6th Aug 2026. 9.01am
Regency View:
Update
Regency View:
Update
The latest reporting period has provided further evidence that quality AIM businesses continue to execute well despite an uncertain economic backdrop. Across the portfolio, management teams delivered a consistent message of resilient demand, growing recurring revenues and healthy order books, while several companies also demonstrated the benefits of disciplined capital allocation and targeted acquisitions.
Perhaps the most encouraging theme has been improving earnings visibility. Whether through expanding recurring revenue streams, record order books or strengthening sales pipelines, many of our holdings enter the second half of the year with greater confidence than they did just six months ago. While macroeconomic uncertainty remains, businesses that continue to execute operationally are increasingly being rewarded by investors.
Eleco: Recurring revenue continues to drive growth
Eleco (ELCO) delivered another impressive trading update, with annualised recurring revenue rising 16% to a record £35.5 million and organic recurring revenue increasing by an even stronger 23%. Total recurring revenue now represents 85% of group revenue, underlining the continued transition towards a higher-quality, subscription-based software business. Group revenue increased 8% during the first half, while the company remained debt free with cash of £15.4 million.
The quality of growth continues to stand out. Following the disposal of its non-core visualisation business, management has sharpened its focus on higher-margin software operations while continuing to invest heavily in artificial intelligence-enabled product development. Recent launches, including Asta Vision Plus and Asta Estimate, demonstrate the group’s commitment to expanding its software offering while improving customer retention and cross-selling opportunities. Progress within the US market also remains encouraging following a strategically important contract win for its PEMAC maintenance platform.
Perhaps most importantly, the recurring revenue model continues to provide increasing earnings visibility. With strong cash generation, no debt and favourable structural trends supporting greater digitalisation across the construction and asset management sectors, Eleco remains well positioned to deliver further growth in line with market expectations.
What we are watching next: Continued growth in annual recurring revenue, AI product adoption and further expansion within the US market.
Themes: Trading Update | Software | Recurring Revenue | Artificial Intelligence
ELCO Daily Candle Chart
hVIVO: Commercial momentum strengthens
hVIVO (HVO) reported a mixed first-half performance, with revenue falling to £16.3 million and the business expected to report a modest EBITDA loss during the period. However, these weaker headline numbers were already anticipated by management, who had previously guided that revenues would be heavily weighted towards the second half of the year.
The more important development was the dramatic improvement in commercial momentum. The company’s order book has more than doubled since the start of the year to £65 million, while proposal activity has increased by approximately 45%. This provides significantly improved revenue visibility across the remainder of 2026 and into 2027 and 2028. Management also highlighted growing demand across infectious disease, respiratory and cardiometabolic programmes, reflecting the benefits of its broader clinical development platform.
While investors understandably focused on the short-term earnings profile, the market responded positively to the strength of future contracted revenues. The combination of a substantially larger order book, an expanding client pipeline and a diversified service offering suggests the underlying growth story remains firmly intact despite temporary revenue timing differences.
What we are watching next: Order book conversion, second-half revenue delivery and further contract wins.
Themes: Trading Update | Clinical Trials | Order Book | Healthcare
HVO Daily Candle Chart
Journeo: Visibility continues to improve
Journeo (JNEO) continued its impressive growth trajectory, reporting a 53% increase in first-half revenue to £37.6 million following another period of strong organic growth and the successful integration of Crime and Fire Defence Systems. Adjusted profit before tax also increased 10%, while management expects full-year revenue to finish marginally ahead of current market expectations.
Beyond the headline growth, the sales pipeline remains particularly encouraging. Sales opportunities have increased dramatically to £200 million compared with £80 million a year ago, while order intake remains robust, providing greater visibility into the second half and beyond. The acquisition of Crime and Fire Defence Systems has also broadened Journeo’s addressable market, allowing the group to pursue larger opportunities across transport and critical national infrastructure.
The business continues to benefit from long-term structural investment in smart transport infrastructure across the UK. With a growing pipeline, healthy cash position and expanding customer relationships, Journeo appears well placed to continue delivering sustainable growth over the coming years.
What we are watching next: Conversion of the £200 million sales pipeline, infrastructure contract awards and further acquisition opportunities.
Themes: Trading Update | Transport Technology | Infrastructure | Order Book
JNEO Daily Candle Chart
Restore: Delivering growth across the business
Restore (RST) produced another strong set of interim results, with revenue increasing 21% and adjusted earnings per share rising 24%. Growth was driven by a combination of healthy organic expansion and acquisitions, while operating margins continued to improve despite ongoing investment across the business. The company also increased its interim dividend by 18%, reflecting continued confidence in cash generation.
One of Restore’s greatest strengths remains the resilience of its business model. Recurring revenues from information management and secure shredding continue to underpin predictable cash flows, while growth within digital services and technology is providing additional opportunities to expand margins. The group also completed four further acquisitions during the first half, demonstrating management’s continued confidence in deploying capital into attractive bolt-on opportunities.
With leverage remaining comfortably within its target range and a healthy pipeline of acquisition opportunities, Restore appears well positioned to continue compounding shareholder value. Management reiterated confidence in delivering full-year profits at least in line with market expectations, reinforcing the positive momentum established during the first half.
What we are watching next: Integration of recent acquisitions, continued margin expansion and further capital allocation opportunities.
Themes: Interim Results | Information Management | Acquisitions | Cash Generation
RST Daily Candle Chart
RWS: A transformational acquisition
RWS Holdings (RWS) announced the proposed acquisition of Acogroup, the parent company of Acolad, in a deal that significantly expands its presence across the European language and content solutions market. The transaction values Acolad at an enterprise value of approximately £22.4 million and will bring an additional £155 million of annualised revenue alongside around £11 million of adjusted EBITDA once integrated. The market welcomed the announcement, viewing it as an opportunity to accelerate RWS’s long-term AI strategy.
Strategically, the acquisition appears highly complementary. Acolad has established relationships with many of Western Europe’s largest enterprises, including around half of the CAC 40, while also generating roughly half of its revenues from regulated industries such as healthcare and medical devices. This creates an attractive opportunity for RWS to deploy its existing AI-enabled language technologies, including its Cultural Intelligence Layer and Language Weaver platform, across a much broader client base while expanding its own presence in attractive, resilient end markets.
Importantly, management is not simply acquiring additional revenues. The transaction strengthens RWS’s strategic shift towards larger enterprise customers while creating significant cross-selling opportunities across its expanding technology portfolio. With the business remaining well capitalised and funding the acquisition from existing facilities, the deal represents another step in repositioning RWS as an AI-enabled content solutions provider rather than a traditional translation business.
What we are watching next: Completion of the acquisition, integration progress and adoption of RWS’s AI platforms across the enlarged customer base.
Themes: Acquisition | Artificial Intelligence | Enterprise Software | Language Technology
RWS Daily Candle Chart
Sylvania Platinum: Record production despite lower prices
Sylvania Platinum (SLP) delivered record annual production during FY2026, producing almost 96,000 ounces of 4E platinum group metals, comfortably exceeding the upper end of its production guidance. Operationally, the company’s core Sylvania Dump Operations continued to perform strongly, while production during the fourth quarter modestly exceeded revised expectations.
Despite these operational achievements, weaker platinum group metal prices weighed heavily on financial performance. Quarterly revenue fell 38% and adjusted EBITDA declined 65% as lower basket prices combined with higher mining, diesel and electricity costs. Encouragingly, the business continued generating positive cash flow, with cash balances increasing to more than $67 million despite paying an interim dividend earlier in the year.
The key takeaway is that Sylvania remains operationally robust even during periods of weaker commodity prices. Management continues to focus on improving performance at the Thaba chrome joint venture while refining mine planning and processing efficiencies. Should precious metal prices recover, the company appears well positioned to translate its record production into stronger financial performance.
What we are watching next: Platinum group metal prices, operational improvements at Thaba and continued cash generation.
Themes: Production Update | Platinum Group Metals | Chrome | Mining
SLP Daily Candle Chart
Serabi Gold: Positioned for another record year
Serabi Gold (SRB) delivered another solid operational update, producing just over 11,000 ounces during the second quarter and taking first-half production above 23,000 ounces. While production increased 5% compared with the same period last year, management expects output to strengthen further during the second half as several operational initiatives begin contributing.
The investment case continues to extend beyond current production. Construction of the fourth ball mill at the Palito Complex remains on schedule for completion later this year, increasing processing capacity from 2027 onwards, while the transition to mechanised mining at Coringa is progressing as planned. Development of additional mining zones also continues, supporting future production growth. Encouragingly, the company remains debt free and ended the quarter with almost $66 million of cash despite continuing to invest heavily across its operations.
Perhaps the most important near-term catalyst remains the full mining licence at Coringa. Management reported continued progress with the necessary regulatory approvals and remains confident that the licence will be granted during the fourth quarter. Assuming this timetable is achieved, Serabi continues to target record annual production of more than 53,000 ounces during 2026, providing another important milestone in the company’s long-term growth strategy.
What we are watching next: Progress towards the Coringa mining licence, completion of the Palito plant expansion and second-half production growth.
Themes: Production Update | Gold Mining | Mine Development | Growth Projects
SRB Daily Candle Chart
Staffline: Momentum builds into the second half
Staffline (STAF) delivered an excellent first-half performance, with revenue increasing 15% to £559.4 million and operating profit rising almost 58% as the benefits of new contract wins and disciplined cost control flowed through into earnings. Profit before tax increased almost fivefold to £2.9 million, while management stated that the business is now positioned to deliver full-year results towards the top end of current market expectations.
The improvement reflects more than simply favourable trading conditions. Recruitment activity remained particularly strong across logistics, supermarket distribution and food manufacturing, while the group’s Recruitment GB division reported temporary working hours increasing by almost 11% during the first half. The managed services division also delivered another strong performance as employers continue seeking support around changing employment legislation and workforce planning.
Perhaps most encouraging is the outlook. Contract renewals and retenders remain exceptionally active, with six major customer contracts successfully retained during the period, providing strong momentum into the second half. Combined with continued share buybacks and further market share gains, Staffline appears well positioned to continue improving profitability despite ongoing macroeconomic uncertainty.
What we are watching next: Contract renewals, recruitment volumes and delivery of full-year profits towards the top end of expectations.
Themes: Interim Results | Recruitment | Contract Wins | Share Buybacks
STAF Daily Candle Chart
The Property Franchise Group: Diversification continues to pay off
The Property Franchise Group (TPFG) produced another resilient trading update, delivering record first-half revenue despite a subdued UK housing market. Group revenue increased 7%, supported by continued growth across its franchising operations, financial services business and the successful integration of recent acquisitions. Management reiterated full-year guidance, demonstrating confidence in the group’s diversified operating model.
The strength of the business increasingly lies in its recurring income streams rather than transaction volumes alone. Lettings management fees continued to grow while the managed portfolio remained stable at approximately 149,000 properties. At the same time, the continued rollout of the Privilege platform, expansion into residential surveying through Meridian and the successful integration of Smart Advice Financial Solutions are steadily broadening the group’s earnings base across the entire property transaction lifecycle.
Management also highlighted the commercial rollout of its first AI-enabled products, illustrating that technology is becoming an increasingly important part of the investment case. While the residential sales market remains challenging, TPFG’s diversified platform, recurring revenues and disciplined acquisition strategy continue to provide resilience that many traditional estate agency businesses lack.
What we are watching next: Growth in recurring lettings revenues, rollout of AI-enabled services and further platform expansion.
Themes: Trading Update | Property Services | Recurring Revenue | Artificial Intelligence
TPFG Daily Candle Chart
Tristel: Consistency remains the story
Tristel (TSTL) delivered another reassuring trading update, confirming that full-year results will be in line with market expectations following another year of double-digit growth. Revenue increased 10% to £51.1 million, adjusted profit before tax is expected to rise at least 14%, while EBITDA margins remained comfortably above the company’s long-standing 25% target. The business also finished the year debt free with cash balances increasing to £16 million.
One of Tristel’s greatest strengths remains its consistency. Management has once again demonstrated its ability to deliver sustained double-digit revenue growth while maintaining attractive margins and generating healthy cash flows. Strong global demand for its infection prevention products continues to support overseas expansion, with the company’s disciplined operating model translating revenue growth directly into improved profitability.
The appointment of Chris Lee as Chief Executive marks the beginning of the next chapter for the business, but importantly there is no indication of any strategic shift. Instead, investors appear likely to see continued execution of the existing growth strategy built around international expansion, product innovation and disciplined capital allocation. For a business that has consistently delivered against its financial targets, the latest update reinforces confidence in the long-term investment case.
What we are watching next: International expansion, new product launches and execution under the incoming Chief Executive.
Themes: Trading Update | Healthcare | Infection Prevention | International Growth
TSTL Daily Candle Chart
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