Surface Transforms (SCE), manufacturers of carbon fibre reinforced ceramic automative brake discs, announces the following trading and operational progress updated for the six months ended 30 June 2025. The Company has experienced a pivotal change in manufacturing yield and output, with the benefits of these improvements being realised throughout the second quarter of 2025 (“Q2 2025”). Revenue for H1 2025 is expected to be approximately £8.1m (H1 2024: £4.7m), representing an increase of 72%.
Comment: SCE has been as famous as a small cap Cinderella in recent years, so the big turnaround announced today is all the more sweet. The shares are up 2x so far this year, and there should be plenty more upside to go.
SpaceandPeople (SAL) the brand experience, retail and promotional specialist, is pleased to announce a positive pre-close trading update for the half-year ended 30 June 2025. Trading during H1-25 has been strong, particularly in the UK brand experience sector, with Group revenue being £3.7m (H1-24: £2.9m). During H1-25 the Group opted to invest into innovating and improving our warehousing and operations efficiencies. Even when factoring in this planned one-off investment, the Group has delivered a significant upswing to a break even position at the half year stage versus a £0.2m loss at same time last year.
Comment: While we have lost a large number of perennial under-achievers from the stock market in the recent past, seeing the likes of SAL step up to the plate at what is not exactly an easy time is all the more encouraging.
capAI (CPAI) confirmed that its wholly-owned US subsidiary, capMedia Inc, has been issued an Employer Identification Number (“EIN”) by the US Internal Revenue Service and that the California Secretary of State has now formally approved capMedia to do business in California. This operational milestone follows the incorporation of capMedia in Delaware and represents the next step in establishing the Group’s US presence.
Comment: CPAI looks to be well and truly enthused by the prospect of making it big in the US, and it would appear that this could be the next driver for the shares after the massive March – May rally.
Pri0r1ty Intelligence Group (PR1), the AI, data and marketing services group, announced that its recently acquired sports data and marketing business, Halfspace Limited, has been awarded significant new contracts totalling approximately £250,000 by an English Premier League football club to provide data-led marketing services. It is expected that the Customer will additionally utilise PR1’s AI applications in due course across its operations, to further support its growth strategy.
Comment: While BTC, AI and all the other buzzwords of the day are all well and good, simply bringing in significant contracts via the recent Halfspace acquisition is something which is difficult to beat for PR1’s prospects.
First Class Metals (FCM) the UK listed company focused on the discovery of economic metal deposits across its exploration properties in Ontario, Canada, provided an exploration update for the work conducted on the Sunbeam Property to date for the 2025 field season, where ongoing results continue to highlight the district-scale potential of the >88km² property. FCM said “The ongoing exploration work on the Sunbeam Property, specifically on the >10km Roy lineament continues to under pin the significance of this structure and by inference the ever-growing potential of the other two equally prospective structures, as well as a possible fourth structure, and therefore the property as a whole to produce a significant discovery.”
Comment: After funding issues earlier this year, FCM has bounced back with tokenised project funding announced this month, as well as progress on Sunbeam. The company looks as though it is getting back on track.
Mast Energy Developments (MAST) announced that it has signed a binding definitive agreement to acquire the exclusive rights to an initial portfolio of c. 25 MW of flexible generation development projects, as well as a new project development framework agreement. MAST acquired the exclusive rights to five flexible generation development sites of c. 5 MW each, totalling an initial portfolio of up to c. 25 MW; Each site strategically located in attractive power demand areas of England, and includes confirmed access to grid connection notwithstanding the moratorium on new grid connections.
Comment: Given how the UK has the finest 20th century infrastructure, at 21st century prices, one can see how MAST is in the right space at the right time. The name of the game continues to be building up the portfolio in order to be a serious strategic player. This rather explains why the shares are up 11x so far this year.
Compass Group (CPG), a global leader in food services, announced trading results for the third quarter ended 30 June 2025. Compass delivered another strong performance with organic revenue growth of 8.6% in the third quarter and 8.5% for the year to date. Both regions performed well, with North America delivering strong growth across all sectors. Net new business growth continued in the middle of our 4 – 5% target range, supported by strong client retention of over 96%.
Comment: We are reminded how much money there is in providing small portioned school diner type offerings, providing there is enough alcohol on the menu. Perhaps client retention is the best metric to underline this concept.
Solvonis Therapeutics (SVNS), a clinical-stage biopharmaceutical company announced the initiation of key translational studies to support the advancement of SVN‑002 towards a planned Phase 2b clinical trial in the United States. SVN‑002 is the Company’s differentiated sublingual esketamine oral thin film candidate, being developed as an innovative treatment for moderate-to-severe Alcohol Use Disorder in combination with psychosocial support. The compound is intended to reference Janssen’s Spravato® under the US FDA 505(b)(2) regulatory pathway, enabling a potentially accelerated and capital-efficient route to registration.
Comment: SVNS has stood out in recent months with the adoption of two leading candidates with mass market appeal, either of which could be transformational for the company. An added sizzle now is the prospect of an accelerated development of the AUD treatment.
Mila Resources (MILA), the post-discovery gold exploration accelerator, is pleased to announce that the Phase 2 exploration programme has now commenced at its flagship Yarrol Gold Project, which forms part of the Company’s Queensland Gold & Copper Portfolio in central Queensland, Australia. Mila is focused on unlocking the mineralised system across the 20km Yarrol Fault and defining a maiden mineral resource. MILA said “Our Phase 1 exploration programme at Yarrol exceeded our expectations and we are now excited to be commencing Phase 2, which aims to further unlock the 20km Yarrol Fault.”
Comment: May – June saw shares of MILA go through the roof on the revelation of highly positive gold results at Yarrol. The name of the game now will be to finesse the initial news, and give further confidence to the market.
Fulcrum Metals (FMET), the AIM-quoted company pioneering the use of innovative technology to recover precious metals from mine waste, announced that it has raised a total of £1.045 million at a price of 3p. The Fundraise includes a £175,000 strategic investment by way of a direct subscription from Metals One (MET1), which will become a new significant shareholder in Fulcrum and a potential future collaborative partner in reviewing projects for assessment with Extrakt Process Solutions LLC in the application of Extrakt’s technology beyond Fulcrum’s current projects in Canada.
Comment: Given the relative enthusiasm that FMET clearly has for the Extrakt angle, having MET1 as a new partner going forward looks to be a decent plan. This is both operationally, as well as PR from a company which delivered a big turnaround earlier this year.
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.
