Defence Dividend
Morning, I'm Louise Moon
Babcock announced its first ever buyback, of £200 million, showing just how much a military spending splurge is lifting the defence sector.
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25 minutes ago
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Starmer says fixing welfare is a 'moral imperative'
Sir Keir Starmer has said the UK's benefits system is broken and fixing it is a "moral imperative", a day after a backbench Labour revolt saw him forced into a U-turn on welfare cuts. The prime minister told the Welsh Labour Party conference in Llandudno that the government would not take away the welfare "safety net that vulnerable people rely on". But he said he could not let benefits "become a snare for those who can and want to work". Despite the government's concession on its plans to reform welfare, some Labour MPs want further changes, while the Unite union has called for the proposal to be dropped altogether ahead of a vote on Tuesday. PM's benefit cuts U-turn leaves backbenchers feeling bruised We've got the right balance, says PM after benefits U-turn Faisal Islam: How much will U-turn on disability benefits cost? The BBC understands whips and cabinet ministers - including Wes Streeting, Angela Rayner and Rachel Reeves - have been phoning or texting Labour MPs over the weekend, going through the names of the initial rebels in a bid to get an accurate assessment of potential voting. Some MPs are saying they have yet to make their mind up on how to vote and are awaiting a statement on Monday from Work and Pensions Secretary Liz Kendall that will spell out government concessions. Speaking at the conference in north Wales on Saturday, Sir Keir said fixing the "broken" benefits system needed to be done because it was "failing people every day", leaving "a generation of young people written off for good and the cost spiralling out of control". "Fixing it is a moral imperative, but we need to do it in a Labour way," he added. The government's initial plans, aimed at bringing down the welfare bill, would have made it harder for people to claim personal independence payment (Pip), a benefit paid to 3.7 million people with long-term physical or mental health conditions. But following a rebellion among Labour MPs and the likelihood the government would be defeated in the Commons, the government announced the stricter criteria would only apply to new claimants. It reversed its plans to freeze the health-related component of universal credit, and the payment will now rise in line with inflation for existing recipients. Ministers will also carry out a review of the Pip assessment process, with input from disability organisations. A £1bn support package to help people into work, originally scheduled for 2029, will be fast-tracked. A new "reasoned amendment" to the bill will be put down on Monday by rebel MPs, which will reflect government concessions but is expected to be similar to the now-withdrawn earlier amendment that sought to block changes to the benefits system. The BBC understands that around 50 Labour MPs currently back that new amendment. That number is likely to increase but the expectation is it will not reach the 80-plus needed to put the government in danger of defeat. However it would still represent a significant rebellion. Rebel MPs are also expected to hold a briefing on Monday night at Westminster with various disability charities. Labour MP Diane Abbott earlier told BBC Radio 4's Today programme that she thought the result of a vote on the new plans would be tight, partly because backbenchers are still "upset about the lack of consultation" and because of "the notion of a two-tier benefit system". But former Labour justice secretary Lord Falconer told the programme that "sensible" changes to the welfare reforms were "pretty significant", and that he believed opposition among Labour MPs was "shrinking and shrinking". Debbie Abrahams, the Labour MP who chairs the Work and Pensions Select Committee, told the BBC on Friday: "The concessions are a good start, they are very good concessions and they will protect existing claimants. "However there are still concerns about new claimants. It would not be right for me not to do anything just to spare the prime minister an inconvenience." Ahead of Sir Keir's conference speech, Unite called for the "entire welfare bill to be dropped and for the government to start again", with general secretary Sharon Graham accusing Labour of "attacking the most vulnerable in our society". "The government's latest plans for disabled benefits cuts are divisive and sinister," she said. "Creating a two-tier system where younger disabled people and those who become disabled in the future will be disadvantaged and denied access to work and education, is morally wrong."
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37 minutes ago
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Cleo Diagnostics (ASX:COV) Is In A Good Position To Deliver On Growth Plans
Just because a business does not make any money, does not mean that the stock will go down. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. Given this risk, we thought we'd take a look at whether Cleo Diagnostics (ASX:COV) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Let's start with an examination of the business' cash, relative to its cash burn. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. When Cleo Diagnostics last reported its December 2024 balance sheet in February 2025, it had zero debt and cash worth AU$7.3m. In the last year, its cash burn was AU$2.8m. That means it had a cash runway of about 2.6 years as of December 2024. That's decent, giving the company a couple years to develop its business. The image below shows how its cash balance has been changing over the last few years. Check out our latest analysis for Cleo Diagnostics While Cleo Diagnostics did record statutory revenue of AU$211k over the last year, it didn't have any revenue from operations. To us, that makes it a pre-revenue company, so we'll look to its cash burn trajectory as an assessment of its cash burn situation. During the last twelve months, its cash burn actually ramped up 58%. Oftentimes, increased cash burn simply means a company is accelerating its business development, but one should always be mindful that this causes the cash runway to shrink. Cleo Diagnostics makes us a little nervous due to its lack of substantial operating revenue. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth. While Cleo Diagnostics does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations. Cleo Diagnostics' cash burn of AU$2.8m is about 5.4% of its AU$51m market capitalisation. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money. As you can probably tell by now, we're not too worried about Cleo Diagnostics' cash burn. For example, we think its cash runway suggests that the company is on a good path. Although its increasing cash burn does give us reason for pause, the other metrics we discussed in this article form a positive picture overall. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for Cleo Diagnostics (1 is a bit concerning!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Business Secretary meeting Lotus after reports of plans to scrap UK carmaking
The Business Secretary will hold talks with Lotus after the carmaker appeared to shelve plans to shut its UK operations. After reports that Chinese owner Geely was planning to stop manufacturing at the Hethel plant in Norfolk, putting 1,300 jobs at risk, Lotus issued a statement saying it had 'no plans' to close the factory. Jonathan Reynolds will speak to the company on Sunday, the PA news agency understands. The British sportscar brand has been majority-owned by Chinese multinational Geely since 2017. The Financial Times had reported it was considering shutting up shop in the UK and in favour of a new plant in the US. On Saturday, Lotus sought to assuage concerns with a statement that it remains 'committed' to the UK, which it called its largest commercial market in Europe and the 'heart' of the brand. 'Lotus Cars is continuing normal operations, and there are no plans to close the factory,' it said. 'We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market. 'We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage.' A Government spokesperson said: 'The Government does not comment on speculation or the commercial affairs of private companies.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
