Meinhard Benn has taken a 8.34% stake in Blue Star Capital (LON: BLU). He is a founder of cross-border payments company SatoshiPay Gmbh. Nicholas Slater raised his stake from 11.7% to 13.1%. The share price jumped 50% to 3.75p.
Jubilee Metals (LON: JLP) generated record chrome production in South Africa in the first six months of the financial year, increasing from 975,000t to 718,000t. PGM production was 18,400t. These are on track to achieve full year guidance. In Zambia, copper production was 1,400t due to the lack of power forcing the Roan project to go onto care and maintenance. A new power agreement has been signed. However, it will be difficult to achieve full year production guidance of 5,900t-7,500t. Zeus retains its fair value share price of 11p, but says it depends on a quick resolution to the issues in Zambia. The share price rose 11.8% to 3.8p.
Cavendish has raised its 2024 earnings forecast for telematics company Quartix Technologies (LON: QTX) from 8.7p/share to 9.5p/share. Operating costs were lower than anticipated and new customer acquisition was 50% higher on the year. Net cash was £3.1m at the end of 2024. The share price improved 11.8% to 170p.
Dr Graham Cooley increased his stake in Distil (LON: DIS) from 12.1% to 13.2%. The share price is 11.9% higher at 0.1175p.
Womenswear Sosandar (LON: SOS) further improved gross margins in the third quarter. Third quarter revenues were 15% lower at £12.2m due to a lack of price discounting on the company’s website. Partner sales were higher and the high street stores are building revenues. Two new store leases have been signed for Bath and Harrogate. Overall salles should start to grow in 2025-2026. Net cash was £8.2m at the end of December 2024. The share price rebounded from its low by 8% to 6.75p.
FALLERS
Digital promotions and loyalty technology developer Eagle Eye (LON: EYE) revealed a five-year agreement with one of the world’s largest enterprise software suppliers, which will embed Eagle Eye’s AIR platform in its loyalty product. This could start contributing income in 2026. Interim revenues were flat at £24.2m. There was a fall in professional services revenues and SMS revenues continued to decline. SaaS revenues were 10% ahead. Net cash is £11.8m. Lengthening sales cycles mean that Shore has cut its 2024-25 forecast revenues by 17% to £47.7m, while the EBITDA estimate is 9% down at £11.5m, up from £11.3m last year. Eagle Eye was on a premium rating, and this has taken a knock with the shares slumping 22.5% to 365p. That is still 18 times prospective earnings.
EnergyPathways (LON: EPP) has taken on licence operatorship for Morth Sea Block 110/4a that includes the Marra Energy Storage Hub (MESH). This will enable the submission of the Field Development Plan and Environmental Statement. MESH will help to increase energy storage capacity. A final investment decision will be made by the end of the year. The share price fell 9.57% to 8.5p.
Surplus stock retailer Huddled Group (LON: HUD) generated revenues of more than £14m in 2024. Fourth quarter revenues were £5.4m, which was a quarterly record. The warehouse is nearing capacity, so slow moving stock was sold which hit profitability. It was offered as free gift and in other sales promotions. There will be a move to a new warehouse. The joint venture partner in Let’s Explore went bust and Huddled has taken up the running of the business. The 2024 loss should be in line with expectations. The share price dipped 4.84% to 2.95p.
Last week, Kistos, which is an independent energy company with operations across the upstream and midstream energy markets, with its offshore and onshore portfolio spanning the UK, Norway, and the Netherlands, issued a Trading Update ahead of its 2024 Finals.
It was a positive statement and highlights the attractions of this £95m-capitalised group, whose shares are now 115p and could be heading to 200p in the short-term.
The Business
Kistos Holdings (LON:KIST) was established in 2020 to acquire and manage companies in the energy sector engaging in the energy transition trend....
Gresham House has announced a £50 million share offer for its Baronsmead Venture Capital Trusts, comprising an initial £30 million offer with a £20 million over-allotment option. The Baronsmead VCTs, which have a strong track record dating back to 1995, currently manage combined net assets of £433 million.
The trusts demonstrated their continued appeal to investors in 2024, exceeding their £30 million fundraising target to secure £50 million despite challenging market conditions. The managers hope to replicate this success in 2025.
The Baronsmead VCTs distinguish themselves through a hybrid investment approach, unique among VCTs of their size, dividing their portfolios between AIM-quoted and unquoted companies. This strategy aims to provide investors with enhanced diversification and liquidity to support regular tax-free dividend payments.
Recent notable investments include £2 million in Much Better Adventures and £2.4 million in OnSecurity for their unquoted portfolio, alongside £4.3 million in IntelliAM and £1.4 million in Earnz within their quoted investments.
“Venture capital trusts play a vital role in supporting the UK’s SME landscape, which is critical to delivering growth for the wider economy. Demand for VCTs remains strong in light of continued support for the vehicles in the recent Budget, so we are excited to be launching this share offer for the proven Baronsmead VCTs at this time,” said James Hendry, investment director at Gresham House, and manager of the Baronsmead VCT.
“Our deep expertise, disciplined investment strategy and an extensive network have consistently helped us to uncover and support exciting early-stage companies led by dynamic entrepreneurs across a range of evolving sectors. This fundraise will provide further capital to support more high-growth UK businesses and build on our existing track record of delivering outstanding returns for investors.”
Hargreaves Lansdown has outlined the seven of the most important trends for investors and savers using ISA to consider in 2025, ranging from the most popular stocks and shares ISA investments to the popularity of cash ISAs.
“ISAs never stand still. Various governments have tweaked the rules over the past 26 years – so they’ve evolved from a limited range to something altogether more substantial and flexible. At the same time, we’ve changed too, and how we use ISAs has developed. This year, in particular, there have been some interesting trends,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.
Hargreaves Lansdown, in their own words, present their seven trends for ISAs in 2025:
7 ISA trends
Cash ISAs have had a huge year
We saw a cash ISA season bonanza, with a long tail that stretched all year. Savers smashed records in April, paying £11.7 billion into cash ISAs – beating every other month for the past 25 years. They then remained committed, and cash ISAs drew in billions of pounds long after the traditional season was over. By the end of November (the most recent data), savers had put £36.3 billion in cash ISAs since the beginning of April.
Why
Income tax thresholds remain frozen, which is pushing more people into higher tax brackets. The OBR estimates that in the current tax year there will be 2.5 million extra higher and additional-rate taxpayers than there would have been if tax thresholds had risen with inflation.
At the same time, although savings rates have fallen from the peak, there are a number of accounts offering just shy of 5%. It means many more people worrying about tax on savings, which has pushed cash ISAs up the agenda for millions of savers. Concerns about potential tax changes in the Budget played their part too, with more savers realising the benefits of being able to protect their savings from the whims of successive chancellors.
These figures support what we’ve been seeing across our Active Savings clients. Within Active Savings, in April we saw a 50% jump in new cash ISA clients. This owes something to the fact we launched our new cash ISA, which allows savers to hold money with more than one bank and in more than one account, within the same ISA wrapper. Between the start and end of 2024, assets in the HL Cash ISA rose 230%, and a cash ISA became the first choice of more than half of HL’s new savers.
2024
Cash ISA savings (Bank of England data)
April
£11.7 billion
May
£4.2 billion
June
£3.4 billion
July
£3.8 billion
August
£4.2 billion
September
£3.9 billion
October
£3.1 billion
November
£2 billion
Total so far
£36.3 billion
LISAs have had a record-breaking year so far
This is the biggest ever tax year for the Lifetime ISA, with more people paying into an HL Lifetime ISA during the tax year so far (to the end of December) than any other year on record. It’s up 24% in a year.
The most recent HMRC figures show a record of 755,000 LISAs were paid into during the tax year 2022/23. £1.87 billion was contributed during 2022/23 – a record sum – which was up 10% in a year.
It offers a leg up onto the housing ladder for tens of thousands of young people every year. Buying a home of your own is hard enough – and the government bonus from a Lifetime ISA is the only help some people will get in building a deposit. It could be even more effective if the cap on the value of property people could buy through the scheme was linked to house prices – so buyers are protected from being unable to use their LISA because prices have risen in their area.
The Lifetime ISA is also a key tool in saving for retirement for those who aren’t putting enough aside, including self-employed people. Those who work for themselves don’t benefit from an employer contribution on their pension, so for a basic rate taxpayer, the benefits of paying into a Lifetime ISA are the same as a pension, and both grow free of tax. However, all money withdrawn from a LISA in retirement is tax-free, whereas for a pension, after the tax-free cash, you could end up paying income tax.
The LISA can help support the 1.2 million households that have a self-employed earner paying the basic rate of tax. Analysis by the HL Savings & Resilience Barometer also shows that half a million self-employed people are hoarding more cash than they need to – while carrying a significant retirement savings gap. This cash could be diverted into investment with the LISA, to close the gap.
A few small tweaks to the Lifetime ISA could make an enormous difference for self-employed people. The age that people can open and pay into a Lifetime ISA should be increased to 55, and the penalty for withdrawing for any reason other than for a first property or retirement needs to be cut to 20%. Not only does the current penalty punish people for trying to do the right thing, fear of the penalty can also put people off altogether.
Stocks and shares ISA numbers are climbing
By the end of 2024, the number of HL stocks and shares ISA clients was up 4% in a year. Over the past five years, it has risen by 50%, to a new high. Broader HMRC figures show the number of people paying into stocks and shares ISAs each year across the whole market has also trended upwards over time, although the data is less up-to-date.
In the first half of the current tax year there was a major rush to top up ahead of the Budget, because dire warnings of tax rises meant more people sought sanctuary in tax free ISAs. It was the second busiest first half of the tax year of all time for HL stocks and shares ISAs – after the pandemic peak of 2022. We also saw a flood of people using share exchange (Bed & ISA) to move investments into ISAs.
Some investors’ worries were realised when the Budget announcement came, and the capital gains tax rate on stocks and shares rose. Coming on the back of significant cuts to the capital gains tax and dividend tax allowances in recent years, it was a bitter blow for those with investments outside an ISA.
By investing through a stocks and shares ISA, you can avoid CGT completely, both when you sell up and cash out and whenever you rebalance your portfolio. You also protect your investment from dividend tax. Bed and ISA, meanwhile, allows you to realise gains within your annual capital gains tax allowance of £3,000 by selling up and immediately buying back within a stocks and shares ISA. Investors who are sitting on large gains have the comfort of knowing that they’re doing what they can to eat into the gain using their annual allowances, and protecting that portion of their portfolio from CGT and dividend tax in future too.
The average age to hold an ISA is falling
The average age of HL ISA holders has fallen over the years, from 54 five years ago to 51 today. The bulk of the movement came during the years of the pandemic, but it has held firm ever since.
Separate HMRC figures show that despite the fact that most ISAs are held by people aged 65 and over, when you look specifically at the ISAs people paid into during 2021/22, there were more investors contributing aged 25-34 than any other age group.
It reflects the fact that younger people are now more interested in investment, which has become a more mainstream option among younger generations. Some newer investors will have been led astray by social media influencers and are dabbling in the dangerous waters of crypto currency, but the fact so many of them have moved into ISAs that they’re bringing the average age down is a great sign that significant numbers are taking a sensible long-term approach to investment.
The gender split of ISA holders isn’t improving
Over the past five years, the proportion of HL ISA investors who are women has fluctuated within a narrow range. It fell during the pandemic, and although it has recovered largely since, only 38% of HL ISA investors are women – compared to 39% in December 2019. It reflects the HMRC figures from 2021/22 that show that despite women holding slightly more ISAs overall than men, they’re far more likely to pick cash ISAs. Some 69% of those paying into ISAs during the year only paid into a cash ISA – compared to 56% among men.
Women’s reluctance to invest owes a great deal to the fact that on average they earn less than men, and the more you earn, the more likely you are to have an investment ISA. Women also tend to have less secure incomes, because they’re more likely to have breaks in their career for caring responsibilities or work part time and face a drop in income. It means some may feel they cannot face the risk involved with investment. There’s no denying that there is risk involved, but the way we tend to assess long-term risk is faulty. We feel losses more keenly, so women can over-estimate the risk that investments will lose money over the long term. They may also underestimate the risk their cash ISA will lose value after inflation.
Investors are holding more in their ISAs
On average, at the end of 2024, HL ISA investors held £59,600 each in their ISAs. This has fluctuated, as more new ISA investors bring the average down, and growth for current investors pushes it up. However, it has trended upwards during the last couple of years.
The most popular stocks and shares ISA investments are passives.
Of the most bought funds in ISAs in 2024, passives dominated – making up six of the top ten funds, and all of the top five. US indices in particular attracted investment, with UBS S&P 500 Index bought the most – followed by Legal & General US Index. The next three also have US weightings – including Legal & General International Index Trust, Fidelity Index World and Legal & General Global Technology Index Trust.”
Technology Minerals shares rose on Monday after announcing it has secured a contract to recycle lithium-ion batteries from a major global automotive manufacturer.
The company’s battery recycling subsidiary, Recyclus Group Ltd, in which Technology Minerals holds a 48.35% stake, will process hundreds of electric vehicle battery packs at its industrial facility in Wolverhampton.
The agreement marks Recyclus’ first international contract, with batteries to be sourced both from within the UK and overseas as part of the automotive manufacturer’s battery recall programme.
Technology Minerals shares rose 25% on the news but are still down 86% over the past year.
“We are thrilled to collaborate with a globally renowned company that shares our commitment to driving sustainability in the automotive sector. The multinational scope of the partnership highlights the industry-leading nature of Recyclus’ solutions, building further momentum for the company and reinforcing our position as a trusted service provider for Li-ion battery recycling,” said Robin Brundle, Chairman of Technology Minerals and Director of Recyclus.
Cloud computing and hosting services provider Iomart (LON: IOM) has been struggling in recent years as profit and the share price have declined. Iomart chair Richard Last has bought an initial 50,000 shares at 77.27p each, which is not much above the low for the year. Richard Last joined the board last June.
The share price is currently 76.9p, which is around the lowest it has been since 2010. It has halved since the end of 2023.
In December, non-executive director Annette Nabavi bought 5,500 shares at the beginning of 90.8p/share and these were also the first shares she acquired. Former bos...
Chris Akers has a 5.1% stake in Global Connectivity (LON: GCON), while Chris New increased his shareholding from 8.88% to 9.75%. Keith Harris raised his stake from 9.98% to nearly 11%. Premier Miton has increased its shareholding from 4.74% to 5.21%, while Placifor Investments raised its stake from 9.76% to 10.7%. Livia Meyer’s stake has reduced from 16.97% to 8.78%. Barry Hersh has still not paid the £375,000 subscription amount for 37.5 million shares. The share price jumped 37.9% to 1p.
Automotive electrification technology developer Equipmake (LON: EQIP) has received approaches from strategic investors and potential acquirers. Discussions continue. In the six months to November 2024, revenues improved 19% to £2.47m with EV components revenues increasing 80% to £254,000. There was a cash outflow from operating activities of £2.37m and capital spending of £686,000. Bus repowering services are being scaled down because of low volumes and this will save £2m/year. There was £2m in the bank at the end of November 2024. The contracted order book is worth £11m. The share price recovered 7.27% to 1.475p.
Good Life Plus (LON: GDLF) has launched more partnerships in the past three months, including with Reach and News UK. The family interests of Mark Blandford are subscribing £1m for an issue of convertible loan notes with up to £1m more on offer to other investors until the end of January. The cash will be invested in expanding customer acquisition and partnership, plus to enhance the premium prize draw operations. There are also plans for international expansion. The share price improved 2.27% to 2.25p.
FALLERS
Valereum (LON: VLRM) is participating in the Plan B Forum in El Salvador at the end of January. This is a major Bitcoin conference in Central America and will enabling networking and promote Valereum’s services. The share pricefell 14.5% to 23.5p.
Oscillate (LON: MUSH) has appointed Robin Birchall, a former director of Helium One Global, as chief executive and Steve Xerri becomes an executive director. Robin Birchall will receive options over 2% of the current issued share capital at a price equivalent to the share price at the time of a move to AIM or other Recognised Investment Exchange, plus he will receive a payment to buy 4.25 million shares. Igraine (KING) has reduced its shareholding in Oscillate from 5.05% to 3.64%. The Oscillate share price dipped 11.5% to 0.575p.
Marula Mining (LON: MARU) has applied for a new prospecting right next to the Blesburg Lithium and Tantalum Mine. The area extends over an area of 7,219 hectares. The approval should be received by the summer. Marula Mining will not be buying a 70% interest in the Korridor 21 prospecting right. The share price declined 10.8% to 4.125p.
Invinity Energy Systems (LON: IES) has changed its domicile from Jersey to England and Wales. The share price slid 7.04% to 16.5p.
ImmuPharma (LON: IMM) says the preclinical research programme for autoimmune therapy P140 should pave the way for earlier, more accurate diagnostics, as well as better identification and improved monitoring of patients. Detailed data is not being published. The share price jumped 223% to 3.55p.
Floorcoverings supplier Victoria (LON: VCP) still expects second half trading to be stronger than the first half through a combination of management actions and slightly higher demand. Annualised cost savings should be £32m by the end of March 2025 with a total of more than £80m anticipated by 2027. Consensus 2024-25 operating profit remains at £31m, rising to £74m next year. Joe Scribbins has been appointed to the board to replace Blake Ressel as the representative of Koch Equity Development. Morgan Stanley has raised its stake from 13% to 14.2%, while Saqib Karim has increased his shareholding from 5.26% to 6.13%. The share price recovered 60.6% to 136.2p, which is the highest it has been since September.
Dowgate has raised its stake in washing machine technology developer Xeros Technology Group (LON: XSG) from 5.42% to 10.25%. That is the highest the price has been for nearly three months.
Mindflair (LON: MFAI) has an indirect interest in Infinite Reality via a 13% investment in the first Sure Valley Ventures fund and a 6.1% interest in Sure Ventures (LON: SURE), which owns 25.9% of the Sure Valley Ventures fund. In July 2024, Infinite Reality acquired investee company Landvault for $450m and Sure Valley Ventures retained a stake. Infinite Reality has raised $3bn at a valuation of $12.25bn. The previous valuation was $5.1bn. Having reached 1.375p when it opened on Friday, the share price ended the week 37.5% higher at 0.825p. There were 225 million shares traded on Thursday and Friday.
FALLERS
Downhole oil and gas technology developer Enteq Technologies (LON: NTQ) says testing of the SABER rotary tool results in the requirement for further engineering modifications. Delays to the start of active test drilling with an Australian customer mean that the timing of revenues is uncertain. The drilling could begin in April. There are also additional costs. This means that cash will not last as long as previously expected and Cavendish has pulled its forecasts. Enteq was expected to move into profit in 2026-27. The share price dived 76.7% to 0.77p.
Early in the week, legal services provider RBG Holdings (LON: RBGP) terminated the consultancy agreement of Ian Rosenblatt due to breaches of contract and offensive behaviour. He has restrictive covenants lasting until July 2028, but he was identified as owner of AWH Acquisition Corp, which is regulated as a firm of solicitors that changed its name to Rosenblatt Law. He is a director of this company along with former RBG Holdings director Tania MacLeod. RBG Holdings later said that it was shown that he was not involved with the new company until 19 December. Ian Rosenblatt had requisitioned a general meeting to remove Jon Divers as chief executive of RBG Holdings. The company is in talks with its lender and hopes to secure the funding it requires for the business. At the end of the week, RBG Holdings said it had entered into an exclusivity period with Ian Rosenblatt for the sale of the Rosenblatt brand business to Rosenblatt Law. Ian Rosenblatt will withdraw his winding up petition and the general meeting notice. This exclusivity lasts until 24 January. The share price declined 61.8% to 1.05p.
Data and marketing services provider Jaywing (LON: JWNG) has sent out the circular to gain shareholder approval for the cancellation of the AIM admission. This follows a requisition notice by 29.5% shareholder Michael Ashcroft and the company has decided that the departure from AIM is in the best interests of the shareholders. The general meeting is on the 5 February. The share price is 58.3% lower at 0.625p.
Global Petroleum (LON: GBP) has raised £1.5m via a placing at 0.225p, while a retail offer generated a further £51,000. This means that there is enough cash to meet work programme commitments for the Juno project in Western Australia, where it is seeking intrusion related gold systems similar to Havieron. The company is negotiating with a potential farm-out partner for PEL94 in Namibia. The share price slipped 35.7% to 0.2025p.
Alliance Pharma (LON: APH) is recommending a bid of 62.5p/share by Aegros Bidco, which is owned by DBAY Affiliates and the ERES IV Fund. That values the healthcare brands owner at £349.7m. There is an alternative of one rollover share in the bid vehicle for each Alliance Pharma share. DBAY has been building up a stake in Alliance Pharma for more than two years and currently owns 27.9%. DBAY believes that it will be easier to make operational changes without the distraction of being quoted. There will also be additional backing to make further acquisitions. The share price jumped 37.8% to 61.05p.
Oil and gas company Tower Resources (LON: TRP) has secured two farm-out agreements with Prime International for non-operated interests in Cameroon and Namibia. Tower Resources is expected to drill the NJOM-3 appraisal well in the second half, which could confirm the commerciality of the prospect. SP Angel has updated its share price target to 0.16p/share. The share price increased 24.3% to 0.046p.
AI-technology services provider Pri0r1ty Intelligence (LON: PR1) joined AIM at the end of 2024. The fundraising associated with the reversal of the business into the previously listed shell was done at 13.5p and there has been a decline since then. Buying interest has appeared and the share price recovered 11.1% to 10p.
A trading statement from animal feed additives supplier Anpario (LON: ANP) has sparked the fifth upgrade to 2024 forecasts. There was strong growth in Middle East and Africa. Shore has raised its pre-tax profit forecast to £5.5m, compared with £3.5m in 2023. Net cash is estimated to be £10.5m. The share price improved 8.84% to 400p.
FALLERS
Downhole oil and gas technology developer Enteq Technologies (LON: NTQ) says testing of the SABER rotary tool results in the requirement for further engineering modifications. Delays to the start of active test drilling with an Australian customer mean that the timing of revenues is uncertain. The drilling could begin in April. There are also additional costs. This means that cash will not last as long as previously expected and Cavendish has pulled its forecasts. Enteq was expected to move into profit in 2026-27. The share price dived 72.6% to 0.85p.
Data and marketing services provider Jaywing (LON: JWNG) has sent out the circular to gain shareholder approval for the cancellation of the AIM admission. This follows a requisition notice by 29.5% shareholder Michael Ashcroft and the company has decided that the departure from AIM is in the best interests of the shareholders. The general meeting is on the 5 February. The share price is one-quarter lower at 1.125p.
Timber company Woodbois (LON: WBI) has appointed Lucas Kanme as chief executive and the following day Nykredit Bank has terminated its loan facilities because discussions on repayment did not reach an amicable agreement. There is a total of $2.72m outstanding and it is repayable by 17 January. The bank has offered to discuss a settlement agreement. The share price dipped 17.1% to 0.145p.
TowerBrook Capital has decided against making an offer for Team Internet Group (LON: TIG). That still leaves Verdane Fund Manager AB as a potential bidder. It is proposing an offer of 125p/share. Previous approaches were rejected for being too low. The share price lost some of the gin earlier in the week and is down 11.5% to 104.2p.
Arecor Therapeutics (LON: AREC) is ceasing the operations of Tetris Pharma and it is returning the rights to Ogluo, a glucagon auto-injector pen for severe hypoglycaemia, to Xeris BioPhaarma. A partner of Tetris Pharma lost a key NHS Tender, which means revenues will be lower than expected in 2025. There will be a £3m write down. This enables Arecor Therapeutics to concentrate on core products, including ultra-rapid acting insulin candidate AT278, where partner discussions continue. The share price slipped 8.78% to 67.5p.
The FTSE was heading into the weekend with a marginally negative tone on Friday as investors assessed the growing pressure on UK debt sparked by concerns about the country’s fiscal health.
A slower growth outlook and a stubborn inflation rate create a toxic mix for UK bonds, which saw benchmark yields hit multi-year highs this week.
The subsequent drop in the pound supported London’s leading index due to its weighting to companies that report on foreign currencies that have risen against sterling.
“Broadly speaking however, the LSE’s biggest names are shrugging off the increasingly bearish outlook for the UK economy as government borrowing costs as measured by 10-year gilt yields hover around the highest level seen since 2008,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“That’s prompted the Treasury to provide assurances it won’t break its own fiscal rules. Worries abound around the potential for growth, tax hikes and interest rates, but the international nature of the index means it’s not totally correlated to British economic conditions.”
The impact of a weaker pound on the index so far this week was less pronounced on Friday, and weakness in UK-centric stock, including banks, supermarkets and retailers, weighed on the index. Housebuilders were the exception, as Persimmon and Taylor both gained more than 1%.
Although the FTSE 100 is down slightly on Friday, it has managed to carve out minor gains since the turn of the year.
Sainsbury’s wrapped up a very soft week of festive trading updates for FTSE 100 retailers as shares fell 2% on the news like-for-like sales slowed again, despite gaining market shares over the key festive trading period. Investors will also be concerned about the outlook amid rising national insurance rates.
“Sainsbury’s has come on leaps and bounds with its grocery operations in recent years, fighting off the competition from Aldi and Lidl at the discount end and enticing people at the upper end from Waitrose,” said AJ Bell investment director Russ Mould.
“Its price points have struck a chord with shoppers, both those looking for a bargain on staples and those who want good quality items but don’t want to pay a pretty penny. Strategically, it is in a much better shape these days, but its situation is far from perfect.
“The story with Sainsbury’s is the same as it has been for the past year: Groceries are great, Argos less so. This would be fine if the supermarket chain wasn’t fussed with non-food interests, but Argos is a central part of its strategic growth plan so it has a problem on its hands.
“As it stands, the biggest part of its business is firing on all cylinders and the side attractions are the laggards, including clothing. Argos’ lacklustre performance has dragged for six consecutive quarters, which in anyone’s book is a big warning sign.”
Sainsbury’s soggy update dragged on Tesco shares, which gave up another 2% after falling yesterday.
After being upgraded to ‘overweight’ by Morgan Stanley, Reckitt Benckiser was the top riser.
