Plastic manufacturer Formica has reported an improving financial picture despite falling to a fifth consecutive year of losses.

The North Shields company – which has been a fixture on the Coast Road for more than 70 years – has released accounts for 2025 in which its revenues increased from £35.7m a year earlier to £41.4m. Over the same period, the company’s operating loss narrowed from £8.3m in 2024 to £5.7m.

A breakdown of sales shows that more than half the company’s income (£28.1m) came from exports to Europe, with £13.2m of sales in the UK.

Formica has been restructuring its operations in the North East over the last few years, with headcount at the factory more than halving since 2018. The new accounts put the company’s employee numbers at 232, a slight rise on the previous period.

The company has also been remodelling the Coast Road site, knocking down a number of buildings that are no longer in use. Restructuring costs of £300,000 are recognised in the accounts that relate to the demolition of the Finished Goods Warehouse at North Shields.

In the accounts, the company says it is “continuing to focus on its North Shields facility”, adding that “whilst reducing the factory footprint we believe through modernisation and centralisation we will be able to support future growth in a controlled manner and therefore benefit from an improved operating leverage.”

The directors add: “Formica Limited has completed a number of projects as part of a significant investment programme at its North Shields site, resulting in a reduced cost footprint. Meanwhile, the company has taken steps to strengthen its commercial margin.

“Along with other actions such as administrative cost reductions and commercial and operational synergies with sister companies in the group, the financial run-rate of the company is improving and is expected to continue to improve, driven by the market demand as well as ongoing commercial and marketing initiatives.”

The Formica product dates back to 1913 when an employee of US-based Westinghouse filed a patent for process to make laminated insulators.

The North Shields plant has been part of the Dutch Broadview Holdings group since 2018 after it was bought in an $840m deal from previous owners Fletcher Building, which is based in New Zealand. In March, Formica’s third party UK sales business was also sold to Broadview.

Rhodium Group Director Reva Goujon highlights the increasing security challenges faced by AI companies globally, emphasizing concerns around cyber threats, data privacy, and geopolitical tensions. She underscores the importance of robust protections and international cooperation to mitigate risks, ensuring responsible AI development and deployment amid evolving technological and regulatory landscapes.

As AI chatbots become more prevalent, companies face increasing risks of malicious attacks aimed at exploiting these systems. To safeguard their digital assets, organizations should implement robust security protocols, including strong authentication and encryption measures. Regularly updating chatbot software ensures vulnerabilities are patched promptly, reducing potential points of entry for attackers. Additionally, deploying continuous monitoring systems helps detect abnormal activity or suspicious behavior that might signify a breach.

Training human staff to recognize and respond to chatbot threats is equally essential. Employees should be aware of common attack vectors such as phishing attempts or social engineering tactics targeting chatbots. Implementing strict access controls for chatbot management also limits the scope of potential damage. Combining technological defenses with well-trained personnel creates a comprehensive shield against malicious AI bot attacks.

Ultimately, staying informed about emerging AI security threats is crucial. Companies should collaborate with cybersecurity experts to develop proactive strategies and participate in ongoing threat intelligence sharing. By embracing a layered security approach, businesses can protect their chatbots and maintain customer trust amidst evolving cyber threats.

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Other People are Reading

Shares of sugar companies including Balrampur Chini Mills, Dhampur Sugar, Dalmia Bharat, Shree Renuka and EID Parry rallied up to 8%, extending gains for a second session, after Indian sugar prices surged to Rs 4,400-4,800 per quintal, up 8-10% in the last month, marking a 7-year high.

The rally comes amid a rapid surge in global sugar prices. US raw sugar prices moved above the $15/lb resistance level to $16/lb, while London White Sugar climbed to a 15-month high of more than $500 a tonne.

In today’s session, Balrampur Chini Mills gained over a percent to Rs 627 on the BSE, while Dhampur Sugar Mills gained 4% to Rs 169 per share. Uttam Sugar gained 6% to Rs 280 per share. Triveni Engineering shares rose the most, rallying 8% to Rs 271, while Eid Parry gained over 3 percent to Rs 801. Over two days, Triveni Engineering’s stock price has gained the most, rising 12%.

What’s moving the stocks?

A key trigger is the worsening supply outlook in Brazil, the world’s largest sugar producer. The country has warned of a delay in the harvest amid adverse weather conditions. Adding to uncertainty, Brazil has suspended its bi-weekly harvest and production reports, leaving investors with limited visibility on the supply situation.
The shift towards ethanol is further intensifying concerns over a potential sugar supply crunch. In June, 58% of Brazil’s cane juice was diverted to ethanol production, as it is likely more profitable than sugar.

Brazil has also raised its mandatory ethanol blending target to 32% in July from 30% in June, significantly higher than the 25-27% mix seen just months earlier.
Supply concerns are not limited to Brazil. Intense heatwaves and El Nino conditions across the EU and the UK have added to fears of tighter supplies, with sugar output from the region trimmed to 14.98 million tonnes.In Asia, Thailand, the world’s third-largest sugar producer, has cut its projected output by 15.6% to 9.5 million tonnes. India, the world’s second-largest sugar producer after Brazil, is also projecting lower sugar production. Authorities are physically verifying mill volumes to enforce strict hoarding limits.

Global deficit estimates are also pointing towards a tighter market. Green Pool has projected a global sugar deficit of 3.3 million tonnes, while StoneX has estimated the shortfall at 1.7 million tonnes. The International Sugar Organisation has forecast a deficit of 0.26 million tonnes.

With production concerns mounting across major sugar-producing regions and global benchmark prices continuing to climb, the supply outlook has emerged as the key factor driving the sharp move in sugar prices.

India may cut exports

India, the world’s second-largest sugar exporter, is expected to have little surplus for export for at least three more seasons as El Nino weather conditions threaten cane production and rising ethanol demand squeezes supply.

The twin pressures are poised to keep millions of tons of sugar off the world market, tightening supplies for importers across Asia, Africa and the Middle East and supporting benchmark prices in London and New York.

A reuters report stated that government sources and farmers suggest that lower cane availability and rising ethanol demand will leave little for exports for several years, prompting dealers at global houses ‌to warn head offices of shrinking ⁠opportunities in ⁠India, trade sources said.

India exported 6.8 million metric tons of sugar annually on average in the five seasons through 2022-23 – about 10% of global shipments. This year, after exporting around 800,000 tons, India banned shipments until September 30, the end of the season.

Also read: Explained: Why Vedanta Aluminium, Hindalco, Nalco shares tumbled up to 7% on Friday

A prolonged absence deficit from major suppliers would remove a key balancing supplier as weather risks and biofuel policies reshape global sugar trade flows.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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Bernt Omdal
Chief Executive Officer

Good morning, and welcome to the presentation of our results for the second quarter.

My name is Bernt Omdal, and I’m the CEO of the company. Together with our CFO, Vidar Jerstad, we will take you through this presentation.

Sea1 Offshore’s report for the second quarter 2026 was released prior to the market opening today. In this presentation, we will cover the main highlights of the report, and we will refer to the presentation issued together with the financial report. At the end of the presentation, we will open up for questions, and I suggest you post your questions in the chat function.

So looking at the highlights for the quarter, we operated 15 fully owned vessels. In addition, we have 4 vessels under construction. All of our vessels in operation delivered a positive EBITDA margin. We had USD 80 million in revenue, and we delivered $41.5 million in EBITDA. That is equal to an EBITDA margin of 52%. We have a book equity ratio of 53%, and our net interest-bearing debt was $259 million at the end of the quarter.

Revenue and EBITDA is up year-on-year, even though second quarter figures in 2025 included a positive contribution from Sea1 Spearfish, which was sold in May 2025. We continue to deliver safe and efficient operations in all regions. This is a result of high focus on safety at all levels in the company.

The utilization of the fleet in the second quarter was 83%, which is somewhat down from same quarter last year, which is a result of the low utilization in the anchor

Manorama Industries shares rallied over 8% to Rs 1,747.25 on the BSE on Friday after the specialty fats and cocoa butter equivalent (CBE) manufacturer reported strong earnings for the June quarter. The sharp buying momentum pushed the stock near its 52-week high of Rs 1,867, driven by investors reacting positively to a 67.6% surge in net profit.

The strong operational performance was backed by an improved value-added product mix, enhanced processing capacity, and robust demand across key consumer industries like chocolate, confectionery, and cosmetics.

Financial performance

For the first quarter ended June 30, 2026, Manorama Industries posted a consolidated net profit of Rs 786.6 million, marking a massive 67.6% jump compared to Rs 469.4 million reported in the corresponding period last fiscal. On a sequential basis, net profit surged 49.9% from Rs 524.6 million in the March quarter.

Consolidated revenue from operations increased by 39.5% year-on-year to reach Rs 4,040.1 million, up from RS 2,895.5 million in Q1 FY26. This performance marked the first time the company crossed the RS 4,000 million quarterly revenue mark. On a quarter-on-quarter basis, revenue rose 3.2% from RS 3,913.4 million. The revenue mix between domestic and export markets stood at 40:60 during the quarter, highlighting its diversified global footings.

Operating performance remained robust, with EBITDA rising 42.2% year on year to Rs 1,062.1 million compared to RS 747.0 million in the base quarter. EBITDA margin expanded by 49 basis points year on year to 26.3%. Profit after tax margin also expanded by 326 basis points to reach 19.5%, aided by operational efficiencies and improved leverage. Diluted earnings per share stood at Rs 13.17 compared to Rs 7.85 a year ago.

Business expansions and global sourcing updates

During the quarter under review, Manorama Industries completed key strategic milestones to reinforce its global supply chain. The company incorporated a wholly owned subsidiary, Manorama Savannah Agro Chad SARL, in the Republic of Chad to strengthen its Shea sourcing operations in West Africa.
Additionally, the firm acquired nearly 10 hectares (24 acres) of land in Burkina Faso for a dedicated Shea seed processing facility. Regulatory approvals for this facility are currently underway. The company noted that these investments in West Africa will enhance raw material security, traceability, and supply chain proximity to international customers.The company also announced the successful completion of its Qualified Institutions Placement (QIP), which has strengthened its balance sheet and provided the financial flexibility to fund future growth opportunities across manufacturing, raw material sourcing, and value-added product categories.

Growth outlook

Commenting on the results, Ashish Saraf, Chairman and Managing Director of Manorama Industries, stated that the company commenced FY27 with strong momentum, driven by sustained demand across end-user industries and a growing contribution from its specialty fats portfolio.

Looking ahead, management expressed confidence in maintaining its long-term growth trajectory. The company plans to leverage its expanding product offerings, deeper customer partnerships, and growing presence in cocoa butter alternatives to deliver sustainable growth and long-term value for stakeholders.

Aviva offers home, car, and life insurance in the UK and serves 25m customers

FTSE 100 insurance group Aviva has announced a 24 per cent rise in operating profit for the first half of this year, bolstered by the group’s “strong progress” following its takeover of Direct Line in 2025.

The London-listed insurer, which provides home, motor, and life insurance across the UK and serves around 25 million customers, revealed its overall operating profit climbed to £1.3bn for the period ended 30 June 2026, up from £1.7bn the previous year, driven by its £3.6bn acquisition of Direct Line in July 2025.

Aviva’s general insurance premiums rose 29 per cent to £8.1bn, with UK and Ireland premiums surging 42 per cent to £5.9bn.

The insurer’s wealth management division also expanded 32 per cent to £7.6bn, underpinned by a new pension scheme and robust sales through its investment platform.

“We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service. We are well on track to deliver all the financial benefits of the acquisition,” chief executive Amanda Blanc said, as reported by City AM.

Blanc said the insurer is “confident that we will meet our three-year financial targets in 2028 and expect 75 per cent of our earnings to be capital-light by that point.”

Richard Hunter, head of markets at Interactive Investor, said the results “further cements Aviva’s leading positions particularly in the home and car insurance markets.

“While car insurance has seen a substantial increase in premiums to the exasperation of many consumers, the space has been affected by both higher average new car prices (equating to higher insured valuations) as well as the costly nature of repairing increasingly complex and technologically advanced vehicles,” Hunter said.

The insurance giant is also driving forward with technology adoption as it continues to deploy AI throughout the organisation.

Aviva is utilising its customer base data to train its AI systems, which it described as “major competitive advantages which will drive our future growth.”

The company said it is “already delivering tangible benefits” from implementing AI within its medical underwriting division. Aviva has also recently introduced a generative AI tool to analyse and summarise extensive medical reports and extract pertinent information.

The insurer is additionally planning to introduce an AI virtual assistant later this year, along with the deployment of AI-powered claims agents to assist customers.

Aviva has offices across the UK including in Birmingham, Bristol, Leeds, Liverpool, Manchester, Sheffield and York.

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