The focus on defence budgets as Europe positions itself as peacekeeper-in-chief in Ukraine has been a boon for military hardware and systems stocks such as BAE Systems PLC, up 39% so far this year.
It also seems to have sparked a trickle-down effect, with investors hunting for bargains further down the defence supply chain. One example is Westminster Group PLC, mentioned in last week’s column.
It’s no BAE Systems—far from it. But it is benefiting from the same global demand for tighter security. The catalyst was a 15-year contract to guard airports in Gabon, which sent its shares up 9%, building on gains the previous week.
The deal is expected to generate $5.5 million in its first year. Westminster said it will invest in upgraded security infrastructure, including advanced detection, surveillance, and screening equipment, while also providing maintenance, training, and support services to ensure compliance with international standards.
Turning to the wider market, the AIM All-Share slumped 1.8% as investors shied away from risk. The FTSE 100, by contrast, dipped 2.0%, shaken by Donald Trump’s trade war threats.
It was a rough week for Team Internet, which plunged 43% after would-be buyer Verdane confirmed it would not be making a formal bid. That leaves Team Internet exploring ways to boost shareholder value, including optimising capital allocation and reviewing its asset ownership.
Elsewhere, Vela Technologies PLC (down 46%), Premier African Minerals Ltd (off 36%), and Petrel Resources PLC (40% lower) tumbled after issuing heavily discounted shares to raise funds.
Having a far better week was Kenmare Resources PLC, surging 41% after rejecting a takeover proposal from a consortium led by Oryx Global Partners and former managing director Michael Carvill. The bid, pitched at 530p per share, was dismissed as failing to reflect the company’s true value.
CMO Group PLC, whose shares collapsed last week after announcing plans to delist from the junior market, showed signs of life with a 14% rebound.
Galliford Try PLC rose 7% after the construction group raised its full-year guidance, citing strong first-half results and robust trading momentum.
In response to the results, Peel Hunt upgraded its 2025 profit estimate to £40.5 million from £37 million. It rates the shares a 'buy' up to 475p, calling them 'excellent value' at current levels. Panmure Liberum increased its price target by 50p to 480p, while Cavendish simply called the numbers 'strong'.
One to watch is ALT Resources PLC, which is shifting its listing to AIM as it acquires a cash-generating gold royalty from Theta Gold Mines. The move, expected on March 24, will give ALTR exposure to gold revenues without the risks of direct mining. Chaired by growth-company veteran Paul Welch, ALTR says AIM will provide greater flexibility for deals as it expands in the mining royalty sector.
Finally, Shield Therapeutics PLC has enjoyed a strong start to 2025, with shares up 28% so far. The company has developed a prescription medicine for people with low iron stores.
Commercially, Shield is gaining steam. It generated revenues of $32.2 million last year—up more than 150% on 2023—and is on track for $54 million in sales this year.