Three developing stories at the UK stock market open.
1. New share buy back from Stan Chart
Full year numbers are in from Standard Chartered LON:STAN this morning, with rising costs hitting profitability. The pre-tax number for the final quarter of $800m was materially short of the $983m consensus analyst estimate, but the full year picture was improved, up 19% YoY. Investors will be benefit from a $1.5bn share buyback, whilst RoTE improved to 11.7% with a target approach 13% for 2026.
2. Merger talks with HOOKIPA collapse
A story that has been running since the start of the year, but Poolbeg Pharma LON:POLB has this morning updated the market noting that HOOKIPA has terminate discussions regarding the proposed combination of the two companies. Poolbeg management say they were surprised and disappointed by the news, although with concerns revolving around the low valuation and Poolbeg’s product set having received increased profile over the last couple of months, could this be a win in the longer term?
3. Discounted fundraise to back H2 storage project
UK Oil & Gas LON:UKOG has this morning announced a small fundraise of £400k via a placing to a select number of professional investors. That’s gone at a 42% discount so could well prove unpopular with the wider shareholder base but the money will be used to progress the company’s South Dorset hydrogen storage project. This does improve the company’s position in terms of bidding for government support however – any aggressive mark-down could be seen by some to present a valuable buying opportunity.
