Daily Stock Market Report (Tue 27 May 2025) - INSE, MWE, REAT, BOY, ELM, OPG, SAA, ENQ, SRT, AVCT, 4BB

Tue 5:59am by Graham Neary

44 comments 4821 reads

Good morning - I hope you're feeling refreshed after the long weekend!

The Agenda is complete.

12pm: wrapping it up there. It was a rather strange collection of announcements, as might be expected on the first day back after a Bank Holiday. We should get a more normal set of updates tomorrow! Cheers.

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
Bodycote (LON:BOY) (£940m)	Post-AGM Trading Update	SP +4% For the recent 4-month period, “core” revenues are down 5% organically. Total revenues down 6%. “Supply chains improving in Civil Aerospace; conditions remain weak in Automotive and Industrial markets.” Full year outlook in line with an H2 profit weighting. No material direct exposure to tariffs. Net debt £90m.	AMBER (Graham) [no section below] This issued a profit warning last month, prompting me to downgrade my stance to neutral. Today’s update reassures that the outlook has not deteriorated any further, with the share price reaction suggesting investor relief. The company’s ongoing “Optimise” programme targets savings and benefits of £12-14m p.a., and the company is exploring the potential to expand this. At a modest earnings multiple (and a neutral StockRank) I remain comfortable with my neutral stance. This is a reputable company with a strong heritage but in the short-term I would be a little cautious around the potential for another profit warning - especially given the expected H2 weighting for adjusted profits.
Elementis (LON:ELM) (£770m)	Sale of Talc and Share Buyback	Enterprise value of sale $121m, net cash proceeds c. $55m. $50m buyback. Outlook unchanged. Disposal is expected to improve adj op margin by +2.4%.	AMBER (Roland) [no section below] The Talc business has been sold after a difficult year for a multiple of 15x 2024 operating profit. The new CEO will now try to improve the performance of the remainder of the business. This could be an interesting turnaround, but revenue has only risen by an average of 1% per year over the last decade and profitability has been variable. Further research would be needed for me to form a view on this situation, although perhaps Elementis will benefit from a wider chemical sector recovery. For now, I will give the new and highly-experienced CEO the benefit of the doubt and upgrade our view to neutral.
Enquest (LON:ENQ) (£212m)	Operations Update	Production efficiency >90%. Q1 production 42k boepd. Net debt $405m.…

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rwh3ue

Tue 9:05am

SRT Marine Systems (LON:SRT) I hold

Following on from my earlier post, this note is worth a read. It makes the point that SRT currently have 5 active projects (for anyone who thinks this is a one off).

"Today’s announcement means the company is delivering on five active projects worth £334m with consummate revenue and cash receipt over the next 12-36 months, with further significant upside in the medium to long term, underpinned by management confidence in conversion of the £1.2bn validated sales pipeline from both new and existing customers over the next financial year.

https://www.sqcresearch.com/po...

Some photos from SRT web site

https://srt-marine.com/about/g...

oaktree

Tue 9:09am

Hi Graham, it appears from Sockopedia that results are tomorrow, hence the interest. Plus with it having such a high ranking and low PER its coming up on many people seives (I hold) :

Wednesday, May 28th 2025

Q1 2025 Serabi Gold PLC Earnings Release

Graham Neary

Tue 9:29am

Thanks for that, Oaktreee. I am not trying to police what people talk about here - just curious!

mammyoko

Tue 9:44am

I ran a chatGPT query on the possible connection between Michael Carvill and the OIA re Kenmare Resources (LON:KMR) . In the response chatGPT said that Carvill and Oryx had dropped their proposed bid for Kenmare. There being no RNS stating this, I questioned chatGPT on its source for this statement. It confessed that it had none and complimented me for my persistence on fact-checking! Caveat emptor.

intuitive6191

Tue 9:46am

Informative article in the Telegraph today about wind theft - the growing problem with the development of numerous offshore windfarms. Scientifically described as "the wake effect", it occurs when one wind farm interferes with the production capability of another.

The Telegraph reports that around 20 gigawatts of wind projects are now under dispute with the issue seeming to be mainly in the North Sea with some additional problems in the Irish Sea.

I recall that Orsted had recently discontinued its Hornsea 4 project as the project was becoming economically questionable which begs the question how far wind can continue to be part of a cheap energy strategy.

It's not a sector I am familiar with but would guess that there is probably some read across to renewables at some stage.

Rhodie Jonners

Tue 10:07am

I think the problem is that exiting writedowns, penalties and heavily discounted property sales = big hit to profits and therefore, the share price, so they are trying to protect shareholder value. I’m sure they had wished that the invasion of Ukraine would have ceased yonks ago or they might have taken a different stance but now its a b it late and they are just praying an end comes quickly from here. From a moral point of view its indefensible from an investor protection strategy I can see where they’re coming from.

jesseowens

Tue 10:26am

Total sales for Astra of $58 billion in 2025, clearly they don't have sales of £29 billion in Russia. There is at least a reasonable debate to be had about whether denying patients life saving cancer treatment to apply pressure on Russia is the right thing to do

Patrickmylnetrade

Tue 10:30am

This is the trend for many investment vehicles, atm.Impax Asset Management (LON:IPX) Aberdeen (LON:ABDN) , Liontrust Asset Management (LON:LIO) long may it continue…

yiannos1

Tue 12:01pm

£29 billion?

I don’t think so

All the best

33smile

Tue 12:25pm

Cavendish (LON:CAV) seems to be moving up quite rapidly over the last week. No news that i can see and no update planned until mid July. Is it just moving up with a general improvement in sentiment in small caps of have i missed a broker upgrade. Any views greatly appreciated. I'm a patient holder

doctor dave

Tue 1:06pm

Goodness my Value Momentum portfolio is finally getting some real Momentum and realising some Value today!

bsharman

Tue 1:10pm

I'm a holder of Cavendish (LON:CAV) - sentiment is changing in relation to small caps and also UK - we are hopefully coming out of a long term bear market in AIM and therefore the IPO market should pick up. It is a geared play on UK small caps similar to the the fund managers. I bought because I thought we had reached a nadir in the markets and sentiment should improve at some point. It also has a decent balance sheet.

Deegee Eff

Tue 1:40pm

It also does a lot of business in another country that is daily killing women and children, how does that smell to you ?

iain1234

Tue 1:56pm

WAY off topic but I remember discussing a similar issue about humans extracting energy from the tides, with a physicist. Obviously there's no such thing as free energy, wind and tidal energy comes from somewhere. Winds are created from the heat of the sun and tides from the earth/moons gravity.

My query at the the time was, isnt the daily moving 'F'ing LARGE oceans going to require a fair chunk of energy - which must impact the moon big time? Turns out the earths oceans tide has more of a pendulum effect, and so fairly energy efficient in moving it to and fro and not impacting our moon too much. (although it does mean we spin 17micro seconds a year slower, while the moon drifts off 4cm).

So my predication is the Card Factory (LON:CARD) share price will reach fair value once the moon is but a dot in the sky...

JCPr

Tue 4:44pm

This is very well known science and I'd be absolutely shocked if wind farm designers didn't already know all about it It is known as 'dirty air' in sailing circles and wake turbulence in aviation. It's why you could always tell when Concorde was coming in to land at Heathrow because there'd be no other planes on approach to the airport in advance of its arrival. Giving it a stupid name lke 'wind theft' is just typical of the green lobby.

Snazzytime

Tue 4:56pm

Spectra Systems (LON:SPSY)

Rather intriguing after hours RNS announcing the appointment of a new Finance Director (non Board position).

Previos incumbent, Edward Spies, was in situ for 2 years. The new FD 'is replacing Mr Spies pursuant to his separation from the company'.

Sounds rather like the FD was sacked. Can't see any previous commentary suggesting that the FD might be leaving. Looks a rather unsatisfactory explanation.

Alkmund

Tue 6:14pm

The UK has considerable natural resources including in the form of wind and marine. From energy resilience (security of supply, long term price, and balancing the grid) and net zero perspectives, diversification is likely to be really important. Over reliance on any one energy source is therefore likely a risk and will increase volatility in price and supply. As one sector, in this case wind, has increased quite significantly in recent years, we should probably also be considering how we balance it with other generation sources. There are useful websites, eg Drax (LON:DRX) Electric Insights (I don't hold), that gives a recent (last 30 minutes) snapshot of UK energy generation if you want to see where are electrons are currently coming from. Its fairly peak time in the evening as I write this, and wind and gas are currently contributing the most, both at 30% of our generation capacity. Solar (PV) is interesting because it is the closest of any renewable to following Moore's law (its based on silicon), and we will need biomass for chemical feedstocks and for broader decarbonisation of fossil fuels (which are just ancient biomass). Marine, given the size of our coastline, seems to currently be a missed opportunity, although its a challenging environment. So probably in terms of investing in, as well as building, energy and renewables, diversification is an appropriate strategy, but these themes will likely take a long time to fully play out.

tareynolds1965

Tue 7:58pm

I hold Churchill China (LON:CHH) noticed a very significant 8.11% rise today any ideas as to what might be be the reason behind the jump in price?

Harry Hindsight

Tue 8:41pm

Could be the “100 days Trump Plate” but unfortunately a bit costly to export to its followers.

Tue 8:48pm

Perhaps he will end up at MI6.

Daily Stock Market Report (Tue 27 May 2025) - INSE, MWE, REAT, BOY, ELM, OPG, SAA, ENQ, SRT, AVCT, 4BB

Companies Reporting

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Graham Neary

44 comments

Q1 2025 Serabi Gold PLC Earnings Release

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