AIM gold price beneficiaries
The gold price remains strong despite some profit-taking in mid-October (see this month's publication).
Gold demand is being boosted by investment interest and ETF demand is the highest it has been since 2020. In the most recent quarter, ETF buying increased by 222t. Bar and coin demand also increased. Jewellery demand has declined.
Gold production could reach a record high this year. There are AIM gold miners already generating significant cash from production and some are coming to an end of past hedging, which means they will be generating even more cash. Ariana Resources will benefit from a joint venture mine in Turkey that has just commenced production and that will generate additional cash.
CURRENT EDITION
THIS MONTH'S TOPICS INCLUDE:
AIM underperforms in October
QCA sets out 2025 Budget proposals
Gear4Music bounces back
Musical instruments retailer Gear4Music has bounced back from a troubled couple of years. It is set for its best year since the Covid-boosted 2020-21.
In the six months to September 2025, revenues jumped from £61.7m to £80.7m, while a loss of £1.25m was turned into a pre-tax profit of £2.72m. Gear4Music was helped by smaller rivals going out of business. This helped grow revenues and also enabled the retailer to pick up stock at attractive prices that boosted margins. Net debt was £16m at the end of September 2025 as cash generated was invested in stock.
There is an upgrade to full year pre-tax profit from £5.5m to £6.7m.
Wynnstay ahead of expectations
Wynnstay Group is benefitting from the revised strategy of the new chief executive and trading is slightly better than expected. Cost savings have helped in all three divisions.
Feed and grain profit improved even though feed volumes were lower and grain trading was hit by a weaker wheat harvest. The arable division generated better profit on higher fertiliser sales. Like-for-like retail stores sales were flat, although margins improved.
Net cash was £26.4m at the end of October 2025, following the investment in the Carmarthen feed mill.
the telecoms market remaining weak. Demand for datacentres and defence is providing growth opportunities.
