Dividends: Reliability in uncertain times 

Aberdeen Investment Trusts
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Dividends: Reliability in uncertain times 

Charles Luke, Manager of Murray Income Trust 

  • Dividends have formed over half of the total return of the UK market over the last 20 years 
  • Dividend strategies have been under-appreciated while investors have focused on US mega cap technology 
  • Income strategies may have more appeal in a tougher investment climate    

It may have felt choppy to investors, but the reorientation of markets since the start of the year is a welcome development. Rather than the pursuit of growth at all costs, investors are starting to re-evaluate companies on more rational metrics. In this environment, the value of dividends as a share of long-term returns may be better appreciated.  

Dividends have historically been an important part of overall returns from stock markets, particularly in the UK. An investment in the FTSE 100 would have grown by around 6.3% from 2003 to 2023. With an average dividend yield of 3.5%, dividends have formed over half of the total return.   

Dividends also serve an important functional purpose. The commitment to paying dividends can impose a good capital discipline on companies, making them think harder about the way they spend and invest. In this way, dividends can be a means to stronger share price returns.   

However, their importance as a part of overall return had got lost in the vogue for AI-focused capital returns. Investors have pursued the outsized gains in the US technology sector at the expense of the steadier returns from dividend paying companies.  

This trend has had its advantages for dividend-focused trusts such as Murray Income Trust. It brought valuations down to very attractive levels, particularly in the unloved UK market. We have been able to access global growth opportunities through UK companies at lower valuations. However, it was ripe for a reappraisal and the shift in investor sentiment since the start of the year is welcome.  

The state of UK equity income 

The UK equity income asset class looks as healthy as it has been for some time. Modest payout ratios provide a strong base for dividend growth, while low valuations are also encouraging companies to buy back their shares. The UK market is leading other major markets in ‘all-in’ yield, which combines dividends and buybacks.  

Private equity and trade buyers recognise the opportunity, and the UK market has seen significant merger and acquisition activity. The value of deals in the UK rose by 37% in 2024, led by the financial services, technology, media and telecoms and services sectors. They recognise that they can buy global growth companies at UK prices and with world-class standards of corporate governance.  

That said, the relative volatility seen since the start of the year is a function of a more complex environment and the UK cannot be immune. Although the recent Spring Statement shored up the UK’s finances and kept bond markets on side, growth remains elusive and global factors could still weigh on companies, particularly the unpredictable tariff regime in the US.  

The lower valuation of UK equities provides some cushion, as does the yield. Investors know they are reliably getting back a share of their initial investment each year. However, this is not enough to build a robust income portfolio. High dividends can be a sign that the market anticipates weakness. We believe it is important to blend income criteria with quality criteria to ensure the resilience of income over time. 

Sustainable dividends 

We recognise that investors rely on the income that we provide, and that income needs to grow over time to keep pace with inflation. Our current yield is over 4%. Murray Income also has 51 consecutive years of dividend growth and we are committed to maintaining that track record.   

This does not happen by accident. We target high quality, resilient companies with strong investment prospects. Our view is that the market often systematically underestimates the sustainability of returns from high quality companies. These companies tend to have fewer tail risks and a greater margin of safety. They produce less volatile earnings, and earnings are more resilient and sustainable. This puts them in a far better position to deliver dividends to investors and grow them over time.  

The companies in our portfolio are aligned with a range of long-term growth themes: ageing populations for companies such as AstraZeneca, digital transformation for companies such as Sage. For the energy transition, we hold Air Liquide and SSE, while L’Oreal or LVMH are linked to emerging global wealth. This alignment also contributes to earnings and dividend resilience over time.   

Thoughtful diversification is also important. History suggests that being excessively reliant on income from a single sector is a bad strategy. Being over-exposed to a single risk factor, such as interest rates or the oil price also creates vulnerability.  

New ideas, steadier prospects 

In spite of Murray Income’s high starting yield, we are confidence that it can keep growing. We continue to find new ideas. Dunelm, for example, is the UK’s leading home furnishings retailer. The company has a strong market position and it continues to build market share through new stores and formats. It also has a strong online proposition that provides a competitive advantage. It has a robust balance sheet and strong cash generation, which has helped it sustain its payouts to investors.  

London Metric Property is another recent acquisition. It has exposure to the logistics sector, an area with limited net supply and strong rental growth. It has an attractive dividend yield and is trading on a relatively low valuation. We also like the entrepreneurial management team.  

We believe a shift in focus away from the US technology giants may see investors reappraise the value on offer in dividend strategies and in the UK in particular. The sector should provide steadier prospects in an increasingly uncertain world.  

Important information 

Risk factors you should consider prior to investing: 

  • The value of investments and the income from them can fall and investors may get back less than the amount invested. 
  • Past performance is not a guide to future results. 

Other important information: 

Issued by abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London EC2M 4AG, authorised and regulated by the Financial Conduct Authority in the UK. 

Find out more at www.aberdeeninvestments.com/mut or by registering for updates. You can also follow us on X, Facebook and LinkedIn. 

Share Tip: Hunting – despite recent contract wins, certain investors are expressing disappointment

Mark Watson-Mitchell
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Share Tip: Hunting – despite recent contract wins, certain investors are expressing disappointment

Two weeks into this year, 15th January, the shares of Hunting (LON:HTG) were looking very strong, having risen 52p to 352.50p the day before following its 2024 Trading Update. 
Now the shares are trading at just 246.50p, perhaps reflecting the recent market turmoil around Trump’s Tarriffs. 
Activist Pressure 
Now, there is a swell of discontent about the group, with one $6bn AUM fund group, Oasis Management, pressing its activist investor views that the cash-rich £406m-capitalised group should either go on an acquisition splurge or embark upon a major share buy-back scheme.&nbsp...

Investing in an uncertain world: is risk properly understood? 

Aberdeen Investment Trusts
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Investing in an uncertain world: is risk properly understood? 

Iain Pyle, Lead Manager, Shires Income PLC 

  • If excessive risk collides with excessive optimism, stock markets can run into problems 
  • The UK’s domestic problems are well-understood: from weak economic growth to mounting inflationary pressures 
  • This is in contrast to the US, where optimism is high  

Investors are navigating an increasingly risky world. Months into the new US administration, the tariff regime remains a looming threat, but details are scant. Inflation appears to be reviving, with a potential impact on the interest rate cycle. The new US administration is changing the geopolitical goalposts, with unpredictable results. It feels like a vulnerable moment for stock markets.  

Shires was launched in 1929 and has amassed some institutional memory about periods of risk. For us, one of the most important points to assess in an environment like this is whether the risks are well understood and reflected in share prices. It is where excessive risk collides with excessive optimism that stock markets tend to run into problems.  

The UK market reflects a variety of risks. In addition to global risks, the UK’s domestic problems are well-understood: weak economic growth, poor productivity and mounting inflationary pressures. Those who invest in the UK market will be wearily familiar with the prevailing gloom. Nevertheless, the UK market is cheap as a result. There is no ‘irrational exuberance’. If anything, the pessimism has gone too far.   

There are times in markets when being cheap doesn’t matter very much. That has certainly been true for the UK in recent history, where investors have been far more focused on growth over price. However, there are times when it is an advantage. We believe the current environment may be one of them.  

If markets are volatile, and trading sideways, investors need income generation to generate a return. In this, the UK market has a clear advantage. As it stands, the sum of the dividend yield and the buyback yield for the UK market is almost 7%, approximately the long-run real return on equities.  

In other words, to make a return from the UK market, all investors need is for those distributions to stay the same. They do not need ambitious growth projections to materialise. While it is still important to be selective, and to find companies that are well-managed, with strong balance sheets, that are growing earnings and dividends, the hurdle rate for success in UK equities is low.  

Potential catalysts? 

It is also worth noting that the outlook for the UK is not universally gloomy. While it would be a stretch to suggest that the UK is on the cusp of a significant recovery, there are factors that could improve the outlook for UK equities.  

For example, the UK consumer has far less debt than its US equivalent. UK credit card debt usage is still low, which gives consumers the capacity to raise spending levels. Real wages are rising, with the last set of Official of National Statistics data showing year on year wage increases of 5.9% for the last quarter of 2024. In the UK, people’s main store of wealth is their home, and that’s been a resilient asset over time.  

The closed-ended structure of Shires means we can lean into these potential areas of growth and take a longer-term view. In the past, when we have seen these levels of pessimism about the UK economy, it has been an effective strategy to buy the highest quality names while they remain cheap. Today, this is companies such as Dunelm. It is a well-run business, with a compelling online presence, that continues to win market share. We see many similar opportunities in the UK market to buy quality companies at cheap prices. 

There are other areas that might have an impact. Pension reforms could direct more capital to UK stock markets. If there is an enduring peace in Ukraine, there could be a peace dividend. Equally, confidence has been on its knees and while restoring confidence isn’t easy, little things – like swerving a recession in December – could start to change the narrative.  

Contrast to the US 

We would contrast this situation to that of the US, where optimism is high and significant assumptions about economic growth are built into share prices. Yet that economic growth partly rests on an increasingly fragile consumer. Not only is the US consumer more indebted, but a greater share of their wealth is also in the stock market, bitcoin and more speculative assets. If markets started to weaken, it could weaken consumer sentiment as well. There may be risks from the new administration for US companies as well as their global peers. The key difference is that these risks are not necessarily reflected in US valuations.  

It is worth noting that the dominant ‘Magnificent Seven’ have looked increasingly fragile in recent weeks. Market leadership has been broadening out, and this may yet become the dominant theme for 2025. With the whole of the UK market only narrowly exceeding the size of Apple, it wouldn’t need much of the capital coming out of US mega-caps to be directed towards the UK to change the trajectory of the market. The $589bn that left Nvidia in a single day in January would buy BP 9x over.   

At a risky time, investors need to ensure that risks are properly understood. The UK market already assumes that a lot will go wrong, and there is little optimism that anything will go right. The US market is the opposite. We know where we feel more comfortable.  

Important information 
Risk factors you should consider prior to investing: 

  • The value of investments and the income from them can fall and investors may get back less than the amount invested. 
  • Past performance is not a guide to future results. 

Other important information: 

Issued by abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London EC2M 4AG, authorised and regulated by the Financial Conduct Authority in the UK. 

Find out more at aberdeeninvestments.com/shrs or by registering for updates. You can also follow us on X, Facebook and LinkedIn. 

Foamstream: The Sustainable Weed Control Revolution Investors Shouldn’t Miss 

UK Investor Magazine
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Foamstream: The Sustainable Weed Control Revolution Investors Shouldn’t Miss 

In a world increasingly moving away from harmful chemicals and toward eco-conscious solutions, Weedingtech is making waves with its solution: Foamstream – the world’s leading herbicide-free weed control system.  But Foamstream isn’t just a clever alternative to traditional methods – it’s a scalable, environmentally friendly technology that’s turning heads in a rapidly evolving market. And for investors, it’s a rare opportunity to be part of a green revolution that’s both impactful and profitable. 

What Makes Foamstream So Innovative? 

Foamstream works by combining hot water with a biodegradable foam made from plant oils and sugars.  This unique blend creates a thermal blanket that traps heat on the plant long enough to kill it down to the root.  Even better?  It sterilizes seeds and spores around the plant, significantly slowing regrowth and reducing how often treatments are needed.  That means lower costs over time – something chemical herbicides can’t offer. 

And the benefits don’t stop at weeds.  Foamstream’s versatile system also tackles chewing gum removal, power washing, and street cleaning, making it a go-to solution for municipalities and contractors looking to streamline outdoor maintenance. 

Proven Success and Global Reach 

Foamstream isn’t just a great idea – it’s already proven.  With more than 1,000 clients worldwide, including major names like New York City Parks, San Francisco Parks, Chelsea FC, Real Madrid FC, Biffa, ID Verde and Mitie, Weedingtech has established a strong commercial presence.  These high-profile clients aren’t just trying the system—they’re scaling their usage, showing the trust and value they place in this proven technology. 

This growing customer base fuels Weedingtech’s solid recurring revenue model, giving the business a foundation of stability and scalability. 

Solving a Global Challenge 

Chemical herbicides like glyphosate have faced intense global backlash due to environmental and health concerns.  Legal battles have cost major corporations like Bayer billions of $’s, and regulatory bans are accelerating across Europe and North America. 

Foamstream offers a clear, science-backed alternative.  It’s safe for people, pets, and ecosystems – no harsh chemicals, no runoff risks. 

What’s Next: Strategic Growth in High-Value Markets 

Weedingtech isn’t slowing down.  In fact, the company is gearing up to enter two major new markets: 

  • Agriculture (Horticulture): After over a year of field testing with one of Europe’s largest fresh produce growers, Foamstream is nearly ready for the horticulture sector.  A 2026 commercial launch will open doors to the multi-billion-pound organic farming market.
  • Domestic Retail: In 2028, Weedingtech plans for Foamstream to hit store shelves through partnerships with leading retailers that could include Home Depot in the U.S. and B&Q in the UK.  This will make herbicide-free weed control accessible to hundreds of millions of households worldwide.

Two additional products designed to enhance Weedingtech’s position in the amenity sector are also scheduled for launch starting later this year – further expanding Weedingtech’s product lineup and market footprint. 

Exit Strategy: A Clear Path to Returns 

Weedingtech’s long-term strategy includes a trade sale within 4–5 years to a major global machinery brand – think John Deere or Toro.  With a strong brand, expanding product range, and growing revenue streams, the Company is positioning itself for a high-value acquisition that could offer significant returns for investors. 

Why Now Is the Time to Invest 

With growing interest from venture capital funds, family offices, and retail investors via Crowdcube, Weedingtech is at a pivotal moment.  The Company has a proven product, a growing client base, and a smart expansion roadmap – making it one of the most compelling opportunities in the sustainability and clean tech space today. 

You can find out more about Weedingtech’s fundraise on Crowdcube here

Foamstream is more than a weed control solution – it’s a movement towards a greener, healthier future.  For investors, it’s a chance to support meaningful innovation and ride the wave of a market that’s only getting stronger. 

Wood Group shares soar with board ‘minded’ to accept 35p offer

UK Investor Magazine
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Wood Group shares soar with board ‘minded’ to accept 35p offer

Wood Group shares surged higher on Monday after the company announced that the board favoured the acceptance of a 35p offer for the company by Middle East-based global engineering consultancy Sidara.

The board of Wood has indicated it would be “minded to recommend” the possible offer to shareholders, subject to finalisation of terms and conditions.

Wood Group shares were 12% higher at the time of writing, despite the low offer being a major kick in the teeth for most long-term Wood Group shareholders.

As part of the deal, Sidara would inject $450 million of desperately needed fresh capital into Wood, whilst also seeking extensions and amendments to Wood’s existing debt facilities.

The deal has many characteristics of a bailout, but Wood Group’s poor finances leave it with few options.

Wood said that despite ‘having carefully considered the viability of these options together with its financial advisers, the Board of Wood currently believes that the Possible Offer represents the better option for Wood’s shareholders, creditors and other stakeholders.’

The deal preserves some value for Wood Group shareholders, but many will be disappointed if the deal is done at 35p after Sidara offered more than 200p not too long ago. However, the risk of serious of financial difficulties is now too great for the Wood Group board to be fussy about the price they secure.

Founded in 1956, Sidara has evolved over nearly seven decades into a privately-owned global partnership comprising 21,500 specialists across 350 offices in 69 countries. The group, which rebranded from its previous identity in 2023, encompasses architects, engineers, consultants, designers and project managers. Notable brands within the Sidara Group include Dar, Perkins & Will and TYLin.

Wood Group will be a nice addition to the portfolio, especially at the bargain basement prices they have suggested.

Sidara said that Wood would continue operating as a standalone, client-facing brand, to ensure business continuity whilst creating growth opportunities for the combined group. This will be of no consolation to Wood Group’s long term shareholders.

FTSE 100 jumps as electronics tariff exemption boosts sentiment

UK Investor Magazine
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FTSE 100 jumps as electronics tariff exemption boosts sentiment

The FTSE 100 stormed higher on Monday after Donald Trump signalled a softening in his approach to the trade spat with China and other partners by announcing tariff exemptions on smartphones and other electronics.

London’s leading index surged 1.8% higher, driven by strong demand for natural resource shares and other companies with strong trade relations with China.

‘Dream’ news, as Wedbush boss Dan Ives put it, that the US would exclude smartphones and other electronics from tariffs – including goods from China – sparked a wave of optimism late on Friday. 

There was an opportunity for Trump’s administration to calm the market’s nerves over the weekend by clearly communicating the path forward. 

However, the White House’s messaging proved to be just as chaotic as its trade policy, and what could have been blowout news for stocks ended up being just a mild rally. 

While those long equities, especially those long Nvidia and Apple, would have been delighted with reports of tariff exemption for smartphones and semiconductors, Trump’s advisors muddied the water with suggestions that the exemption could be temporary. 

“Just when it seemed the tariff chaos couldn’t get any worse, tech investors have spent the weekend scrambling to make sense of a whirlwind of confusing – and at times contradictory – messages coming out of the White House,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Despite the drama, European markets have taken an easing stance on US tech components as a positive in a broad-based rally this morning, with the FTSE 100 up 1.5% in early trading.”

US equity futures opened higher overnight and Asia had a strong session, helping the FTSE 100 to firmer ground in early trade on Monday.

London’s China-exposed miners soared with Glencore and Antofagasta rising over 2%. Oil majors BP and Shell added a substantial number of points to the index.

JD Sports rose again with the step down in trade tariffs potentially easing the impact on the sports wear market.

Melrose Industries – one of the most heavily hit by tariffs – was the FTSE 100’s top riser as bargain hunters picked up the aerospace specialist.

Underscoring the risk-on nature to the FTSE 100’s trade on Monday, the only three shares in the red at the time of writing were Severn Trent, United Utilities and Fresnillo.

Genflow Biosciences shares jump on AI partnership to accelerate drug discovery

UK Investor Magazine
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Genflow Biosciences shares jump on AI partnership to accelerate drug discovery

Shares in longevity-focused Genflow Biosciences jumped on Monday after the company outlined plans to to accelerate drug discovery through the use of an AI-powered platform.

Genflow Biosciences, Europe’s sole publicly listed longevity company, has established a strategic alliance with American AI specialists Heureka Labs, providing access to Heureka’s sophisticated artificial intelligence platform.

Developed as a technology spin-off from Duke University, Heureka’s system specialises in analysing complex genomic data, including RNA sequencing and gene expression profiles.

The implementation of Heureka’s AI technology will substantially enhance GenFlow’s ability to interpret intricate biological datasets, yielding deeper insights into gene regulatory networks and systemic biological responses. These capabilities are crucial for optimising therapeutic design and predicting patient-specific outcomes, with Genflow maintaining all intellectual property rights under the agreement.

While there are no obvious limitations to the partnership and the scope of their work together, the initial focus of this partnership will support Genflow’s lead candidate, GF-1002, a centenarian SIRT6-based gene therapy currently undergoing preclinical evaluation. The collaboration may subsequently extend to additional pipeline gene therapy programmes, including treatments targeting Metabolic Dysfunction-Associated Steatohepatitis (MASH).

Heureka’s AI platform, already utilised by leading pharmaceutical and biotechnology firms, is engineered to accelerate drug discovery by generating testable hypotheses, identifying unexpected biological patterns, and streamlining research and development workflow.

“Incorporating AI is no longer optional in bioinformatics research-it’s essential for precision, speed, and scale,” said Dr. Eric Leire, CEO of Genflow.

“Heureka’s AI platform gives us the tools to navigate complex biological data and refine our gene therapy approach across a number of programs we are working on, accelerating the delivery of safe and effective therapies that promote a healthier lifespan, while helping to ease the growing operational and economic burden of an aging population.”

Genflow Biosciences shares were 12% higher at the time of writing.

AIM weekly movers:Induction Healthcare recommends bid

Andrew Hore
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AIM weekly movers:Induction Healthcare recommends bid

Induction Healthcare (LON: INHC) is recommending a 10p/share cash bid from VitalHub Corp. That values the digital healthcare technology company at £9.7m. The flotation in 2019 raised £14.6m at 115p/share. The share price recovered 58.3% to 9.5p.

Atome (LON: ATOM) has signed a definitive Engineering, Procurement and Construction (EPC) contract with Casale for its Villeta green fertiliser project in Paraguay. This is a fixed price contract of $465m and will enable progress to the final investment decision for the 145MW project. That could happen in June and production could start 38 months later. The share price increased 55.4% to 43.5p.

Minoan Group (LON: MIN) shares recovered following the slump on Friday after it said that it does not have enough cash to complete the audit of its accounts to October 2024 and that would mean trading in the shares would be suspended on 1 May. The suspension could happen earlier because of the lack of cash. Minoan has not been able to extend the secured loan, totalling £1.19m, provided by DAGG. A proposal from DAG includes the conversion of the loan into shares and an additional £4.44m cash injection in return for shares. The share price rebounded 48% to 0.185p, but that is still well below the level two weeks ago.

Celadon Pharmaceuticals (LON: CEL) has terminated its committed credit facility that was announced in February. The company will ask for the floating charge over assets to be removed. Alternative providers of finance are being sought. Celadon Pharmaceuticals clawed back 44.4% to 6.5p.

FALLERS

Electric Guitar (LON: ELEG) continued its decline following the return from suspension on 2 April. The shell company’s share price halved to 0.0425p.

Peru-focused gold explorer Nativo Resources (LON: NTVO) is undertaking a feasibility study at the Toma La Mano tailings dump and there are other tailings dumps that are being considered. This will require additional funding. Peterhouse is subscribing for 12 million shares at 0.15p each, which gives the broker a 19.4% stake. That will be used to offset fees and Peterhouse will try to place the shares and provide Nativo Resources with 95% of the proceeds. Cash is being carefully managed, and some directors will receive their salary in shares. Further funds will be required by May and there are discussions with finance providers. Debt is being restructured. Nativo Resources is issuing 15.4 million shares at 0.7475p each to acquire Morrocota gold mine, which is near the 50%-owned Bonanza gold mine. The vendors are also subscribing for £10,000 of new shares. There are plans to start contract mining at Morrocota. The share price fell 49% to 0.625p.

Belluscura (LON: BELL) has withdrawn guidance for 2025 because of the uncertainty due to increased tariffs on imports to the US. The company’s portable oxygen concentrators are predominantly made in China, and the tariff will increase from 20% to 54%. Belluscura had been moving towards profitability. That is less likely to happen and could put pressure on the cash position. Earlier in the year, £4.7m was raised at 2p/share. John Gunn has increased his stake from 7.83% to 8.14%. The share price declined by two-fifths to 0.75p.

Organ transplant diagnostics developer Verici Dx (LON: VRCI) has received the local coverage determination for Tutivia reimbursement, so revenues on the tests can start to be recognised. There were 292 tests ordered in the first quarter of 2025 and price has been set at $2,650 each. The annual global market is 100,000 patients. Singer previously cut 2025 estimated revenues from $11.6m to $4.4m. A fundraising is expected by June. Some of the earlier loss has been clawed back, but the shares were still down 37.2% to 2.04p.

Aquis weekly movers: EDX Medical launching testicular cancer test

Andrew Hore
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Aquis weekly movers: EDX Medical launching testicular cancer test

EDX Medical Group (LON: EDX) is launching TC100, a highly accurate early detection test for testicular cancer. A blood sample is assessed. There have been more than 30 study reports on the test. The share price improved 17.4% to 13.5p.

BWA Group (LON: BWAP) published an updated inferred mineral resource for the Dehane heavy mineral sands project in Cameroon of 4.2 million tonnes at 3.5% THM cut-off, comprising grades of ilmenite at 0.99%, kyanite at 1.54%, rutile at 0.13% and zircon at 0.11%. There are plans for a fundraising during this year to finance the development of the project. Chairman Jonathan Wearing bought 500,000 shares at 0.2p each and Tricastle Investments, a company he controls, purchased 1.33 million shares at 0.15p each, taking his total stake to 25.85%. The share price rose 16.7% to 0.175p.

Chief executive Paul Mathieson’s stake in Investment Evolution Credit (LON: IEC) has reduced from 35.4% to 29.9%. Michael Rogers has a 4.88% shareholding. The share price increased 14.3% to 4p.

Automotive electrification technology developer Equipmake (LON: EQIP) has received a £368,000 order from Gilmour Space Technologies, which about to launch an Australian orbital rocket later in the year. Equipmake will supply electric motors and inverters. The share price recovered 8.7% to 1.25p.

FALLERS

Unicorn Asset Management’s stake in skincare technology developer Incanthera (LON: INC) from 11.4% to 10.8%.

Valereum (LON: VLRM) says the £19m strategic deal with DMC is nearing completion but the additional £1m subscription by a UK institution will not happen.

Clean fuel additives SulNOx Group (LON: SNOX) says Colas Rail UK is adopting SulNOx Eco following an evaluation. There were sharp falls in emissions and a 4.5% improvement in fuel efficiency. This is the first major contract in the rail sector.

AIM movers: Greatland Gold progresses to ASX listing and Niox bid not happening

Andrew Hore
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AIM movers: Greatland Gold progresses to ASX listing and Niox bid not happening

Greatland Gold (LON: GGP) is changing the domicile of the holding company to Australia. This will be called Greatland Resources Ltd and is part of the process of gaining a listing on ASX. The AIM quotation will be retained. The share price rose 16.7% to 14p.

Oracle Power (LON: ORCP) has published further assay results for the Northern Zone Intrusive Hosted gold project and there some significant gold intercepts with grades of up to 1.94g/t gold. All eleven holes have intersected gold mineralisation. There are more samples awaiting assessment. The share price increased 14% to 0.0245p.

Metals One (LON: MET1) has completed its fundraising and, including the retail offer and convertible loan notes, generated £3.1m at 2p/share. Warrants will be issued with a subscription price of 2p/share, and this could raise up to £10m. Metals One is acquiring copper projects in Finland. The share price improved 13.6% to 25p.

On Thursday, Sound Energy (LON: SOU) reported a 2024 loss of £150m, due to impairment charges on the disposal of the Moroccan subsidiary. The phase 1 micro LNG project has been delayed and could process first gas by the end of the year. Sound Energy has a 20% interest. The share price firmed 11.5% to 0.725p.

FALLERS

Keensight Capital has decided not to make an offer for Niox Group (LON: NIOX) and the private sale process will be discontinued. This is due to the current global economic conditions. Net cash was £15.4m at the end of March. The share price fell one-fifth to 56.3p.

Gemfields (LON: GEM) has launched a fully underwritten rights issue to raise $30m at 4.22p/share – a one-third discount to the 30-day average share price. This will provide required working capital for 2025. In 2024, operating costs were reduced, and they will come down further this year. The operating loss was $98m in 2024. The share price decreased 19.2% to 4.75p.

Catenai (LON: CTAI) has raised £750,000 at 0.15p/share, including a £150,000 subscription by Sanderson Capital Partners. Director fees of £450,000 have been settle by the issue of 30 million shares. Catenai intends to make an investment in Alludium, which has developed a platform for AI process automation. Subject to shareholder approval, £500,000 will be invested in Alludium and when cash is received from Klarian a further £450,000 may be invested. That would be a 13% stake in total. The share price declined 13.2% to 0.165p.

Character Group (LON: CCT) says that tariffs could hamper US sales this year and market guidance is being withdrawn. They were one-fifth of sales last year and it is difficult to assess the impact of the tariffs. Character still expects to be profitable in the year to August 2025. Interim figures should be in line with expectations. The share price dipped 6.2% to 242p.

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