The Times reported that investors pulled a net £9.6 billion from UK funds last year, according to data from Calastone. It was the ninth consecutive year of net outflows, and although less severe than the £12.1 billion of outflows in 2023, it was the highest level of selling relative to funds invested in other global markets since Calastone began compiling the data in 2015 — underscoring the diminishing strength of the London market on the world stage.
Comment: What a great result for those who wish to see the demise of the UK, its economy and growth companies. It is reminder that those in whose care the London stock market is have totally failed, although for some reason they get rather upset if this fact is pointed out to them.
The UK’s new visa-waiver entry system took effect on Wednesday for passengers from dozens more countries, including millions of annual visitors from the US, Canada and Australia. The Electronic Travel Authorisation scheme – similar to the ESTA system in the US – requires visitors who do not need a visa to enter Britain to acquire pre-travel authorisation. Costing GBP10 and allowing stays of up to six months at a time over two years, it first launched in 2023, with Qatar, before being extended last year to five regional Gulf neighbours.
Comment: Those wishing to avoid the new entry system and paying a tenner, can continue to enter the country illegally. It is ironic that law abiding people have to pay for something that criminals do not.
Shell (RDSB) reported that it expects to report a decline in Integrated Gas output for the fourth quarter, weaker trading & optimisation results for the unit, and well write-offs. The oil major expects to report final-quarter Integrated Gas production between 880,000 to 920,000 barrels of oil equivalent per day, a decline from 941,000 in the third quarter of 2024. Trading and optimisation results in the unit are “are expected to be significantly lower” than in the third quarter.
Comment: Shares of Shell have been in recovery mode since last month’s low of £23.75, something which today’s news may dampen, especially as gas supplies are reported to be under pressure currently.
Firering Strategic Minerals (FRG), an emerging quicklime production and critical mineral exploration company, provided a 2025 New Year Statement from its Chief Executive Officer, Yuval Cohen. He said 2025 promises to be a year of execution and growth, with our key priorities including: Operational ramp-up: Commission all eight kilns to full capacity during the year. Operational Cash Flow Growth: Commence quicklime revenue stream and build on the operational cash flow already generated from the production and sale of aggregate and other ancillary services.
Comment: It can be said that 2024 was genuinely a turnaround year for 2024, with the only slight disappointment being the strong rally in the shares fading even though the company said in November it was prioritising non-dilutive funding.
Kazera Global (KZG), the AIM-quoted investment company, announce that Optimo Capital has published a research report on the Company. The report is available to view on the Company’s website at https://kazeraglobal.com/reports-presentations/ and at https:/www.optimocapital.co.uk/s/KZG-FLASH-Jan-25-jh73.pdf
Comment: It remains unclear how helpful to the cause paid for research on small cap companies from relatively unknown sources is. However, it is perhaps as much a sales and marketing exercise on unsuspecting CEOs, rather than something which might engage current or future investors. Perhaps it is merely to show that the company is actually doing something to promote itself.
Abingdon Health (ABDX), an international lateral flow contract research (CRO) and contract development and manufacturing organisation (CDMO), announces that its subsidiary company, CS (Lifesciences) Ltd, has won a contract with a major global diagnostics company for work relating to quality management systems and regulatory approvals. The contract will commence in March 2025 and continue for 12 months, providing revenue of >£500k spread across that period.
Comment: The hangover for diagnostics companies has been a long won since the party atmosphere induced by the pandemic. But at least today’s news provides an excuse to allow ABDX shares to attempt to rebound off their lows.
Cambridge Cognition (COG), the brain health software group, congratulates Bristol Myers Squibb, the global biopharmaceutical company, for its recent FDA approval of Cobenfy (KarXT™ or Xanomeline and Trospium), and the exciting results published recently in The American Journal of Psychiatry showcasing the use of Cambridge Cognition’s CANTAB product in two Phase 3 clinical trials in patients with schizophrenia.
Comment: Shares of COG have already been in recovery mode in recent weeks, something which today’s news should only accelerate. A return to September resistance towards 45p should be achievably by the end of this month.
ValiRx (VAL): Peel Hunt goes from 8% to 10% on the shareholder register.
Comment: Given the recent history of the company, and the 86.9% fall in the shares last year, it is surprising that Peel Hunt, or anyone else is dipping their toe in the water here. The recent, final, time limited, extension to allow TheoremRx to complete their M&A transaction with a NASDAQ listed company, at least sounds like a valid catalyst.
Guardian Metal Resources (GMET), a strategic development and mineral exploration company focused on Nevada, USA, is pleased to announce an exploration update at the Company’s 100% owned Garfield project. GMET said the presence of high-grade antimony and gold within this emerging epithermal target, along with the existing copper-gold-silver porphyry- and skarn-potential, underscores the significance of this Project.
Comment: Hard on the heels of the latest fundraise, GMET gives its latest strategic investor, Premier Miton, something positive to sing about. All the while we are on the edge of our seats for US government funding.
Mkango Resources (MKA) said that pursuant to the strategic review for the Songwe Hill Rare Earth project in Malawi and the Pulawy Rare Earth Separation Plant in Poland its wholly owned subsidiaries, Lancaster Exploration Limited and Mkango Polska Sp. Z.o.o have signed a non-binding LOI for a proposed business combination transaction with Crown PropTech Acquisitions. This Transaction will create a vertically integrated global pure play rare earths platform that is intended to result in the Class A ordinary shares of CPTK’s successor entity being listed on NASDAQ.
Comment: Clearly, almost any RNS that mentions the NASDAQ when a minnow on the London stock market is concerned, is going to be a boost not only for sentiment, but for the share price.
Likewise Group (LIKE), the UK floor coverings distributor, announced that Total Group Revenue for the year ended 31 December 2024 was £150.8 million. It is particularly encouraging that this important milestone has been reached. Total Group Revenue increased by 7.5% with Sales in Likewise Floors increasing by 15.5% and the Group is on track to deliver current market expectations for profit after tax for FY24 as well.
Comment: For a company in LIKE’s space to achieve the latest improved metrics in the current economic environment has to be commended. The fact that the stock market continues to under appreciate this state of affairs underlines the merit of the launch of the share buyback programme.
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.
