Although the UK stock market has performed well so far this year, that doesn’t mean that all UK shares are doing so well. Some businesses are really struggling in 2024, and the damage may not be done yet. I have to be careful not to get sucked into ideas that may seem like good value purchases at first glance. Here are two that are on my list to stay away from.

A unique angle is missing

The first is CAB payments (LSE:CABP). The company’s shares are down 45% over the past year after a major crash hit the stock price almost a year ago.

Late last year, the company’s shares fell more than 70% in a single day after the company issued a financial data warning. The global payment services provider revised down its revenue expectations, signaling this “Market conditions are compressing margins and reducing trading volumes.”

Fast forward to the first-half results released last month, and the situation doesn’t seem to have improved much. Adjusted profits were £18.7m, down from £40m for the same period in 2023. The company noted “lower revenues and higher operating costs.”

I just don’t understand why this payment company is truly unique in what it offers. It’s true that it may be able to carve out a niche in payments facilitation in emerging markets. This can lend a hand your business grow in the future. However, in my opinion, there are many hurdles that need to be overcome before I would consider investing.

Declining production levels

Another company I’m worried about is Ferrexpo (LSE:FXPO). The company’s stock is down 41% over the past year and 85% over the past three years.

This is a sorrowful case as the Ukrainian iron ore pellet producer has seen production plummet since the Russian invasion. The most recent quarterly report noted that only one to two of the four pelletization lines were operational during this period. Moreover, it currently employs almost 700 military personnel, which is once again putting pressure on production capacity.

I hope that the war will end peacefully one day. However, I do not see any immediate signs of this situation. Therefore, I expect Ferrexpo to continue to struggle, with production and revenue likely to decline further in the coming year.

The decline in iron ore prices did not lend a hand either. At the beginning of this year, the price was $133 per tonne, now it is $105. This means that everything that is produced by Ferrexpo is ultimately sold at a lower price than could previously be obtained on the open market.

I could be wrong here, and if we manage to reach a surprise peace agreement, Ferrexpo shares could skyrocket in response to the good news. Operational levels can boost significantly in a very compact period of time, which will lend a hand boost revenues. But I’m cheerful to sit through it.