Author: Fiona Craig

The Gym Group (LSE:GYM) said on Tuesday that it has upgraded its financial guidance, unveiled plans to accelerate its site rollout and launched a new share buyback programme, reflecting continued strong trading momentum.

In a trading update, the low-cost fitness operator reported an 8% increase in revenue to £245 million for the 2025 financial year, in line with market expectations. Like-for-like revenue growth came in at 3%, consistent with its prior guidance. Membership numbers rose 4% year on year to 945,000, while average revenue per member per month increased by 4% to £21.60.

The group opened 16 new gyms during the year, at the upper end of its 14–16 site guidance, taking its total estate to 260 locations. Net debt on a pre-IFRS-16 basis reduced by £2 million to £59 million, supported by solid cash generation.

On the back of strong performance from both mature and newly opened gyms, The Gym Group said it now expects FY25 EBITDA less normalised rent to be “slightly above the top end of the consensus range” of £52.5 million to £54.9 million, equating to around 3% above current market consensus of £53.1 million.

Looking ahead to 2026, the company said it expects to sustain this momentum and forecasts EBITDA less normalised rent to again exceed the upper end of the consensus range of £55.2 million to £59.3 million, around 4% above the current consensus of £57 million.

Strategically, The Gym Group plans to significantly accelerate its expansion programme, targeting around 75 new sites over the next three years, funded entirely from free cash flow. Around 20 new gym openings are planned for FY26 alone.

In addition, the company announced a £10 million share buyback programme, which it expects to complete by the end of the 2026 financial year.

Whitbread Plc (LSE:WTB) reported a 2% increase in group sales for the third quarter on Tuesday, driven by stronger accommodation demand across both the UK and Germany.

Total group revenue reached £781 million for the quarter, up on the same period last year. The UK-based hospitality group said trading improved across its Premier Inn UK and Premier Inn Germany businesses, while UK food and beverage sales declined.

In the UK, accommodation revenue rose 2%, supported by a 3% increase in revenue per available room (RevPAR). Whitbread said it continued to command a RevPAR premium relative to the midscale and economy hotel market. By contrast, UK food and beverage sales fell 4%, which the company linked to changes under its Accelerating Growth Plan, including the conversion of some lower-return restaurant formats into higher-return concepts.

Germany delivered a particularly strong performance, with accommodation sales increasing 12% in local currency terms, or 16% in sterling. Estate-wide RevPAR rose 7% to €76, while RevPAR at more established sites increased to €86. Whitbread said this outperformed the broader midscale and economy market in Germany.

Looking at more recent trading, Whitbread said that in the six weeks to 8 January 2026, UK accommodation sales and RevPAR were both up 4%. In Germany, accommodation sales grew 11% over the same period, with RevPAR rising 5% to €56.

Chief executive Dominic Paul said the group maintained strong momentum during the quarter. “We delivered a strong performance in the third quarter, with positive momentum,” he said in a statement.

The company also upgraded its expected cost efficiencies for the 2026 financial year, now forecasting savings of £75 million to £80 million across labour, technology and procurement, compared with previous guidance of £65 million to £70 million.

Following the UK Budget, Whitbread updated its outlook for fiscal 2027, estimating the impact of proposed business rates changes at around £35 million, lower than its earlier £40 million to £50 million estimate. Gross UK cost inflation is expected to be between 6.5% and 7.5%, with net UK cost inflation forecast at 3% to 4% after accelerated efficiency measures.

During the quarter, Whitbread completed sale-and-leaseback transactions worth £89 million and said it remains on track to finish its previously announced share buyback programme by April 2026, having repurchased 7.7 million shares to date.

Rentokil Initial Plc (LSE:RTO) said on Tuesday that it has appointed U.S.-based executive Mike Duffy as its new chief executive, effective 16 March, succeeding Andy Ransom, who will step down after more than 18 years with the group.

Duffy will join Rentokil Initial as CEO Designate on 16 February and will be based in North America. Ransom will continue to support the handover process through to the company’s annual general meeting on 7 May to ensure an orderly transition.

Duffy brings more than 25 years of leadership experience across both B2B and B2C sectors. He is currently chief executive of OnTrac, a U.S. logistics group focused on residential last-mile delivery. Prior to that, he served as CEO of FleetPride, where he oversaw a network of more than 350 locations across North America. Both businesses are owned by American Securities LLC.

“It is an honour to be appointed as Chief Executive of Rentokil Initial, a company with an impressive global footprint and a leading position in the North American market,” Duffy said in a statement.

Chair Richard Solomons said Duffy “has a proven track record of delivering profitable growth and transforming businesses and has the right skills and capabilities to enable Rentokil Initial to realise its full potential over the coming years.”

Grafton Group PLC (LSE:GFTU) on Tuesday reported full-year 2025 revenue of £2.52 billion, representing a 10.4% increase year on year and broadly matching analyst expectations of £2.517 billion. Shares edged 0.5% lower following the update.

Average daily like-for-like revenue rose 1.7% over the full year, although momentum eased towards the end of the period, with growth flattening during the final two months of 2025 as trading conditions softened in the second half. Adjusted operating profit is expected to be broadly in line with market consensus of around £181.9 million, despite ongoing macroeconomic pressure in several end markets.

Trading performance diverged across the group’s regions. The Island of Ireland and Iberia delivered the strongest outcomes, with full-year like-for-like revenue growth of 3.5% and 6.1% respectively. In contrast, Great Britain recorded modest growth of just 0.4%, while Northern Europe saw a 0.5% decline, with both regions experiencing weaker conditions towards the end of the year.

“Despite continuing headwinds in some of our markets, the Group delivered a solid performance in Q4 and an outcome in line with expectations for the full year,” said Eric Born, Chief Executive Officer of Grafton Group plc. “It reflects the strong market positions, resilience and agility of our operations across our geographies.”

Looking ahead, the group struck a cautious tone on 2026, noting that “meaningful recovery in Great Britain and Northern Europe did not materialise in 2025, and the timing of any improvement in these two segments in the year ahead remains uncertain.” Management said it will continue to prioritise efficiency initiatives and cost discipline.

Grafton also outlined organisational updates, including the appointment of Mario Ballarín as chief executive for Iberia from January 2026 to support growth in the region, alongside a simplified reporting structure organised around four geographic operating segments aligned with the group’s strategic priorities.

Rainbow Rare Earths (LSE:RBW) has commissioned and begun operating a pilot plant in Johannesburg, marking the final phase of process test work for its Phalaborwa rare earths project in South Africa. The project is targeting a first-of-its-kind commercial operation to recover rare earth elements from phosphogypsum waste, rather than traditional hard rock mining.

The large-scale pilot programme is scheduled to run through the first half of 2026 and will test an optimised processing flowsheet. This includes an enhanced leach circuit alongside continuous ion exchange and impurity removal, producing material for downstream solvent extraction trials. The work is designed to finalise product specifications for high-purity separated NdPr oxide and SEG+ products, while also generating the detailed technical and cost data required to complete the Definitive Feasibility Study and support third-party project financing.

Recent flowsheet improvements, such as shorter leach times, fewer processing stages and reduced equipment intensity, are expected to translate into lower capital and operating costs. These changes are intended to reinforce Phalaborwa’s positioning at the lower end of the global cost curve, at a time when rare earth prices are recovering and Western governments are increasingly focused on diversifying supply chains in response to Chinese export controls.

George Bennett, CEO, commented:
“This new piloting operation is the final phase of process test work for Phalaborwa, as it will demonstrate the project flowsheet that has been considerably updated over the past 18 months via a number of key optimisations. These efficiencies further reinforce the project’s position at the bottom of the industry cost curve to deliver high-purity (>99.5%) separated NdPr oxide and SEG+ products. The pilot operations are important to the finalisation of the DFS this year and ensure the long-term success of the Phalaborwa project.

We are very proud of our technical team, which has commissioned this pilot plant quickly and efficiently. We are looking forward to showing the operation to investors and other market participants at the two site visits in early February prior to the Mining Indaba conference.

The outlook for the REE market remains strong going into 2026, with pricing for the light REE NdPr having effectively doubled since the lows of 2025 to over US$100/kg, following the major price rises we have seen already for the medium and heavy REE that are subject to Chinese export controls. Phalaborwa is a unique project in that it will produce the full range of economically and strategically important REE, which is why it has been backed by the US International Development Finance Corporation as a key contributor to supply chain resilience.”

More about Rainbow Rare Earths

Rainbow Rare Earths is a rare earth elements developer focused on establishing an independent and ethical supply chain for materials critical to the global energy transition. The company is advancing the commercial recovery of rare earths from phosphogypsum, a by-product of phosphoric acid production, offering the potential for faster and lower-cost development than conventional mining. Its principal projects are Phalaborwa in South Africa and Uberaba in Brazil, targeting high-value rare earth oxides including neodymium, praseodymium, dysprosium and terbium used in permanent magnets for electric vehicles, wind turbines, defence and emerging technologies.

Persimmon (LSE:PSN) reported a resilient performance in 2025 against a backdrop of difficult housing market conditions, delivering a 12% increase in home completions to 11,905. Underlying profit before tax is expected to come in at the upper end of market expectations, supported by a larger sales outlet base and the group’s broad geographic exposure.

Average selling prices rose 4% to around £278,000 during the year, while forward sales increased 2% to £1.17bn despite the strong uplift in completions. Persimmon ended the period with net cash of approximately £116m, having stepped up investment in land acquisition and continued progress on building safety remediation programmes.

Looking ahead, management said the group remains well positioned to deliver further outlet expansion and volume growth. However, it highlighted ongoing headwinds, including affordability pressures for buyers, softer demand from bulk and registered provider customers, and higher regulatory and compliance-related costs expected in 2026.

Overall, Persimmon’s outlook is supported by a strong balance sheet, solid operational execution and positive technical signals, alongside supportive corporate developments. These strengths are balanced against the need to improve cash flow efficiency and navigate valuation considerations in a market that remains sensitive to interest rates and affordability.

More about Persimmon

Persimmon is one of the UK’s largest housebuilders, specialising in the development and sale of private and partnership homes across a wide geographic footprint. The group focuses on delivering high-volume, relatively affordable and sustainable housing, supported by a large network of sales outlets, extensive owned and controlled land holdings, and a high degree of vertical integration across its supply chain.

THG (LSE:THG) reported a record second-half revenue performance in 2025, with group H2 sales increasing 6.7% year on year, around 14% above the top end of previous guidance. Momentum strengthened into the final quarter, with Q4 constant-currency growth accelerating to 7.0%, marking the group’s strongest quarterly performance of the year.

The rebound was led by a strong recovery in THG Beauty, where Lookfantastic delivered particularly robust growth in the UK and Ireland, alongside continued progress at THG Nutrition. The Nutrition division recorded its fourth consecutive quarter of growth, supported by effective pricing, expansion into adjacent categories such as activewear and creatine, and broader distribution through offline retail channels. These gains more than offset the impact of disposals, discontinued operations and the demerger of THG Ingenuity.

As a result, THG returned to full-year revenue growth of 2.3% after two years of decline, while EBITDA guidance was maintained in line with market expectations. The group ended the year with more than £330m of cash and available facilities, providing balance sheet flexibility. Management highlighted market share gains in UK beauty and sports nutrition, deeper brand collaborations and expanded retail rollouts for Myprotein, alongside a more focused beauty strategy centred on core categories and priority territories.

Looking ahead, THG enters 2026 with what management described as strong trading momentum across both Beauty and Nutrition. While the group continues to face financial challenges, including high leverage and ongoing losses, recent operational progress, portfolio simplification and improving trading trends point to a cleaner, more disciplined business with stronger strategic positioning.

More about THG PLC

THG PLC is a Manchester-headquartered global e-commerce group and brand owner operating primarily through THG Beauty and THG Nutrition. THG Beauty runs major online platforms including Lookfantastic, Dermstore and Cult Beauty, providing a digital route to market for over 1,000 third-party beauty brands alongside its own-label products. THG Nutrition, led by Myprotein, operates across sports nutrition and wider health and wellness categories, selling directly to consumers and through an expanding network of offline retail and licensing partnerships worldwide.

Brave Bison (LSE:BBSN) reported that trading for the year ended 31 December 2025 came in ahead of market expectations, supported by strong momentum in the second half of the year. Unaudited net revenue is expected to be at least £33.5m, representing a 57% year-on-year increase, while adjusted EBITDA rose by 44% to no less than £6.5m. Adjusted profit before tax also improved sharply, increasing 41% to at least £5.5m.

The group ended the year with net cash of £4.3m, significantly ahead of consensus forecasts. This was driven by a strong fourth quarter, particularly within its Sport & Entertainment activities, alongside an improved working capital position. Management cautioned that some of the working capital benefit is likely to unwind during the first half of 2026.

Reflecting the stronger financial position, the board now expects to repay all outstanding bank debt before the end of 2026, earlier than previously guided. Looking ahead, surplus free cash flow is expected to be deployed towards further acquisitions and dividends, in line with the company’s capital allocation framework. Brave Bison also indicated it is comfortable with current FY26 market forecasts, noting that revenues and profits will increasingly be weighted towards the second half of the year due to the scheduling of MiniMBA courses.

Overall, the outlook is underpinned by strong financial performance, positive corporate developments and low financial leverage. These strengths are partly offset by weaker technical indicators and a relatively high valuation, which may temper near-term share price performance despite the company’s strategic progress.

More about Brave Bison Group plc

Brave Bison Group plc is a next-generation marketing and technology partner for global brands, operating across eight countries including the UK, India, Australia and Egypt. The group provides digital services, media and marketing skills training through two divisions. Digital Services offers performance media, social and influencer marketing, sport and entertainment, and strategy and insight through brands such as Brave Bison, SocialChain, Engage and MTM. Digital Content focuses on monetising digital content and delivering online marketing education via its media network and the MiniMBA platform, serving major global brands and enterprise clients.

Primary Health Properties (LSE:PHP) delivered a strong trading update for the year ended 31 December 2025, reflecting the transformational acquisition and integration of Assura. The combination has created a £6bn healthcare-focused REIT and has already delivered around 60% of the targeted £9m in annualised cost synergies within roughly two months of regulatory approval.

The group declared its first quarterly interim dividend for 2026 at 1.825 pence per share, extending its record of 30 consecutive years of dividend growth. Annualised contracted rent increased to £342m, supported by robust rent review outcomes that added £8.3m of incremental income and improved the outlook for rental growth across both primary care assets and private hospitals.

Management highlighted the enlarged group’s strengthened financial position following the refinancing of Assura’s debt. Primary Health Properties ended the year with £552m of undrawn liquidity, an average cost of debt of 3.7% and an average debt maturity of just over four years. The board reiterated its target loan-to-value range of 40–50% and its commitment to maintaining a strong investment-grade credit profile.

Strategically, PHP is undertaking a comprehensive portfolio review, advancing disposals of non-core assets while exploring new and expanded joint ventures across primary care and its private hospital portfolio. The group expects supportive policy tailwinds, including the NHS’s 10-year Health Plan and the UK Government’s neighbourhood-based infrastructure agenda, to underpin organic rental growth, longer lease terms and enhanced ESG outcomes over time.

Overall, the company’s outlook is supported by resilient fundamentals, strong cash generation and an attractive dividend profile, although leverage and earnings variability remain factors to monitor. Positive technical momentum and the successful completion of the Assura transaction further underpin confidence in the long-term investment case.

More about Primary Health Properties plc

Primary Health Properties plc is a UK real estate investment trust focused on owning and managing modern primary healthcare infrastructure. The group holds a £6bn portfolio of long-leased medical centres, GP surgeries and private hospitals across the UK and Ireland, with assets predominantly let to government-backed NHS bodies and leading healthcare providers. Its strategy centres on secure, inflation-linked income, progressive dividends and capital-light asset management and development within primary care and private hospital real estate.