The UK Investor Magazine is thrilled Cornish Metals, NextEnergy Solar Fund, hVIVO, and 1Spatial will join us at the London Stock Exchange 13th March for our first in-person investor event of 2024.

Featuring four London-listed companies, this UK Investor Magazine Investor Conference will provide investors with deep insight into growth companies and their investment cases.

Register for the UK Investor Magazine Investor Conference 13th March

The focal point of the investor conference will be a series of investment presentations delivered by each company and a company Q&A session.

Investment presentations will be followed by a drinks reception and the opportunity to speak with business leaders and network with fellow investors.

Featured companies:

• hVIVO (LON:HVO)
• Cornish Metals (LON:CUSN)
• 1Spatial (LON:SPA)
• NextEnergy Solar Fund (LON:NESF)

Investors are able to join the event either by attending in person or by watching the virtual event.

UK Investor Magazine Premium Members and Qualified Investors are eligible for complimentary tickets. It is free to join the virtual event.

The event will be held at the London Stock Exchange in the heart of the City of London 13th March.

Register for the UK Investor Magazine Investor Conference 13th March

Featured Companies

hVIVO

hVIVO plc (ticker: HVO) (formerly Open Orphan plc) is a rapidly growing specialist contract research organisation (CRO) and the world leader in testing infectious and respiratory disease vaccines and therapeutics using human challenge clinical trials. The Group provides end-to-end early clinical development services to its large, established and growing repeat client base, which includes four of the top 10 largest global biopharma companies.

Cornish Metals

Cornish Metals is a dual-listed company (AIM / TSX-V: CUSN) focused on advancing the South Crofty high-grade, underground tin project towards a construction decision. South Crofty is a strategic tin asset in the UK and covers the former producing South Crofty tin mine in Cornwall which closed in 1998 following over 400 years of continuous production. South Crofty is fully permitted: underground permission till 2071, water discharge permission and planning permission to build a process plant in place. In 2017 Cornish Metals completed a Preliminary Economic Assessment that demonstrated the economic viability of re-opening the mine. In 2023 an updated MRE increased tonnes by 39% and contained tin by 32% in the Indicated category for the Lower Mine.

NextEnergy Solar Fund

NextEnergy Solar Fund (NESF) is a leading specialist solar energy and energy storage investment company that is listed on the premium segment of the London Stock Exchange and is a constituent of the FTSE 250. NextEnergy Solar Fund invests primarily in utility scale solar assets, alongside complementary ancillary technologies, like energy storage.

NextEnergy Solar Fund is driven by a mission to lead the transition to clean energy.

1Spatial

1Spatial plc is a global leader in providing Location Master Data Management (LMDM) software, solutions and business applications, primarily to the Government, Utilities, Transport and Built Environment sectors via the 1Spatial platform. Our solutions ensure data governance, facilitating the efficient, effective and sustainable operation of customers around the world. Our global clients include national mapping and land management agencies, utility companies, transportation organisations, government and defence departments.

The FTSE 100 was broadly flat on Friday as a busy week for company earnings drew to a close.

London’s leading index was down just 2 points at the time of writing as Standard Chartered topped the index with a 7% gain after beating Q4 profit estimates.

A bumper session for US stocks overnight helped the FTSE 100 start the session on the front foot before the rally diminished as the session progressed.

Better-than-expected results from chipmaker Nvidia helped propel US stocks higher as markets cheered the continuation of the AI boom, which has supported equities over the past year.

“Indices around the world are hitting record highs as the latest test for investor sentiment came and went in the form of Nvidia’s results,” said AJ Bell investment director Russ Mould.

“These managed to outmatch the market’s already elevated expectations, suggesting the AI theme is very real. However, how healthy it is for a single stock to have such a big bearing on global markets is questionable.”

Whether it is healthy or not appears to be of little consequence for investors in US stocks in the short term as the S&P 500 hit fresh record highs overnight.

With European and Japanese equity indices hitting record highs yesterday, the FTSE 100’s recent performance will disappoint UK equity investors.

The defensive nature of the index, which is also heavily weighted towards commodities, has prevented the FTSE 100 from retesting record highs and down is 2.8% over the past year compared to a 26.8% gain for the S&P 500. The Japanese Nikkei is 44% higher.

However, the FTSE 100 provides a greater dividend than overseas indices, and its composition may lead to outperformance in the future.

The FTSE 100 is heavily weighted towards China, and disappointing updates from miners and HSBC this week highlight the challenges the index has faced over the past year as China struggles to build momentum.

The eventual recovery in the Chinese economy could prove to be the catalyst for the FTSE 100 to close the gap between US and European stocks.

Interest rates

Financial markets struggle to focus on more than one thing at once, and with corporate updates front and centre this week, economics and monetary policy have taken a back speak.

Expect the focus to shift back to interest rates in the coming trading sessions as the corporate calendar slows and traders once more question when major central banks will first cut rates.

With data supporting the argument major economies can withstand higher interest rates, expectations of the first-rate cuts by the Federal Reserve and BoE are being pushed further and further out. This hasn’t impacted stocks thus far, but it doesn’t mean it won’t.

“Latest figures show that the US market remains tight, which further muddies the picture for the Federal Reserve. Those banking on swift rate cuts are likely going to be disappointed,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.

Hornby shares soared on Friday after the Scalextric and Airfix owner announced Frasers Group had increased its stake in the company.

Frasers Group has acquired 1,107,575 Hornby shares to take their stake in the group to 8.9%.

Hornby shares have suffered in recent years as it struggles to attract younger generations to its collectibles offering. However, the challenges Hornby faces and the resultant performance of shares have made the company an opportunity too attractive for Frasers Group to overlook.

Hornby shares were 40% higher at the time of writing.

“Frasers has shunted its way up Hornby’s shareholder register, as it pounces on yet another retail name that’s been going through hard times,” said AJ Bell investment director Russ Mould.

“While Hornby’s shares have struggled for years, they’ve recently started to perk up and the appearance of Frasers on the shareholder register has given them another boost.”

Mould continued to explain that investors shouldn’t get ahead of themselves expecting a full takeover approach by Frasers Group.

“Don’t expect Frasers to launch a takeover bid for the group. Its style is to only acquire when something is on the verge of going bust as it prefers to pay pennies to buy something outright. Instead, Frasers is more likely to seek strategic conversations about helping Hornby to improve its distribution and logistics while at the same time realising it might be able to make a few quid by investing in its shares,” Mould said.

“At first glance, it’s not the most logical tie-up for Frasers which is best known for sporting equipment and athleisure. Train sets and tracksuits are about as far removed as you can get. Yet Frasers has shown willingness to explore different ways to get consumers to part with their cash. After all, it went from sporting equipment into sofas and computer games which is not a natural path to take.

“The real connection between Frasers and Hornby is the former’s GAME shops which have progressed from consoles and computer games to now also selling board games, trading cards and toys. Hornby’s products sit on GAME’s shelves and Frasers clearly spots an opportunity to do more.”

Standard Chartered wrapped up FTSE 100 bank Q4 updates in fine form on Friday with a profit beat that sent shares sharply higher.

UK banks have had mixed reactions to updates this week, with the balance of profits, outlook, and shareholder returns driving immediate share price moves.

Standard Chartered shares over 8% at the time of writing on Friday as the company excelled on all three.

STAN’s Q4 underlying profit before tax was $1.1bn, up 74% compared to the same period last year as impairments fell and net interest income rose 6%.

Share buybacks and increased dividends have been a theme across UK banks results over the past week and Standard Chartered did not disappoint.

The group will pay a 27 cent final dividend meaning full year dividends are up 50% on last year. In addition, shareholders will benefit from a fresh $1bn share buyback.

The icing on the cake for Standard Chartered investors was a very positive outlook. The company said it was targeting an operating income increase of 5%-7% from 2024 to 2026 and saw this at the top end of the 5%-7% range in 2024.

“Standard Chartered’s fourth quarter results benefited from lower impairments like many of its peers. Profit before tax beat expectations largely due to a release of impairments back to profit from one of its divisions. Strip that out and underlying performance was a little weaker than expected, but the focus will be on guidance,” said Matt Britzman, equity analyst, Hargreaves Lansdown.

“The outlook for 2024 is a smidge lower than analysts had priced in but the medium-term guidance out to 2026 shows promising signs. Volume growth, cost cuts and a benefit from the structural hedge are expected to help deliver a return on tangible equity of 12% in 2026 (10% 2023). If delivered, that should provide a material tailwind to the current valuation.

“The China story remains in focus. Standard took another write-down of its investment in the domestic Chinese bank, Bohai, over the quarter – taking the total to $850mn for the year. The stark performance difference between onshore and offshore business in China highlights the challenging domestic environment.”

Predator Oil & Gas shares sank this week following disappointing results from its onshore Moroccan gas assets, which piles pressure on the company to deliver results in the next testing phase.

Morocco is considered Predator’s foremost project by many, and the formation damage setback during phase 1 of testing was a blow to investors looking forward to production this year. The commencement of phase 1 had already been delayed due to administrative constraints.

Predator Oil & Gas shares are down 42% over the past week.

Near-term success in Morocco has the potential to be a company maker. However, any further delays or setbacks risk eroding the opportunity for long-term shareholder value creation.

In November, Predator said they were in the ‘fortunate’ position to be fully funded to complete works in Trinidad and Morocco after the company raised £7m at 11p by way of an accelerated book build in the middle of last year.

“Given that the Company is well-financed to deliver all of its current near-term firm strategic objectives for its substantially de-risked oil and gas portfolio, any dilution of project equity would need to be a compelling value proposition for shareholders,” the company said in November.

This suggests the funds are readily available for phase 2 of the efforts to establish gas flow in Morocco.

That said, investors should expect delays in any natural resource development programme. In addition, they should be prepared for fluctuating capital requirements.

Executive Chairman Paul Griffiths said this week there was discretionary cash available for the sandjet programme while conceding they need gas to flow as a result of the programme.

The comments would infer there is an awful lot of pressure on the next phase to be successful. There is a sense the company had always seen the phase 2 sandjet programme as the most important phase. Yet, the risks attached to it not being successful were evident this week as PRD shares plunged on phase 1 disappointment.

Predator has not provided details on the potential scenarios if the sandjet programme does not go to plan. It is unclear whether additional funds will be required to pursue another phase in Morocco or extend the sandjet programme beyond that already budgeted.

Last year, Predator alluded to both Trinidad and Morocco being close to production. Trinidad may provide a fallback if Morocco faces further delays and costs spiral. Still, it will be a bitter pill to swallow, especially if additional cash is needed in Morocco before Trinidad starts production.