Ocado Group (OCDO): announced Full year results for the 52 weeks ended 1 December 2024. The company said: Strong FY24 results in line with guidance; revenues, profits and cash flows all improving significantly. Statutory loss for the period £(374.3)m (FY23 £(387.0)m); after adjusting items of £4.8m (FY23 £23.9m).
Comment: It is very kind of OCDO shareholders to keep on funding a loss making grocery delivery service, for people who cannot be bothered to mix with the hoi polloi in supermarkets. If only all companies were treated so generously by the stock market.
Rolls-Royce (RR,) announced that it will commence a share buyback programme to return up to £1 billion to shareholders. The Programme, which will be executed in tranches, will commence today and is expected to complete no later than 31 December 2025.
Comment: With even strong war leader Keir Starmer wanting to increase defence spending, even though one wonders how many Gen Z’s would go to war without a latte and wifi, Rolls Royce is clearly in a sweet spot. The mega rally in the stock being supported to the tune of £1bn certainly helps the cause.
Eco (Atlantic) Oil & Gas (ECO), the oil and gas exploration company focused on the offshore Atlantic Margins, announce its results for the three and nine months ended 31 December 2024. The Company had cash and cash equivalents of US$6.03 million and no debt as at 31 December 2024. The Company had total assets of US$27.18 million, total liabilities of ~US$82 thousand and total equity of US$26.35 million as at 31 December 2024.
Comment: It is a shame that ECO is not big on communicating its plus points with the market. Presumably the logic is that it is doing so well that the market value will out itself by magic? Not sure if that is the way that the small cap end of the London stock market currently works.
hVIVO (HVO), a fast-growing early-stage Contract Research Organisation announced that it has acquired Cryo-Store Limited, a specialist provider of high industry standard, temperature-controlled storage solutions for biological and clinical materials. The Acquisition has been completed for consideration of up to £3.2 million, comprising £2.7 million funded from the Group’s existing cash resources and up to £0.5 million in equity subject to certain terms.
Comment: Given that HVO is enjoying sweet cashflow and ongoing new contract wins, the latest acquisition not only diversifies the business, but adds a useful extra offering to its palette.
Aviva (AV.) revealed its 2024 Results Announcement: AV. Described: “Another year of excellent performance and consistent delivery. Strategic and operational momentum continues with operating profit up 20%. Confident outlook for 2025 and beyond.”
Comment: Operating profit up 20%, and for the consumer this is what their premiums are up this year as well, partly fuelled by an unchecked crime wave. The sector is vying with utilities in terms of being a symptom of rip-off Britain. Good luck to Gina with her restaurant in with the current state of the hospitality sector, and the building / contents insurance.
Contango Holdings (CGO), the London listed natural resource development company, announced its results for the six-month period ended 30 November 2024. “Contango continues to make strong progress as it transitions to a cash-generative royalty company and I am pleased with the strides we have made during this defining period. The decision to transition to a royalty focused company has removed a number of the previous risks associated with being the sole mine operator at Muchesu.”
Totally (TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, is delighted to announce two contract renewals for the delivery of urgent care services. The first contract, for the delivery of General Practice out-of-Hours (“GPOOH”) services in the North East of England, has been awarded following a formal retender of existing business.
Comment: Although this writer has absolutely nothing to do with TLY, he would presume that having been given the blame for the company’s performance when things have gone pear shaped, he may get the credit when good things happen on occasions such as today. Apparently, even the most credible stock market sources cannot resist just making stuff up to drive traffic. That said, it is difficult not to be a backer of companies who live off the NHS / public sector gravy train.
Fusion Antibodies (FAB), specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announced that it has been selected to proceed with a new stable Cell Line Development project under a collaborative research and development agreement with a US based biotechnology company.
Comment: Although it was not initially apparent that CEO Adrian Kinkaid would be the man to turn FAB around, it really does look as though he has. One would assume further significant momentum of the kind announced today over the rest of 2025.
Polarean Imaging (POLX), a commercial-stage medical imaging technology leader in advanced MRI of lung function, provides a full year unaudited trading update for the year ended 31 December 2024 and a commercial update. The Company expects to report FY24 unaudited revenue of between US$3.0 million and $3.1 million (audited 2023: $891k), exceeding the upper end of revenue guidance of US$2.5 million to US$3.0 million.
Comment: Just when it appeared that POLX was down and out, it has become an interesting recovery situation, one that could rebound all the more given that most in the market have probably been wrong footed by the turnaround.
Bezant (BZT), the copper-gold exploration and development company, confirmed that it has by an agreement dated 26 February 2025 agreed with Sanderson Capital Partners Limited a long-term shareholder in the Company to extend the repayment date for the £700,000 drawn down under the unsecured convertible loan funding facility entered into with Sanderson Capital on 22 November 2021.
Comment: Sanderson continue to be a benevolent financier for BZT, and other listed companies. Something which is all the more important in current cash strapped stock market conditions.
ATOME (ATOM), a developer of international green fertiliser projects, is pleased to announce the signing of non-binding Heads of Terms with Hy24’s managed Clean H2 Infra Fund for an up to US$115 million investment in the Villeta project in Paraguay. Under the proposal, the Clean H2 Infra Fund will become the anchor and lead equity investor in relation to the Company’s flagship 260,000 tonnes p.a. green fertiliser project. The agreement marks a significant milestone towards Final Investment Decision.
Comment: Given the beating in share price and sentiment for ATOM, today’s news is very much the cavalry arriving just in time. It remains to be seen whether it is enough to trigger a lasting turnaround.
Gem Resources (GEMR), the owner and operator of the Gravelotte Emerald Mine in South Africa, today announced that Peter Redmond, a director and a Person Discharging Managerial Responsibilities purchased a total of 2,000,000 ordinary shares in the Company, in the market, at prices between 0.48p and 0.49p per share over the period 24 to 26 February 2025.
Comment: Given that spritely Mr Redmond is well known in City circles as having been a serious investor for several decades, it is always significant when he dips into the market. This is all the more important given how under-rated GEMR continues to be.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
