Argentex rally on positive results

Argentex share price was given a boost this week following the release of its final results. The market reacted positively as the currency risk management specialist reported full-year revenues and profit margins ahead of expectations.

The upbeat mood around the stock was also fuelled by Argentex’s international expansion efforts, with the company securing new licences in Australia and Dubai, both of which are now fully operational. These additions mark a significant milestone in the company’s growth strategy, as it looks to capture more market share beyond the UK. Argentex has also made strides in revenue diversification, with its Argentex Global Platform on track for a summer 2025 launch. CEO Jim Ormonde expressed confidence in the company’s future, noting that investments made in technology and people have laid a strong foundation for profitable growth in the coming years.

Market sentiment was further buoyed by Argentex’s positive outlook for 2025. The company expects continued revenue growth and improving EBITDA margins, projecting mid-teens profitability as new products and services come online. Investors were particularly encouraged by the group’s debt-free balance sheet, with £18.4 million in net cash, providing financial flexibility to execute its growth agenda. With a reshaped leadership team and strengthened operational structure, Argentex appears well positioned to navigate the current market environment, particularly with the increased volatility expected in foreign exchange markets amid Trump’s tariff policies.

Bioventix weakens amid flat revenues and rising R&D costs

Bioventix (BVXP) continued its recent weakness following the release of its unaudited interim results. While revenues increased slightly by 1% to £6.73 million compared to the previous year, profits before tax fell by 4% to £5.05 million. The dip in profitability was primarily attributed to increased research and development spending, particularly on projects related to industrial pollution, water quality, and Alzheimer’s disease diagnostics.

In contrast, Bioventix’s neurology-focused research has shown encouraging progress. Increased sales of Tau antibodies for research use, aimed at Alzheimer’s disease testing, point to potential long-term growth. However, the commercial success of these antibodies will depend on further validation and adoption.

Despite the challenges, the company maintained its commitment to shareholder returns, announcing a 3% increase in the interim dividend to 70p per share. While management remains optimistic about future revenue from Tau and troponin antibodies, they expect the current financial year to mirror last year’s performance, with ongoing R&D investment likely to weigh on short-term profitability.

Central Asia Metals sees strong cash generation

Central Asia Metals shares rallied from last month’s lows following the release of their robust full-year results for 2024. The company reported a 5% increase in revenue to $214.4 million, up from $203.5 million in the previous year. Despite a slight dip in EBITDA margin from 50% to 47%, EBITDA itself remained resilient at $101.8 million. The group also delivered impressive free cash flow of $65.7 million, reflecting its strong operational performance. A key highlight was the maintenance of a debt-free balance sheet, with cash reserves growing to $67.6 million.

Looking ahead, Central Asia Metals remains optimistic about 2025. Production guidance includes 13,000 to 14,000 tonnes of copper, 19,000 to 21,000 tonnes of zinc, and 27,000 to 29,000 tonnes of lead. The company’s cash generation continues to support an attractive dividend yield, maintaining the 18 pence per share distribution from the previous year. As the company explores material transactions to bolster its project pipeline, the market seems encouraged by its commitment to sustainable growth and robust financial health.

CML Microsystems navigates challenging market with resilient performance

CML Microsystems (CML) faced a challenging market environment during the second half of the financial year, as softness in industrial markets continued to affect its core product lines. Despite this, the company made progress in expanding its product portfolio, with promising signs that the inventory correction that has impacted recent periods may be nearing its end. Operationally, the group completed the relocation of its US Silicon Valley team to a smaller facility, which followed delays related to building permits and resulted in temporarily elevated costs.

CML has continued to diversify its semiconductor product portfolio through organic growth and acquisitions, showing early signs of market acceptance and building a robust opportunity pipeline. The company remains focused on launching and promoting new products while investing in R&D to support future growth. Although the short-term outlook remains subdued, CML’s strategic focus on innovation and product diversification is expected to position the group well for recovery and long-term success. The preliminary full-year results are scheduled for release on 24 June 2025.

eEnergy secures major contracts in NHS and education sectors

eEnergy (EAAS) has announced significant contract wins across the NHS and education sectors, marking progress in its framework-led growth strategy. Notably, these contracts extend beyond the company’s traditional routes to market, reflecting successful diversification.

Further strengthening its position, eEnergy has secured two new contracts worth a combined £572,000, supported by NatWest operating lease funding. The contracts include an LED lighting project for Landau Forte Charitable Trust, expected to reduce lighting energy use by 66% and save £47,664 annually, and an upgrade across five schools within the Synergy Multi Academy Trust, projected to reduce energy consumption by 59%. Both contracts are delivered through eEnergy’s off-balance sheet operating lease model, allowing for immediate cost savings without upfront capital investment. Additionally, eEnergy’s recent appointment to the LASER Public Sector Framework for LED Lighting enhances its access to public sector opportunities, including schools, NHS trusts, and local authorities.

Franchise Brands delivers record sales amid challenges

Franchise Brands (FRAN) has reported strong results for the year ended 31 December 2024, driven by robust performance in its key divisions despite a challenging environment.

Operationally, Franchise Brands made progress on its strategic goals, launching the “One Franchise Brands” initiative to streamline its structure and enhance efficiency. The company appointed a CEO for the first time and restructured its leadership team to better execute the Group’s strategy. Key appointments, including a new CFO, COO, and Group Finance Director, bolstered the company’s management capacity. The Group reported resilient demand for essential services and maintained its focus on integrating its divisions to create a more unified and efficient business model.

Looking ahead, Franchise Brands remains optimistic despite cautious discretionary spending in some markets. The company expects resilient demand for its essential reactive services to continue and is well positioned to capitalize on a potential rebound in discretionary spending internationally. With strategic cost management and a focus on deleveraging, Franchise Brands aims to reduce leverage to below 1.5x by the end of 2025. The Group remains confident in achieving a performance in line with current market expectations for the year.

MP Evans: Uptrend reignited

MP Evans’ (MPE) long-term uptrend has kicked back into gear following the company’s record-breaking 2024 results. The group posted substantial growth in revenue, profitability, and cash generation, driven by higher average mill-gate prices for crude palm oil (CPO) and efficient cost management. Operating profit surged to $115.7 million, a significant jump from the previous year’s $75.3 million, while earnings per share soared to 129.6 pence from 78.1 pence in 2023.

Early 2025 data shows continued strength, with crop yields up from both company-owned areas and scheme smallholders. Although external crop purchases declined due to quality and cost considerations, the group’s geographic diversity across Sumatra and East Kalimantan provided a buffer against local weather variability.

With planting activities progressing and strategic acquisitions on the horizon, MP Evans remains well-positioned for sustainable growth, supported by its strong balance sheet and the ongoing global demand for sustainable palm oil.