Travis Perkins offered investors reason to be optimistic by recording modest revenue growth in the third quarter, with like-for-like sales rising 1.8% in the three months to 30 September 2025.
The building materials supplier said actions taken to sharpen its competitive proposition in the Merchanting segment have improved performance.
Its General Merchant business showed notable improvement, with like-for-like volumes up 2.5% despite a 0.8% decline in price and mix.
However, trading conditions remain challenging in Specialist Merchants’ markets, which continue to face subdued demand. The Labour government can be blamed for the conditions impacting Travis Perkins and the rest of the construction industry.
Travis Perkins shares were down 1% at the time of writing on Thursday, but there is only minor profit taking in the context of recent gains.
“As we outlined at our half year results, in the third quarter we have consciously focused on building top-line momentum and regaining market share in the Merchanting businesses,” said Geoff Drabble, Chair of Travis Perkins.
“I am pleased with how our teams have responded to this challenge with Merchanting returning to revenue growth and our operating performance stabilising.
“In what remains a highly competitive market, we have invested in pricing and targeted promotions and will continue to do so in the near-term. We continue to demonstrate good discipline on capital allocation and overheads which will allow us to reinvest in our proposition and position the Group well as we look forward to Gavin Slark’s arrival as CEO in January.”
Toolstation delivered solid results with like-for-like revenue growth of 2.3% and total revenue up 3.0%. The tool retailer is focusing on strategy execution whilst taking steps to drive further operating margin improvement.
Although Q3 growth will be welcomed, the group will need to do more to prove that the worst is behind them.
For the year to date, the group has seen like-for-like sales decline 0.2%, with total revenue down 1.3%. Merchanting has struggled with a 2.1% fall in total revenue, whilst Toolstation has proved more resilient with growth of 2.8%.
The company said it continues to make good progress on enhancing cash generation, further strengthening its balance sheet.
The FTSE 100 missed out on a global equity rally on Wednesday as pharma stocks and other overseas earners weighed on the index amid hopes of a US interest rate cut.
London’s leading index was 0.4% in the red at the time of writing, underperforming the German Dax’s 0.2% gains and a surging 2% rally in the French CAC.
The softer session for the FTSE 100 also ran counter to S&P 500 futures, which pointed to a higher cash open.
The key driver of stocks on Wednesday was the uptick in hopes of US interest rate cuts after a speech by the Federal Chair that signalled rate setters were preparing to lower borrowing costs.
“Markets have been lifted by the rekindling of rate cut expectations in the US after comments from Fed chair Jerome Powell which highlighted sluggish hiring were taken as an indication that not one, but two further cuts were very much on the table for 2025,” says Danni Hewson, AJ Bell head of financial analysis.
“Buoyed by continued deal making in the frothy AI sector, investors seem prepared to overlook the growing number of warnings about the potential for a market correction at the moment, but this earnings season will be crucial if that optimism is to continue.”
This optimism wasn’t evident in London, and the FTSE 100’s lack of tech exposure and inverse relationship with the pound can be blamed for the drop on Wednesday.
Pharma giants AstraZeneca and GSK were down heavily. As the FTSE 100’s largest constituent, Astra’s 2.3% drop weighed on the index, offsetting gains for Burberry and Ashtead.
Burberry enjoyed the positive effects of strong results from LVMH that showed the luxury brand had returned to growth. LVMH shares were 14% higher at the time of writing, helping propel the CAC over 2% higher.
Entain was the FTSE 100’s top faller after the betting firm released a reasonable, but uninspiring, third quarter trading update.
“It was very much a case of ‘steady as she goes’ from Entain this morning,” explained Chris Beauchamp, Chief Market Analyst at IG.
“The group remains on track, but after the surge from April’s low the share price is clearly looking for something more exciting, though it has only been three months since it upgraded guidance for the year. So long as Entain can show more progress at its next update then shareholders will remain content – the longer-term picture in the share price suggests it has turned a corner, after a severe decline from 2021-2024.”
Entain shares were down over 3% at the time of writing.
Growth is accelerating at decision intelligence software supplier ActiveOps (LON: AOM) with interim revenues 45% higher at £20.8m, including three months of the Enlighten acquisition. Annual recurring revenues are 55% higher at £44.6m and still grew 27% excluding Enlighten. Organic net revenues retention was 116%. Net cash is £13.3m. The full benefits of the Enlighten acquisition will come through next year. The interim results will be published on 27 November. The share price jumped 25.3% to 213p.
Red Rock Resources (LON: RRR) has conditionally agreed to sell its subsidiary that holds gold exploration licences in the Ivory Coast to ASX-listed Dalaroo for 13.25 million shares. The shares are currently valued at A$715,500. There will also be a resource definition royalty of A$2 pe ounce of indicated resource. The share price increased 14.3% to 0.04p.
North America was the bright spot in revenues at interior design brands owner Sanderson Design Group (LON: SDG). North American revenues rose 1%, while elsewhere they fell 9%. There are signs of recovery outside of the UK. Interim revenues fell 4% to £48.3m. Cost savings meant that underlying pre-tax profit was flat at £2.2m. Restructuring the manufacturing business improved its margins, but there was lower internal production as inventory levels fell. That helped improve the cash balance which was £7.8m at the end of July 2025. A further £1m of annual cost savings have been made and August and September revenues wee 5% ahead. Full year pre-tax profit is expected to recover from £4.4m to £5m. The share price improved 10.5% to 52.5p.
Sensing and motion capture software developer Oxford Metrics Group (LON: OMG) confirmed that profit and revenues are broadly in line with expectations, despite problems with academic funding in the US. Smart manufacturing has performed strongly. Revenues ae slightly below forecast, but operating profit is in line with the expectations of £2.38m. However, the 2025-26 operating profit has been downgraded to £3m. Cash was £37m at the end of September 2025. The share price recovered 12.2% to 43.75p.
Light Science Technologies (LON: LST) has increased the quoted AgTech business pipeline to £45m. It has also extended its distribution framework agreement with horticulture lighting supplier Gavita International. Recent orders have been won internationally. The share price rose 8.86% to 4.3p.
FALLERS
Renewable energy projects developer Coro Energy (LON: CORO) has secured a new EPC loan for the next 2MW of rooftop solar with Mobile World Group. This will fund 70% of the cost of the 2MW installation and will be repaid in monthly instalments over five years at an annual interest charge of 10% in the first year. This helps to match income and cash outflows. The share price declined 5.56% to 0.425p.
Gresham House Asset Management increased its stake in financials businesses investor TruFin (LON: TRU) from 19% to 20.2%. The share price fell 4.78% to 109.5p.
Podcast platform operator Audioboom (LON: BOOM) increased third quarter revenues by 9% to $20.4m and EBITDA by 18% to $1.2m. There is strong growth of video views, following the Adelicious acquisition. Nine months revenues are 5% higher at $55.5m, while EBIDA more than doubled to $3m. Booked revenues for 2025 are more than $79m. A strategic review is ongoing. The share price dipped 4.03% to 595p.
GenIP Plc has secured its first technology park partnership, collaborating with Pelotas Science Park in Brazil to deliver GenAI commercialisation services.
The park—a “quadruple helix” innovation hub uniting government, academia, industry, and civil society—houses 63 enterprises, 23 partner institutions, and the Candy Valley startup network. GenIP will guide tenant companies and incubated startups through technology investment and commercialisation decisions.
The partnership accelerates GenIP’s strategic goal to diversify its client base to include more corporates. The company has so far been very active with university research departments, so today’s news looks to be the first step into what could be a more lucrative market.
By tapping into the tech park’s concentrated ecosystem of corporate entities and startups, GenIP gains direct access to multiple commercial clients through a single relationship. One tech park. Multiple clients.
The Brazil deal looks to establish a blueprint. More park alliances could follow.
“Our collaboration with Pelotas Science Park represents an important milestone for GenIP as we expand our reach beyond universities to support entire innovation ecosystems,” said Melissa Cruz, CEO of GenIP.
“Science parks play a vital role in Technology Transfer by connecting researchers, startups, and industry partners, and we’re proud to provide the analytical foundation that helps their tenant companies identify commercially viable technologies and attract investment. This partnership reflects our broader strategy to deepen engagement with industry and startup communities, bringing us closer to our goal of achieving 45% industry participation.”
The UK Investor Magazine was delighted to welcome Brendan Callan, CEO of Tradu, back to the podcast to explore what zero commission trading means for individual traders and the market as a whole.
Zero-commission trading is breaking down barriers for retail investors and making financial markets more accessible to everyone seeking to secure their financial futures.
We explore the pros and cons of zero-commission and the practices investors should be aware of.
Brendan discusses Tradu’s approach to zero-commission trading and the values that guide their offering for traders and investors.
Hargreaves Lansdown investors have piled into US and technology funds amid the market recovery from the tariff-induced sell-off, according to the latest data released by the platform this week.
Funds that focus on US equities were clear favourites among HL investors who clearly saw a bargain in the world’s largest companies in the third quarter. That bet has paid off with the S&P 500 adding more than 30% since its April low.
“The risk-on sentiment following the Liberation Day losses back in April has continued, with US tariff uncertainty reducing over Q3, providing a tailwind for US and Global stock markets, many of which have hit new all-time highs over the quarter. The AI theme also continues to dominate market returns, with share prices of the big tech players in this space rising further,” said Joseph Hill, senior investment analyst, Hargreaves Lansdown.
“In this environment, it’s no surprise that Q3 saw HL investors return to old favourites, with funds with a global, US or technology focus dominating the most popular choices across different ISA accounts.”
Hill also highlighted that HL investors had a propensity to opt for passive options with just one fund of the top ten bought funds being actively managed.
“The trend towards passive investing also continued, with 9 of the top 10 funds bought by HL clients in Stocks & Shares ISAs, Junior ISAs and Lifetime ISAs being passive. The low fees associated with passive funds continue to prove attractive to retail investors purely looking for broad market returns,” Hill said.
“Artemis Global Income was the sole active fund to feature in the most popular funds with HL clients in Q3 across the different types of ISA accounts.”
Most bought funds, HL Stocks and Shares ISA, Q3 (net buys)
Following the news from Norcros (LON:NXR) that it had received clearance from the UK Competition and Markets Authority, the group this week has completed the £46m acquisition of Fibo Holdings, a major wall panel supplier in Norway.
That deal adds another market-leading brand into the group, that is the number one bathroom products business in the UK and Ireland, helping to create a leading presence in waterproof wall coverings markets across the UK&I, Scandinavia and Central Europe.
Waterproof decorative wall panels are an attractive, high-growth market segment and the ac...
Oxford Metrics is valued at just a little over its cash balance despite the firm returning to year-on-year revenue growth for the financial year ending 30 September 2025.
In a trading statement released on Wednesday, the smart sensing and software company said it expects revenue and adjusted EBIT to be in line with market forecasts of around £46.2m and £2.3m, respectively.
Oxford Metrics has around 10,000 clients across 70 countries.
The firm’s flagship Vicon motion capture division showed resilience despite US academic funding challenges, supported by stronger performance in other regions and markets.
Oxford Metrics’ smart manufacturing segment performed well. Both IVS and Sempre delivered robust organic and inorganic growth through improved management execution.
Notably for investors, the group closed the year with £37.0 million in cash – only just below its market cap of around £45 million. This was after £5.4 million in acquisition costs, £4.2 million in dividends, and £8.3 million allocated to share buybacks.
The company has very little debt.
“FY25 was a year of strong strategic progress for Oxford Metrics,” said Imogen O’Connor, CEO of Oxford Metrics.
“Continued innovation, including the launch of new products, further strengthens our position across diversified, high-value niches and aligned to market trends. With a healthy balance sheet and a clear strategic direction, we enter the new financial year well placed to pursue the exciting growth opportunities ahead.”
Podcasting platform Audioboom Group has enjoyed a record third quarter as the impact of acquisitions and higher engagement helped boost revenue and profits, but revenue growth is falling
The company posted Q3 adjusted EBITDA of $1.2 million, up 18% from $1.0 million in the prior-year quarter. Revenue climbed 9% to $20.4 million from $18.8 million.
However, the third-quarter EBITDA growth was slower than the year-to-date pace, and revenue growth wasn’t anything to write home about.
Adjusted EBITDA profit for the nine months ended September 30 surged 127% to $3.0 million, compared with $1.3 million in the same period last year.
Worryingly for investors, revenue growth is slowing. Revenue so far this year is $55.5 million, up just 5%. Revenue grew 13% in the 2024 full-year period.
“Audioboom’s positive performance has continued through the third quarter of the year and alongside record Q3 revenue, gross profit, and adjusted EBITDA, the third quarter of 2025 marked a turning point in the Company’s story with the successful acquisition and integration of Adelicious, highlighting the long-term value our platform business can deliver through accelerated expansion,” said Stuart Last, CEO of Audioboom.
The July acquisition of Adelicious Limited significantly boosted operational metrics. Average monthly distribution soared 40% to 135 million downloads and video views from 96 million in Q3 2024. The deal created the UK’s second-largest podcast network and was fully integrated by September 1—two weeks ahead of schedule.
However, the Adelicious acquisition temporarily pressured margins. Q3 revenue per thousand downloads fell to $51.92 from $66.06 due to lower-yield UK inventory, though management views this as an opportunity for medium-term value creation in the British market.
Audioboom Group shares were down 6% at the time of writing.
It is nearly five years since Nick Purves and I had the honour to be appointed as the new portfolio managers of the Temple Bar Investment Trust, and whilst we believe that the expression ‘pride comes before a fall’ is probably more true in asset management than almost any other walk of life, we think we can look back at what we have achieved with a sense of tempered satisfaction.
Some notable highlights since we were appointed at the end of October 2020:
A total share price return of 211%[1]
Number one in the UK Equity Income Sector per Citywire over 1, 2, 3 and 5 years[2]
Progressive dividend growth driven by both increasing revenues and the recent change of policy to supplement the dividend from capital
Discount closed over the period of our management to now trade at a modest premium
Market cap of £1bn reached for the first time on 23 September 2025[3]
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
In this letter to our shareholders, therefore, we would like to look back at the last five years and highlight what we see as some of the most important lessons.
1. Value investing isn’t dead
2020 was the end of a very unusual decade in which growth investing as a style had produced better returns than value. The chart below demonstrates just how rare this is.
This prompted some commentators to claim that value investing was dead. To us, this seemed an odd conclusion to draw. If you define value investing as an investment approach that seeks to buy businesses for significantly less than they are worth, how could that ever be dead?
“All intelligent investing is value investing — acquiring more than you are paying for. You must value the business in order to value the stock.” Charlie Munger
“We think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?” Warren Buffett
2. Active fund management can add value
In recent years, active fund managers have had a tough time in general. Those focused on US equities have found it especially hard, with the index being powered upwards by the so-called Magnificent Seven stocks. This was seized upon by cheerleaders of passive investing as evidence that active investing no longer worked. Whilst, on average, this is perhaps a fair assessment, one should always be wary of conclusions based around averages – as the six-foot tall man who drowned crossing a river that was five feet deep on average found out to his cost. Our experience, and that of Temple Bar’s shareholders, suggests that the disciplined application of a value investment strategy can still produce returns in excess of the wider market in the long run.
3. You can make good returns in UK equities
The UK equity market was written off for not having enough exposure to exciting technology stocks and, latterly, because of the anti-business, anti-growth economic policies of the current government. And yet, the 211% total return from Temple Bar over the period of our management has been significantly in excess of the 112% from the US stock market despite the fact the latter benefited from the returns of the Magnificent Seven stocks[4]. It is always worth remembering that a country’s economy is not the same as its stock market. Encouragingly for Temple Bar shareholders, the UK market continues to languish at one of the lowest valuations seen over the last fifty years whilst the US is, on some measures, more expensive than it has ever been.
4. It is the volatility that creates the opportunities…
Without a shadow of a doubt, the strong returns that Temple Bar shareholders have enjoyed over the last five years are a function of the start point. It is easy to forget the level of fear that existed at the start of the pandemic, but this is perhaps best illustrated by the fact that the share price of NatWest in 2020 was at the same level as in the depths of the Global Financial Crisis in 2008, when the government nationalised its predecessor Royal Bank of Scotland[5]. It is this extreme level of fear that sometimes causes investors to make emotional, possibly irrational decisions, but provides opportunities for those able to tame their emotions, go contrary to the crowd and think long term.
“It is largely the fluctuations which throw up the bargains and the uncertainty due to the fluctuations which prevents other people from taking advantage of them.” John Maynard Keynes
5. No company is so good that it can’t be turned into a bad investment by paying too high a price for it
In the years following the Global Financial Crisis, it is fair to say that there were some very high-quality companies trading at valuations which did not adequately reflect their strengths. Investors in our open-ended funds will know that we owned shares in Microsoft in 2010 because it was an unpopular business at that time and hence could be bought for eight times its earnings, which seemed to represent good value to us. Ten years later, however, many businesses like Microsoft had rerated to valuations which were so high that they virtually guaranteed poor returns.
“There’s no such thing as a good idea or bad idea in the investment world. It’s a good idea at a price, it’s a bad idea at a price. Whenever we consider an investment, we think just as much or more about what can go wrong as about what can go right, and we put the avoidance of losses on a high pedestal.” Howard Marks
6. It is foolish to put a line through a sector and declare it ‘uninvestable’
One of the key contributors to the returns Temple Bar shareholders have enjoyed has been its investments in the UK, with perhaps NatWest being the standout performer having risen by 440% in the last five years[6]. One of the reasons returns have been so good is that the fundamentals have been very strong with earnings per share going from 25p in 2021 to an estimated 61p in 2025[7]. The key factor, however, was that the sector was utterly loathed five years ago with some investors declaring it ‘uninvestable at any valuation’. Thus, you were being offered the opportunity to buy businesses at very low valuations just at a time that their fundamentals were set to dramatically improve – almost the perfect investment opportunity.
7. We benefit from the increasing number of investors for whom valuation is irrelevant
We continue to believe that starting valuation is one of the best guides to long-term returns and that if you buy a stock at a significant discount to intrinsic value, not only do you have a margin of safety built in to your investment, but over time you should gain an excess return as the controversy declines and the share price moves towards intrinsic value. Interestingly, however, fewer and fewer investors seem to use valuation as part of their investment process. According to some estimates, passive funds now account for almost half of the equity market and obviously take no account of valuation (arguably they allocate more of their money to the larger, often more expensive stocks in the index)[8]. The growth of multi-strategy funds (or pod shops) has had a similar effect since these ‘investors’ are very short term and have no regard for valuation. We believe that, in the long term, this puts investors like us, for whom valuation is the cornerstone of a disciplined process, at an advantage, since it should lead to more securities being mispriced in the stock market.
8. Don’t be too quick to take a profit
Temple Bar’s shareholders would not have enjoyed such strong returns if we had been too quick to take a profit. As time has gone on, we are increasingly convinced that inactivity is a blessing and that you should run your winners. When a struggling business begins to improve, the effect will often last for years and investors are often repeatedly surprised at how positive operational gearing feeds through to profit growth. As a share price responds to an improving trend in profits, momentum investors who wouldn’t look at the company when it was available at, say, five times earnings may feel compelled to invest in it at a much higher valuation. Hence, the share price often goes far further than we may have initially thought. Both NatWest and Marks and Spencer, for example, have exceeded our initial expectations in recent years in terms of earnings growth and multiple expansion – we have allowed both positions to run higher in the portfolio, keen not to take a profit too early.
9. The investment trust structure is a good one especially for the retail investor
Temple Bar is nearly one hundred years old and there are those who argue that the investment trust structure is antiquated and no longer fit for purpose. Our experience of the last five years would suggest exactly the opposite. Whilst liquidity means that the largest wealth managers cannot move around the market using investment trusts as vehicles, for the smaller shareholder, they have significant advantages. Truly independent and strong Boards such as Temple Bar’s work in the best interests of their shareholders, as evidenced recently with the enhancement of the dividend using the capital account to reflect the shift by UK companies from paying dividends towards share buybacks. Finally, returns have been enhanced through the disciplined use of gearing.
10. Boards have the ability to add (or destroy) significant value particularly at inflection points
None of this would have happened if the board had capitulated to the wisdom of the crowds in 2020 and proposed to switch the style of the trust from value to growth. With the benefit of hindsight this seems an obvious decision, but the board did not have this benefit and moreover several other trusts switched style at exactly that time. Shareholders owe an enormous debt of gratitude to the current and former board members who took the brave decision to stick with value investing when many others were throwing in the towel.
Looking forward
In closing, we would note that the stock market is always intriguing, but the events of the last five years have perhaps made this period one of the most fascinating of our careers. We would like to thank the board for their support throughout this period and you, our shareholders, for putting your faith in us. What excites us both as we reflect on our five years as portfolio managers for Temple Bar is that we strongly believe that this journey is far from over. On many measures, today’s Temple Bar portfolio looks as attractive as it has done throughout our tenure, and for that reason, we look forward to the next five years… at least!
[1] Source: Bloomberg from 30 October 2020 to 30 September 2025 on a share price total return basis in UK sterling.
[2] Source: Citywire to 30 September 2025 on a NAV total return basis in UK sterling
[3] Source: Bloomberg as at 23 September 2025
[4] Source: Bloomberg from 30 October 2020 to 30 September 2025 on a total return basis in UK sterling
[5] Source: Bloomberg
[6] Source: Bloomberg from 30 October 2020 to 30 September 2025 on a total return basis in UK sterling
[7] Source: Bloomberg as at 10 October 2025
[8] Source: Morningstar, March 2025
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Forecasts and estimates are based upon subjective assumptions about circumstances and events that may not yet have taken place and may never do so.
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment. Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. Information contained in this document should not be viewed as indicative of future results. The value of investments can go down as well as up.
This article is issued by RWC Asset Management LLP (Redwheel), in its capacity as the appointed portfolio manager to the Temple Bar Investment Trust Plc. Redwheel is authorised and regulated by the UK Financial Conduct Authority and the US Securities and Exchange Commission.
The statements and opinions expressed in this article are those of the author as of the date of publication.
Redwheel may act as investment manager or adviser, or otherwise provide services, to more than one product pursuing a similar investment strategy or focus to the product detailed in this document. Redwheel seeks to minimise any conflicts of interest, and endeavours to act at all times in accordance with its legal and regulatory obligations as well as its own policies and codes of conduct.
This document is directed only at professional, institutional, wholesale or qualified investors. The services provided by Redwheel are available only to such persons. It is not intended for distribution to and should not be relied on by any person who would qualify as a retail or individual investor in any jurisdiction or for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation.
The information contained herein does not constitute: (i) a binding legal agreement; (ii) legal, regulatory, tax, accounting or other advice; (iii) an offer, recommendation or solicitation to buy or sell shares in any fund, security, commodity, financial instrument or derivative linked to, or otherwise included in a portfolio managed or advised by Redwheel; or (iv) an offer to enter into any other transaction whatsoever (each a Transaction). No representations and/or warranties are made that the information contained herein is either up to date and/or accurate and is not intended to be used or relied upon by any counterparty, investor or any other third party. Redwheel bears no responsibility for your investment research and/or investment decisions and you should consult your own lawyer, accountant, tax adviser or other professional adviser before entering into any Transaction.
