Blog

EssilorLuxottica SA (EU:EL) said its move into medical technology could help restore its market valuation over time, following a significant decline in its share price in recent months.

Speaking at the company’s annual general meeting on Tuesday, Chief Executive Francesco Milleri pointed to several factors behind the drop of more than 40% from the record highs reached in November. These included U.S. tariffs, a weaker dollar, ongoing geopolitical tensions, and intensifying competition in the smart glasses segment.

Chief Financial Officer Stefano Grassi estimated that U.S. tariffs had a €300 million ($351 million) impact on the company last year.

Milleri suggested that investors have yet to fully appreciate the group’s transition into medtech, describing it as a necessary strategic evolution. “We were too big to remain … (confined to) this small market,” he said, referring to the company’s traditional focus on frames and lenses.

He added, “We are really pushing to go back to the (price) position that we deserve … but, at the same time, it will take some time to achieve that”.

Audio and Smart Glasses Highlight Future Growth Opportunities

The company’s market value has fallen to around €86 billion from €150 billion in November, when it hit a peak driven by optimism around smart glasses developed in partnership with Meta Platforms (NASDAQ:META).

Since then, rising competition in the segment has dampened investor sentiment. However, Milleri reaffirmed that AI-enabled eyewear remains central to the company’s long-term strategy and downplayed concerns about new entrants.

“A few big players have made product announcements generating buzz, but we haven’t seen any real competing products on the market so far,” he said.

He also highlighted the audio segment as an important area for expansion, with products extending beyond Nuance Audio glasses, which integrate hearing assistance for individuals with mild to moderate hearing loss.

Speaking separately to reporters, Milleri revealed that EssilorLuxottica had considered a potential investment in Amplifon but ultimately chose not to proceed.

TotalEnergies SE (EU:TTE) signalled increased shareholder returns after reporting a strong rise in first-quarter profit on Wednesday, supported by elevated oil prices and robust trading linked to tensions in the Middle East.

Shares in the company gained around 1% in early Paris trading by 07:22 GMT.

The group posted adjusted net income of $5.4 billion for the quarter, marking a 29% increase from $4.2 billion a year earlier and exceeding the $5 billion consensus forecast compiled by LSEG. This performance came despite disruptions that curtailed roughly 15% of its upstream production.

TotalEnergies said it plans to restart share buybacks of up to $1.5 billion in the second quarter, doubling the pace from the $750 million level set in February when weaker oil prices had prompted a reduction.

The company also increased its quarterly dividend by 5.9% to €0.90 per share.

Commenting on the results, Jefferies analyst Mark Wilson said the report was a “small positive.”

Segment performance was led by refining and chemicals, where earnings surged more than fivefold to $1.6 billion, driven by strong trading in oil and petroleum products.

Upstream exploration and production delivered a 5% increase in earnings to $2.58 billion, while the liquefied natural gas division saw a 2% rise to $1.3 billion.

The integrated power segment, which includes gas-fired generation, renewable energy, and battery storage, recorded an 8% increase to $545 million.

Meanwhile, marketing and services posted a 9% gain in earnings to $262 million.

Pernod Ricard (EU:RI) confirmed that it has ended negotiations with Brown-Forman (NYSE:BF.A) after the two sides were unable to agree on acceptable deal terms.

The discussions, which began a little over a month ago, concluded without reaching a formal agreement. Pernod Ricard had first disclosed on March 27, 2026, that it was evaluating a potential transaction with Brown-Forman, presenting it as a merger of equals that would combine the strengths and expertise of both groups.

While the company acknowledged the strategic appeal of such a combination, it said the proposed terms did not meet its criteria for creating shareholder value. Ending the talks reflects a disciplined approach to capital allocation.

Haleon plc (LSE:HLN) reported first-quarter organic sales growth of 2.2%, coming in just below market expectations of 2.4%. The performance reflected a 0.2% decline in volumes, which was offset by a 2.4% increase in pricing.

The company said a weaker-than-usual cold and flu season reduced growth by around 1.3 percentage points, following a similar 1.5 percentage point drag in the previous quarter. When excluding this category, underlying growth was estimated at roughly 3.5%, still below Haleon’s longer-term target of 4%.

Regional performance was mixed. North America delivered 1.0% like-for-like growth, although volumes fell 2.7%. Growth in emerging markets slowed to 4.3% from 5.7% in the prior quarter, while developed markets recorded a modest 1.0% increase. Latin America sales were broadly unchanged مقارنة بالعام السابق, and the Middle East, which accounts for about 5% of total revenue, showed no measurable impact from regional tensions.

Across product categories, Oral Health was a standout performer, with double-digit growth in brands such as Sensodyne and Parodontax. However, vitamins, minerals and supplements, along with digestive health, underperformed expectations, with ENO seeing a sharp decline in Brazil. Respiratory health met forecasts, as a strong allergy season helped offset weaker demand in cold and flu products. The smokers’ health segment saw double-digit declines.

Haleon reiterated its full-year outlook, expecting organic revenue growth of 3% to 5% and high single-digit expansion in operating margins, implying a margin level approaching 24%. The company also expects foreign exchange to have a neutral effect and guided for a tax rate of around 24.5%, slightly above the 24% recorded in 2025.

Helium One Global Limited (LSE:HE1) has announced the appointment of Clive Carver as non-executive chairman, succeeding James Smith, who has been with the company since its 2020 IPO. The leadership change comes as the company advances key helium projects in Tanzania and the United States, positioning itself for the next phase of development and potential production.

Helium One’s flagship southern Rukwa Project in Tanzania has moved into appraisal and development following a successful discovery and extended well testing programme. At the same time, its 50% stake in the Galactica-Pegasus project in Colorado is progressing toward commercial helium and carbon dioxide production, marking a significant step toward near-term revenue generation.

The company highlighted Smith’s role in guiding Helium One through major milestones, including its AIM listing, securing Tanzania’s first helium mining licence, and expanding into the U.S. market through the Galactica-Pegasus project. Carver brings extensive experience in capital markets, AIM-listed companies, and the natural resources sector, and joins at a pivotal stage as the business evolves from a single-region explorer into a multi-asset developer.

Management noted that the timing of the leadership transition aligns with increasing global demand for helium, a market characterised by constrained supply and growing industrial importance. The new chairman emphasised the opportunity to support the company’s strategic development as it moves closer to production across multiple assets.

Despite operational progress, the company’s outlook remains constrained by financial challenges, including limited revenue generation, ongoing losses, and continued cash burn, which may necessitate additional funding. Market indicators are mixed, with some longer-term support but generally neutral momentum. Valuation is also limited by negative earnings and the absence of dividend support.

More about Helium One Global Limited

Helium One Global Limited is a helium-focused exploration and development company with projects in Tanzania and Colorado, U.S. Its flagship Rukwa Project has advanced following a confirmed helium discovery at Itumbula West-1, supported by strong flow test results and the award of a large mining licence. In the U.S., the company holds a 50% interest in the Galactica-Pegasus development, operated by Blue Star Helium, where multiple wells have been drilled and initial production activities are underway. Helium One aims to establish itself as a key supplier in a supply-constrained global helium market.

Primary Health Properties plc (LSE:PHP) reported a strong start to 2026, with organic rental growth adding £3 million in income in the first quarter. This lifted the annualised contracted rent roll to £345 million, supported by positive rental trends across its expanded portfolio, which includes UK primary care assets, private hospitals, and Irish properties.

The company continues to advance its post-Assura plc combination strategy, focusing on reducing leverage into its 40% to 50% target range and lowering net debt to EBITDA below 9.5x. It is also delivering cost efficiencies, with £9 million in annualised synergies targeted and around 87% already achieved. In addition, PHP is developing a new investment vehicle for its private hospital portfolio to reduce gearing and unlock additional capital, while transferring further assets into its primary care joint venture.

Development activity remains active, with six projects currently underway across the UK and Ireland, including primary care centres and a private hospital. All are expected to complete between 2026 and 2027, with a focus on earnings-accretive opportunities. The rollout of Neighbourhood Health Centres by the Department of Health and Social Care, including three existing PHP assets in the initial phase, is expected to create further development and asset management opportunities in collaboration with the NHS.

For income-focused investors, PHP declared a second quarterly interim dividend of 1.825p per share, equivalent to 7.3p on an annualised basis, representing a 2.8% increase on 2025. This marks 30 consecutive years of dividend growth, with the company reaffirming its commitment to a progressive and earnings-covered dividend policy, alongside further payments planned خلال 2026.

Overall, the company’s outlook is supported by an attractive valuation profile, including a moderate price-to-earnings ratio and a relatively high dividend yield. However, this is balanced by mixed financial quality, with elevated leverage and a decline in free cash flow to zero in 2025. Technical indicators also point to weaker momentum, with the stock trading below key moving averages and showing negative signals.

More about Primary Health Properties plc

Primary Health Properties plc is a UK-based real estate investment trust focused on healthcare infrastructure, primarily investing in primary care centres, private hospitals, and related facilities across the UK and Ireland. The company generates stable rental income from long-term leases backed by government bodies and healthcare providers, positioning it as a key landlord to the NHS and other operators within the primary and community care sector.

Jet2 plc (LSE:JET2) reported a stable performance for the year to 31 March 2026, with expected operating profit in the range of £435 million to £440 million, broadly in line with the prior year. Results were achieved despite approximately £11 million in start-up and promotional costs related to the launch of its new base at London Gatwick. The company continues to benefit from a strong balance sheet, holding around £2.0 billion in net cash alongside significant liquidity.

Jet2’s business model remains centred on its integrated leisure offering through Jet2holidays and Jet2.com, with more than 80% of revenue generated from ATOL-protected package holidays. These packages primarily serve destinations across the Mediterranean, Canary Islands, and Europe, with most customers choosing full holiday packages rather than flight-only bookings.

Looking ahead, the company plans to increase capacity for Summer 2026 by 7.7% compared with the previous year, supported by solid booking momentum. A high level of fuel hedging provides cost visibility, while the recently launched Gatwick base is performing ahead of expectations. However, management noted that geopolitical uncertainty in the Middle East is influencing booking patterns, with customers booking closer to departure, reducing visibility for the peak travel season.

Jet2 continues to emphasise its customer-focused, end-to-end model as a key competitive advantage, alongside investment in a more fuel-efficient fleet of Airbus A321neo aircraft. Its expanding UK network now places over 90% of the population within a 90-minute drive of a Jet2 base, supporting long-term growth ambitions. While strong financial performance, strategic expansion, and relatively attractive valuation underpin the investment case, some concerns remain around cash flow dynamics and rising operating costs.

More about Jet2 PLC

Jet2 plc is a UK-based leisure travel group that combines Jet2holidays, a leading provider of ATOL-protected package holidays, with Jet2.com, one of the UK’s largest airlines by passenger numbers. The group operates from 14 airport bases across the UK, including Manchester, Birmingham, and London Gatwick, and focuses primarily on delivering integrated holiday packages rather than standalone flight services.

Warpaint London plc (LSE:W7L) reported record revenue of £105.1 million for 2025, representing a 3% increase year on year, supported by the acquisition and integration of Brand Architekts. However, profitability declined during the period, with adjusted EBITDA down 15% and profit before tax falling 24%, reflecting more challenging trading conditions, particularly in the U.S. and European markets.

Despite the softer earnings, the company improved its gross margins and significantly strengthened its balance sheet, doubling cash reserves to £16 million while remaining debt-free. It also increased its total dividend to 13p per share, underlining confidence in its financial position.

Operationally, Warpaint continued to expand its footprint across Europe, the UK, the U.S., and other international markets. Direct-to-consumer online sales grew 38%, now accounting for 11% of total revenue. The group also acquired the Barry M brand out of administration, enhancing its offering in the value cosmetics segment. While management acknowledged ongoing macroeconomic pressures and a slower start to 2026, it highlighted a stronger order pipeline, new retail partnerships such as Rossmann in Germany, and seasonal demand from Walmart. The company expects a recovery weighted toward the second half of the year, supported by further margin improvements and international growth.

Overall, Warpaint’s outlook reflects strong underlying financial characteristics, including steady growth, solid profitability, and a healthy balance sheet with consistent cash generation. Valuation appears attractive, with a relatively low price-to-earnings ratio and a high dividend yield. However, technical indicators suggest some caution, as momentum appears stretched and the stock continues to trade below its long-term moving average.

More about Warpaint London

Warpaint London plc is a UK-based supplier of affordable colour cosmetics and personal care products. Its portfolio includes brands such as W7, Technic, Skin & Tan, Super Facialist, Dirty Works, Fish Soho, and Barry M. The company distributes its products through major retailers, supermarket chains, and international partners, alongside a rapidly growing direct-to-consumer online platform.