Reuters: Trump says US to levy 100% tariff on imported chips, but some firms exempt. The move is part of Trump’s efforts to bring manufacturing back to the United States, and his remarks on Wednesday were made in tandem with an announcement that Apple would be investing an additional $100bn in its home market.
Comment: Both in terms of geopolitical events, and economic headwinds the world of business is difficult enough to navigate without the seemingly endless barrage of shooting from the hip initiatives emanating from the White House. This almost makes having an asleep at the wheel President, who did not even know he was asleep, seem preferable.
Serco Group (SRP) announced its 2025 half year results. The company noted strong first-half performance, continued momentum, new £50m share buyback. Revenue: £2.4bn, up 5% at constant currency, organic growth of 3% for the Group, 9% in North America. Underlying operating profit: £146m, up 2%; reported operating profit of £132m also 2% higher.
Comment: Given that SRP houses 30,000 asylum seekers in over 7,000 properties, it is perhaps disappointing that the performance here via this government backed gravy train for both the company and its guests, does not make more money than a 2% rise in profits.
Deliveroo (ROO) announced its interim results: “Strong H1 performance with acceleration in growth and continued progress on profitability.” ROO revealed an “Acceleration in growth in Q2 with orders up 8% (Q1 2025: 7%), GTV up 10% (Q1 2025: 9%) in constant currency and revenue up 9% (Q1 2025: 8%) in constant currency.”
Comment: Of course, once safely ensconced in a migrant hotel, the inmates can then supplement their state sponsored pocket money via a side hustle working for Deliveroo. Danny Dyer being a “tosser” notwithstanding, the company remains on the front foot with a double digit jump in profits and a surge in orders in the run up to the £5bn DoorDash takeover.
Aterian Plc (ATN), the Africa-focused critical minerals exploration and development company, announced a significant expansion of its high-potential copper and silver exploration portfolio following the award of three new Prospecting Licences in the world-renowned Kalahari Copperbelt, located in the Republic of Botswana. The PLs are held by the Company’s 90%-owned subsidiary, Atlantis Metals (Pty) Ltd, and target sediment-hosted copper and silver (“Cu-Ag”) mineralisation. ATN said “This strategic expansion represents a meaningful step in enhancing portfolio value for our shareholders. By increasing our presence in the Kalahari Copperbelt, Aterian gains exposure to one of the world’s most prospective copper-silver regions.”
Comment: It is well known that the Kalahari Copper Belt is one of the more prospective regions in the world, with ATN’s new expansion there hopefully enough to act as a trigger for a long-awaited turnaround in the share price, down by nearly a quarter so far this year.
Empresaria Group (EMR), the international specialist staffing group, announced its unaudited interim results for the six months ended 30 June 2025. EMR noted good progress in core operations with US net fee income up 38% and Offshore Services up 11% (CC LFL), together outweighing a 9% reduction in the UK which continues to be challenging. Adjusted operating profit up 55% (CC LFL), with reported figure up 70% to £1.7m, reflecting continued focus on managing costs.
Comment: It is not difficult to work out from these interim results why EMR was on the receiving end of a takeover bid late last month. It is perhaps a shame that the small cap market is set to lose one of its better contenders.
ECR Minerals (ECR), the exploration and development company focused on gold in Australia, it has adopted a Bitcoin (“BTC”) and Digital Asset Treasury Management Policy. The adoption of the Policy reflects ECR’s evolving long-term financial strategy, given ECR’s ambition to work towards a potential revenue-generating phase, particularly at its Blue Mountain gold project in Queensland. As noted in the Company’s announcement on 8 October 2024, the Board considers that the Blue Mountain Project may be a viable commercial gold resource. ECR said “We have begun working with experts in this field to implement the Policy. In particular, we have identified several experienced individuals, and we are expecting to make an advisory appointment shortly.”
Comment: Of course, everyone and their mother has adopted a BTC Treasury Strategy policy of late. The secret sauce here was not make such an announcement in June, not August, when the stock market enthusiasm regarding the concept was at its height. Nice try though ECR.
PetroTal Corp.(PTAL) reported its operating and financial results for the three months ended June 30, 2025. PTAL said “PetroTal has once again delivered strong results in the second quarter of 2025, reflecting our ongoing commitment to profitable long-term growth. Even under lower oil prices this quarter, PetroTal is reporting free funds flow of more than $27 million, while holding our available cash reserves broadly flat near $100 million. The Bretana field is also performing as expected, with recent production topping 20,000 bopd.”
Comment: On the basis of free cash flow alone PTAL should be up there with the best of them in terms of stock market profile and appreciation. Alas this is not yet the case.
Reabold Resources (RBD), the investing company focussed on developing strategic gas projects for European energy security, updated on Rathlin Energy (UK) Ltd. Rathlin is operator of the PEDL 183 Licence which includes the West Newton gas development, located onshore UK in East Yorkshire. Reabold holds a c.69.9% economic interest in West Newton and PEDL 183 via its c.79.8% shareholding in Rathlin, which, in turn, has a 66.67% interest in PEDL 183. In addition, Reabold has a 16.665% direct licence interest in PEDL 183. Feasibility study and evaluation of the potential for an early development and monetisation strategy at West Newton. The potential use of gas produced from the existing wells to generate on-site electricity and power crypto mining activities.
Comment: It is interesting to note that even RBD is throwing in the idea of getting on the crypto mining bandwagon, although it seems to be as much of an afterthought as anything else. That said, the issues here are the lack of appreciation of the cash position of the company versus the market cap, and how long the West Newton saga has been going on.
REACT (REAT), the leading specialist support services provider to the FM industry, is pleased to provide an update highlighting a series of recent contract wins across the Group since April 2025. The Group continues to make encouraging commercial progress, securing a high volume of small and medium-sized contracts in each of its divisions. This sustained momentum reflects the successful execution of the Group’s strategic focus on delivering consistent growth through targeted new business generation, high levels of contract retention, and effective cross-selling of services across the divisions.
Comment: While there have been the contract wins, the market has perhaps rather unfairly taken the shares towards 3 year lows off the back of the market yet not forgiving delays in getting some of these deals over the line in the first half. Ideally, this situation is remedied over the rest of 2025.
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.
