joint venture.

GMCO plans to develop its portfolio sequentially, with the initial gold operation potentially providing funding for subsequent exploration and project development.

KEFI has indicated that its funding flexibility within GMCO allows it to determine its participation in future capital requirements while continuing work on its Ethiopian projects.

The company has not announced a final decision on how it will fund its full share of the JQ1 development.

Tulu Kapi Development Programme Being Reset Following Security Incident

KEFI also provided an update on its principal development activities in Ethiopia.

The company said it is recommencing a revised development programme at the Tulu Kapi Gold Project following a recent security incident.

According to management, the renewed programme will begin with community-related priorities.

The announcement did not provide further details of the incident, its operational consequences or a revised timetable for the Tulu Kapi development.

KEFI continues to identify Tulu Kapi as its principal development focus while maintaining its participation in GMCO’s Saudi Arabian projects.

The company also referred to its broader Ethiopian and Saudi Arabian development pipeline as providing a potential pathway to a combined attributable production interest of approximately 205,000 ounces of gold and gold equivalent.

This figure represents a future production objective rather than current output.

Executive Chairman Comments on Development Approval

Harry Anagnostaras-Adams, executive chairman of KEFI Gold and Copper, commented on the conditional approval and the company’s development priorities:

“The conditional approval of the development of Jibal Qutman Stage 1 is an important milestone for GMCO and for KEFI’s interests in Saudi Arabia. With the remaining procedural requirements expected to be completed shortly, we look forward to the commencement of development during the fourth quarter of this year.

“Jibal Qutman Stage 1 is an attractive project in its own right, and its wider significance lies in establishing the first producing operation within GMCO’s substantial portfolio of gold and copper assets. We anticipate that the cash flows generated by this initial development will provide an important foundation for funding GMCO’s exploration activities and the progressive development of identified further projects at Jibal Qutman and Hawiah.

“For KEFI, our interest in GMCO provides exposure to a significant and growing Saudi Arabian mining business, alongside our principal development activities in Ethiopia. The joint venture’s stand-alone management structure and our flexibility regarding future funding commitments allow us to participate in this opportunity while maintaining our focus on starting up Tulu Kapi, where we are recommencing a re-set development program following the recent security incident, commencing with community priorities.

“KEFI’s Ethiopian and Saudi development pipeline presents us with a pathway to a beneficial interest in a combined 205,000 oz gold and gold equivalent production.”

The company expects the remaining procedural requirements for Jibal Qutman Stage 1 to be completed before development activities begin.

More About KEFI Gold and Copper

KEFI Gold and Copper PLC (LSE:KEFI) is a mineral exploration and development company focused on projects within the Arabian-Nubian Shield, including assets in Ethiopia and Saudi Arabia.

In Saudi Arabia, KEFI holds a 13% interest in Gold and Minerals Company Limited, with ARTAR owning the remaining 87%.

The joint venture’s portfolio includes the Jibal Qutman Gold Project and the Hawiah Copper-Gold Project, with combined Mineral Resources of approximately 4.0 million ounces of gold equivalent.

In Ethiopia, KEFI is progressing development activities at its Tulu Kapi Gold Project.

The conditional approval of Jibal Qutman Stage 1 establishes a proposed US$87 million development programme, with commencement targeted for Q4 2026 subject to the granting of a mining licence and completion of other procedural requirements.

Shoe Zone PLC (LSE:SHOE) reported a 4.5% decline in revenue to £142.4 million for the 53 weeks ended 3 October 2026, reflecting a reduction in its retail store estate and lower consumer spending, according to the company’s unaudited full-year trading update.

The footwear retailer expects an adjusted loss before tax of approximately £1.0 million, compared with an adjusted profit of £2.4 million in FY2025. However, its product margin increased to approximately 63.1%, while year-end net cash rose to £15.1 million from £5.9 million.

Shoe Zone also confirmed that its store portfolio declined to 251 locations and indicated that it expects to declare no final dividend for FY2026.

FY2026 Revenue Falls 4.5% as Store Numbers Decline

Shoe Zone reported unaudited revenue of £142.4 million for FY2026, compared with £149.1 million in the previous financial year.

The £6.7 million reduction represents a year-on-year decline of 4.5%.

The company attributed the decrease partly to operating 18 fewer stores at the end of the reporting period, alongside reduced consumer confidence and wider economic conditions affecting discretionary spending in the United Kingdom.

Management said sales benefited from specific seasonal purchasing periods, including warmer summer weather and the back-to-school season, but overall trading remained affected by lower consumer expenditure.

Digital revenue was broadly unchanged from the previous financial year.

The company also reported that trading during the opening weeks of the Autumn/Winter season was below its expectations, affecting the final weeks of FY2026 and continuing into FY2027.

Adjusted Loss Before Tax Expected at £1 Million

Shoe Zone expects to report an unaudited statutory loss before tax of approximately £0.6 million for FY2026, compared with a statutory profit before tax of £3.3 million in FY2025.

After excluding a £0.4 million foreign exchange revaluation gain, the company expects an adjusted loss before tax of approximately £1.0 million.

This compares with adjusted profit before tax of £2.4 million in the preceding financial year.

The company said the change in profitability reflected lower revenue, the full-year effect of increased employer National Insurance contributions and a further increase in the National Living Wage.

These factors were partly offset by an improvement in product margins.

Management confirmed that the expected adjusted loss is consistent with its existing expectations for the financial year.

Product Margin Increases to 63.1%

Shoe Zone reported an increase in product margin to approximately 63.1% in FY2026, compared with 61.0% in FY2025.

The improvement of 2.1 percentage points was primarily attributed to lower and less volatile shipping container costs and a more favourable sterling-to-US dollar exchange rate during the reporting period.

However, the company reported that container prices increased towards the end of the financial year.

Management attributed the increase to disruption at Chinese ports and geopolitical developments affecting fuel prices.

Shoe Zone also identified a subsequent weakening of sterling against the US dollar as a potential additional cost pressure.

The company expects these developments could negatively affect product margins in the current financial year.

Net Cash Rises to £15.1 Million

Shoe Zone ended FY2026 with net cash of approximately £15.1 million, compared with £5.9 million at the end of FY2025.

The increase of £9.2 million was primarily attributed to lower capital expenditure, reduced product costs and an overall reduction in the cost of sales.

The company continues to manage expenditure while limiting investment in its retail estate to essential requirements.

Management said cash management remains a priority as the business responds to current trading conditions and changes in operating costs.

Despite the increase in net cash, the board expects to maintain its policy of not distributing a dividend for FY2026.

Retail Estate Reduced to 251 Stores

Shoe Zone operated 251 retail stores at the end of FY2026, compared with 269 locations a year earlier.

The reduction of 18 stores represents a 6.7% decrease in the total estate.

During the financial year, the company closed 25 stores, opened seven new locations and completed six store refits.

The retail portfolio now comprises 211 larger-format stores and 40 original High Street locations.

Shoe Zone continues to pursue its strategy of transitioning towards larger-format stores, although management said the pace of investment has slowed as the programme approaches completion.

The company is currently restricting capital expenditure to essential projects.

According to management, the larger-format conversion programme has reached 211 completed locations.

No Final Dividend Expected for FY2026

Shoe Zone confirmed that no interim dividend was declared for the first half of FY2026.

The company also expects to declare no final dividend for the financial year.

Management said the decision reflects its approach to cash management and capital expenditure during the current trading environment.

The company has not announced a timetable for resuming dividend payments.

FY2027 Trading Begins Below Management Expectations

Shoe Zone reported that the Autumn/Winter trading season began more slowly than anticipated, with the trend continuing into the new financial year.

Management expects near-term trading conditions to remain subdued, citing consumer spending patterns and broader economic uncertainty.

The company is monitoring developments in shipping costs, fuel prices and foreign exchange rates, all of which could affect future operating costs and product margins.

Shoe Zone also referred to the UK government’s October 2026 Budget as an upcoming factor in its assessment of the operating environment.

The board said it would continue to manage cash and expenditure while monitoring changes in consumer demand.

The trading update did not provide specific revenue or profit guidance for FY2027.

Chairman Comments on Trading Conditions

Charles Smith, chairman of Shoe Zone, commented on the company’s financial performance and the factors affecting consumer spending:

“This was a challenging year, particularly in the first half, as consumer confidence continued to be weak, and fell further following the Government’s November 2025 budget, with persistent inflation, higher interest rates remaining elevated and reduced levels of disposable income all contributing to a generally negative economic and consumer sentiment in the UK. Sales were good when there was a clear reason to buy, such as the warm summer and the Back-To-School season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.

Digital revenue was in line with last year and the ongoing strategy of refitting and relocating stores to our larger format continued, albeit at a slower pace as we get towards the end of the project with 211 conversions completed, alongside net cash levels improving year-on-year.

A more detailed update will be provided at the time of our final results in January 2027.

I would like to thank all of our teams for their continued commitment and hard work in a very challenging year.”

The company expects to provide further details of its financial performance and operational plans when it publishes its full-year results in January 2027.

More About Shoe Zone

Shoe Zone PLC (LSE:SHOE) is a UK footwear retailer operating a network of larger-format and traditional High Street stores, alongside its digital sales business.

At the end of FY2026, the company operated 251 stores, comprising 211 larger-format locations and 40 original High Street stores.

For the 53 weeks ended 3 October 2026, Shoe Zone reported revenue of £142.4 million, a product margin of approximately 63.1% and year-end net cash of £15.1 million.

The company expects an adjusted loss before tax of approximately £1.0 million and a statutory loss before tax of £0.6 million.

Management continues to focus on cash management and its retail estate strategy while assessing trading conditions in FY2027. Full-year financial results are expected in January 2027.