Harland & Wolff (LON: HARL) says that the judicial review of the Islandmagee gas storage project in Northern Ireland is in its favour. It will consider the full judgement and assess the appropriate next step. This has been a long running saga and the company will need to consider how to move ahead with and finance development of the project. The share price jumped 22% to 18p.

Kodal Minerals (LON: KOD) has agreed an extension to the funding package deadline with Hainan Mining Co. The new deadline for the financing of the company’s Mali lithium assets is 30 September. Kodal Mining is finalising the restructuring of the ownership of the assets. Engineering design work and a mineral resource update are currently being worked on. The share price moved up 18.6% to 0.51p.

Crossword Cybersecurity (LON: CCS) is improving margins and interim revenues were £1.9m and overheads are being held down. Annualised recurring revenues are £2.7m. Management believes the cyber security company can achieve 2023 revenues of £6m and £8m in 2024. The company is raising cash from a five-year, convertible loan note of up to £2.015m – shareholders have agreed to £2.5m of loan notes being issued. This will fund sales and marketing, plus product development. This could lead to cash breakeven in the second half of 2024. The share price increased 15.4% to 7.5p.

Oil and gas company i3 Energy (LON: I3E) announced better than expected interims. Production was around the level forecast, but lower costs meant that pre-tax profit improved from £9.9m to £14.5m. However, lower gas prices have led WH Ireland to reduce its fair value from 22.3p/share to 21.1p/share, although the broker believes that oil prices may rise over the next six months and that could reverse the fair value reduction. The share price rose 8.85% to 13.78p.

FALLERS

Summary results for the phase II dose ranging study assessing Orenetide for hypoactive sexual desire disorder were disappointing and that has hit the Ovoca Bio (LON: OVB) share price, which slumped 82.1% to an all-time low of 2.5p. The results of the study in Australia and New Zealand show that the treatment was not statistically significantly better than placebo. The company will have to decide how to move forward with the product and whether it should continue development. Ovoca Bio had €2.6m in the bank at the end of July.

Application specific integrated circuits designer Sondrel Holdings (LON: SND) has been hit by contract delays. Three major customers have delayed development for 6-12 months because of economic uncertainty and concerns about consumer confidence. Interim revenues will be 17% higher at £9.3m, but the full year forecast has been cut from £28.4m to £13m. Sondrel is likely to move into a net debt position by the end of 2023, but this should be temporary. The share price dived 63.4% to 20.5p.

Eneraqua Technologies (LON: ETP) says proposed changes to net nutrient rules could reduce its profit by up to £2m/year. The rules are designed to ensure that new property developments do not increase nitrate emissions. Eneraqua’s Control Flow HL2024 technology is designed to perform this service. The change to a national scheme could provide opportunities, but there will be continued uncertainty for the next few weeks. The current year’s figures are underpinned by contracts, but Singer has downgraded its 2024 pre-tax profit forecast by 28% to £5m, compared with £10.1m in 2023. The share price slipped 21.1% to 75p.

Global Petroleum (LON: GBP) is raising £250,000 at 0.1p/share and each share comes with a warrant exercisable at the same price. The share price fell 21.9% to 0.125p. The cash will be used to fund technical work on the PEL 94 licence area in Namibia, which has been extended to September 2025.

Ex-dividends

Knights Group Holdings (LON: KGH) is paying a final dividend of 2.5p a share and the share price fell 3p to 89p.

STM Group (LON: STM) is paying a final dividend of 0.6p a share and the share price is unchanged at 50p.

Supreme (LON: SUP) is paying a final dividend of 2.2p a share and the share price slipped 1p to 129p.

The UK Investor Magazine team has been on the hunt for three shares to add to a balanced portfolio.

These stocks are relatively stable FTSE 100 companies and offer a balance of growth and progressive dividends.

We have selected these stocks due to their robust earnings history, ability to increase their dividend, and weather adverse market conditions. This is not investment advice.

Prudential

Prudential provides wealth management and insurance services in Asia and Africa and has enjoyed strong growth in the most recent period.

Concerns about the Chinese economy have caused elevated levels of uncertainty around China-focused FTSE 100 companies, including Prudential. 

However, strong performance in their insurance business in the first half of 2023 has gone a long way in dispelling fears about the health of their business.

The company has revealed a new strategy to improve its business’s technological capabilities in its target markets of Africa and Asia.

An investment in Prudential is an investment in the expansion of the middle classes in Africa and Asia. 

As these emerging markets enjoy improving living standards and growing wealth, people will demand the life insurance and wealth management services offered by Prudential. 

This sets the company up for long-term growth going into the future. Prudential pays a reasonable dividend and has steadily increased payouts.

Investing at 990p will yield 1.5% – not an amazing yield but the focus here should be capital growth.

Shell

FTSE 100 stalwart Shell is a fantastic income choice.

Oil prices are being propped up by the cartel of oil-producing companies, OPEC, which is supporting Shell’s earnings and ability to pay dividends.

The oil major’s recent results reflect a normalisation in the oil market after prices spiked last year following the invasion of Ukraine by Russia. 

Oil refining margins have fallen and gas trading activity has subsided. This was to be expected and hasn’t impacted the share price tremendously. 

Shell has vast resources and will weather any major downturn in markets making it a reasonably safe pick for long-term investors. 

While the company is historically known for producing oil and gas, Shell has made substantial investments in clean energy in preparation for net zero targets due to come in for 2050.

Shell is far from becoming an out-and-out clean energy company, but it has taken the first steps in their journey to becoming one. 

Shell currently yields 3.6%.

Next 

Next is a true bellwether of the UK high street and the company has time and again proved to be the top retail pick of FTSE 100 companies.

Where Next lacks amazing growth potential, it makes up for it with stability.

The company has successfully navigated the pandemic and utilised its catalogue and online channels to support sales through the toughest economic conditions for decades.

During a period when other retailers are collapsing into administration, Next has grown sales and lifted profit guidance.

One would expect to see Next shares fall if the UK economy enters recession but this will likely prove to be an entry point for long-term investors.

Next’s dividend currently yields 3%.

The FTSE 100 gained on Wednesday as interest rate expectations boosted sentiment while Prudential led the index higher after announcing bumper new business metrics and increased their dividend.

The FTSE 100 was 0.37% higher at the time of writing.

Expectations the Federal Reserve will hold off hiking rates at their next meeting have increased after a series of softer US economic data. Dovish expectations have helped support equities with London’s leading index joining a rally in US equities.

“What appears to be bad news for the US economy is being notched up as good news for equities with a weakening jobs snapshot and slide in consumer confidence lifting indices. Signs of America’s cooling economy have raised hopes that the pause button will be pushed on punishing interest rate hikes,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

Markets have been digesting a raft of US economic data points with more to come later in the week. The highly anticipated Non-Farm Payrolls will be released on Friday and will be pored over for indications of the Federal Reserve’s next move.

Prudential

Prudential shares have been pulled from pillar to post by China’s spluttering growth and unconvincing stimulus measures. Today’s half-year report demonstrates the China-focused insurance and wealth manager’s underlying operational strength with new business profit jumping 39% to $1.5bn.

“There might be trouble in China, but that’s not caused any major hiccups with Prudential’s performance. The Asian-focused insurance giant continues to benefit from increased activity across the Asian region,” said Matt Britzman, equity analyst at Hargreaves Lansdown.

“In particular, domestic demand in Hong Kong and travellers coming over from mainland China following the opening of the border in February continue to act as a tailwind for new business. Market share performance was encouraging, especially given the tough competitive landscape in the region.

Newly minted CEO, Anil Wadhwani, has now completed his strategic review and set out plans for the medium-term future at Prudential. Nothing here looks like a major overhaul, increased focus on delivering tech distribution and more consistent client journeys across products and geographies all make sense. Organic growth and retention of existing customers look to be key, with the end goal being 15-20% growth in new business profit over the five years to 2027.”

Challenger Energy Group has secured £3.3m funding to develop their Uruguay prospects and operations in Trinidad.

Challenger Energy Group has established a convertible loan note facility of £3.3m of which £550k was initially drawn.

The primary use of the facility will to be develop Challenger’s OFF-1 and OFF-3 block offshore Uruguay. The results from the AREA OFF-1 work program have been extremely promising, in that the company now has a technically supported prospect inventory of between 1-2bn barrels in that globally attractive exploration hotspot.

Challenger Energy’s neighbours in Uruguay include majors Shell and Total. Shell has the block adjacent to OFF-1 and has substantial operations offshore Namibia which shares geological similarities with Uruguay.

“In the last year, across the broader Challenger Energy business, we have completed value-enhancing technical work, improved production operations, high-graded our portfolio, secured new assets, and ensured a range of options are available to deliver additional funds into the business,” said Eytan Uliel, Chief Executive Officer of Challenger Energy Group.

“Progress has been substantial, but the timing of when we need to spend and when we will see cash inflows is not always within management’s control. We have therefore now taken steps to ensure that we have flexible additional funding available, if and when needed, so that we can press on with accelerating new licences and high prospect business development opportunities in both Uruguay and Trinidad. In the current market we see benefit in having an established facility in place, even if we ultimately do not use it all.

“Personally, I am excited with how Challenger Energy is now poised – a honed portfolio, a clear focus on those assets which are world-class and have the potential to deliver a major value uplift in the near term, and the financial flexibility to take disciplined portfolio decisions when opportunity presents. Day by day I believe we are creating intrinsic value which I strongly believe will ultimately be rewarded, and which is why I am increasing my personal holding in the Company at this time. I look forward to sharing news of continued progress with fellow shareholders over the coming months.”

Premier African Minerals has made another critical step forward in developing their Zulu lithium project by securing an additional £5m in funding from their offtake partner, Canmax.

After renegotiating the terms of their offtake agreement, the latest round of investment signifies Canmax’s commitment to both Premier African Minerals and the Zulu project.

George Roach, CEO commented:

“Our interests are aligned, our intentions are clear. Zulu must produce now, and we must look to expand the capacity. We deeply appreciate this Subscription, that is as positive a statement of support and alignment as we could ever have asked for.”

Canmax made their commitment to Premier African Minerals by way of a £5m placing at 0.35p. Canmax now has a 17.4% stake in Premier African Minerals.

The placing has been taken well by the market, with Premier African Minerals shares trading down just 2% to 0.45p at the time of writing.

Such is the dilutive nature of placings; one could have expected shares to tank on the news. However, the market reaction today suggests the placing was already priced in and investors are confident in the longer-term prospects for the company.

Zulu progress

Premier plans to use the proceeds from its recent share subscription primarily to fund optimizations at its Zulu lithium processing plant and for working capital.

Specifically, the company expects to allocate the funds, along with proceeds from the share placing announced on August 25, to cover costs related to an interim mill installation scheduled to begin 1,000-ton-per-month spodumene production in November 2023.

Additionally, Premier anticipates using the capital to install a thickener and larger ball mill, upgrades projected to enable the Zulu plant to achieve full design capacity starting in Q1 2024.