Video games company Frontier Developments (LON: FDEV) is upgrading guidance for the year to May 2026 thanks to the success of Jurassic World Evolution 3, which has done better than its predecessor. This is despite delays in issuing new content for the game. Revenues of £103m are expected. Underlying operating profit should be £16m. Cash was £44.9m at the end of April 2026, following share buybacks. An end-year trading update will be released on 10 June. The share price increased 18.8% to 391.5p.
Tern (LON: TERN) investee company Device Authority announced a new partnership with Xalient, a supplier of identity cybersecurity services. Tern owns 25.3% of the identity and access management technology company. The share price rose 18.7% to 0.7p.
Water remediation services provider Mycelx Technologies (LON: MYX) has been awarded a new offshore produced water treatment lease in the Gulf of Mexico by major oil and gas company. This will generate monthly income and recurring filtration product sales. This could contribute $850,000 in 2026. The share price gained 12.1% to 51p.
Toys and hobbies supplier Character Group (LON: CCT) improved interim pre-tax profit by 15% to £2.4m on 9% lower revenues of £48.3m. Net cash was £13.7m at the end of February 2026 and there is a potential warehouse sale could raise £9.8m. Panmure Liberum raised its full year pre-tax profit forecast to £5m. The share price is 11% ahead at 273p.
Acoustic and insulation materials developer Autins Group (LON: AUTG) has repaid its existing £750,000 loan and entered into a new £1m, four-year facility with Maven. Net debt was £1.6m at the year end. This will help finance working capital for new contracts. Autins returned to profit in 2025-26 even though revenues fell from £19.3m to £17.6m. There was an underlying net profit of £170,000, helped by an improvement in gross margin to 36.4%. There are consolidation opportunities. The share price improved 8.7% to 12.5p.
FALLERS
Audio visual products distributor Midwich Group (LON: MIDW) is adding to market share and the challenging market conditions appear to be easing in some markets, including the UK. Business has been hit in the Middle East. There will be a trading statement on 21 July. Rorema Beheer BV has increased its stake from 5.04% to 7.16%. Liontrust has cut its holding from 11.7% to 9.24%. The share price declined 9.9% to 148.3p.
Alien Metals (LON: UFO) joint venture partner in the Munni Munni Platinum-Palladium-Copper-Nickel project in Western Australia has raised A$7.5m through a placing. GreenTech Metals will use the cash for phase II exploration and development of Munni Munni, as well as the Whundo project. Alien Metals has raised A$700,000 by selling shares in GreenTech Metals at $A0.075/share, leaving it with 37.9 million shares as well as 30% of Munni Munni. This cash will fund projects that Alien Metals operates. The share price fell 6.67% to 0.14p.
RUA Life Sciences (LON: RUA) is spinning out its structural heart business as RUA Structural Heart and it will receive £3m of convertible loan funding from Leducq Foundation. The business is developing AurTex-based heart valves for people with RHD. There are also plans for an aortic valve programme. RUA will not have to fund the valve development, which will save £750,000 in annual costs. The share price has been rising in recent days and there has been profit taking with a 6% dip to 23.5p, while still being 68% higher so far this year.
The FTSE 100 slipped on Tuesday after the US President said the Middle East ceasefire was on ‘life support’ and hurtled towards political instability.
Even the most optimistic UK investors will be slightly concerned about what’s happening on Tuesday, as reflected in the FTSE 100, which was trading down 0.6% at the time of writing.
“Drama and turmoil on both sides of the Atlantic helped put the FTSE 100 firmly on the back foot on Tuesday,” said Dan Coatsworth, head of markets at AJ Bell.
“Comments from Donald Trump that the Iran-US ceasefire was ‘on life support’ saw investors wobble in Asia and Europe – with the sell-off in the UK market exacerbated by domestic political events.
“The 30-year gilt yield, which is sensitive to political gyrations, extended yesterday’s gains to briefly top 5.8% as bond markets react to the increasingly perilous position of Prime Minister Keir Starmer.”
The bond market is a UK-centric problem, underscored by the FTSE 250 falling 1% on Tuesday, and it may worsen if the government is thrown into disarray by a leadership contest.
“We could see a blowout in longer-dated gilts if this turns into a dogfight– political, fiscal and inflationary risks will rise,” said Saxo UK Investor Strategist, Neil Wilson.
“Markets tend to dislike a lack of certainty over who runs a government; the fiscal position is already fragile and likely to become worse should a left-leaning ticket prioritise spending; and that this makes inflation stickier.”
These concerns were most felt in FTSE 100 banks NatWest, Barclays, and Lloyds – all were trading down by more than 4%.
The risk of potential political turmoil hit the pound, which in turn provided support for the FTSE 100’s overseas earners and offset losses elsewhere.
BATs, Unilever, Imperial, Diageo, Reckitts and Haleon were all higher on the day. There was an element of risk aversion and safe haven seeking in some of these gains.
Intertek was the FTSE 100’s top riser after EQT upped its cash offer to 6,000p from 5,800p. The board is considering the revised offer.
On the Beach shares fell on Tuesday after the group reinstated full-year guidance, as the Middle East conflict began to weigh on demand in early March.
But this guidance fell short of expectations, and shares sank 16% on Tuesday as the group reported results for the six months ended 31st March.
Booking volumes rose 7% to a record 324k, with travelled volumes up 22% to 201.6k as customers worked through stronger Winter and City breaks. Booked TTV edged up to £626.2m.
However, the impact of the war was felt and adjusted revenue came in at £52.9m (down £6.4m), with adjusted EBITDA of £6.4m and adjusted PBT of £2.3m, both materially below the prior year.
Cancellations linked to the Middle East conflict and an industry-wide shift to later bookings were to blame.
A softening in profits was expected, but the reinstatement of guidance raised some eyebrows among analysts.
“It’s a surprise to see On The Beach reinstate profit guidance, having previously withdrawn it as the Middle East conflict unfolded. There is still considerable uncertainty around jet fuel supplies and oil prices remain high, which is putting pressure on consumers and questioning their ability or willingness to splash out on holidays,” said Dan Coatsworth, head of markets at AJ Bell.
“The profit guidance is significantly below market expectations, hence the negative share price reaction. Analysts had pencilled in £35.5 million pre-tax profit for the year, yet On The Beach now expects between £18 million and £25 million. That’s a wide range and the bottom end of guidance is effectively half of what the market thought the company would make.”
There are some positives to take away from the update that could suggest the firm bounces back when tensions in the Middle East settle.
Search funnel conversion rose 24%, app monthly active users were up 29%, the app now accounts for 38% of all bookings, and in-year repeat bookings climbed 24%.
On the Beach shares were down 16% at the time of writing.
Invinity Energy Systems has completed the installation of a 20.7 MWh vanadium flow battery system at the Copwood VFB Energy Hub in East Sussex.
The plant is set to become Europe’s largest vanadium flow battery once operational, and adds to Invinity’s network of installations across the UK.
The flagship project pairs the battery with a 3 MWp solar array on site, with combined capacity roughly equivalent to the daily electricity demand of 3,000 homes.
It’s a UK-first at this scale, and a meaningful proof point for long-duration energy storage as the technology moves from concept to commercial deployment.
Invinity Energy Systems shares were 2% higher at the time of writing on Tuesday.
With national energy security firmly back on the agenda, Copwood is being positioned as a flagship demonstration for how LDES can soak up cheap renewable generation and reduce reliance on imported gas.
Invinity notes that an announcement on Ofgem’s LDES Cap and Floor scheme is expected shortly, which could open the door to similar projects being rolled out at pace across the UK.
Subject to final sign-off from the local Distribution Network Operator, the project is expected to connect to the grid and begin generating revenue before the end of this year.
A site open day for shareholders and prospective customers is to follow.
The UK National Wealth Fund invested £25m in Invinity Energy Systems in 2024 to help the firm develop vanadium flow battery systems. Today’s announcement is the fruit of that investment.
Stuart Nivison, Head of Portfolio Management, National Wealth Fund, said: “Invinity’s progress at the Copwood VFB Energy Hub demonstrates how targeted public investment can accelerate the manufacturing of new technology, support the transition to clean power, boost energy security and create skilled jobs in the UK.”
Greggs has revealed improved trading momentum in an update released on Tuesday, with total sales up 7.5% to £800m in the first 19 weeks of 2026 and like-for-like growth accelerating through the period.
The sausage roll specialist has suffered a prolonged period of crumbling sales growth, which is now showing signs of heating up again.
Company-managed LFL sales rose 2.5% year-to-date, but the more encouraging number is the 3.3% LFL in the most recent 10 weeks.
This is a welcome improvement, helped by menu development.
The new Chicken Roll, launched in April, has quickly become a customer favourite according to Greggs, and the Matcha drinks launch is doing well at drawing in younger customers. The salad and pizza ranges have also been refreshed.
Mark Crouch, market analyst for eToro, says: “After shares lost roughly half their value between late 2024 and 2025, investors have been looking for signs that Greggs can steady both trading momentum and sentiment.”
“This update goes some way towards doing that, with improving like-for-like sales, solid cost control and management sticking to full-year guidance despite an increasingly fragile consumer backdrop.”
The shop rollout remains on track, with 41 gross openings and 20 net new shops taking the estate to 2,759.
The full-year target of around 120 net openings is unchanged. International ambition is also moving forward, with the group set to open its first overseas airport site at Tenerife South in partnership with Lagardère Travel Retail.
On costs, the outlook is unchanged at around 3% LFL inflation. Helpfully, Greggs is well-hedged: around five months of cover on food and packaging, 85% of 2026 energy and fuel requirements fixed, and roughly half of 2027 already locked in.
Management did flag that prolonged Middle East conflict could push inflation higher into late 2026 and 2027, but for now the picture is stable.
The supply chain investment programme is also progressing to plan, with the new Derby frozen manufacturing facility coming online in 2026 and the Kettering National Distribution Centre in 2027. Costs from Derby will weigh more on H2 as previously flagged.
Good H1 profit progress is expected, with full-year expectations unchanged. This was a confident update from a business that hasn’t had its easiest times of late.
Agronomics has led a US$5m investment into portfolio company SuperMeat, as part of a targeted US$10m Series A-4 financing round for the cultivated meat specialist.
The round has raised $6m from Agronomics and affiliated investor New Agrarian Company, with Milk & Honey Ventures and other existing investors also participating.
SuperMeat says on its website that its mission is to “bring the world the highest quality chicken meat, grown directly from cells, in a sustainable and animal-friendly process. We believe cultivated meat will enhance the food system, providing nutritional security, drastically reducing carbon emissions, and increasing food safety worldwide”.
Agronomics is funding its US$5m commitment by issuing 26,805,903 new ordinary shares priced at 13.78p, a 109% premium to the 6.60p closing price on 8 May.
SuperMeat will deploy funds to support a licensing-led commercialisation push, with Switzerland identified as the initial launch market. The company has signed an R&D and technology development framework agreement with Japanese food major Ajinomoto, and extended its collaboration with Micarna, part of Swiss retail giant Migros.
Agronomics first invested in SuperMeat in 2020 and has invested a total of £15.2m.
Jim Mellon, Executive Chair of Agronomics, said: “SuperMeat’s Series A-4 financing marks an important step in its development and reflects continued progress towards commercial launch. Having supported the business since 2020, we believe the company is well positioned to advance its licensing-led strategy and we are pleased to continue backing the team through this next phase of growth.”
The FTSE 100 was broadly flat on Monday as investors digested Labour’s losses in local elections and the latest diplomatic efforts in the Middle East.
London’s leading index was almost dead flat at the time of writing, with a strong performance for US stocks on Friday helping to maintain some sense of optimism.
US futures were slightly weaker on Monday after Trump rejected Iran’s latest peace proposals. Brent oil was 2.5% higher.
Friday’s Non-farm Payrolls showed that the US economy is in good health despite concerns about energy prices impacting the global economy, providing all the impetus traders needed to take the S&P 500 to a fresh record closing high of 7,398.
That enthusiasm wasn’t felt in London on Monday, where markets were preoccupied by the fallout from a disastrous local election for the sitting Labour government.
While the FTSE 100 was flat due to the weight of FTSE 100 company revenue shielded from UK politics, the UK bond markets showed signs of stress, with 10-year yields around 5%.
Oliver Faizallah, Head of Fixed Income Research at Charles Stanley, said: “UK bond markets remained at the centre of investor attention following early results from the UK’s local council elections, which delivered heavy losses for the ruling Labour Party and renewed questions about Prime Minister Keir Starmer’s political authority. In the weeks leading up to the results, long-end gilt yields reached multi‑decade highs as markets continued to demand a higher term premium to compensate for the persistent risk of leadership challenge.”
“Markets are concerned a new Labour government could result in looser fiscal rules and increased government borrowing.”
These concerns were felt in UK-centric stocks such as housebuilders and retailers, where Persimmon and Barratt Redrow lost around 2.5%. JD Sports slipped 3.8% and was the biggest faller, ending a storming rally following an upbeat trading statement last week.
Airtel Africa was the FTSE 100’s top riser, soaring 12% on news an investor was considering upping ther stake.
Compass Group was one of the better-performing stocks on Monday after the food service and catering group reported yet another solid set of results.
The group raised its profit outlook after revenue rose 9% in the first half, with new business levels remaining strong.
Mark Crouch, market analyst for eToro, said: “Compass Group’s latest results underline why the catering giant continues to command a premium valuation in the FTSE 100.”
“At a time when many firms are grappling with weaker consumer demand and economic uncertainty, Compass is still producing a dependable mix of growth, rising margins and strong cash generation. The figures also challenge the narrative that hybrid working and advances in AI will materially weaken demand for workplace catering.”
Compass Group shares were 3% higher at the time of writing.
The investment trust industry has seen no shortage of merger activity in recent years, with at least 20 completed since the start of 2023 – and there is little sign of a slowdown for that trend in 2026.
However, while most amount to the effective takeover of a struggling trust by a more successful counterpart, the merger between Shires Income (SHRS) and its stablemate Aberdeen Equity Income Trust (AEI) that took place in March was a very different affair.
As well as being run by the same investment house, these two long-established trusts both had a similar focus on hunting out undervalued businesses in the UK equity income arena; they had similar investment objectives and considerable overlap in their portfolios. And importantly, both also had strong track records over both long and short-term perspectives and were trading recently at a premium to net asset value rather than a discount.
All that common ground made for a relatively simple merger process. As co-manager Iain Pyle observes: “Both trusts were working well already, so there was no need to reinvent the wheel. This was a merger borne of strength rather than necessity – we are better together.”
A better deal for shareholders
The initiative was driven by both boards’ belief that uniting the two trusts presented an opportunity to create a larger, more robust and cost-effective vehicle that will stand shareholders in good stead.
“The combination aims to deliver several key benefits: greater scale, improved liquidity and lower ongoing costs. Those savings help support dividend sustainability and allow the enlarged trust to remain competitive in the UK equity income sector,” adds Pyle.
The newly merged trust, with a market capitalisation of just over £300m, retains Aberdeen Equity Income Trust’s name, but is jointly managed by the two managers, Pyle (who previously oversaw SHRS) and Thomas Moore of AEI. Crucially, its primary focus continues to be on generating a generous income for shareholders while achieving capital growth over the longer term.
However, there were of course some minor differences in the way SHRS and AEI operated prior to merger, and the process of coming together has enabled the managers to assess and incorporate the strongest features unique to each trust.
Thus, AEI’s hallmark progressive dividend policy – a key factor for many income investors – remains very much in play, ensuring that the new trust can prioritise its 25- year record of dividend growth and retain its prized status as one of the Association of Investment Companies’ ‘dividend heroes’.
A broader choice of holdings
Meanwhile, certain elements of SHRS’ investment policy have been built into the merger. SHRS operated within a broader investment universe which included some exposure to both non-UK equities and fixed income assets in the form of preference shares; the new-look AEI has the capacity to hold up to around 20% of the portfolio in each case.
As Moore points out, the wealth of takeovers among listed businesses over recent years means the number of investable companies in the UK market is dwindling, so this is a real advantage. “The fact that we can apply our value-focused investment process to European and fixed income markets gives us new perspectives and better opportunities,” he says.
A key factor in the smooth integration of the two trusts has been the fact that the same investment process – known within Aberdeen as ‘Focus on Change’ – was followed by both Pyle and Moore for their trusts before they became co-managers and continues to be used for AEI now.
That shared means of management not only fed into the high degree of common ground between the portfolios of the two trusts before they merged but means there has been minimal disruption to the investment style or way of working since then.
“Where differences between the two portfolios existed, we have been taking a careful, measured approach to aligning them, making changes only where it adds value,” Pyle notes.
A shared investment process
How does the Focus on Change approach work? “The aim is to identify businesses where change and turnaround is happening and things are getting better, but where those improvements have not been factored into the share price,” Moore explains.
The most interesting companies are those that have earnings momentum and are generating a lot of cash that can be returned to shareholders as dividends; as their metrics improve and start to be recognised by the market, the portfolio also benefits from capital gains as the shares are re-rated.
Moore stresses that AEI’s portfolio remains “index agnostic”, strongly focused on individual stock picking and with weightings to particular sectors and parts of the market determined principally by where the managers have most conviction.
Thus, although the FTSE 100 makes up more than 80% of the UK stock market, it accounts for only around 50% of AEI’s portfolio. “That’s a reflection of the parts of the market where we are finding lots of strong value-focused ideas,” he adds.
“We hope it shows the benefit of good stock selection based on research and capital analysis, selected for strong reasons which then materialise, enabling us to deliver both income and capital.
“That’s what we were both doing successfully before the merger, with attractive and quite similar returns over one, three and five years, which I think underscores the fact that we share a very similar investment philosophy.”
AEI currently yields more than 6% and is sitting on a small discount. As the new regime beds in for the larger, more cost-effective trust, the managers are confident that the portfolio will continue to deliver strongly for its shareholders.
Risk factors you should consider prior to investing in Aberdeen Equity Income Trust:
The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested.
Past performance is not a guide to future results.
Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years.
The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company’s assets will result in a magnified movement in the NAV.
The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company’s shares.
The Company may charge expenses to capital which may erode the capital value of the investment.
The Company invests in smaller companies which are likely to carry a higher degree of risk than larger companies.
Movements in exchange rates will impact on both the level of income received and the capital value of your investment.
There is no guarantee that the market price of the Company’s shares will fully reflect their underlying Net Asset Value.
As with all stock exchange investments the value of the Company’s shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen.
Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts.
Yields are estimated figures and may fluctuate; there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends.
The Aberdeen Equity Income Trust Key Information Document can be obtained here.
Discrete performance (%)
31/03/26
31/03/25
31/03/24
31/03/23
31/03/22
Share Price
25.5
26.1
(9.0)
(3.7)
18.6
NAV
31.1
13.7
0.1
(6.9)
11.1
FTSE All-Share Index
21.5
10.5
8.4
2.9
13.0
Source: Aberdeen, total returns. The percentage growth figures are calculated over periods on a mid to mid basis. NAV total returns are calculated on a cum-income basis.
Past performance is not a guide to future results.
Nativo Resources (LON: NTVO) has announced a JORC exploration target for the Tesoro god project in Peru. The low target for gold contained is 6,686 ounces and the high target is 195,434 ounces. This is based on limited data, and it requires further work. The Tesoro vein has the greatest potential. The share price jumped 37.1% to 0.425p.
Parsortix liquid biopsy system developer CelLBxHealth (LON: CLBX) says the cost base is being reduced in the first quarter. Annual costs should reduce by £6.6m. The company is in talks with a US company about the use of Parsortix in two clinical trials. Full year revenues expectations have been reduced from £3.6m to £2.1m. Cash was £4.3m at the end of the quarter. The share price recovered 19.5% to 1.225p.
Richard and Charlotte Edwards increased their stake in Pacsco Ltd (LON: PACS) from 6.96% to 14.6%. The share price rose 16.7% to 0.7p.
Pennant International (LON: PEN) has won a £1m training system contract for a virtual simulator from a UK aerospace defence manufacturer. The initial order should be completed in the second half of 2026 with potential for further revenues. The share price improved 11.1% to 20p.
Fusion Antibodies (LON: FAB) has been granted a patent in Japan covering two families of antibodies and the method of their design of such antibody libraries. The share price increased 5.56% to 14.25p.
FALLERS
Galantas Gold (LON: GAL) is raising up to $85m through the issue of units (one share plus 0.5 of a warrant exercisable at 80 cents each) at 55 cents each. The cash will fund the development of the Indiana gold and copper project and the Andacollo gold project in Chile. An exercise of warrant at 12 cents each raised a further $549,000. The share price slipped 8.7% to 31.5p.
Retailer Shoe Zone (LON: SHOE) reports interim revenues 12% lower at £62.9m. Although gross product margin improved due to currency movements and lower container costs, overall gross margin was hit by high fixed store costs. The interim loss doubled to £5.3m. The size of the distribution centre is being reduced following store closures. A full year loss of up to £2m is still expected. The share price fell a further 5.56% to 42.5p.
Drilling news from Rockfire Resources (LON: ROCK) for the Molaoi zinc deposit in Greece shows several narrow, but strong zones of mineralisation. This is based on portable X-Ray Florescence readings of drill core of hole HMO-016. The mineralisation appears to be steepening, and this could mean easier and safer underground mining. The share price declined 5.56% to 42.5p.
Hospitality group Coppa Collective (LON: COPC) interim revenues edged up 1% to £25m. Coppa Club like-for-like sales were 3.2% ahead. Gross cash is £2.6m following the acquisition of Linwood pubs. A full year loss of £2m is forecast. The share price dipped 3.64% to 14.25p.
Engineering services provider Renew (LON: RNWH) has bought PWR-X ltd, a provider of cable jointing services to the power sector, for £1.1m. The initial cash payment is £750,000. This enhances the services offered by Renew in the high voltage power market. The share price slid 1.03% to 908.5p.
Next Thursday, 14th May, Costain Group (LON:COST), the £528m-capitalised UK construction and consultancy group, will be holding its AGM to cover its 2025 Report & Accounts.
Ahead of that afternoon meeting the group, which is a leading player in the UK infrastructure sector, will issue an AGM Trading Update statement – which should be very positive in tone and content.
Certainly, it is felt that the message therein could help to push the group’s shares a lot higher than the 194p level at which they closed on Friday night.
Just a mont...
