Digital advertising services provider Brave Bison (LON: BBSN) generated slightly better than expected 2023 revenues, but the pre-tax profit estimate has been increased by 13% to £3.6m. New contract wins have helped to boost scale. The share price improved 18.9% to 2.2p.

Energy supplier Yu Group (LON: YU.) has sparked another upgrade with its latest trading statement, which reveals 2023 trading was well above previous estimates. Liberum raised its pre-tax profit estimate from £32.9m to £41m. Cost reductions, hedging and operating leverage all helped to boost margins. The dividend estimate has jumped from 6.4p/share to 17.2p/share. The share price jumped 11.7% to 1245p, which is the highest level since 2018.

Serinus Energy (LON: SENX) is preferred bidder for the KON-13 block in the onshore Kwanza basin in Angola. Serinus will be allocated a 55% working interest. This licence covers more than 1,000 square kilometres and is underexplored. The share price increased 10% to 2.75p.

Construction and asset management software provider Eleco (LON: ELCO) generated a 22% organic increase in 2023 recurring revenues to £20.7m with an additional £2m coming from the acquisition of BestOutcome. The move to a SaaS-based business is gaining momentum. The 2023 earnings estimate has been increased by 3% to 3.8p/share. The share price rose 6.9% to 93p.

FALLERS

Vast Resources (LON: VAST) has raised £1.26m at 0.1025p/share. The cash will fund development of the Baita Plai mine in Romania to access higher-grade ore. Productivity should be improved by investment through developing the decline. The share price fell 18.9% to 0.1075p.

December retail jewellery sales at H&T (LON: HAT) were weak and this has led to profit downgrades, even though the pledge book of the pawnbroker was higher than expected at £130.9m. Foreign exchange business has not grown as fast as hoped. The 2023 pre-tax profit forecast has been reduced from £29.5m to £26.6m. The dividend expectations have been trimmed to 17p/share. Wage rises will hamper progress this year, but 2024 pre-tax profit is still expected to improve to £33.5m. The share price dipped 13.3% to 345p – the lowest level for more than three years.

Great Western Mining Corporation (LON: GWMO) has secured an agreement with Crowne Point Gold & Silver for exploring the western part of the Huntoon Valley in Nevada. This is a continuation of a previous agreement. Crowne Point will be assigned a 50% interest in nine of Great Western Mining’s claim.  There could be copper and precious metals in the area. Copper and base metal discoveries will be shared 50/50, while Crowne Point will have 70% of gold and precious metals discoveries. The share price declined 12.9% to 0.0575p, but it is still higher than one week ago.

Recruitment services provider Staffline (LON: STAF) estimates a small decline in profit in 2023. Temporary recruitment gained market share, while permanent recruitment continues to be weak. Net cash was better than expected at £3.8m. Zeus has trimmed its 2023 pre-tax profit forecast from £6.8m to £6.5m but continued tough trading conditions mean that the 2024 figure has been cut by one-third to £5.6m. The share price decreased 8.16% to 22.5p.

The FTSE 100 gave up early gains on Tuesday as the weight of concerns about the timing of interest rate cuts, softer economic data, and geopolitical risks dragged on London’s leading stocks.

Another record high for the S&P 500 envigorated the bulls in the early hours of trade on Tuesday, but the rally faded throughout the session, and the FTSE 100 was trading down 0.27% at the time of writing.

“For now, markets have shrugged off their New Year malaise, but investors’ newfound optimism could be tested in the near term with central bank meetings rapidly approaching on the horizon. At some point rates will have to be cut for stocks to maintain their upward trajectory,” said AJ Bell investment director Russ Mould.

Investors will be conscious the ECB is due to announce its interest rate decision on Thursday, providing the first material insight into the thinking of major central banks this year.

ECB officials have regularly played down the prospect of interest rate cuts in Europe this year, and Thursday’s instalment will be eyed for any hints of dovishness from policymakers.

FTSE 100 movers

Miners were the standout performers as the sector bounced back from a string of poor sessions. Anglo American rose over 2%, Rio Tinto gained 1.8%, and Fresnillo 1.8%.

Indeed, there was a trend of stocks that have had a poor start to the year outperforming on Tuesday. Ocado, one of the FTSE 100’s heaviest-hit constituents of 2024, was among the risers, adding 1.9%.

Bargain hunters also took a shine to JD Sports as the sportswear retailer ticked higher after building a base around 110p. Yesterday, we explained the attractions of JD Sports in our article titled ‘JD Sports: shares look attractive after a terrible start to 2024.’

JD Sports shares had added another 1.4% at the time of writing on Tuesday.

Traders booked profits in Rolls Royce, which slipped 1.8% after meeting stiff resistance at 310p.

UK-based Cornerstone FS announced today it has signed an agreement with Mastercard to launch a co-branded corporate card product. Under the partnership, Cornerstone will issue commercial cards supported by the Mastercard network to its corporate customers.

The new Mastercard-branded cards represent a key expansion of Cornerstone’s payment capabilities. The fintech company offers multi-currency accounts to businesses through its proprietary technology platform.

According to Cornerstone FS, the corporate card scheme aligns with its strategy to expand payment options for customers. The company expects to roll out the new commercial cards in the third quarter of 2024.

James Hickman, CEO of Cornerstone, commented:

 “We are thrilled to have entered this long-term agreement with Mastercard, which will expand our product offer to include commercial cards. This additional payment rail will provide our customers with greater choice and flexibility in managing their business expenses – and it is a key step towards our goal of offering our clients the ability to pay in or pay out, in any currency, via any payment method anywhere in the world.”

Cornerstone FS recently announced revenue grew 100% in the full-year period ending 31st December. EBITDA is expected to be not less than £1.4m.

UK aviation group Esken announced new allegations from investor Carlyle Global Infrastructure Fund (CGI) regarding a technical breach of their loan agreement for London Southend Airport.

CGI is demanding early repayment of a £193.75 million loan by February 2024 that was not due until 2028.

Esken shares were down 52% at the time of writing.

Esken said it is investigating the validity of the alleged breaches and believes repayment at this time would have significant adverse implications for the company and stakeholders, including CGI. The company had viewed CGI as a long-term partner in the airport’s development.

Esken remains confident in its legal position on the original breach allegation made in September 2023. The company and its airport subsidiary will engage with CGI to resolve the issues, which they believe would be value destructive if the loan is called in early.

Esken said they see considerable value in the Southend Airport business underpinned by a buoyant air travel market after COVID-19.

Yü Group shares jumped on Tuesday after the company announced exceptional financial results, surpassing expectations for revenue and EBITDA in 2023.

The UK energy supplier reported full-year revenue is expected to top £450 million, representing over 60% organic growth year-over-year. EBITDA is also projected to significantly exceed market expectations thanks to tight cost controls and operating leverage.

Yü Group shares were 8% higher at the time of writing.

Yü Group achieved monthly bookings growth of over 120% to above £55 million on average. The company maintained a strong net cash position of £31.9 million at year end, with an additional £49.8 million held on deposit to support hedging strategies.

Bobby Kalar, Yü Group CEO, said “Our systems, processes and balance sheet strength enabled us to deliver record financials despite energy market volatility. We expect this momentum to continue as markets stabilize.”

Kalar emphasized Yü Group’s hedging strategy as key to delivering profitable growth and cash flow generation amidst turbulence. A focus on higher credit quality and predictable consumption smart meters also fueled further volume growth.

With contracted revenues of £520 million for 2024, up 111%, Kalar said “We are positioned for another year of standout performance. As prices normalize, we expect substantially higher cash flow as collateral is returned to the business.”

The FTSE 100 jumped on US stock’s tailcoats as a record high for the S&P 500 last week helped lift sentiment in Europe on Monday.

The FTSE 100 was 0.2% higher at the time of writing, while the S&P 500 extended gains amid rising optimism around technology shares.

“A strong session last Friday for Wall Street saw the S&P 500 hit a new record high and that positivity extended to Europe at the start of the new trading week,” said Russ Mould, investment director at AJ Bell.

London’s leading stocks have underperformed US counterparts in the early weeks of 2024, with the weighting towards commodities curtailing progress for the FTSE 100 amid growing optimism the Federal Reserve will cut rates in early 2024.

The FTSE 100 is down 3.3% in 2024 while the S&P has gained 1.5%. The German Dax is down 0.6%.

Monday was a fairly muted day for company earnings, and the FTSE 100 continued much in the same manner as last week. Concerns about China dragged on miners but failed to offset decent gains in gaming companies and housebuilders.

“Entain topped the FTSE 100 risers as investors piled back into the gambling sector after Flutter’s well-received update last week. Entain is the target of activist investors who have spotted an opportunity to drive change in the business after two years of share price weakness. It is also seen as a takeover target given the business has been sidetracked by numerous issues and is currently run by a caretaker CEO, making it vulnerable should a predator strike,” Russ Mould said.

Persimmon, one of the UK Investor Magazine’s Top 15 Picks for 2024, was the second top riser as investors continued to position for lower interest rates and the eventual revival of the UK property market.

JD Sports was among the best performers as bargain hunters picked up the stock after a dismal start to the year.