The UK is in the grips of a slowdown induced by higher National Insurance and low consumer confidence, caused in large part by the government’s approach to economic policy.
The UK produced zero growth in July after growing 0.4% in June and falling 0.1% in May.
In addition to rising taxes, UK growth is still suffering from a cost of living crisis and higher interest rates.
The combination is providing to be toxic and the weak economic leadership from central government is not onlt be rcognised by low or zero growth, but also by the bond market that have been dumping long dated gilts.
The pound was down against the dollar on Friday morning with GBP/USD trading at 1.3563.
Scott Gardner, investment strategist at digital wealth manager, Nutmeg, said: “Few positives can be found from this latest batch of GDP data with UK economic growth coming to a standstill during July and little sign of expansion across any of the key industries that make up the monthly reading.”
“The manufacturing industry clearly slowed heading into the summer holidays. That said, retail sales offered a slight reprieve with the good weather driving an increase in non-food spending over the month. The lack of activity across the economy during July suggests that businesses are continuing to digest the dual impact of April’s changes to National Insurance contributions and the increase in the living wage. Uncertainty both at home and abroad continues to be a barrier to sustained growth, consumer spending, and investment.”
Video media platform SEEEN (LON: SEEN) shares have returned from suspension following the publication of the 2024 accounts. Revenues were 48% ahead at £3m and the loss was £1.6m. The interims are due in the next few weeks. These could show a reducing loss. A 2025 loss of £600,000 is forecast on revenues of £5m. The share price rebounded 28.6% to 4.5p.
ImmuPharma (LON: IMM) has raised £125,000 from the exercise of warrants at 5p each. The share price is 18.1% higher at 12.75p, having been lower earlier in the day.
Distribution Finance Capital (LON: DFCH) is growing faster than expected and it is taking market share with its inventory financing product. Underlying interim pre-tax profit, excluding last year’s one-off gain, improved from £7.5m to £9m. New loan originations were £828m in the first half and the loan book grew to £728m at the end of June 2025. Bad debt provisions were 0.63%. The first half growth was before any contribution from the new asset finance product, where the first loans were in the second half. The new business will be loss making in the second half. Even so, Panmure Liberum has upgraded its 2025 pre-tax profit forecast from £14.5m to £18m, helped by a higher than anticipated net interest margin. Net tangible assets are 70.2p/share. The share price improved 10% to 55p.
Digital marketing service provider Brave Bison (LON: BBSN) is acquiring MTM, a strategy and audience insights consultancy, whose clients include Google and Formula E, for an initial £5m in cash and £1m in shares with a further £2m in shares dependent on management retention after three years. There are performance-related payments of up to £4m over five years. That will come out of cash flow. Brave Bison increased interim revenues by 19% to £12m, while pre-tax profit edged up to £1.9m. The share price increased 6.56% to 69p.
DISH TV and its streaming TV brand are going to use the Bango (LON: BGO) Digital Vending Machine (DVM) technology to launch new subscription and bundle offers. The share price recovered 5.41% to 97.5p.
Mixer drinks supplier Fevertree Drinks (LON: FEVR) is creating additional distributable reserves by cancelling the share premium account to enable share buybacks and future dividends. The current share buyback is being extended to £30m. Interim revenues were 2% lower at £172.2m with growth in the US partly offsetting declines elsewhere. Pre-exceptional profit improved from £13.2m to £15.3m due to higher interest receipts. Cash nearly doubled to £130m. The dividend is 2% higher at 5.97p/share. The share price rose 8% to 837p.
FALLERS
Shares in cross-border payments services provider Finseta (LON: FIN) have fallen a further 10.1% to 15.5p after yesterday’s disappointing interims and trading statement due to customers delaying US dollar transactions due to foreign exchange volatility. Shore downgraded its forecasts and estimates a 2025 loss of £400,000 in 2025.
Mycelx Technologies Corporation (LON: MYXR) has closed he restricted line of Regulation S shares, and 1.38 million shares have been transformed into common shares. The shares will stop trading on 12 September and fell 11.1% to 40p, while the common shares (LON: MYX) are unchanged at 27p.
Ex-dividends
Colefax Group (LON: CFX) is paying a final dividend of 3.1p/share and the share price is unchanged at 835p.
Churchill China (LON; CHH) is paying an interim dividend of 7p/share and the share price declined 12p to 415p.
DSW Capital (LON: DSW) is paying a final dividend of 2p/share and the share price fell 2p to 57p.
Everplay (LON: EVPL) is paying a dividend of 1p/share and the share price rose 3p to 390p.
Franchise Brands (LON: FRAN) is paying an interim dividend of 1.15p/share and the share price fell 3.5p to 137.5p.
Midwich Group (LON: MIDW) is paying an interim dividend of 1.75p/share and the share price is down 11.5p to 181p.
Ramsdens (LON: RFX) is paying an interim dividend of 4.5p/share and the share price dipped 5p to 360p.
Solid State (LON: SOLI) is paying a final dividend of 1.67p/share and the share price deceased 1.5p to 156p.
Uniphar (LON: UPR) is paying an interim dividend of 0.71 eurocents/share and the share price is unchanged at 351p.
Trainline shares steamed 8% higher on Thursday after the group released a positive trading update and announced a fresh £150m share buyback.
Trainline shares had previously been derailed by slowing growth, and investors will hope today’s update means the company is back on track.
The group delivered performance in the first six months of its 2026 financial year that should please investors. Group net ticket sales rose 8% year-on-year to £3.2 billion, tracking towards the upper end of the company’s annual guidance.
Group revenue increased 2% to £235 million, also performing at the top of management’s expectations despite headwinds from reduced commission rates and changes to Google’s search algorithms affecting international bookings.
“Trainline raised its profit guidance and announced a £150m buyback, a move that reflects both strong cash generation and confidence in future growth,” said Lale Akoner, global market analyst at eToro.
“Net ticket sales rose 8% to £3.2B, with standout 34% growth in France as new competition on high-speed routes attracted more passengers.
“The UK business remains solid, but it’s the international side that’s proving Trainline’s ability to capture demand as markets open up. While the UK remains steady, the real driver is European rail liberalisation, where rising competition is fuelling demand and giving Trainline the chance to capture a bigger share of a growing market. Recent momentum in France highlights how structural changes can translate directly into earnings upside.”
Geopolitics were again the main driving force behind UK stocks on Thursday as European defence shares rose for a second session.
The FTSE 100 was trading 0.4% higher at the time of writing, with investors awaiting key US inflation data due for release on Thursday.
“Despite a mixed session on Wall Street last night and a small rise in the Vix volatility index, pockets of Europe and Asia moved higher on Thursday,” says Russ Mould, investment director at AJ Bell.
“The UK’s FTSE 100 led the charge in Europe as defence and energy stocks were at the top of investors’ buy lists. Ongoing geopolitical tensions have led investors to have confidence in the defence sector, believing earnings prospects are strong given a fragile backdrop. BAE Systems’ share price has risen by 45% over the past 12 months and up 271% over five years.”
BAE Systems shares were 4% higher at the time of writing and were the FTSE 100’s top risers. Babcock rose 1.3%.
Away from geopolitical tensions, investors were gearing up US inflation data and potenital signals of what the Federal Reserve will do next week when it meets to decide on interest rates.
“Headline US consumer inflation (CPI) is expected to tick up to 2.9%, the highest since January,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“A hotter-than-expected number could reignite rate fears and test the market’s lofty valuations, while an inline or softer print may reinforce the “Goldilocks” narrative that’s been powering equities to record highs. Core inflation holding steady at 3.1% will be key for gauging how sticky underlying pressures remain.”
Away from BAE Systems, there were few major movers on Thursday morning as investors held off making big bets ahead of inflation data. One would expect this change after 1.30pm when CPI data is released, especially if it’s materially different to economists’ expectations.
Oil shares helped add a number of points to the FTSE 100 index as oil prices held firm after a recent rally.
“Oil producers Shell and BP were in demand despite oil prices taking a breather from the recent rally,” Russ Mould said.
“The industry is undertaking a broad cost-cutting exercise, slashing jobs and pausing projects. However, big oil companies are still making profits, and dividends and buybacks are not under threat at current oil price levels, hence ongoing investor interest in the sector.”
Klarna surged higher in its US debt yesterday after the fintech raised $1.4 billion at a $15 billion valuation to accelerate the growth of its ‘buy now, pay later’ offering, as well as explore additional opportunities in digital banking.
The stock closed yesterday’s session at $45 after listing with an offer price of $40.
While the first day’s trading was a major success for investors who participated in the IPO round, early venture capital investors realised substantial gains, with Sequoia Capital’s stake reportedly now worth around $3.5 billion.
However, there could be further gains to come for Klarna investors in the coming years as the company uses the IPO as a platform to propel growth.
Analysts at Morningstar went into the IPO with a fair value target of $45 per share, where it coincidentally ended yesterday’s first day of trading.
Morningstar has a fair value target of $59.10 in their bull scenario and $31.30 in the bear case.
“Growth is what it is all about for Klarna. While its platform is currently just breaking even, starting to eke out a marginal operating profit, the company is poised for a big shift,” explained Morningstar Equity Analyst, Niklas Kammer.
“As its platform scales and its underwriting models are enriched with more shopper behaviour data, we anticipate profitability to improve. These new payment service provider agreements will enable Klarna to upsell its conversion and customer acquisition funnel tools to merchants, propelling the BNPL provider to reach more merchants, serving more customers, and growing more profitable.”
Kammer continued to explain that future growth will be achieved through investments in marketing and client experience, noting that Morningstar believes EPS will grow at a 30% annual rate.
“While Klarna operates as a platform, its success hinges on investments in customer-facing staff, marketing to sustain and grow its brand, sales teams to capitalise on PSP-driven expansion at checkout, and ongoing technology and product development to enhance its offerings for both merchants and customers.
“These investments are critical to unlocking Klarna’s growth potential. However, the company’s impressive top-line growth more than offsets these expenditures. We project Klarna to achieve a 30% operating profit margin by 2034, with earnings per share increasing by 30% annually starting from 2025, over our explicit forecast horizon. We believe Klarna will turn itself into a profitable staple among FinTech’s globally.”
BP is the “ugly duckling” of UK oil majors, according to Thomas Moore, fund manager of Aberdeen Equity Income Trust. But this is exactly the reason why Moore and his team have built a sizeable position in the firm despite the oil giant’s recent operational challenges.
The Aberdeen fund manager discussed his contrarian approach to BP shares in a recent podcast with UK Investor Magazine, highlighting the stark difference in market perception between BP and its larger rival Shell.
“In big oil, the go-to stock for anyone with quality as a key factor in their process would be Shell in the UK,” Moore explains.
Shell’s appeal is evident – it boasts strong cash flows and consistent quarterly delivery that investors prize. The company has established itself as the sector’s quality benchmark.
However, Moore sees opportunity where others see risk. BP, he argues, represents the “ugly duckling” of UK oil majors. Whilst both companies trade on similar price-earnings ratios, this metric masks BP’s true potential for transformation.
Hidden value in operational inefficiency
“BP is so inefficient, and it’s got so much cost it can take out, it can do so much better than it’s been doing over the last three years,” Moore observes.
This inefficiency is seen by Moore as an opportunity to look beyond current performance to the company’s future potential.
The fund manager’s investment thesis centres on where companies will be tomorrow, not where they are today. “You always pay up for that quality,” he notes, referring to premium-rated stocks like Shell. By contrast, BP’s quality characteristics haven’t yet been recognised by the market, creating what Moore sees as a compelling value proposition.
Management under pressure
Moore acknowledges BP’s recent struggles under current management whilst maintaining faith in the company’s underlying assets. “This is a company that’s lost its way,” he admits. “The latest iteration of the management team will do its very best, and we all wish them good luck.”
However, he suggests external pressure may force change if current leadership cannot deliver operational improvements. Takeover speculation has periodically surfaced, including rumours linking Shell as a potential acquirer. “If you’re going to mess up on the operations and fail to deliver, there will be others waiting in the wings,” Moore says.
The possibility of merger and acquisition activity adds another dimension to the investment case, though Moore emphasises this isn’t his primary rationale for holding the stock.
Brazil discovery offers massive potential upside
Moore’s conviction was reinforced in August when BP announced one of its largest discoveries in company history – a significant hydrocarbon find off Brazil’s coast.
The discovery is BP’s largest for 25 years, with analysts suggesting it could be worth tens of billions of pounds.
Early estimates indicate the discovery could be worth as much as a quarter of BP’s entire market capitalisation, though full evaluation of the discovery for commercial potential remains ongoing.
Although Moore didn’t say this directly, his comments suggest that the recent discovery could act as a catalyst for a BP share price rerating in the coming years.
Contrarian value amid market pessimism
Moore’s approach exemplifies contrarian investing principles – finding value in temporarily unfashionable assets. “You just think, does that mean it’s going to go not so well forever? I rather doubt it,” he reflects on BP’s recent performance.
His strategy involves paying “next to nothing in terms of the valuation for one of the UK’s stalwart companies” that has simply hit a rough patch. This long-term perspective contrasts with investors caught up in what he describes as a “frenzy” of constantly upgrading portfolio quality without regard to price.
The Brazil discovery validates Moore’s patient approach, demonstrating how sometimes “good things can happen” when investors look beyond short-term operational difficulties to underlying asset value and long-term potential.
BP shares account for around 4% of the Aberdeen Equity Income Trust portfolio, while 2% is allocated to Shell. The trust has a 6% yield and is one of the few UK equity income trusts that trade at or near a premium to NAV.
Defence Holdings has launched Project Ixian, its first sovereign artificial intelligence product designed to counter information operations.
Following a recent announcement regarding a tie-up with AI hyperscalers and the MoD that sent shares into the stratosphere, the firm has revealed its first AI product targeting information warfare.
Information operations involve controlling, distorting or denying information to destabilise societies and undermine institutions. These encompass disinformation campaigns, cyber attacks, narrative manipulation and digital sabotage—threats the UK Strategic Defence Review 2025 identified as requiring urgent sovereign capability.
Project Ixian was developed alongside one of the world’s leading technology giants and Defence Holdings’ engineers worked directly with the partner’s team to integrate AI-native cloud infrastructure, embedding hyperscale capability from launch. Development involved workshops with frontline UK military personnel.
The company said the collaboration provides sovereign-grade resilience, but Defence Holdings will have to prove its scalability and revenue generation capabilities to justify the recent rally in the share price. The firm hasn’t made any indication of how much revenue the new project could generate for the firm.
The tool will enter its first commercial phase in December.
Live threat
The company highlighted recent operations that demonstrate information warfare’s immediate danger and the need for Project Ixian.
Russia’s Operation Doppelgänger has impersonated European media outlets to spread disinformation across UK and EU audiences. Meanwhile, Telegram networks have recruited individuals for sabotage operations, including arson attacks on British and European infrastructure.
These hybrid tactics—combining digital disinformation with physical disruption—highlight the urgent need for sovereign information operation capabilities. The government has recognised this priority through the National Security Act 2023, the forthcoming Cyber & Electromagnetic Command, and the Cyber Resilience Bill.
Project Ixian aligns with these initiatives, potentially benefiting from increased government spending on sovereign digital resilience.
“Information is infrastructure, and it is under attack right now,” said Andy McCartney, Chief Technology Officer, Defence Holdings.
“Project Ixian shows how Defence Technologies is moving from strategy to live delivery, embedding sovereign capability in one of the most contested domains of modern defence. Working alongside a Magnificent 7 hyperscale partner, we are ensuring that the UK can detect and disrupt hostile campaigns with sovereign tools that are resilient, scalable, and trusted at allied level. We’re proud that Project Ixian will be the first of our products to move into the field, proving our ability to deliver capability where it matters most.”
Defence Holdings shares were up 2% at the time of writing.
Shares in pharmacogenetic testing company Genedrive (LON: GDR) rebounded 15.8% to 0.55p following the decline after it announced a share capital reorganisation after the share price fell below par value of 1.5p. Shares cannot be issued at below par value so it will be reduced to 0.015p. There was cash of £700,000 at the end of August and this will last until mid-October.
Feed additives supplier Anpario (LON: ANP) had a strong first half leading to forecast upgrades for the third time this year. Interim revenues were one-third higher at £22.7m with 16% organic growth. Pre-tax profit was 62% higher at £3.4m. The interim dividend was raised from 3.25p/share to 3.6p/share. Shore forecasts a full year pre-tax profit improvement from £6.1m to £7m, mainly due to improved margins. The share price rose 16.6% to 492.5p.
George Loewenbaum has raised his stake in data analysis technology developer Cirata (LON: CRTA) from 5.4% to 6.61%. The share price improved 6.6% to 25.05p.
Offshore energy market services provider Tekmar Group (LON: TGP) has won a $10m plus contract with an international engineering procurement and construction contractor. It is for the use of the company’s polyurethane cable protection system, TekDuct, on an offshore energy project in the UAE. Final delivery is in the first quarter of 2026. The share price recovered 6.52% to 4.9p.
Public affairs services provider Public Policy Holding Company (LON: PPHC) grew organically by 8% in the first half of 2025. Acquisitions helped revenues increase 24% to $87.9m. Net income was one-fifth higher at $15.6m, helped by a lower tax rate. Net debt is $42.2m. Full year forecasts have been tweaked, but operating profit is still expected to rise from $36m to $44.5m. There are plans for a Nasdaq listing and a share consolidation. A general meeting will be held on 29 September. The share price is 4.89% higher at 182.5p.
FALLERS
Active Energy Group (LON: AEG) raised £2.5m in an oversubscribed placing that had to be scaled back. The placing share price was 0.075p. Each share came with a warrant exercisable at 0.1p each. The share price slumped 43.3% to 0.085p.
Interim figures from cross-border payments services provider Finseta (LON: FIN) were disappointing due customers delaying US dollar transactions due to foreign exchange volatility. Revenues were 16% higher at £5.9m and gross margins declined from 65.7% to 62.7%. Operating costs increased due to expansion plans. Full year revenues are expected to be 11% ahead. Shore has downgraded its forecasts and expects a loss of £400,000 in 2025. The share price dived 21.9% to 222.5p.
Cosmetics supplier Warpaint London (LON: W7L) had a tough first half with the administration of a major customer of the Technics brand and volatile US tariffs making it difficult to price potential orders in the US. An initial contribution from Brand Architekts helped group revenues to grow 8% to £49.3m. Pre-tax profit fell by 41% to £6.4m, although earnings we 13% down to 8.5p/share due to reduced tax charge. There was a gain on the Brand Architekts, but that was more than offset by foreign exchange losses. The interim dividend was raised by 14% to 4p/share. Shore forecasts a dip in full year pre-tax profit to £21.3m. The share price slipped 21.2% to 17.5p.
There has been another problem at the Triton FPSO, which will delay improvement in net oil and gas production for Serica Energy (LON: SQZ). There is a vibration issue with compressor trains. Bearings are being replaced. In November, there will be subsea intervention work on a pipeline at the Bittern field. This will reduce production by 20 mbbl/day for around three weeks. Production guidance for 2025 has been reduced to 29-32 mboe/day. The share price dipped 13.6% to 153.6p.
The UK Investor Magazine was delighted to welcome Matthew Hindhaugh, CEO of The Tweakments Guide, to the podcast to delve into the company’s growth story and its current crowdfunding campaign.
The Tweakments Guide is a trusted UK platform offering expert, unbiased content on aesthetic treatments and skincare. Through articles, videos, a newsletter, social media and events we help consumers make informed choices, connect with top practitioners and buy skincare products.
The aesthetics advice platform has achieved £389k revenue and £114k EBITDA in 2024 without external investment.
Founded by management with deep experience in aesthetics journalism, the company addresses consumer confusion in the aesthetics market by providing trusted, comprehensive guidance on treatments and skincare options.
Growth across all channels demonstrates strong consumer demand for unbiased advice in a sector where people fear making costly mistakes. The platform helps users navigate treatment choices based on their specific objectives and budget constraints.
Tekcapital has announced that its portfolio company Innovative Eyewear has rolled out a new translation feature for its Lucyd ChatGPT app.
The update enables real-time translation across 17 languages, including Chinese, Japanese and Arabic, by using its app, which has been downloaded over 18,000 times.
The voice-based translation system allows users to communicate through Lucyd smart eyewear without typing. One person can speak in their preferred language through the eyewear whilst the other uses their phone, with automatic translation between both parties.
Key capabilities include rapid language switching and offline functionality once languages are downloaded – making it particularly suitable for travel in areas with poor connectivity. The feature uses native device language models for smooth voice recognition, eliminating the typing requirements common in other translation apps.
Currently in open beta for all users, a full release with expanded device compatibility is expected within a month.
The company believes translation represents a key use case for wearable technology, adding significant utility for Lucyd users, particularly when travelling.
“The Lucyd app is a vital tool for introducing new features to complement our smart eyewear releases, as well as providing valuable services to other Bluetooth device users who have not yet switched to Lucyd,” said Harrison Gross, CEO of Innovative Eyewear.
“In addition to bridging our users to the powerful ChatGPT AI via Siri and Bixby, the app has introduced other critical features such as Walkie. Now, with Lucyd Translate, our glasses become an incredible ally for travels abroad, and for speaking with colleagues across language barriers-even when missing an internet connection. Translation is an often-cited “killer app” for wearable products, and we are pleased to offer a refined, smart eyewear approach to this important feature. I highly encourage everyone to download the Lucyd app and use it to facilitate your next cross-language conversation.”
Lucyd’s latest technological advancement adds to a series of innovations that are deployed through their range of Lucyd, Lucyd Armor, Reebok, Eddie Bauer and Nautica branded smart eyewear,
