26th Jun 2025. 9.01am

Regency View:

Update

Regency View:

Update

Altitude confirms CFO departure and strong start to FY26

Altitude (ALT) has announced a leadership change, with Chief Financial Officer Graham Feltham stepping down from the Board with immediate effect to pursue other opportunities. He will remain with the Company throughout his notice period, supporting a smooth transition through to the release of the FY25 audited accounts. The internal transition will be led by Senior Non-Executive Director Peter Hallett, an experienced public company director and former Group CFO of Redstone plc and Redcentric plc.

The process to appoint a new CFO is already well underway, with the Company expected to provide further updates in due course. The Board thanked Feltham for his contribution over the past four years and wished him well for the future. The planned transition is designed to ensure business continuity during the leadership change.

In terms of trading, Altitude reported that performance in the current financial year (FY26) remains in line with market expectations. ACS has seen a 43 percent rise in orders over the last three months compared to the same period last year. The Group’s collegiate Gear Shop solution is preparing to go live in 45 locations by August, with additional opportunities in the pipeline. Other service lines are performing steadily, and the Board remains confident in the outlook.

ALT Daily Candle Chart

ALT Daily Candle Chart

IXICO plays crucial role in breakthrough Alzheimer’s blood test approval

IXICO (IXI) has played a key role in supporting the US approval of a pioneering blood test designed to help detect Alzheimer’s disease in patients with memory concerns. The company provided imaging analysis for Fujirebio Diagnostics, a Japanese-owned diagnostics group, which received FDA approval in May for its Lumipulse test. This marks the first time a blood-based assay for Alzheimer’s has been green-lit by the US regulator, offering a simpler and less invasive alternative to traditional diagnostic methods like brain scans and lumbar punctures.

The Lumipulse G pTau 217/β-Amyloid 1-42 Plasma Ratio test targets adults aged 50 and above who are showing cognitive symptoms and is intended for use in specialist settings. IXICO’s contribution involved using its artificial intelligence tools to analyse imaging data from the Bio-Hermes-001 study, a global trial backed by the Global Alzheimer’s Platform Foundation. The company helped standardise and interpret brain scans used as the benchmark for confirming amyloid pathology, which played a critical role in validating the new test’s effectiveness.

Backed by results from nearly 500 patients, the test has shown strong alignment with gold-standard methods like PET scans. Fujirebio’s submission had previously been granted Breakthrough Device Designation, fast-tracking its regulatory review. IXICO’s CEO Bram Goorden described the approval as a major milestone for Alzheimer’s biomarker development. He highlighted the benefits of using blood-based biomarkers as a first-line screening tool to streamline patient selection for PET imaging, ultimately improving throughput in both clinical settings and trials targeting early-stage or pre-symptomatic populations.

IXI Daily Candle Chart

IXI Daily Candle Chart

Litigation Capital slide after court defeat and weak update

Shares in Litigation Capital (LIT) dropped sharply last week following a double blow: a negative High Court ruling in a funded case and a downbeat trading update. The judgment went against the party backed by Litigation Capital Management (LCM), who had co-funded the commercial litigation with its Fund I vehicle. LCM had committed £3.4 million of its own capital and recorded the investment at £5.0 million as of 31 December 2024. While adverse costs are covered by insurance, the loss has raised concerns about near-term recoveries, and the company is now reviewing the decision with legal counsel to assess next steps.

In addition to the court setback, the trading update painted a mixed picture for the financial year ending 30 June 2025. While the first half of FY25 saw strong realisations with a multiple on invested capital (MOIC) of 3.7x, performance in the second half weakened considerably, with just A$3 million of realisations against A$5 million of capital deployed. Net debt is expected to balloon to A$73 million, up sharply from A$8.9 million the previous year, highlighting the pressure on cash flows. Several investments, including the recent litigation loss and other high-profile matters, are either under appeal or in review, meaning their outcomes remain uncertain.

LCM also announced it would pause active marketing of Fund III due to external uncertainties, including potential tax changes in the US litigation finance market and political shifts affecting institutional investors like US university endowments. Despite strong interest from investors, the board is taking a cautious approach, focusing on balance sheet discipline and lowering new commitments for FY25 to around A$80 million, down from A$270 million in FY24. CEO Patrick Moloney acknowledged the challenging period and promised a more detailed strategic update in September, while reaffirming long-term confidence in the firm’s model and the broader dispute finance sector.

LIT Daily Candle Chart

LIT Daily Candle Chart

Oxford Metrics delivers strategic progress despite first-half dip

Oxford Metrics (OMG) reported interim results for the six months to 31 March 2025, highlighting meaningful strategic progress despite a drop in headline numbers. Revenue came in at £20.1 million, down 14% compared to a record comparative period last year, which benefited from an unusually large order book and major contract fulfilment. Adjusted EBIT showed a modest loss of £0.4 million, and basic earnings per share stood at 0.63p. Despite these figures, the company remains financially strong, ending the period with £39.9 million in net cash, following the Sempre acquisition, a £4.2 million dividend, and a share buyback of £3.6 million.

One of the key milestones during the period was the successful launch of Vicon Markerless, a next-generation motion capture system that eliminates the need for physical markers. Early feedback has been positive, and commercial demonstrations are now underway globally. In the smart manufacturing division, Oxford Metrics completed two acquisitions, Sempre and Amber Optix, and appointed a new managing director to accelerate growth. Revenues from smart manufacturing rose sharply to £5.3 million, up from £1.8 million, with Sempre contributing £3.6 million. The segment secured contracts across a range of industries including aerospace, medical, and automotive.

Looking ahead, trading in the second half has begun in line with expectations, following the business’s usual seasonal pattern. While there is some uncertainty stemming from US policy changes impacting institutional funding, especially for motion capture customers, Oxford Metrics remains optimistic. The company anticipates only modest Markerless revenues in FY25 but sees longer-term growth potential as adoption increases. With a healthy pipeline in both motion capture and smart manufacturing, the Board expects full-year adjusted EBIT to be in line with expectations and has approved a further £4 million for the share buyback programme, signalling continued confidence in the Group’s long-term growth strategy.

OMG Daily Candle Chart

OMG Daily Candle Chart

Renold agrees to takeover but keeps growth strategy in motion

Shares in Renold (RNO) jumped after the company agreed to a £186.7 million takeover offer from MPE Bidco, a vehicle backed by US private equity firm MPE Management. Under the terms, shareholders will receive 82p per share in cash, representing a 50% premium to the share price before the offer was made and the highest level for the stock since 2015. The deal was recommended by Renold’s board and is subject to the usual shareholder and regulatory approvals.

Shortly after the offer was announced, a rival consortium made up of Buckthorn Partners and One Equity Partners confirmed it would not be making a competing bid. The consortium formally withdrew its interest on 18 June, citing Rule 2.8 of the Takeover Code, though it left the door open to revisit its position under specific conditions, such as a lapse in the MPE deal or a material change in circumstances. This effectively clears the path for MPE’s acquisition to move ahead without competition.

Despite the ongoing takeover process, Renold has continued to execute its growth strategy. On 24 June, it announced the acquisition of Italian chain manufacturer Ognibene S.p.A. for €10 million. The deal expands Renold’s footprint in Southern Europe and is expected to be earnings enhancing from year one. Ognibene brings €15.6 million in annual revenue and will integrate with Renold’s wider manufacturing base, offering both local stocking advantages and operational synergies. This marks Renold’s fourth chain acquisition in just over three years, reinforcing the company’s momentum in identifying and delivering value-accretive bolt-on deals.

RNO Daily Candle Chart

RNO Daily Candle Chart

Totally enter administration

Totally (TLY) has entered administration and the shares have been suspended from trading, meaning you will not be able to sell them at this stage. The joint administrators have stated that they do not expect any return to shareholders, so unfortunately the outlook is bleak.

Totally had provided urgent care services including NHS 111 and had been under financial pressure for some time, compounded by a historic medical negligence claim that potentially exceeded its £10 million insurance cover. In recent weeks, the company sold off several divisions, including Elective Care and Urgent Care, in a last-ditch effort to preserve value. However, with liabilities outstripping remaining assets, administrators have confirmed that shareholders are unlikely to see any proceeds from these disposals.

While this is clearly a disappointing outcome and we work hard to avoid financially vulnerable stocks, this situation highlights the risks that can come with small-cap investing. We have since adjusted our filtering process to reduce exposure to companies heavily reliant on one contractor.

TLY Daily Candle Chart

TLY Daily Candle Chart

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All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.