Share Tip: Van Elle Holdings – well worth getting dug in and ‘piling’ into these shares at 37p, broker value at 68.5p 

Mark Watson-Mitchell
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Share Tip: Van Elle Holdings – well worth getting dug in and ‘piling’ into these shares at 37p, broker value at 68.5p 

Between now and the end of next month there is time to buy into and add to subsequent positions in Van Elle Holdings (LON:VANL). 
On the face of it, a lot of investors would assume that this £40m-capitalised group is boring – well yes it, to a certain point. 
Boring is part of its business. 
Its shares are now 37p and I feel that they should be trading at over 50p each. 
The Business 
Based in Kirby-in-Ashfield,in Nottinghamshire, the group gained its place on AIM in 2016 and has subsequently become the UK’s largest and most diverse ground engineering contractor. ...

Shoe Zone shares sink after slashing profit guidance due to Labour’s tax-raid budget

UK Investor Magazine
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Shoe Zone shares sink after slashing profit guidance due to Labour’s tax-raid budget

Shoe Zone shares sank on Wednesday after the retailer issued a profit warning, slashing its profit forecast by 50% amid rising taxes and challenging trading conditions.

Taking aim after Labour’s disastrous budget, Shoe Zone said: “Consumer confidence has weakened further following the Government’s budget in October 2024, and as a result of this budget, the Company will also incur  significant additional costs due to the increases in National Insurance and the National Living Wage.”

The footwear retailer now expects adjusted profit before tax to be no less than £5.0m for the year ending September 2025, down from previous expectations of £10.0m.

The company attributes this significant decline to multiple factors, including weakened consumer confidence following the October 2024 budget, unseasonal weather affecting sales, and increased operational costs from National Insurance and the National Living Wage rises.

These challenges have forced the retailer to plan store closures for locations that have become financially unviable.

In response to these pressures, Shoe Zone has also announced it will not pay a final dividend for the financial year ended September 2024. The company will provide more details in its annual results announcement scheduled for January 21, 2025.

Technology Minerals subsidiary Recyclus signs offtake agreement with Glencore

Andrew Hore
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Technology Minerals subsidiary Recyclus signs offtake agreement with Glencore

Shares in Technology Minerals (LON: TM1) have more than trebled on the back of 48.4%-owned Recyclus Group signing a black mass offtake agreement with Glencore. The share price is 240.9% higher at 0.375p.

Recyclus will sell the black mass produced at its lithium-ion facility in Wolverhampton to Glencore’s European operations. There will be an initial 100 tonne trial. The strategy is to sell black mass to other geographical partners and the latest deal follows the one with India-based LOHUM, although deliveries have been delayed by regulatory problems.  

Black mass contains metals, including lithium, manganese, nickel and cobalt, which can be reprocessed and sold back to battery manufacturers.

Technology Minerals has a 12-month agreement with Halfords to recycle waste lithium-ion e-mobility batteries.  

On 24 September, it was decided not to proceed with a merger between Technology Minerals and Recyclus, but it could happen in the future.

Technology Minerals floated on the standard list in November 2021 when it raised £1.5m at 2.25p/share.

AIM movers: LPA contract wins and Cadence minerals tungsten licences farm in

Andrew Hore
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AIM movers: LPA contract wins and Cadence minerals tungsten licences farm in

Electronic and electro-mechanical components supplier LPA Group (LON: LPA) has won three major contracts worth £4m. They are with French rail operator SNCF Voyageurs for interior LED lighting, Siemens Mobility, also for LED lighting, and seating manufacturer Grammer for eat electronics and lighting for trains in France. The SNCF contract last five years while the others are deliverable in 2025 and 2026. The share price increased 31.6% to 75p

Nioko Resources is making a recommended offer of 2.68p/share for Hummingbird Resources (LON: HUM). This is the same as the price of the debt-to-equity swap previously announced. That takes the Nioko Resources stake in Hummingbird Resources to 72%. The share price jumped by one-third to 2.2p.

Diagnostic tests developer Abingdon Health (LON: ABDX) has secured a deal with US-based Find Out From Home, where it owns a 17% stake, for evaluation, regulatory and clinical testing services for four sexually transmitted disease tests. This will enable filings for FDA and other approvals. The deal is worth $2m and the initial order is worth $350,000.  The new Doncaster laboratory helps the company to offer these services to international clients. The share price rose 10.3% to 8p.

Oil and gas producer Arrow Exploration (LON: AXL) has completed drilling of the Alberta Llanos-1 exploration well, which has intersected four reservoirs. This could be the third field on the Tapir block in Colombia. Flow testing will follow. Zeus upgraded its target share price from 54p to 55p, while Canaccord Genuity maintains its target price at 50p. The share price improved 5.75% to 23p.

FALLERS

Cadence Minerals (LON: KDNC) has signed a letter of intent with Hesperian Metals to acquire tungsten antinomy gold licences for projects in Spain and Portugal. Both have old workings and the main focus is tungsten. Cadence Minerals will acquire up to 40% of licences through a payment in cash and shares and commitment to spend €2.4m on exploration. The deal is subject to due diligence. A placing is raising £1m at 1.5p/share. The share price slumped by two-fifths to 1.65p.

Blue Star Capital (LON: BLU) is asking for shareholder approval for a share consolidation and reduction in the par value of shares to 0.001p so that it can raise cash from a share issue. This will be done by consolidating 200 shares into one new share and then subdividing them into one ordinary and 199 deferred shares. The £150,000 subscription will be at 2p/share post-consolidation. The share price fell by one-quarter to 0.015p pre-consolidation.

Conygar Investment Company (LON: CIC) reports a decline in NAV from 159.4p/share to 103p/share in the year to September 2024. That is mainly due to a £28.3m write down on the value of group properties, plus a specific £1.4m in the value of the investment in the proposed residential development at the Fruitmarket site in St Philip’s Marsh, Bristol. There is £4.7m in cash, but borrowings have tripled to £55.9m. The share price slipped 15.5% to 49p.

Yesterday evening Nativo Resources (LON: NTVO) says that the overall consideration for the Morrocota gold mine acquisition will be lower than originally agreed. There will also be a delay in the investment. The share price declined 8.33% to 0.0022p.

FTSE 100 declines ahead of interest rate decisions, Bunzl sinks

UK Investor Magazine
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FTSE 100 declines ahead of interest rate decisions, Bunzl sinks

The FTSE 100 opened down sharply on Monday as traders reacted to UK wage data that created doubts about the Bank of England’s interest rate trajectory.

Strong growth in UK wages serves as a reminder the inflation problem hasn’t gone away and, crucially, interest rates may not fall as quickly as some would like.

“Regular pay in the UK rose 5.2% in the three months to October, edging up from the previous period and beating expectations. The increase was driven by private sector wages, while public sector growth slowed, and manufacturing led the way,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Adjusted for inflation, real wages continued to climb, but the stronger print has all but assured the Bank of England will hold rates steady on Thursday, with markets pricing in a 93% chance of no change. Investors are now in wait-and-see mode, watching whether the labour market cools in the wake of the Budget, with February’s rate cut prospects looking like a coin toss.”

Markets were on edge with both the Federal Reserve and the Bank of England set to decide on interest rates this week. However, it is not so much the decisions themselves that are the concern, but what they may say about their course of action for next year. 

Whether they cut or not this week is of little consequence. Traders are more interested in how many times they will cut next year, and will pour over commentary provided alongside the rate decisions for insights about inflation and the wider economy. 

Many economists, and even central banks, have been wrongfooted by inflation and economic performance in 2024, making the start of 2025 a particularly precarious time for markets. 

Adding to concerns about interest rates and inflation, uncertainty around China is lingering, which weighed on commodity companies on Tuesday.

“Energy and pharma stocks weighed on the FTSE 100, causing the index to fall 0.7% to 8,203,” said Russ Mould, investment director at AJ Bell. 

“Investors are growing concerned that China’s bold plan to grow its economy faster isn’t working and that spells weaker demand for commodities.”

Bunzl was the FTSE 100’s top faller after the distribution group said it expected operating profit to be hit by deflation, particularly in Europe. The group did say it expected robust revenue growth in the coming year but disappointment about operating profit sent shares down by over 5%.

“It’s rare to see Bunzl doing anything other than plod along so a warning from the distribution company has caught the market by surprise,” Russ Mould explained.

“The company says stickier than expected deflation will hit profit and that’s upset the share price.

“Bunzl supplies items needed by companies to do their work but nothing that’s sold to customers, making it an essential cog in the wheel. It makes a small margin on supplying products, but a deflationary environment can act as a headwind if it has already bought a lot of stock at higher prices and has to sell them for less than originally expected.”

Magnificent Seven outlook for 2025 by Hargreaves Lansdown

UK Investor Magazine
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Magnificent Seven outlook for 2025 by Hargreaves Lansdown

Hargreaves Lansdown’s head of money and markets, Susannah Streeter, has issued a fascinating outlook for the world’s leading technology companies, the ‘Magnificent Seven’.

The US tech shares, including Nvidia, Alphabet, Meta, and Microsoft, have been instrumental in equity market returns in 2024 as developments in the field of AI boost sentiment and earnings.

Here is Hargreaves Lansdown’s ‘Magnificent Seven’ outlook, in Susannah Streeter’s own words:

The Magnificent Seven are set to continue to exert huge influence over Wall Street performance, given the weight of the tech giants on indices. They’ve been pushed even higher this year on a wave of enthusiasm for the potential AI presents and also expectations of lighter-touch regulation with President Trump returning to the White House in January.  Nvidia is up 174% since the start of 2024 on a wave of AI euphoria pushing its market cap above $3.5 trillion dollars. Meta has risen by around 80% with its market cap now above $1.5 trillion and Tesla’s share price has risen by more than 86% year to date, helped by Trump winning the presidential election, pushing its market cap way over the £1 trillion mark. 

Alphabet

Regulation is still hovering like a cloud over the company with the US Department of Justice having indicated that it may ask a judge to break up Google to stop its search monopoly. However, even if Google’s power is diminished and it’s not able to be the default search engine on devices owned by big tech giants, it’s sheer might of reputation in the world of search is likely to propel users towards it, nonetheless. The power of Google over the latest quarter indicates that its already harnessing AI technology to deliver improvements and get more fingers searching and more eyes on screen. Advertisers are also seeing benefits in terms of higher engagement. 

It’s early days but given Alphabet’s super-deep pockets to pour into these new technologies, and its increasing dominance in the Cloud business, Google looks set to stay well positioned to take advantages of future developments. 

At the moment it looks like its present cloud offering is much better suited to this new AI phase of growth than it was in the previous wave where Amazon’s AWS and Microsoft’s Azure fared better. Google is not a one tricky pony when it comes to AI. It’s tentacle approach, wrapping the technology into many crevices of the business makes it an attractive proposition. Nevertheless, as the AI juggernaut continues to rumble, it’s far from clear who will be the winners, and it could well be an upstart rival rather than a regulator which poses the greatest risk to Google’s search dominance.

Meta

Meta has been on an Ozempic-like trajectory. It’s slimmed down drastically but there have been questions over whether it may end up losing muscle in the process. So far Meta has maintained its lean machine physique and it’s taking on the heavy lifting of big investment into AI.

Meta’s huge scale means that volumes keep driving upwards and with daily users growing 5% in the third quarter and more eyes on screen are set to continue to be attractive for advertisers, with its core AI spend helping engage users and improve ad performance. The extent to which Meta will keep pouring cash into AI developments will be under scrutiny, but if the giant keeps delivering results, it’s likely to be seen as crucial investment rather than overspend. However, investment in generative AI and the metaverse is arguably more speculative given the technology is more nascent and therefore risky. Meta is in a good position to drive AI-related growth but if revenue does not keep pace with investment margins may come under pressure and investors may turn nervier.

Microsoft

Microsoft has planted itself in the centre of the AI revolution and shoots of growth from artificial intelligence are sprouting fast in all divisions. Given the direction of travel, revenues from its cloud computing arm Azure, which helps other companies build out the capacity to use AI tools, are coming in thick and fast at an impressive 34% click in the last quarter. Growth is set to ease off a little, but it will still be on an enviable trajectory.

Microsoft’s products and services infiltrate all areas of work and play and the way it’s own software stack will integrate its new AI capabilities is an added benefit, though there will be a watch on just how eager companies will be to snap up new subscriptions offering access to Microsoft’s CoPilot across its apps. There are risks ahead, notably in the cloud space given the might of the competition and regulatory hurdles are likely to pop up given the rapid development of AI technologies.

Amazon

Amazon’s cloud business AWS continues to be Amazon’s most lucrative growth driver, with revenues rising 19%. Companies rely on AWS for core IT infrastructure, and with the new wave of AI demand, computing power is set to continue to be a hot commodity. Given the AI megatrend unfolding it bodes well for AWS, but at the same time Amazon is also having to invest heavily in the technology to stay ahead and the sums it’s been pouring in has caused some nervousness and revenues will have to keep accelerating to justify the spending.

Investors are also seeing the recovery story for its e-commerce business continue to unfold with another positive chapter. Margins have recovered following the huge cost-saving drive which saw layoffs worldwide. Continuing to build revenues will be crucial and there could be headwinds here given that USD consumers are showing some signs of being more cautious in their spending habits. While Amazon offers efficiency and same day service, it’s not the cheapest marketplace in town, but its Prime subscription membership is a big boost to recurrent revenue.

Apple

Apple’s biggest asset remains its brand, and its power has shown up yet again in the latest iPhone sales figures which were stronger than forecast. With the first wave of Apple Intelligence features being rolled out, this bodes well for customer upgrades ahead. Innovations on phones have been fewer and far between so there is a lot riding on the appeal of these new integrated tools. Apple’s privacy credentials look set to stay a focus, with teams working on deploying smaller on-device language models on phones. 

Growth in Services didn’t quite meet expectations in the last quarter but going forward this area of the business is set to be a key profit driver. There is higher margin potential and significant appeal for consumers with the bundling of popular apps like Music and TV, however growth will be reliant on phone sales. China is set to remain a tough market with competition intensifying from names like Huawei and despite Apple’s big fanbase it won’t be immune to economic hiccups elsewhere in the world.

Tesla

Tesla’s stock has soared since Donald Trump won the Presidential election, amid hopes Elon Musk’s right-hand man position will prompt policies favouring the EV maker. It’s likely that he will have sharp appetite in his new position for making ‘efficiencies’ which benefit his business interests. One area of focus for Musk is likely to be ensuring there’s an acceleration of regulatory approval for Tesla’s self-drive technology. Elon Musk is well-known for having a finger in many pies, which has caused nervousness in the past. Now he’s also at Trump’s top table concern may creep back in about the potential for his eye to be taken off the ball.  

Currently at Tesla, underlying performance looks better than it’s been for some time, despite huge incentives put in place to push sales in a tough market, especially in China. Tesla still has pulling power when it comes to EV purchase decisions, and with more affordable models on track for production in the first half of 2025, it should open up the wider market. A dip in demand for EVs has been tricky to navigate and cost-cutting efforts are a core part of the near-term margin recovery strategy. Tesla has balance sheet strength to head on its next chapter of growth but given its hot valuation, and the longer-term nature of its innovative technologies’ patience will need to be the name of the game.

Nvidia

Nvidia, the chip giant has seen stratospheric growth, clinching the spot as the most valuable company in the world in June, and its dominance in the world of accelerated computing and AI is set to continue next year. It’s forecast to deliver treble digit sales growth, with revenue expected to come in at a staggering $129 billion next year, as demand for its AI focused computing platforms barrels on. 

These expectations cement NVIDIA as a once in a generation company. A better-than-expected launch for the new Blackwell super chip is setting the tone for further near-term momentum. Data centre upgrades, and new cloud deployments all offer huge potential, and the company is also eyeing up big opportunities for dedicated AI infrastructure. However, for that to fully materialise AI needs to deliver strong financial returns for organisations that integrate it into their products and processes. 

At the moment demand appears to be insatiable and supply constraints are starting to emerge. Key manufacturing partners are planning to add capacity but blockages in the supply chain remain a risk to be wary of. Such a mouthwatering addressable market is also bound to attract competition but NVIDIA’s technological supremacy and growing financial strength will mean it’ll be very difficult to knock off its crown. Based on the market opportunity and its impressive track record, the valuation doesn’t look too demanding. But given the exaggerated impact the company’s performance has on investor returns worldwide, there will be added pressure to keep delivering.”

Strictly Money, an emerging UK wealthtech, has opened its first crowdfunding round with CrowdCube 

UK Investor Magazine
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Strictly Money, an emerging UK wealthtech, has opened its first crowdfunding round with CrowdCube 

Strictly Money, an emerging UK wealthtech, has opened its first crowdfunding round with CrowdCube as it looks to bring its debit card and banking app to market with unique access to high return products 

Strictly Money: Unlocking Private Market Opportunities for All 

The global investment landscape is undergoing a seismic shift, and Strictly Money—a trailblazing fintech company—is at the forefront of this transformation. With a multi-billion-dollar addressable market in its sights, Strictly Money is democratising access to private investments, making high-yield opportunities available to individual investors. Traditionally, these opportunities were the exclusive domain of institutional players, but Strictly Money is changing the game. 

Breaking Barriers in Private Investments 

Historically, private markets have been off-limits to retail investors, confined to hedge funds, private equity, and other high-net-worth domains. Strictly Money’s platform will break these barriers, offering seamless access to private markets for retail investors who now account for 75% of all investors globally. This bold innovation empowers individuals to seize lucrative opportunities once reserved for institutional giants. 

The company’s cutting-edge technology bridges the gap between investors and assets, ensuring broader access and a more equitable playing field. With retail investors poised to dominate private markets over the next decade, Strictly Money’s platform is not just timely—it’s transformative. 

The Rise of the Retail Investor 

A profound shift is taking place in private markets, where retail investors are emerging as the dominant force. Armed with the tools and insights once exclusive to institutional players, individuals now demand direct and efficient access to investments. Research shows that 75% of retail investors are eager to bypass traditional intermediaries for faster, more transparent market entry. 

Strictly Money responds to this demand with its user-friendly platform, empowering investors to control their financial futures while tapping into high-yield private market opportunities. 

Why Strictly Money Stands Out 

Strictly Money’s success is underpinned by three core strengths that set it apart in a competitive landscape: 

  1. Best-in-Class Technology: The company’s sophisticated mobile app combines simplicity with functionality, offering investors an intuitive interface, real-time tracking, and robust decision-making tools. 
  1. Low Operational Risk via Banking-as-a-Service (BaaS): By leveraging BaaS, Strictly Money minimises operational complexities and risks while delivering seamless banking-like services without the burden of being a bank. 
  1. Exclusive Investment Opportunities: Through unique partnerships, Strictly Money unlocks access to high-value assets and markets traditionally reserved for institutional investors. 

Poised for Market Leadership 

Strictly Money is more than a platform; it’s a movement. The company is exploring a public listing that aligns perfectly with its growth-oriented ambitions.  

This strategic move will solidify Strictly Money’s leadership in the fintech and investment sectors while unlocking new opportunities for its growing community of investors. 

Join the Revolution 

Strictly Money is paving the way for a new era in investment by democratising private markets and providing retail investors with unparalleled access to opportunities. With an exceptional technology platform, minimal operational risk, and exclusive market access, the company is well-positioned to lead the private market revolution. 

Support Strictly Money’s vision for financial empowerment by joining the crowdfunding campaign on CrowdCube today. Together, we can redefine what it means to invest. 

Share Tip: Netcall – with strong revenue visibility and cash flow, this group is a clear organic growth opportunity, its shares, now 101p, have broker values up to 140p 

Mark Watson-Mitchell
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Share Tip: Netcall – with strong revenue visibility and cash flow, this group is a clear organic growth opportunity, its shares, now 101p, have broker values up to 140p 

After this morning’s AGM Trading Update, market observers are anticipating that the shares of Netcall (LON:NET) will enjoy a progressive 2025. 
The Business 
Netcall is a UK-based provider of intelligent automation and customer engagement software, that is engaged in design, development, sale and support of software products and services.  
Its Liberty software platform with intelligent automation and customer engagement solutions helps organisations digitally transform their businesses faster and more efficiently, empowering them to create a leaner, more customer-centric o...

Inspired launches cash call to cut debt

Andrew Hore
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Inspired launches cash call to cut debt

Energy optimisation and assurance services provider Inspired (LON: INSE) is improving its balance sheet via a placing raising £21.25m at 40p/share and a retail offer could raise up to £2m.

There is also an issue of £5m of 12% convertible loan notes, which are convertible at 80p/share. The shares come with warrants exercisable at 80p each.

Gresham House Asset Management and Regent Gas are supporting the fundraising and taking up all the convertible loan notes. Gresham House Asset Management is receiving a fee of 2.5% of the money raised in the placing and convertible issue. The directors are subscribing for £409,000 worth of shares.

Late in the year AIM-quoted Inspired won three large optimisation contracts with two starting in 2025. This is later than originally expected and increases working capital requirements. It meant that the 2024 pre-tax profit was downgraded by £5m to £12.3m.

Net debt was forecast at £58m at the end of 2024. Covenants for interest cover and leverage were recently changed, and this would ensure no breach following the decline in expected profit. The cash will not be received by the company before the end of the year – a general meeting will be held on 7 January – but Inspired will start 2025 with a much-reduced debt burden. The current revolving credit facility lasts until October 2026

The retail offer is to existing shareholders and closes at 4.30pm on Wednesday 18 December. The offer is through intermediaries listed at https://www.bookbuild.live/deals/W1LJ5Q/authorised-intermediaries.

The share price ended the day at 40p, and the announcement of the fundraising came after the close. Management argues that reducing the debt burden will help to encourage a re-rating for the shares.

There are currently 105 million shares in issue. Forecast 2025 earnings were 13.6p/share before the fundraising. This will be diluted by the issue of up to 58.1 million shares. Even so, the prospective multiple should still be in single figures.

FTSE 100 dragged lower by utilities and housebuilders

UK Investor Magazine
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FTSE 100 dragged lower by utilities and housebuilders

The FTSE 100 was weaker on Monday as housebuilders, utilities, and China-focused stocks weighed on the index.

If it weren’t for strength in pharma companies and marginal gains for the UK-focused banks, the FTSE 100’s 0.3% drop would be far more dramatic.

“The FTSE 100 dipped…despite the best efforts of the pharma and banking sectors to take the UK index forwards. Energy stocks acted as a drag while Diageo also gave up some of its recent gains,” said Russ Mould, investment director at AJ Bell.

“Chinese consumers still aren’t splashing the cash, representing yet more evidence that Beijing’s economic stimulus programme isn’t cutting the mustard. Chinese retail sales grew by 3% in November, well below the 4.6% consensus estimate. That’s a big miss and puts even greater pressure on the government to be more creative with its efforts to drive household consumption.”

Investors sold UK-focused shares after news that the UK’s private sector’s employment had fallen at the fastest pace since 2021. An S&P Global Flash UK PMI survey showed employment tumbled amid concerns about the budget and rising taxes.

“Businesses are reporting a triple whammy of gloomy news as 2024 comes to a close, with economic growth stalled, employment slumping and inflation back on the rise,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

“Economic growth momentum has been lost since the robust expansion seen earlier in the year, as businesses and households have responded negatively to the new Labour government’s downbeat rhetoric and policies.”

So much for Labour’s focus on growth.

Housebuilders Persimmon, Berkeley Group Holdings and Taylor Wimpey felt concerns about the UK economy, with declines between 0.9% and 2.9%.

Entain was the FTSE 100’s top faller after announcing anti-money and counter-terrorism proceedings in Australia. The resultant 6% drop will be a real kick in the teeth for investors who were enjoying the fruits of a strategic shakeup after a prolonged period of poor performance.

“A company would never want the words ‘money laundering’ anywhere near it and that’s why news from gambling outfit Entain is potentially damaging, Russ Mould said.

“The Ladbrokes owner is being taken to court by the Australian regulator, significantly the first time it has launched civil proceedings against an online betting company, over serious non-compliance with the country’s money laundering and anti-terrorism financing laws.

“This doesn’t look to be a one-off incident, with Entain on the block for not conducting appropriate checks on 17 high-risk customers and allegedly helping them obscure their identities. The company’s recent history is chequered – it had to pay out a large sum last year for failing to prevent bribery at a former Turkish subsidiary and paid out fines over anti-money laundering failures in the UK in 2022.

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