Nvidia has announced a $2 billion investment in Nebius Group, the Nasdaq-listed ‘neocloud’ firm, as part of a strategic partnership aimed at developing hyperscale cloud infrastructure for the artificial intelligence market.
Nebius was included among UK Investor Magazine’s Top 20 Stock Picks for 2026, and despite a rocky start to the year for AI stocks, Nebius shares are up over 20% year to date. A large part of this gain came on Wednesday when the deal with Nvidia was announced.
Nvidia said its $2 billion investment reflects ‘confidence in Nebius’s business’ and will support the rapid expansion of its cloud platform. Nebius is targeting more than five gigawatts of computing capacity by the end of 2030, including multiple gigawatt-scale AI data centres in the United States.
Under the partnership, Nvidia will grant Nebius early access to its latest accelerated computing platforms, including the forthcoming Rubin architecture, Vera CPUs and BlueField storage systems. The two companies will also collaborate on AI factory design, fleet health management, and the development of inference and agentic AI tools for developers and enterprises.
“AI is at another inflection point — agentic AI, driving incredible compute demand and accelerating infrastructure buildout,” said Jensen Huang, founder and CEO of Nvidia.
“Nebius is building an AI cloud designed for the agentic era, fully integrated from silicon to software and powered by NVIDIA’s next-generation accelerated compute. Together, we are scaling the cloud to meet the surging global demand for intelligence.”
The FTSE 100 slipped on Wednesday as investors fretted over developments in the Strait of Hormuz and private credit, while digesting mixed corporate updates.
London’s leading index was down around 0.6% at the time of writing as investors assessed the implications of Iran potentially deploying mines in the Strait of Hormuz and what it means for oil and the wider economy.
CNN reported overnight that Iran had begun laying mines in the Strait of Hormuz, which, if true, could close the passage for a prolonged period.
Saudi Aramco added to traders’ tensions on Wednesday by warning of ‘catastrophic consequences’ if the strait, which usually sees around 20% of the world’s oil pass through, doesn’t resume normal operations soon. The IEA provided some short-term reassurance with plans to release oil from strategic reserves to help stabilise energy markets, if required.
With markets trading headline-to-headline, the latest threat to oil supply erased a large proportion of the FTSE 100’s gains from yesterday.
“The relief rally which took hold after comments from Donald Trump that the Iran war was close to ending has proved as short-lived as a mayfly’s lifespan,” said Dan Coatsworth, head of markets at AJ Bell.
“While investors have not returned to the panic mode seen at the start of the week, with extraordinary swings in the oil price and plunging market values, there is genuine trepidation.”
Rising oil prices on Wednesday helped ignite fresh fears about the trajectory for interest rates. There is a growing chorus of analysts and commentators suggesting that both the ECB and Bank of England will be required to hike rates – the last thing equity bulls want to see.
The vast majority of FTSE 100 stocks were in the red on Wednesday, with miners and financials among the top fallers. Smiths Group was the top faller, losing 6%.
Legal & General
Poor corporate updates also weighed on the FTSE 100 on Wednesday, with Legal & General shares sinking 5% after releasing underwhelming 2025 results.
Matt Britzman, senior equity analyst, Hargreaves Lansdown, explained that the group’s profit was in line with expectations, but areas of weakness, such as solvency ratios, dragged shares lower.
“Legal & General’s full‑year results had a few moving parts, some slightly better, some a touch weaker, but ultimately landed broadly in line with expectations,” Britzman said.
“Core operating profit came in close to consensus, while capital generation was a little stronger than forecast, helping support the expected £1.2bn share buyback following the sale of its US protection unit.
“Overall, it was a steady set of numbers, but a couple of softer areas have weighed on shares in early trading.”
Private Credit Funds
If poor corporate results and a war in the Middle East weren’t enough to contend with, investors also have to work through jitters in the private credit markets and consider whether they were signs of another impending financial crisis.
After BlackRock was forced to limit withdrawals from its private credit funds in recent days, JPMorgan has written down the value of its private credit portfolios, particularly assets related to AI, adding to concerns about a wider financial impact.
“News that JPMorgan has downgraded a number of investments within their private credit portfolio adding to “cockroaches” concerns,” said Emma Wall, Chief Investment Strategist, Hargreaves Lansdown
“Market watchers may remember it was JPM’s chief, Jamie Dimon, who remarked last year following the failure of US sub-prime lender Tricolor: “When you see one cockroach, there are probably more”. A few weeks later, five US regional banks revealed they had made a series of bad loans linked to the troubled California real estate market, sending share prices down and lawsuits up.
“The downgrades this week, reported in the FT, are for software companies, which have come under pressure in the public markets in recent months too – thanks to AI disruption concerns.”
Yesterday evening, lithium project developer CleanTech Lithium (LON: CTL) has agreed contractual terms for the Special Lithium Operating Contract for Laguna Verde with the authorities in Chile. Once ratified, this runs for 40 years. The share price jumped 34.15 to 14.75p.
Mike Whitlow has raised his stake in Physiomics (LON: PYC) from 8.01% to 13.7% following the latest fundraising at 0.3p/share. The share price is one-quarter higher at 0.5p.
Eco (Atlantic) Oil and Gas (LON: ECO) has signed an agreement to acquire JHI Associates for 0.7054 of a share for each JHI share. This provides exposure to the North Falkland Basin and the PL001 licence operated by Navitas. This licence is expected to be extended for a further five years. JHI shareholders will own 21.8% of Eco after the acquisition, which is valued at £39m. The share price increased 20.8% to 58/6p. Westmount Energy (LON: WTE) owns 1.5 million shares in Eco and 6.24% of JHI and its share price rose 5% to 5.25p.
Engineer Amcomri Group (LON: AMCO) published a positive trading update that has led to a 2025 pre-tax profit forecast upgrade from £4.9m to £5.1m even though revenues will be lower than anticipated because more of a contract will fall into next year. Operating performance was better than expected and that boosted margins. The share price gained 14.4% to 127p.
European Green Transition (LON: EGT) is raising £6m at 6p/share and £1.5m of debt is being converted into shares at the same price. The other £1.5m of the debt facility will be repaid. This follows the proposed acquisition of an onshore wind turbine operator, maintainer and remote monitoring business for £3.5m. The business is profitable, but the previous owner went into administration. The share price improved 11.5% to 7.25p.
Dispute finance provider Litigation Capital Management (LON: LIT) says that the trademark dispute between Katy Perry the Australian fashion designer and Katy Perry the singer and astronaut. The Federal Court of Australia initially found that there was a trademark infringement by the singer, but that was overturned on appeal. The High Court has found in favour of the designer. Litigation Capital Management has invested A$3.3m in the case and damages are yet to be quantified. Another judgement on a case where A$1.4m is invested is expected within days. Interim results should be published by the end of March. The share price is 2.69% higher at 8.01p, having been as high as 8.5p.
FALLERS
Agricultural and fire protection technology supplier Light Science Technologies (LON: LST) is acquiring Injectaclad for up to £4.8m, as well as paying £600,000 for the 10% minority shareholding in UK Circuits and Electronics Solutions and a related property, which can also be used for the fire protection division. Injectaclad has developed a remedial cavity fire barrier for properties and Light Science Technologies has a subsidiary that installs this product. The deal could help to improve margins by streamlining the supply chain. This fire protection division is providing revenues, while the agricultural lighting business is steadily being built up. Light Science Technologies could break even this year. A placing has raised £6m at 1p/share and a retail offer could raise up to £600,000 more. The retail offer closes on 16 March. The share price dived 56.9% to 1.25p.
Last night, IT company CloudCoCo (LON: CLCO) announced it is raising £275,000 – the chairman Simon Duckworth is investing £210,000 – at 0.12p/share. A capital reorganisation is required before new shares can be issued for less than 1p each. The cash will fund Project Brightstar, which will enhance the company’s position in the B2B market. Target revenues are £10m, compared with £8m in the year to September 2025. The share price slumped 35.25 to 0.23p.
Premier African Minerals (LON: PREM) is raising £500,000 at 0.0185p/share and issued shares at the same price to pay £100,000 to suppliers. The cash will finance the installation of the new plant at the Zulu lithium and tantalum project. The share price fell 10.6% to 0.021p.
Kraken Robotics, Nauticus Robotics, and Infleqtion are among the companies developing autonomous underwater vehicles, advanced sonar, and quantum navigation systems purpose-built for the kind of mine countermeasures that may soon be needed in the Persian Gulf.
Reports by CNN overnight suggest that Iran has begun deploying naval mines in the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s daily oil supply flows.
Iran does not need a perfect minefield to shut down the Strait and send shock waves through the global financial system. Even suspected mines can freeze commercial shipping, make insurance premiums prohibitively expensive, and force a protracted mine countermeasures campaign.
We take a look at three companies at the cutting edge of subsea robotics and quantum sensing that offer technologies that could prove decisive in any mine-clearance operation, as well as further commercial services beyond the current conflict. There is no suggestion that these companies will deploy to the Strait, rather, this is a look at the types of innovative technologies that can be used to tackle similar threats.
Nauticus Robotics (NASDAQ: KITT)
Nauticus Robotics builds fully electric, untethered autonomous underwater vehicles designed to operate without the support ships and large crews that traditional remotely operated vehicles require.
Its flagship platform, the Aquanaut MK2, can transform between two operational modes: an excursion configuration for survey and data collection, and an intervention configuration fitted with the company’s proprietary Olympic Arm electric manipulators for physical interaction with subsea objects.
In a mine countermeasures context, the vehicle could first survey the seabed using its sensor suite to locate and classify mine-like objects, then switch to intervention mode to physically neutralise or mark them. The system is controlled through acoustic communication networking and powered by Nauticus’s ToolKITT autonomy software, which provides AI-based perception, decision-making, and manipulation capabilities.
In the third quarter of 2025, Nauticus conducted its deepest-ever untethered test to 2,300 metres, believed to be the deepest by any drone in its class.
Nauticus reported Q3 2025 revenue of $2.0 million, compared with $0.4 million in the prior-year period, reflecting the ramp-up following its acquisition of SeaTrepid International earlier in the year.
The company has ambitions to enter the subsea rare-earth exploration space after securing a $250m financing facility towards the end of last year.
Kraken Robotics (CVE: PNG)
Canadian-listed Kraken Robotics is perhaps the most directly positioned of the three companies for a Strait of Hormuz mine countermeasures mission.
The CAD$3.1bn market-cap company’s core product, Synthetic Aperture Sonar (SAS), delivers 3cm × 3cm imaging resolution at ranges exceeding 200 metres per side. This is a substantial improvement on conventional sidescan sonar. It also performs imaging and bathymetric mapping simultaneously in a single pass.
Kraken’s KATFISH platform, a high-speed actively stabilised towed SAS system, is specifically designed for mine hunting and has been deployed with NATO navies, including the Royal Danish Navy. The system can operate at up to 10 knots, enabling rapid area coverage critical when time is of the essence in clearing shipping lanes.
The company also supplies its AquaPix SAS modules for integration into unmanned underwater vehicles, and its SeaPower pressure-tolerant lithium-ion batteries extend UUV mission endurance, with energy density roughly 200 per cent greater than that of traditional oil-compensated subsea batteries.
Kraken’s technology is embedded in platforms operated by major defence primes. Huntington Ingalls Industries integrates Kraken batteries and sonar into the REMUS family of underwater vehicles used by the U.S. Navy for mine countermeasures. Anduril Industries has integrated Kraken’s sonar and battery systems into its Ghost Shark and Dive-LD autonomous platforms, which are being manufactured at scale for the United States and allied navies.
Like all of the companies mentioned in this article, Kraken has a broad range of commercial applications beyond mine countermeasures, including deployment in the North Sea.
We’re pleased to share that our services KATFISH towed synthetic aperture sonar system has arrived at its new home in Aberdeen, UK! The system will be supporting offshore energy projects around the world.
In Q3 2025, Kraken reported record consolidated revenue of C$31.3 million, a 60% increase year-on-year, driven by record shipments of subsea batteries and synthetic aperture sonar to defence customers.
Infleqtion (NYSE: INFQ)
While Nauticus and Kraken address the physical detection and neutralisation of mines, quantum computing Infleqtion tackles an equally critical challenge. And that’s how to navigate safely in the GPS-denied, electronically contested environment that Iran is doing its best to create around the Strait of Hormuz.
Infleqtion builds quantum sensing products, including optical atomic clocks, quantum RF receivers, and quantum inertial sensors, that provide positioning, navigation, and timing (PNT) capabilities independent of satellite signals.
Its quantum inertial sensors use cold-atom technology to measure gravity, acceleration, and rotation with a precision that nearly eliminates the bias errors and drift that plague conventional inertial navigation systems. Its Tiqker atomic clock delivers timing accuracy more than 100 times greater than traditional solutions and is already in use by the U.S. Department of Defense and NASA.
In the context of a mine countermeasures operation, autonomous underwater vehicles clearing mines need precise navigation to maintain systematic search patterns, accurately geo-reference detected objects, and return to exact positions for follow-up investigation or neutralisation.
In the Strait of Hormuz, where Iran’s electronic warfare capabilities include GPS jamming and spoofing, quantum-based PNT would allow MCM platforms to maintain accuracy where conventional navigation faces difficulties.
Infleqtion also offers Exaqt, a quantum gravimeter solution that detects subtle variations in gravity for precise positioning and geophysical mapping.
The company conducted the world’s first commercial flight trials of quantum-based navigation technology in collaboration with BAE Systems and QinetiQ, demonstrating resistance to GPS jamming and spoofing.
Infleqtion was listed at $14.25 per share in February this year, following its SPAC merger with Churchill Capital Corp X, and raised $550 million in the process. The company reported trailing twelve-month revenue of approximately $29 million as of mid-2025.
Next Tuesday morning, 17th March, Zotefoams (LON:ZTF) will announce its 2025 results and they should be impressive with a 35% improvement in profits.
The group is a global leader in the development, manufacture and distribution of supercritical foams.
Its materials are aimed at core applications across industry sectors such as Aviation and Aerospace, Mass Transportation, Medical, Sports & Leisure, Construction & Insulation, and Industrial Packaging.
The Business
The company was founded in 1921 by Charles Marshall...
ITM Power has confirmed that the 20MW notice to proceed announced in February relates to MorGen Energy’s West Wales Hydrogen project in Milford Haven, which has now reached final investment decision (FID).
The company tends to make very short announcements on project updates, but today’s news should certainly be encouraging for investors with the MorGen project among the first backed by the UK Government’s HAR1 hydrogen allocation round to hit FID.
ITM will supply its POSEIDON 20 MW core electrolysis process module for the plant, which is sited at the former Milford Haven Refinery and will serve industrial clusters across Milford Haven, Port Talbot, and wider Wales. Commissioning is targeted for 2028, with an expected output of around 2,000 tonnes of hydrogen per year.
Alongside the deployment, ITM has signed a ten-year long-term service agreement with MorGen Energy to provide ongoing maintenance and support once the plant is operational, adding a recurring revenue stream to the initial equipment sale.
Dennis Schulz, CEO of ITM Power, said: “The MorGen Energy West Wales project is an important milestone for green hydrogen in the UK, and we are proud that our technology will be at its core. Our partnership with MorGen Energy highlights our dedication to providing reliable, high-performance electrolysers that aid the UK’s industrial decarbonisation efforts.”
ITM Power shares were marginally higher on Wednesday.
Nichols, the soft drinks group behind the Vimto brand, has reported a 7% rise in adjusted pre-tax profit to £33.6m for the year to 31 December 2025, as strategic changes across its business fed through to improved margins.
Group revenue edged up 1.3% to £175.1m, but underlying performance was strong as the group took control of costs and focused on expanding margins. Adjusted operating profit rose 9.9% to £31.7m, while adjusted operating margin improved to 18.1% from 16.7% the prior year.
The level of efficiency Nichols has demonstrated over the past year should please shareholders, even if they would prefer a little more top-line growth.
UK Packaged
The UK packaged division drove growth during the period, with revenue up 3.1% year-on-year. Vimto achieved a record retail sales value of £129.1m, driven by innovation and distribution gains across squash, energy and ready-to-drink categories. The group’s total UK retail sales value reached £135m, up 4.8%.
New launches helped boost sales. Vimto Wonderfuel, a functional health drink aimed at the breakfast occasion, secured national distribution and brought new shoppers into the squash category. The energy range continued its rapid expansion, with Vimto Energy delivering £4m in retail sales, a 41% increase on the prior year, just two years after launch. Brand licensing partnerships with Myprotein and Applied Nutrition extended the Vimto name into health and wellness products.
International
International revenue was broadly flat year-on-year, though the headline figure reflects a deliberate strategic shift in Africa from finished goods to a concentrate production model, which reduces reported revenue but improves margins. On a like-for-like basis, African revenue grew 9.4%.
Middle East revenues fell 15.5%, largely due to the timing of concentrate shipments and the phasing of Ramadan between years. The group relaunched Vimto cordial in Yemen and Iraq in partnership with Aujan Coca-Cola Beverages Company. Rest of World markets delivered solid progress, with European revenue up 6% and US sales growing 23% through regional expansion with a local partner. In Malaysia, launched in late 2024, Vimto cordial is now stocked in over 3,000 stores.
The out-of-home division trading was a little more benign amid tough conditions for the hospitality sector, which has been well documented.
The group exited the low-margin Starslush brand in the first half through a partnership with Polar Krush, simplifying operations to focus on post-mix in leisure and hospitality and the ICEE frozen drinks brand in cinemas.
Nichols finished the year with £55.7m in cash and proposed a final dividend of 18.7p, taking the full-year ordinary dividend to 33.7p, up 5.3%.
The 3.5% yield should be attraction of the business, which is fairly well valued on an earnings basis.
Analysis for informational purposes only. Capital at risk.
The Cross-Border Shopping Misconception: Many assume Chinese cross‑border platforms compete on heavy discounts with slow fulfillment. JD.com is overturning that stereotype in the UK and EU with an asset‑heavy, premium delivery model. Through Joybuy and the JoyExpress last‑mile network, JD is exporting its domestic same‑day and next‑day execution standard, winning higher‑value customers and earning category‑leading Trustpilot scores.
The Automation Edge: JD front‑loads capital into high‑density robotics, automated guided vehicles, and unmanned forklifts to materially reduce human OPEX. The result: up to a 250% increase in operational throughput and localised labour costs reduced by as much as 60%, creating a durable cost and speed advantage.
The Incumbent Vulnerability: Legacy carriers such as Royal Mail and Evri face growing pressure. High labour costs and recent corporate distractions limit their ability to fund the large technology investments required to match JD’s automated infrastructure. This creates an opportunity for JD to scale premium delivery across Europe.
The Cross-Border Shopping Misconception
The market generally views Chinese cross‑border e‑commerce platforms such as Temu and Shein as hyper‑discount marketplaces selling low‑quality goods with long fulfilment times. Consumers expect to wait one to two weeks for items shipped directly from overseas factories. The prevailing assumption is that these models rely on tax loopholes for small‑parcel channels with poor service as a trade‑off.
From that follows a second assumption: high‑quality, fast, and reliable delivery in the UK and Europe will remain the domain of legacy local carriers.
The Reality: Joybuy’s “China Speed”
The reality looks very different.
JD.com (9618.HK / JD US), a leading Chinese e-commerce platform, quietly soft‑launched its international retail app, Joybuy, to UK shoppers in late 2025, targeting high‑frequency, high‑value categories such as groceries, household essentials, and consumer electronics.
Unlike cross-border rivals such as AliExpress and Temu, which ship directly from China with 1-2 week lead times, Joybuy disrupted the market by offering same- or next-day delivery, effectively transferring JD’s domestic “China speed” to international customers.
JD’s Logistics Edge
What explains the operational gap? Where AliExpress and Temu follow an asset‑light model by routing orders through third‑party air freight and local couriers, JD pursues an asset‑heavy strategy: localised inventory, company‑owned or tightly controlled delivery fleets, and end‑to‑end operational integration.
The result is predictable fulfilment, compressed delivery windows, and a premium customer experience, which are crucial for high‑ASP categories such as electronics and appliances.
That strategy is already translating into measurable brand equity. Joybuy scores 4.7/5 on Trustpilot, outpacing fast‑fashion rivals and even beating Amazon in the UK. Reviewers cite fast delivery and responsive service as recurring themes.
By contrast, Amazon’s UK rating has suffered (currently around 1.7), with customers pointing to delivery delays, third‑party seller errors, and fragmented refund processes. JD’s vertically integrated model reduces these pain points, creating a durable service advantage in categories where speed and reliability matter most.
Source: Trustpilot, AP
The Last-Mile Catalyst: The JoyExpress European Rollout
Leveraging Joybuy’s retail traction, JD Logistics (2618.HK), JD’s infrastructure arm, has rolled out JoyExpress, a proprietary last‑mile network across the UK and Europe. JoyExpress guarantes same‑day and next‑day delivery in major cities and offers integrated delivery‑and‑installation for large home appliances.
JoyExpress is asset‑heavy by design: a self‑owned mixed fleet (heavy trucks to zero‑emission e‑bikes), more than 60 strategically located warehouses across Europe, and tightly integrated fulfilment operations. That physical backbone gives Joybuy local inventory depth and predictable execution to convert trial shoppers into loyal, high‑value customers and sustain ongoing expansion.
The JD Equity Split – JD.com vs JD Logistics
Overall, JD separates retail and infrastructure into two listed entities, each capturing different parts of the value chain.
JD.com (JD US/9618.HK): The consumer‑facing parent that operates the JD.com marketplace in China and the Joybuy retail app in Europe. It benefits from the group’s asset‑heavy supply‑chain advantage and captures the retail margin and brand value created by fast fulfilment.
JD Logistics (2618.HK): The infrastructure arm that runs the group’s logistics network (over 1,600 warehouses and c. 34 million sq. m. GFA). It earns direct B2B revenues from providing fulfilment, warehousing, and delivery services. Although JD Group was the largest anchor client in 2025 (37% of revenue), third‑party customers now account for the remaining 63%, reflecting JD Logistics’ growing external commercial business.
The “211” Blueprint: From Beijing to Birmingham
JD has successfully exported its domestic “211” operational standard in overseas markets. In China, JD’s control over its supply chain guarantees that orders placed before 11:00 AM arrive the same day, while orders placed before 11:00 PM arrive by 3:00 PM the following day.
This reliability supports JD’s strong market position in the domestic consumer electronics and home appliance sector. JD is now directly replicating this vertically integrated blueprint in Western markets. By offering last-mile delivery via JoyExpress, JD guarantees premium speed and seamless localised returns without relying on fragmented third-party networks.
The Automation Pivot
JD is not pursuing a labour‑intensive fulfilment model in Europe. Instead, it is front‑loading capital into automation to reduce local human OPEX and protect margins in high‑wage, unionised markets.
Automated warehousing systems: JD deploys integrated automation across its network to replace repetitive manual tasks and accelerate throughput.
Site examples: Venlo (Netherlands) uses autonomous guided vehicles (AGVs); the UK hub runs JD’s proprietary LangzuTech Goods‑to‑Person (G2P) robotic system.
Measured impact: At its automated Poland facility, the combination of AGVs, automated sorters, and unmanned forklifts produced a c.250% increase in operational efficiency and a permanent reduction in localised labour costs of roughly 60%.
By investing in automation up front, JD converts high CAPEX into a cost advantage versus incumbents. The result is predictable service levels, lower labour exposure, and a scalable fulfilment model that makes same‑ and next‑day delivery economically viable across European markets.
Source: The company, AP
The B2B Trojan Horse: Monetising Infrastructure
Although JoyExpress was initially launched to support Joybuy’s retail business, the underlying physical network is designed as a scalable B2B revenue engine. JD Logistics can monetise its fulfilment capability by offering third‑party logistics (3PL) services to European corporates.
Plug‑and‑play capability: Local manufacturers and retailers that lack the capital to build automated supply chains can offer same‑ or next‑day delivery by connecting to JD’s warehousing, sortation, and last‑mile network.
Asset leverage: JD turns fixed CAPEX into multiple revenue streams, retail margin via Joybuy, and recurring B2B fees from 3PL customers, improving return on asset (ROA).
Competitive moat: The combination of localised inventory, guaranteed delivery windows, and integrated installation services creates a service offering hard for asset‑light competitors to replicate.
Market impact: Easier access to premium logistics may accelerate digital adoption among European SMEs and alter customer expectations, forcing incumbents to consider partnerships, M&A, or heavy automation investments.
The Incumbent: Scale vs. Structure
European logistics incumbents control massive physical footprints and dense route networks, but their business models are structurally exposed as JD scales an automated, asset‑heavy alternative. Using the UK as a proxy:
Royal Mail (IDS): Holding roughly 30% of the UK B2B courier market, the 500-year-old postal service was taken private by EP Group in 2025.
Evri / DHL eCommerce: Backed by private equity Apollo Global Management, Evri merged with DHL eCommerce UK in 2025 to solidify its position as the second-largest courier.
Yodel & DPD: Capturing high-volume segments through traditional depot and locker networks.
Source: AP Estimates
Structural Challenges
• Labour intensity and union risk: Incumbents run huge workforces. Royal Mail employs over 140,000 people, leaving them exposed to wage inflation, strikes and complex industrial relations. Evri’s reliance on a fragmented pool of over 30,000 self‑employed drivers creates vulnerability to driver shortages and quality inconsistency.
• Distraction from M&A integration: Recent acquisitions and restructurings are consuming management time and capital, diverting focus away from necessary technological upgrades.
• Regulatory obligations: Royal Mail’s Universal Service Obligation forces continued service to unprofitable rural routes, consuming operating capital that could otherwise fund automation.
The “Clean Slate” Advantage
JD entered Europe with a “clean slate.” It carries no legacy pension deficits, no universal service obligations, no unionised legacy workforce, and no outdated IT systems to integrate. That structural freedom lets the company design an automated, low‑OPEX network from day one.
After an unsuccessful bid for Evri in mid‑2024, JD shifted from buying legacy operations to acquiring and modernising assets. Instead of inheriting labour‑intensive operations, JD purchased strategic logistics real estate, such as big‑box sites in Milton Keynes and hubs in the Leicester “Golden Triangle”, and retrofitted them with high‑density proprietary robotics (AS/RS) and zero‑emission EV fleets.
The outcome is a materially different cost and service profile: JD can offer B2B partners and Joybuy customers faster, more reliable next‑day execution while operating at a lower unit cost. That “clean slate” approach creates a durable advantage versus incumbents who must reconcile legacy obligations and scale with the capital needs of automation.
This article is a “periodical publication” for information only and is not investment advice or a solicitation to buy or sell securities. This article does not constitute a “personal recommendation” or “investment advice” under UK FCA regulations. Investing in equities involves significant risk. The author holds NO position in the securities mentioned. There is no warranty as to completeness or correctness. Please do your own due diligence or consult a licensed financial adviser. Please read the Full Disclaimer before acting on any information. Images created with the assistance of Gemini AI.
Catenai (LON: CTAI) says investee company Alludium has Made its platform publicly accessible for the first time. The platform allows individuals to “build, deploy, and collaborate with custom AI agents through conversation, without writing code”. The share price jumped 60.5% to 0.305p.
Tap Global Group (LON: TAP) has bought three billion XTP tokens, which have a value of $1.8bn for nil cost. XTP is on of the most actively traded tokens on the Tap platform, which has more than 32,850 users with an XTP balance. The tokens will be used for cash back rewards and to acquire users and boost volumes. The share price increased 17.4% to 1.35p.
Sunda Energy (LON: SNDA) has been awarded the environmental licence for the Chuditch-2 appraisal well by the Timor-Leste authorities. This lasts until March 2028. This will enable further farm-in discussions with TIMOR GAP and potential new partners. Sunda Energy currently owns 60% of the gas project and TIMOR GAP is seeking to increase its stake to 70%. The share price rose 12.95 to 0.035p.
Copper and gold explorer Bezant Resources (LON: BZT) says that the NLZM mining licence has been renewed. This project was acquired at the end of 2025, and the renewal enables processing of gold from the company’s Hope and Gorab project in Namibia. The licence lasts until February 2036. The share price is 10% higher at 0.11p.
ASIC developer and supplier EnSilica (LON: ENSI) has announced another two contracts, plus a $4m extension to an existing contract with an automotive customer. The new contracts are in life science and healthcare worth an initial $1.6m and $200,000 for a feasibility study respectively. Canaccord Genuity has increased its target price from 55p/share to 63p/share. The share price has rose 7.29% to 51.5p.
FALLERS
88 Energy (LON: 88E) says the sale of shares acquired through the small holding sale facility for holdings of fewer than $500 in value. There were 46.1 million shares sold. The share price slipped 22.25 to 1.4p.
Physiomics (LON: PYC) has raised £500,000 at 0.3p/share. A further £50,000 could be raised via a retail offer. The share price fell 11.1% to 0.4p.
Wishbone Gold (LON: WSBN) won a contested ballot for 67km2 of mineral title on crown land, 25km north-west of Telfer, which was applied for by multiple parties. The share price declined 1.55 to 65.5p.
The FTSE 100 surged on Tuesday after Donald Trump hinted that the war in the Middle East could end sooner than many had first feared by saying the war was ‘very complete, pretty much’.
The US President’s comments to the US press sent oil prices into freefall yesterday evening and, remarkably, oil traded at a negative price for a period. Brent oil had traded as much as 22% higher in Monday’s Asian session.
Oil prices are notoriously volatile, but you will rarely see a day like we did yesterday. Brent oil prices surged nearly $25 to trade above $116 before sinking more than $30, peak-to-trough, as investors rolled back bets on a prolonged conflict that deepens the oil shock.
Brent was trading at $90 at the time of writing on Tuesday.
The net result for the FTSE 100 was a 1.8% gain at the time of writing, as investors piled back into beaten-down sectors such as miners, housebuilders, and banks. Stagflation still remains a risk, but the mood has improved dramatically over the past 24 hours.
“The market is in highly speculative mode thanks to the absence of any certainty about what the next few days, let alone weeks will look like,” said AJ Bell investment director Russ Mould.
“In these circumstances, Donald Trump’s comments about the Iran war ending soon have been seized upon like water offered to someone who’s just consumed a full bag of salty crisps.
Familiar higher-beta stocks such as Antofagasta, Rolls-Royce, Barclays, and Fresnillo were among the risers.
Persimmon was the FTSE 100’s top riser after the housebuilder surprised traders with a notably upbeat set of full-year results that squashed concerns about their ability to grow revenues against a backdrop of general economic weakness.
Mark Crouch, market analyst for eToro, explained: “Shares in Persimmon got a welcome lift after the housebuilder delivered a solid set of full-year numbers, with higher home completions feeding through to stronger profits and revenue.”
“The group built 11,905 homes in 2025, a 12 per cent increase on the previous year, helping revenue climb 17 per cent to £3.75bn and underlying profit before tax rise to £445.6m.”
Persimmon shares were 9% higher at the time of writing.
The inevitable losers from the volatility in oil prices were Shell and BP, which both fell by more than 2%.
It’s been interesting to see a relatively muted response to rising oil prices from the two oil majors whose shares are higher since the US and Israel launched attacks on Iran, but only slightly.
Such price action would suggest that equity traders aren’t prepared to take a position on oil staying at current elevated levels for long.
“All eyes are likely to be on the G7 and whether it will release emergency stockpiles of oil to help calm the markets further,” Russ Mould said.
