(Alliance News) The UK government is engaged in “extensive” discussions with the US about what the tariffs will mean for the UK, Chancellor Rachel Reeves has said. She said the UK and US economies are “closely intertwined”. Obviously, the announcements of tariffs is something that the US plan to bring in next week, but we are in discussions about what that means for the UK.
A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined. I believe – and we make this case to the US – that free trade, fair trade, is good for both of our countries, but let’s see where we get to in the next few days.” Around four out of five cars made in the UK are exported.
Comment: To be absolute fair, this is the first time that Rachel Reeves actually sounds like she knows what she is talking about. Well, nearly. That said, the UK should not be going cap in in hand to the US, given the alleged special relationship, and if President Trump would like a friendly reception when he meets the royal family.
Roadside, (ROAD) the roadside real estate business, was notified on 26 March 2025 that on the same day, Charles Dickson, Executive Chairman of the Company, purchased a total of 2,700,000 ordinary shares at an average price of 30.77 pence. Following these purchases, Mr Dickson and persons closely associated with him own a total of 36,859,435 Ordinary Shares, representing approximately 25.7% of the Company’s total issued share capital.
Comment: While we await the next value enhancing deal from ROAD, we see the CEO leading from the front with a share purchase near the all time highs. Buying at the top of the range (after a 300% last year) is always a stronger signal of value and confidence that the usual catching a falling knife buys that directors traditionally deliver.
Franchise Brands (FRAN), an international multi-brand franchise business, announced its audited results for the year ended 31 December 2024. System sales increased by 20% to £418.5m (2023: £350.1m). Statutory revenue increased by 15% to £139.2m (2023: £121.0m. Adjusted EBITDA2 increased by 16% to £35.1m (2023: £30.2m). Adjusted profit before tax increased 8% to £21.3m (2023: £19.7m. FRAN said “The Group achieved record System sales in all key divisions and a creditable Adjusted EBITDA outturn for the year, despite ongoing challenging macroeconomic conditions in many of our key markets. This is a testament to the strength and resilience of the Franchise Brands business model and international diversification of our market-leading brands.
Comment: Although one would not have thought it looking at the recent share price performance, down 12% so far this year, the key metrics have been strong for FRAN, and rather stronger than the market’s perception of the company.
Robinson (RBN), the custom manufacturer of plastic and paperboard packaging, is pleased to announce its audited results for the year ended 31 December 2024. Underlying operating profit* increased to £3.2m (2023: £2.2m). Revenue up 14% to £56.4m (2023: £49.7m). RBN said “”I am pleased to report strong progress in 2024. Our results build on the positive momentum experienced in the second half of 2023, with substantial sales growth of 14% to £56.4 million, gross margin increasing to 20% and a 45% increase in underlying operating profit to £3.2 million.”
Comment: While shares of RBN have been up some 50% over the past couple of years, the performance of the group means the stock deserves more. One would consider that the ultra low profile of the company is a factor in the under rate.
SRT (SRT), the AIM-quoted developer and supplier of maritime surveillance, analytics and management systems and products announces its unaudited interim results for the six months ended 31 December 2024. The comparative for the results was the interim period to 30 September 2023, prior to the Group’s change of year end. Significant increase in revenues to £26.2m (H1 2023: £5.5m).
£2.8m profit before tax and non-cash exceptional finance charge of £0.7m (H1 2023: Loss before tax £4.6m).
Comment: Shares of SRT are up 5x from the June low last year, but it could be said that even in the wake of this re-rate the company’s shares should be worth more than a £115m market cap given the massive pipeline and strong outlook.
Power Metal Resources (POW), the London listed exploration company with a global project portfolio, announces the signing of an Option Agreement to dispose of its 30% interest in Silver Peak Resources Limited to its Joint Venture partner Michael B Nugent. POW said “We will continue to streamline our portfolio in order to make the most efficient use of our strong capital position, as we seek to optimise returns for our shareholders.”
Comment: The key here is of course optimising returns for shareholders, and the company is doing this by optimising the portfolio. Given what has already been done in this respect the shares should be back nearer to the 25p a share zone (NAV is 28p) they were a couple of years ago, than 14.5p now given the £7m cash in the bank and no debt.
Katoro Gold (KAT), the strategic energy and precious minerals exploration and development company, provided an update relating to the Company’s critical minerals exploration portfolio in Ontario, Canada. The Company’s 100%-owned Iva Lithium Project has been expanded to include newly interpreted pegmatite targets prospective for the mineralisation of lithium-bearing minerals over a trend extending 5.5 km.
Comment: KAT was covered as a potential charting buy yesterday in the Bulletin Board Heroes, and it would appear that the buying was anticipating today’s news from Ontario.
EnSilica (ENSI), a chip maker of mixed signal ASICs, announce that it has been awarded an $18m design and supply contract by a leading European based supplier of electromechanical products for an Arm-based mixed signal sensor interface ASIC to be used across a range of automotive and industrial applications. ENSI said “”This is another exciting design win that enhances our growing portfolio of ASICs and further improves the visibility of our recurring revenues from chip supply. This new European customer is highly respected in the industry and has a strong track record of shipping its products in high volume.”
Comment: ENSI has been described as the UK’s Nvidia (admittedly only here), but on the basis of the flow of contracts this exaggeration is not as wide of the mark as it sounds. What is disappointing is the way that the share price seems to be disconnected from the company’s prospects.
ADVFN (AFN) announced its half year report and that it is in the best interests of the Company and its Shareholders to seek Shareholder approval for the cancellation of admission of the Ordinary Shares to trading on AIM. Operating Loss: £479k (Prior Period: £611k loss) Administrative Expenses: £2.398 million (Prior Period: £2.796 million).
Comment: If this was the 20th century posh people might describe the latest news from AFN as being a “poor show.” The company has had plenty of opportunities to drive revenue, modernise, and be a leading international financial information portal. It did not take them and no retreats to the shadows.
United Oil & Gas (UOG), the oil and gas company with a high-impact exploration asset in Jamaica and a development asset in the UK, is pleased to announce that it has secured an early two-year extension to the Walton Morant licence offshore Jamaica, now valid until 31 January 2028, where it holds a 100% working interest.
Comment: The line on X yesterday was that the seller in UOG was out. Given that the “seller” has been around for some 8 years, this would be a momentous event. Presumably, it is the same “seller” who is out of EnergyPathways (EPP).
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.
