Equities Update: Netcall, Marston’s, Shell, Imperial Brands, CVS Group…

Netcall on cloud 9 as AI drives revenue

 
Adam Vettese, market analyst for eToro says: “Netcall’s full year results demonstrate strong momentum in cloud and recurring revenue growth, reinforcing its position as a leading provider of AI-driven digital automation solutions. Demand for its Liberty platform continues to accelerate from a wide range of organisations including the NHS, banks and insurers, contributing to an increase in annual contract value and growing the company’s subscription-based revenues.

“Operationally, Netcall maintained profitability growth on an adjusted basis, despite increased investment in acquisitions and innovation. Importantly, the group strengthened its balance sheet, exiting the year with a substantial cash position and no net debt, providing financial flexibility for both organic initiatives and further bolt-on deals.

“However, statutory profit and cash flow metrics were impacted by acquisition related charges and working capital timing, which compressed reported margins and limited near term cash generation. While short term earnings visibility is somewhat clouded by these factors, the strong order pipeline and positive public sector trends point to continued growth and market share expansion in 2026. The shares trade at a premium reflecting investor confidence in the strategy but also heightening expectations for delivery. Overall, Netcall offers a well-positioned growth story in a dynamic market, though investors should balance the appeal of recurring revenues against ongoing margin pressures and execution risks as the company scales.”

Trebles all round as Marston’s surges

 
“Marston’s has served up a round of very solid news this morning, which comes as a contrast to Wetherspoon’s more cautious update last week. The shares have rocketed higher as a result, bolstered by news that margins have improved, though they remain much closer to their post-Covid low than the highs of late 2019.”
 

Chris Beauchamp, Chief Market Analyst at investment and trading platform IG, on reporting from both Shell and Imperial Brands.

Shell rises after forecast upgrade

“A boost in activity at the trading division has helped Shell to weather the ongoing troubles in its chemicals division. But the bigger problem of a struggling oil price refuses to go away, and while OPEC+ might have balked at outsize production increases for now, the worries about weak demand will just not go away.”
 

Imperial Brands lights up on share buyback news

 
“It has been a stellar 12 months for Imperial Brands shareholders – the shares are up over 40% and the chunky dividend just helps to burnish this performance. The confidence in the outlook is underscored by news of a fresh share buyback, cementing its position as one of the fairly-valued dividend payers that are so attractive to international investors right now.”
 

Shell’s end-to-end involvement in the LNG value chain offers a buffer against near-term market volatility

Garry White, Chief Investment Commentator at Charles Stanley, comments: “Shell’s third-quarter results highlighted the company’s resilience in a softer commodity environment, with earnings down year-on-year due to weaker oil and gas prices and lower refining margins. Yet the standout performer was its integrated gas division, which benefited from strong global demand for liquefied natural gas (LNG) – a legacy strength from its 2015 acquisition of BG Group.
 
“Despite concerns over a potential energy oversupply, Shell is well-positioned to gain from the European Union’s pivot away from Russian LNG toward more politically-acceptable suppliers. As one of the world’s largest LNG producers, with operations spanning Canada, Germany, India, Nigeria, Qatar, and the Netherlands, Shell’s end-to-end involvement in the LNG value chain – from extraction to delivery – offers a buffer against near-term market volatility.”

Strategy remains on track as the smoke clears from leadership change at Imperial Brands

 
Mark Crouch, market analyst for eToro says: “There was a time when fears swirled that Imperial’s cash flows might go up in smoke, but the company’s latest trading statement proves those doubts are all but extinguished. With a fresh £1.45bn share buyback announced and guidance reaffirmed, Imperial is leaning on pricing strength and growing momentum in next-gen products to lead the way forward. And while the combustible tobacco business remains in long-term decline, Imperial’s ability to offset volume erosion with price gains, alongside rising demand for alternatives like blu and Pulze, is rekindling investor conviction.

“Imperial has now largely recovered from May’s lows, when former CEO Stefan Bomhard announced his departure, and with Lukas Paravicini now at the helm, attention shifts to execution. Gains in the U.S., Germany and Australia are expected to balance softer markets like Spain and the UK. As always with tobacco stocks, strong free cash flow and capital returns remain the draw, and while leadership may have changed, Imperial’s focus on those fundamentals remains firmly in place.”

CVS Group grows revenue by expanding down under

 
Adam Vettese, market analyst for eToro says: “CVS Group’s final results highlight steady progress despite a challenging UK market. The company grew its overall revenue, mainly supported by acquisitions in Australia, broadening its international presence. Operational performance showed improvements, reflecting disciplined management and efficiency gains.

“However, underlying like-for-like sales were flat, signalling ongoing softness in the UK veterinary market amid regulatory uncertainty. Profitability was somewhat constrained by increased financing costs and depreciation, related to recent investments and acquisitions. The strategic sale of the UK Crematoria business strengthened the balance sheet, allowing CVS to focus on its core areas and invest in growth opportunities. The company also maintained strong cash generation and a healthy leverage ratio, which provides flexibility for further expansion.

“Looking ahead, CVS appears well positioned to navigate short term market challenges, with long-term growth supported by structural trends in pet care and expansion into Australia. While regulatory scrutiny from the Competition and Markets Authority remains a watchpoint, management’s focus on operational efficiency and international growth offers a balanced outlook. Shares have consolidated sideways since the rapid rise at the end of April, investors will now be looking for further progress in the coming updates to see shares resume an upward trajectory.”