Ceres Power navigating Bosch exit

Ceres Power (CWR) gapped lower last month following Bosch’s decision to discontinue its solid oxide fuel cell (SOFC) operations, ending its long-standing partnership with Ceres and announcing plans to divest its 17.44% stake.

Despite the sharp drop, the stock has since stabilised as investors digest the broader implications. While Bosch stepping back removes a major industrial partner, Ceres has spent the last year expanding its manufacturing ecosystem, reducing its reliance on any single player. Key agreements with Doosan in South Korea and China’s Weichai Power provide alternative routes to commercialisation, demonstrating that demand for Ceres’ SOFC technology extends beyond Bosch. Moreover, Bosch has confirmed it will exit its stake in an “orderly manner,” which should help mitigate the risk of a disorderly sell-off weighing further on the share price.

Looking ahead, the next test for Ceres will be demonstrating that it can continue to scale its licensing model and secure new partnerships to replace Bosch’s expected contributions. The company has previously highlighted its strong financial position, but the loss of a key backer inevitably raises questions about future funding needs. If Ceres can maintain momentum in securing new commercial deals, investor sentiment should gradually improve. However, the market will be closely watching upcoming trading updates for any signs of cash burn accelerating or delays in revenue generation.

Ebiquity steady as it gears up for growth

Ebiquity (EBQ) has confirmed that its full-year 2024 results are expected to meet market expectations, with strong cash inflows in the final quarter helping to bring net debt below mid-year levels.

The company has also bolstered its leadership by appointing Kayte Herrity as Group CFO, effective 10 March 2025. Herrity brings extensive experience in financial strategy, having held senior roles at TalkTalk, Kantar, and Informa, among others. Her expertise in driving financial performance and building high-functioning teams is expected to support Ebiquity’s growth ambitions and strengthen its financial and risk management.

With a refreshed leadership team and a stronger financial footing, Ebiquity said it is entering 2025 with confidence. Management remains focused on executing its growth strategy while maintaining financial discipline, and with key leadership changes in place, the company is positioning itself for a more dynamic year ahead.

LCM drops as Quintis case fails to secure damages

Litigation Capital Management (LCM) fell sharply last month following an unfavourable judgment in a high-profile class action it had funded.

LCM has a policy of insurance in place to mitigate its adverse costs exposure from the case and is now reviewing the judgment alongside its legal team to assess the merits of an appeal. Given the unusual nature of the ruling, the company is carefully considering its next steps, with CEO Patrick Moloney emphasising LCM’s commitment to its disciplined approach in managing risk and capital across its portfolio. The outcome of any appeal could have significant implications, not just for LCM but for future class actions involving misleading financial disclosures.

Meanwhile, the company has also filed an appeal in a separate case concerning a class action against Stanwell Corporation and CS Energy. The first-instance ruling went against LCM’s funded party, and the appeal process is now underway. Investors will be looking for further clarity when LCM publishes its interim results on 18 March, as management provides further insight into the financial impact of these cases and their broader litigation strategy moving forward.

Synectics faces setback after strong FY24 results as market reacts to mixed outlook

Synectics’ (SNX) share price pulled back from recent trend highs following a set of final results for FY24 that left the market underwhelmed despite a generally strong performance.

While these figures demonstrate a positive momentum in core markets such as Gaming and Public Security, the results fell short of market expectations. Analysts had anticipated higher revenue of £57.0 million, and although profits surpassed the upgraded forecasts, the slight miss on top-line growth led to some investor caution.

The company’s order book remains robust at £38.5 million, up from £29.2 million a year earlier, and there are strong prospects for FY25, especially with continued momentum in contract wins across multiple sectors. However, the mixed reception to the results may reflect investor concerns over the reduced final dividend of 2.5 pence per share, down from 3.0 pence in FY23, despite an overall increase in total dividends for the year. While the operational updates, including the ongoing development of AI-driven technologies and the rebrand to Ocular Integration, offer a forward-looking narrative, market participants appear focused on the slight miss on expectations and the uncertain outlook in light of strategic shifts within the company’s key sectors.

Looking ahead, Synectics is positioning itself for future growth, particularly with a renewed strategic focus on critical infrastructure, energy, and leisure sectors. Despite some investor hesitation post-results, the company’s solid cash position of £9.6 million, coupled with a robust order book and expanding product portfolio, positions it well for long-term success. The refreshed strategy, incorporating innovative solutions and expanding market reach, will be key to driving momentum in FY25. However, until there’s further clarity on how these strategic initiatives materialise, the share price may continue to experience volatility.

Team Internet confident in growth as Verdane walks away

Team Internet (TIG) has reaffirmed its confidence in its long-term prospects after private equity firm Verdane decided not to proceed with a formal bid. With Verdane now restricted from making another approach for six months, the AIM-listed company is shifting its focus to enhancing shareholder value. Management is evaluating capital allocation strategies and asset ownership, while its Domains, Identity & Software (DIS) segment continues to attract acquisition interest and deliver steady performance.

To mitigate any disruption, the company is strengthening its Search business by expanding content and video publishing, while its Zeropark platform is providing a viable alternative to AFD. With demand at record highs, management is focused on onboarding new customers to maintain growth.

Despite near-term headwinds, Team Internet remains highly profitable and cash-generative, with plans to use its strong financial position to reduce debt and return capital to shareholders. In 2024, its Search segment generated $91 million in net revenue, with $72 million from AFD. As the transition to RSOC unfolds, earnings from Search are expected to drop in 2025, but growth in the DIS and Comparison segments should keep Group Adjusted EBITDA between $60 million and $68 million. Management expects earnings to rebound strongly from 2026 onwards, reinforcing its confidence in the company’s future.