Corporate activity dominated the small-cap tape, with an unsolicited takeover approach for Kurdistan producer Genel Energy headlining a session thick with interim results and a fresh twist in the long-running Pharos Energy bid battle. Elsewhere, resource explorers delivered encouraging drill and assay results while the White House's latest tariff move cast a shadow over renewables supply chains.
Genel rejects DNO's £202m takeover approach
Genel Energy (LSE:GENL) has confirmed it received an unsolicited proposal from Norwegian rival DNO to acquire its entire issued share capital at 69p a share in cash, a move the Kurdistan-focused oil and gas producer's board has unanimously rejected. Genel's directors, advised by Jefferies, told shareholders to take no action, arguing the approach fails to reflect the company's underlying value. The news sent the shares up 21.52% to 60.7p as the market digested the scale of the implied premium against where the stock had been trading.
Under Takeover Code rules, DNO now has until 5pm on 4 September to either table a firm offer or walk away. The timing is awkward: Genel agreed a separate recommended cash acquisition of Capricorn Energy on 2 July, with Capricorn shareholders due to vote on that transaction on 18 August. Any firm DNO offer would need to reckon with that deal already in motion, either by waiting for it to complete and absorbing the additional cash cost, or attempting a more complex renegotiation.
"We have maintained our market leadership position and continued to optimise our cost base," said Trevor Harvey, Chief Executive.
The rejection signals Genel's board sees intrinsic value well above 69p, but the approach itself confirms that Genel's Kurdistan asset base and cash generation are attracting serious external interest. The Capricorn transaction remains on track for now, but the next month hinges entirely on DNO's 4 September declaration, a firm bid would force Genel's board, and its shareholders, into a genuine strategic choice between two competing paths of growth.
Stelrad grows profit despite dip in half-year revenue
Stelrad Group (LSE:SRAD) reported adjusted operating profit of £16.7m for the six months to 30 June, up 4.9% even as revenue fell 9.1% to £124.0m. The radiator manufacturer's adjusted operating margin rose 1.8 percentage points to 13.5%, with cost discipline and the exit from a loss-making contract offsetting a 14.6% drop in sales volumes. Shares eased marginally, down 0.92% to 151.6p.
Revenue declined across all three regions, UK & Ireland down 4.0% on weak new-build and RMI demand, Europe down 7.4% partly reflecting the contract exit, and Turkey & International slumping 60.6% to £3.4m following a deliberate pullback in that market. Statutory operating profit came in at £15.7m after £1.0m of exceptional items, against £3.8m a year earlier when the comparator included £12.0m of non-cash exceptional charges. Contribution per radiator improved to £24.32 from £20.33.
The results show Stelrad extracting more profit from a shrinking top line, evidence that management's cost actions and portfolio pruning are working even as end-market demand stays soft. Whether that margin gain is durable will depend on volumes recovering rather than further contraction being offset by ever-tighter cost control.
Sanderson Design confirms trading in line with expectations
Sanderson Design Group (AIM:SDG) said full-year trading remains in line with market expectations after group revenue rose 6% to £51.4m in the six months to 31 July, up from £48.3m. The shares added 1.94% to 79.0p as North American brand product sales, up 19%, more than offset an anticipated 8% decline in the UK.
Third-party manufacturing revenue climbed 19% to £11.0m on strong US brand demand, while total licensing revenue rose 13% to £4.9m, boosted by £1.4m of accelerated income from the renewed global Blinds2Go agreement. Direct-to-consumer revenue more than doubled to £1.6m from £0.7m, a channel the company flags as an important, high-margin growth area. Net cash stood at £10.2m, up from £9.8m at 31 January, after £1.4m was spent buying shares into the employee benefit trust.
"We are particularly excited about our prospects in the US, where trading has been excellent with a clear upward trend," said Lisa Montague, Chief Executive. The US strength is increasingly doing the heavy lifting for the group, and with licensing and direct-to-consumer both scaling, the mix shift away from a soft UK market looks structural rather than incidental.
Vaalco swings to profit as Côte d'Ivoire output resumes
VAALCO Energy (LSE:EGY) reported net income of $42.4m, or $0.39 per diluted share, for the second quarter, reversing a $93.8m loss in the first quarter and up sharply from $8.4m a year earlier. The Houston-based producer, with operations across Gabon, Egypt, Côte d'Ivoire and Equatorial Guinea, sold 17,812 net revenue interest barrels of oil equivalent per day, above guidance midpoint and up 47% quarter-on-quarter. The shares slipped 1.23% to 400.0p despite the turnaround.
Adjusted EBITDAX reached $54.8m, nearly five times the $11.6m generated in the first quarter, driven by higher realised commodity prices and hedging gains. Production resumed in June at the Baobab field offshore Côte d'Ivoire following a yearlong refurbishment of its floating production, storage and offloading vessel, with the first crude lifting scheduled for August.
"The strong first half results and our expectation of continued operational execution have given us the confidence to affirm our increased full year production and sales guidance for 2026," said George Maxwell, Chief Executive. The Baobab restart removes the single biggest overhang on Vaalco's production base this year, and with first lifting imminent, the market will be watching whether the second half delivers the volume follow-through the guidance implies.
Gelion signs £2m development deal with Mitsui Kinzoku
Gelion (GELN) has signed a £2m development agreement with Mitsui Kinzoku, advancing its battery technology toward commercial validation. The shares ticked up 0.54% to 18.6p on the news.
"This agreement is another step on our journey through validation to commercial production," said Matt Wood, Gelion's chief executive, underscoring that the deal represents a funded milestone rather than a speculative partnership as the company works toward proving out its technology at scale.
Ratio raises Pharos Energy bid to top rival Serica offer
Ratio Petroleum has increased its cash offer for Pharos Energy (PHAR) to 32.8183p a share, edging out a competing bid from Serica Energy and prompting Pharos directors to reinstate their recommendation. Shares in Pharos rose 6.32% to 33.4922p, trading above the revised offer price, suggesting the market is not ruling out a further counter-bid.
The reinstated board recommendation marks a reversal after the earlier Serica approach had put the original Ratio terms under pressure, turning the contest into a live bidding process rather than a settled deal.
DNO tables cash approach for Genel Energy
DNO's indicative offer for Genel Energy (GENL) values the company at roughly £202m, carrying a 38% premium to the prevailing share price and including a share alternative alongside the cash terms. Genel's board rejected the approach, and the stock jumped 21.52% to 60.7p as investors priced in the possibility of a sweetened offer.
The scale of the premium on offer highlights how far below perceived value Genel had been trading, even as the board insists 69p still undersells the business.
Talisman Metals sees high-grade copper samples at Tirzzit
New assay results from Talisman Metals (TLM) at its Tirzzit project in Morocco confirm high-grade copper mineralisation, extending the strike length of a newly discovered outcrop zone. The shares dipped 2.0% to 6.125p despite the positive geological read-through.
The extended strike length adds to the emerging picture of a larger mineralised system at Tirzzit, giving the company more ground to justify follow-up drilling as it builds out the project's exploration case.
Potentially AI waitlist grows as free access extended
Potentially AI (AGI) said demand for its platform has outstripped expectations, prompting the company to extend free access to grow its waitlist further. The shares edged up 0.76% to 6.65p.
"The response to our free AI initiative, to support the launch of our platform, has been phenomenal and we believe is a clear signal that having all your favourite AI in one app is a value proposition that people want," said Oliver Yonchev. The strategy trades near-term monetisation for user growth, a bet that scale now will translate into a stronger commercial footing once the platform converts free users to paying ones.
Arrow's Icaco horizontal wells hit 1,270 BOPD in Colombia
Arrow Exploration (AXL) brought three new wells onstream at its Icaco field in Colombia, with the IC-5 horizontal well flowing 1,270 barrels of oil per day gross during clean-up. The shares rose 2.58% to 26.67p on the update.
The flow rate from IC-5 adds another productive horizontal well to Arrow's Colombian portfolio, reinforcing the horizontal drilling programme's role in lifting overall field output.
Franchise Brands marks 10 years on AIM with 17% annual return
Franchise Brands (FRAN) marked a decade on AIM, highlighting a 17% average annual shareholder return over that period. The shares added 1.06% to 145.777p.
"Celebrating 10 years on AIM is a significant milestone for Franchise Brands and testament to the dedication of our people, the strength of our franchise partners and the resilience and diversification of our model," said the Executive Chairman, framing the anniversary as validation of a multi-brand model built through both organic growth and acquisition.
Amaroq starts scout drilling at Minturn iron-copper-gold prospect
Amaroq (AMRQ) has begun scout diamond drilling at its Minturn prospect in Northwest Greenland, testing at depth the high-grade iron mineralisation identified through surface sampling in 2025. The shares rose 3.32% to 109.0p.
The drilling programme represents the first subsurface test of a target that has so far only been characterised at surface, a step that will determine whether Minturn's mineralisation extends into an economically meaningful body.
Trump tariff order clouds outlook for solar supply chain
President Donald Trump signed a proclamation imposing a 15% tariff and minimum import prices on polysilicon, the material at the heart of solar panels and semiconductors. The measures, tied to the United States Government's trade policy, will be held back until after the midterms and a planned meeting with Xi.
The delayed implementation gives affected supply chains a window before the tariff bites, but the policy signals a harder line on solar input costs that could ripple through smaller renewables-exposed names dependent on imported polysilicon.
