Gfinity shares soared this week after the digital media company signed an exclusive licencing agreement with 0M Technology Solutions to commercialise a digital marketing technology, Connected IQ, targeted at the Connected TV market.

The company also raised £245,000 to fund the commercial rollout of the service, which will utilise AI to help improve the targeting of adverts across video formats.

“The funding allows us to continue our push into sectors which we think are exciting for the Company, namely Connected TV, Online Video and Artificial Intelligence,” said David Halley, CEO of Gfinity.

“In addition, through our commercialisation of CIQ, we will gain an experienced team of Data and AI specialists to support our development.”

Gfinity shares were up over 100% at one point on the day of the announcement. They could have further to run.

There are similarities between Gfinity and GenIP – a company we included in our Top 20 stock picks for 2025 – in that the companies have clear applications of AI that fix real-world problems. 

Their respective real-world problems are very different in that GenIP is providing solutions in the research organisation technology transfer space while Gfinity is setting its sights on video advertising. 

However, underpinning the investment case for both companies, there is a material underlying demand for their services, irrespective of the efficiencies created by AI.

Of course, Gfinity is a long way behind GenIP. Gfinity has only just licensed the technology. By their own admission, Gfinity knows it may not gain any real traction. But that doesn’t make it any less exciting.

Contextual advertising

The underlying problem for advertisers is privacy rules have diminished their ability to target specific audiences. Advertisers using networks like Google and Meta that relied on cookies to track activity about audiences based on their activity have had to rethink their approach. This has given rise to contextual advertising that focuses on placing adverts in settings their audience may visit.

Instead of chasing potential customers around the internet by targeting ads based on demographics and behaviour data provided by advertising platforms, advertisers are increasingly seeking out contextual placements, knowing their audience will likely visit that setting.

A review of Connected IQ’s website suggests they are setting out to improve the methodology involved in gauging the relevance of videos (or context) to advertise around.

The Connected TV advertising industry isn’t anything new. Serving video content to consumers with tailored and targeted ads has been around for years. There are many established players with slightly different services and approaches to the market. 

There is no longer a first-mover advantage in Connected TV. There is, however, an opportunity to disrupt the existing market with a solution powered by AI that produces better results for advertisers. 

The UK is home to a thriving advertising technology industry with dozens upon dozens of success stories. A good product will attract clients.

A word of caution: OM Technology is a new company that has yet to file first-year accounts, so the market has little information to gauge its success so far and whether there is any interest from the industry.

Director and shareholder stakebuilding

The involvement of Robert Keith is certainly interesting. The businessman has been increasing his stake in the company and clearly had a strategy to turn the ailing e-sports group around.

Gfinity’s technology is licensed from a company that Robert Keith controls. The way the deal and the licensing agreement have been structured is notable because it allows Gfinity to take the AI Connected TV technology to market without a significant capital outlay by Gfinity to develop the technology.

Investors will also note CEO David Halley has consistently increased his stake in the company since his appointment. This is highly encouraging.

One shouldn’t forget that Gfinity still has the revenue-generating media business. The restructuring of the business to strip out costs means this could actually be profitable this year.

Gfinity’s recent rally means that it is no longer priced to delist or go into administration. However, the current £2m market cap doesn’t reflect the opportunity for the launch of the new business or the long-awaited profitability of its esports media business.

Gfinity has announced two significant developments: the acquisition of an exclusive license for advanced artificial intelligence technology and a successful fundraising round.

Shares spiked over 40% higher on Wednesday as a result.

The company has entered into an exclusive licensing agreement with 0M Technology Solutions Ltd for their Connected IQ (CIQ) technology, which specialises in contextual connected video advertising.

Under the terms of the agreement signed on February 4, 2025, Gfinity will pay a royalty fee of 30% of net profits generated from the license.

Connected IQ offers advertisers improved contextual video marketing opportunities powered by machine learning to enhance the relevance of the videos with which adverts are associated. Contextual advertising is growing in popularity amid increasing privacy laws that diminish the targeting of specific audiences on advertising networks.

Alongside the strategic move into the AI video arena, Gfinity has raised £245,000 through a subscription with third parties at 0.0625 pence per share. Additionally, Director David Halley has indicated his intention to subscribe for £15,000 worth of shares at the same price, bringing the total fundraising to £260,000 before expenses.

“The funding allows us to continue our push into sectors which we think are exciting for the Company, namely Connected TV, Online Video and Artificial Intelligence,” said David Halley, CEO of Gfinity.

“In addition, through our commercialisation of CIQ, we will gain an experienced team of Data and AI specialists to support our development.”

The company plans to leverage its existing advertising sector network and digital media monetisation expertise alongside CIQ’s established relationships with top-tier agencies and sell-side platforms. However, investors should note that CIQ is still in its early stages with a limited sales track record, and 0M Technology Solutions is a newly formed company with no published accounts.

The FTSE 100 was broadly flat on Wednesday as traders gathered their thoughts after the US president launched a trade war against some of the USA’s closest trading partners.

Despite Donald Trump agreeing to a 30-day delay in tariffs on Mexican and Canadian goods, financial markets remain vulnerable to any further developments in the tariffs spat, with traders wary of his next move. 

“A sense of calm returned to markets after the tariff-related tantrum. Wall Street recorded decent gains last night while Europe held firm this morning,” said Russ Mould, investment director at AJ Bell.

“The elephant in the room remains China as Donald Trump has not backed down from a trade spat. Retaliation is underway and that’s led to the cancellation of a meeting between the two country leaders.

“The decision by the US Postal Service to stop accepting parcels from mainland China and Hong Kong shows the severity of the matter. That’s disastrous for big Chinese e-commerce platforms that send goods to the US including Shein and PDD-owned Temu.”

Although the volatility has subsided, the unpredictability of Trump’s economic policy will have markets on the edge of their seats for the foreseeable future. This will likely lead to markets trading headline to headline until significant monetary policy developments take centre stage again.

The FTSE 100 was down 0.1% at the time of writing, with positive corporate updates helping to provide some support for the index. 

GSK shares shot to the top of the FTSE 100 leaderboard after announcing a sharp increase in oncology drug sales that helped group sales rise 7% on a constant exchange rate basis.

Investors will be delighted with the 6% jump in GSK shares on Wednesday after a fairly torrid 2024 for the stock. 

“GSK’s latest earnings update brings some welcome relief for investors. After falling 20% since May, GlaxoSmithKline’s shares have struggled, weighed down by legal and political challenges that have lingered like a stubborn cold,” said Mark Crouch, market analyst at investment platform eToro.

“However, following a better-than-expected fourth-quarter, Glaxo now projects sales to grow by up to 5% in 2025. Strength in its HIV and oncology portfolios has been a key driver, offsetting weaknesses in vaccine sales as GSK generated £3 billion in free cash flow.”

Frenillo jumped 3% to 741p after JP Morgan hiked its price target to 1,000p.

BP and Shell were slightly bid despite oil prices falling again amid Trump’s trade war, which threatened to disrupt both the demand and supply sides of the crude market.

“Crude oil futures remained under pressure after a turbulent session, as traders reacted to rising U.S. stockpiles and escalating Sino-U.S. trade tensions,” said Joseph Dahrieh, Managing Principal at Tickmill.

“China’s tariffs add uncertainty and their broader impact on the global supply and demand of energy products could fuel some risks. Prices initially dipped after China imposed tariffs on U.S. energy imports but later rebounded when President Trump reaffirmed his strategy to apply maximum pressure on Iran, aiming to curb its crude exports. With sanctions potentially removing up to 1.5 million barrels per day from global supply, the market found some support.”

SSE shares were fairly flat after announcing a 26% in renewables output so far in their financial year and confirmed adjusted earnings per share would be similar to the last two years.

SSE has announced its earnings guidance for fiscal year 2024/25, projecting adjusted earnings per share between 154 and 163 pence, broadly in line with profits over the past two full-year periods.

The forecast reflects robust operational performance despite variable weather conditions during the third quarter, with business unit operating profit expectations remaining stable.

The company’s renewable energy division has grown, with generation output increasing by 26% year-on-year for the first nine months of the fiscal year.

The improvement is attributed to both expanded capacity and weather conditions, though January has continued to see variability in weather patterns affecting the renewables fleet.

SSE’s ambitious green energy expansion plans are advancing, with several key projects reaching important milestones.

The company’s transmission arm, SSEN Transmission, unveiled its RIIO-T3 Business Plan in December 2024, outlining investments of at least £22 billion in critical grid infrastructure through 2031. The plan includes potential additional expenditure of £9.4 billion, which could bring total investment to approximately £32 billion over the price control period.

In renewable energy development, the company achieved first power at its 101MW Yellow River onshore wind farm and made a financial investment decision on the 208MW Strathy South onshore wind farm.

Progress continues on the flagship Dogger Bank offshore wind farm, with turbine installation ongoing for the first phase. The project’s future phases received a boost with the confirmation of a second installation vessel secured for 2026.

Further strengthening its power generation portfolio, SSE Thermal has committed to building the Tarbert Next Generation power station in County Kerry, Ireland. The 300MW sustainable biofuel plant, supported by a 10-year capacity agreement, is scheduled for completion in late 2027 and will contribute to Ireland’s energy security and low-carbon objectives.

“Thanks to our focus on renewables, networks and system flexibility, we are a key delivery partner in the UK’s Clean Power Action Plan,” said Barry O’Regan, Chief Financial Officer.

“As we look to the opportunities presented by decarbonisation our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets.”