Gold Glitters as Resolute Mining Expands, While Tech and Healthcare Face Headwinds

📈 Today's Key Themes

The UK market is poised for a mixed opening as pre-market announcements reveal contrasting fortunes across sectors. The mining sector shines with Resolute Mining (#RSG)'s strategic gold project acquisition, potentially boosting its annual production to over 500,000 ounces. Legal and financial services demonstrate resilience, with Keystone Law (#KEYS) and International Personal Finance (#IPF) reporting strong results. However, the tech and healthcare sectors face challenges, as evidenced by Clean Power Hydrogen (#CPH2)'s widening losses and Totally plc (#TLY)'s profit warning. The shipping industry also signals headwinds with Clarkson PLC (#CKN)'s cautious outlook, reflecting broader economic uncertainties.

💡 Company Updates

Annual Results

Keystone Law (#KEYS) has delivered impressive annual results, with revenue increasing by 11.1% to £97.7 million. The company's adjusted PBT rose by 12.8% to £12.7 million, while its net cash position strengthened to £9.7 million. The board has proposed a final ordinary dividend of 14.0p and a special dividend of 15.0p per share, signalling confidence in the firm's financial health. The sentiment score for this update is good, reflecting the company's strong performance and positive outlook. Clean Power Hydrogen (#CPH2) reported widening losses of £14.4 million, up from £4.1 million in 2023, despite technological progress and entering a "Commerciality Phase". The company's cash reserves dropped significantly from £8.5 million to £0.3 million, raising material uncertainty about its ability to continue as a going concern. While a post-year-end fundraise of £5.7 million net proceeds was completed, the sentiment score for this update is bad, reflecting the company's financial challenges and uncertain future.

Trading Updates

International Personal Finance (#IPF) reported a strong start to the year with 12% year-on-year growth in customer lending. Closing net receivables increased by 10% year on year to £885 million, while the company maintained excellent credit quality with an annualised impairment rate below 9%. The sentiment score for this update is good, indicating positive momentum for the financial services provider. Lancashire Holdings (#LRE) delivered a solid Q1 performance, with gross premiums written increasing by 12.7% year-on-year to $712.1 million. Insurance revenue rose by 8.7% to $458.9 million, while the investment portfolio returned 1.9% in the quarter. The sentiment score for this update is good, reflecting the company's resilience in challenging market conditions. Totally plc (#TLY) issued a profit warning, revising its EBITDA expectations for FY25 to £0 million to £2.0 million, down from previous guidance of £3.5 million. The company cited a slower than expected ramp-up of a recent contract win and reduced operating margins as key factors. The sentiment score for this update is bad, indicating potential challenges ahead for the healthcare services provider. Clarkson PLC (#CKN) warned of a profit decline due to heightened trade war uncertainty and a weaker US dollar. The company now expects underlying profit before tax to be in the range of £85 million to £95 million, below previous expectations. The sentiment score for this update is bad, reflecting the challenging market conditions facing the shipping services provider.

🎯 Leading Developments

Mining Sector Expansion

Resolute Mining (#RSG) has made a significant move by acquiring two gold projects in Côte d'Ivoire from AngloGold Ashanti for US$150 million. The Doropo Project, with a Mineral Reserve of 1.88Moz grading 1.53 g/t Au, is expected to produce 167koz per annum at an All-In Sustaining Cost (AISC) of US$1,047/oz. This acquisition is set to materially increase Resolute's annual gold production to over 500,000 ounces, potentially positioning the company as a major player in the gold mining sector. The sentiment score for this development is good, reflecting the positive impact on Resolute's growth prospects and the broader mining industry.

"The acquisition of the Doropo and ABC Gold Projects represents a significant growth opportunity for Resolute Mining, with the potential to materially increase the company's annual gold production to over 500koz." - Sentiment analysis

Technology Sector Challenges

Mirriad Advertising (#MIRI) is facing significant headwinds, reporting Q1 2025 revenue of just over £80,000, slightly below expectations. With a cash balance of £2.7 million as of 31 March 2025 and a monthly gross cash burn of £650,000-£675,000, the company is urgently exploring options to raise funds, including the possibility of entering administration. This development highlights the challenges facing some tech companies in the current economic climate. The sentiment score for this update is bad, indicating potential market concerns about the ad-tech sector's stability.

Renewable Energy Developments

Greencoat Renewables has signed a 10-year Power Purchase Agreement (PPA) with Keppel DC REIT for its Ballincollig wind farm. The PPA covers 100% of the electricity generated from the wind farm, with an annual output of 31.5 GWh. This agreement, part of Greencoat Renewables' re-contracting strategy, provides escalating contracted revenues through to 2036. While not a listed company, this development indicates positive momentum in the renewable energy sector, which could influence market sentiment towards related stocks.

📅 Week Ahead

2 May 2025: Shell plc (#SHEL) Q1 2025 results publication
2 May 2025: London Finance & Investment Group P.L.C. (#LFI) Cancellation of trading of Ordinary Shares on the London Stock Exchange
2 May 2025: CRH plc (#CRH) Expected completion of the new $0.3 billion share buyback program
2 May 2025: Smithson Investment Trust Ord (#SSON) First-ever dividend payment
2 May 2025: Gamma Communications plc (#GAMA) Expected admission to the Main Market of the London Stock Exchange
2 May 2025: Petrofac Limited (#PFC) Sanction Hearing for financial restructuring

View full calendar

Market Summary