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Post-Budget, gilt markets seem reasonably quiet though we have seen a slight tick-up in yields this morning after declining yesterday. Sterling trades at its best in a month against the dollar, though has come back off the overnight highs this morning to $1.3223. The FTSE 250 has risen but the FTSE 100 dipped early on Thursday following two days of solid progress.

The FTSE 100 was flat just shy of 9,700 in early trade on Thursday before turning lower after two solid days of gains. Bank shares continued to gain after popping yesterday as they were spared from a tax raid. JPMorgan, with impeccable timing, says it will open a giant new skyscraper in Canary Wharf. Clearly the banks bought the three-line whip on supporting the Budget. Maybe they’re also buying gilts?

Carry on reading The Trader

The long-running questions over WH Ireland’s (WHI) future look to have been ended following an all-share offer from wealth manager Team (TEAM).

Team is offering 0.195 shares for every WH Ireland share, which values WH Ireland at £12.7mn, or 5.4p a share. This is a premium of 257.5 per cent to the 1.5p per share WH Ireland shares were trading at before news of talks between the pair first broke two weeks ago.

Once complete, WH Ireland shareholders will own 43.5 per cent of an enlarged group with a market capitalisation of £30.3mn.

WH Ireland put itself up for sale two years ago following an aborted private sale, citing low levels of activity in its former capital markets business and a reduction in assets within its wealth management arm.

It subsequently sold the capital markets arm last year to Zeus Capital in a deal worth “up to £5mn�, and then agreed the sale of the wealth management business to Oberon Investments. However, the latter deal was voted down by shareholders last month.

“We believe that the all-share proposal represents a better deal for shareholders and clients than an outright sale of the wealth management division,� said WH Ireland chair Simon Moore.

WH Ireland’s shares rose by a third on the news to 4p.Team’s shares rose by 5 per cent to 29p.

Utility company Pennon (PNN), owner of Southwest Water, reported improved first-half results as the company prepares for a change of leadership, with chief executive Susan Davy set to retire and leave the group. Shares have staged a recovery recently and rose by nearly 4 per cent on results day.  

Operationally, the company reversed its losses and reported half-year profits before tax of £65.9mn, compared with a £38.8mn loss last time. The figures come as Pennon continues to address water quality and supply issues, including the Dousland supply incident, which contributed to increased compensation and operational costs.

Capital expenditure for the first half was £305mn, and the company expects full-year investment of £710–£740mn. Pennon said spending will be front-loaded in the early years of the new K8 regulatory period.

Serica Energy (SQZ) delivered a cautious trading update as production improved late in the year, but fiscal and operational pressures continued to weigh on sentiment. The share price fell by more than 6 per cent in early trading.

Output averaged 25,700 boepd (barrels of oil equivalent per day) across the first nine months, held back by extended downtime at the Triton floating production, although in November it briefly recovered to 50,300 boepd before planned subsea work prompted fresh shutdowns. 

The Bruce Hub also lagged after annual maintenance, only returning above 20,000 boepd once completed. Full-year production guidance remains 27,000-28,000 boepd, and the company expects to spend around $250mn (£191mn) on capital expenditure.

Serica said yesterday’s Budget, which extended the Energy Profits Levy (EPL) to 2030 and confirmed a new price-linked oil and gas taxation mechanism, fell short of stimulating fresh North Sea investment.

Despite greater fiscal clarity, management says the revised regime tightens returns at a time of softer commodity prices. With the Prax Upstream deal set to add roughly 5,900 boepd, the company said it will focus capital only on the highest-return projects in a more challenging post-Budget environment.

Shares in packaging group Macfarlane (MACF) jumped by 5 per cent as the company said full-year trading would be in line with revised expectations following last month’s profit warning.

The company also said operations were “gradually recoveringâ€� at the Pitreavie business, after a shutdown following a fatality at the site. The company has invested £1.2mn in new equipment to get the business back up and add capacity. 

It is also planning a buy-in of its pension scheme “to reduce future risk and minimise any further requirement for cash contributions�. It will incur a one-off accounting charge of between £2mn-£3mn to facilitate this.

Broker Shore Capital expects Macfarlane only to complete the pensions buy-in “when pricing is favourable�, and that the action should further derisk Macfarlane’s balance sheet.

Marshalls (MSLH) chief executive Matt Pullen has stepped down “with immediate effect�.

He is being replaced on an interim basis by the group’s chief commercial officer Simon Bourne.

Pullen had been in the role since March last year. He replaced longstanding chief executive Martyn Coffey, who resigned following a share price slump in the wake of Marshalls’ acquisition of roof tile manufacturer Marley.

Pullen has been unable to reverse the slide, though – Marshalls’ shares are down by 40 per cent this year and pre-tax profit at the half-year stage was 46 per cent lower, at £11.7mn.

Chair Vanda Murray thanked Pullen for launching the company’s ‘Transform and Grow’ strategy.

 â€œNow is the right time to refocus the business and accelerate the execution of our strategy to ensure we take full advantage of growth opportunities,â€� she said.

Shares in boohoo group, which trades as Debenhams Group (DEBS), surged 40 per cent after the retailer moved closer to break-even despite a 23 per cent revenue drop to ££297mn in the first half.

Pre-returns gross merchandise value (GMV) fell 19 per cent to £631mn, with only the Debenhams brand reporting positive growth. Still, the reported loss before tax for continuing operations narrowed from £130mn a year earlier to £2.5mn, while adjusted operating profit swung back into the black.

The company also unveiled a new long-term executive incentive plan to replace legacy plans that excluded chief executive Dan Finley and finance boss Phil Ellis and “no longer incentivises the individuals that are fundamental to the Debenhams Group’s future success�.

It will offer Finley and Ellis additional payouts, capped at a maximum of £148mn and £15mn respectively, should the company’s share price rise between three and 25 times, paid in newly issued shares.

Given boohoo’s ongoing spat with Frasers (FRAS), one of its major shareholders, the changes will be implemented without a shareholder vote. Investors representing just over a third of voting rights have already been consulted on the plans, the group said.

Activist Saba has launched a new campaign against the board of Edinburgh Worldwide (EWI), the global small-cap trust managed by Baillie Gifford.

In a letter published today, Saba’s Boaz Weinstein announced plans to requisition a general meeting, oust the trust’s board and replace it with new “qualified, independent directorsâ€�. He said he has been “profoundly disappointedâ€� with the trust’s performance. 

Edinburgh Worldwide returned 14.9 per cent in the year to 26 November, but was still down 35.6 per cent on a five-year basis. Saba holds about 30 per cent of the trust’s shares. 

Winterflood’s Emma Bird said she had “sympathy with some of Saba’s pointsâ€�, with the trust’s underperformance “clearly representing a disappointing outcome for shareholdersâ€�. 

But she also noted Saba’s letter contained some inaccuracies, incorrectly claiming that the trust has underperformed in the past year or that it uses the FTSE All Share as its benchmark (it’s actually the S&P Global Small Cap index).

Edinburgh Worldwide was one of the seven trusts originally targeted by Saba in its inaugural UK campaign last year. All seven survived the activist’s attempt to oust their boards. But Saba has since had considerable success in prompting share buybacks and other forms of corporate action across the industry. It currently has stakes in a number of trusts.

Unite’s (UTG) investor day press release will have done little to allay concerns that the UK’s student housing market is slowing. 

The company said sites in a few cities were responsible for the majority of its recent occupancy target miss. In response, it plans to weight its portfolio even more towards top-tier universities (from 64 per cent to 80 per cent). This will entail £300mn-400mn of annual disposals from 2026 onwards.

Management has guided for 2026 earnings per share (EPS) to fall between 7 to 10 per cent year on year, blaming lower occupancy, property activity and rising finance costs. Consensus had been modelling flat earnings.

“The fundamentals of the higher education sector remain strong…but we have experienced challenges from weaker demand and higher supply in some cities,� said chief executive Joe Lister.

Separately, the CMA has approved Unite’s £723mn acquisition of smaller peer Empiric (ESP), as widely expected. Even so, the shares fell 4 per cent in early trading.