Author: Fiona Craig

Foxtons (LSE:FOXT) has lowered its profit expectations after challenging conditions in both the UK sales and lettings markets affected trading during the first half of the year. The London-focused estate agent said recent changes introduced under the Renters’ Rights Act, combined with subdued property sales activity, have created short-term pressure on earnings despite expectations for longer-term benefits.

Lettings changes and weak sales impact first-half performance

The group said the abolition of fixed-term tenancy agreements under the new Renters’ Rights Act led to higher tenancy termination rates, particularly among student renters. As a result, Foxtons reversed approximately £3 million of previously recognised revenue, reflecting the disruption caused by the transition to the new regulatory framework.

While the company believes the reforms will ultimately increase demand for professional lettings and property management services, the immediate impact has weighed on first-half results.

At the same time, the residential sales market remained subdued as political uncertainty, conflict in the Middle East and higher interest rates continued to dampen transaction volumes.

Cost savings help offset market pressures

In response to the softer market, Foxtons implemented a range of cost-saving measures, generating annualised savings of £4.5 million during the first half. Around £3 million came from a targeted efficiency programme, with additional savings achieved through relocating the company’s headquarters.

Despite resilient performance in the lettings business and continued revenue growth within financial services, adjusted operating profit for the first half is expected to decline to approximately £8.5 million, compared with £12.3 million in the same period last year.

The company now expects full-year adjusted operating profit of between £17 million and £19 million, with earnings weighted towards the second half as seasonal lettings activity improves and tenancy termination rates begin to normalise.

Investment outlook

Foxtons continues to benefit from stronger financial fundamentals following several years of improving profitability, lower debt levels and positive cash generation. Its strategy of increasing recurring lettings income also provides greater resilience than a business focused solely on residential sales.

However, near-term earnings remain under pressure from weaker housing transactions, margin challenges and working capital headwinds. Although the shares trade on an undemanding valuation and offer a dividend, technical indicators remain weak, reflecting cautious investor sentiment.

About Foxtons

Foxtons Group is one of London’s largest estate agency businesses and the capital’s leading lettings brand, managing more than 32,000 tenancies through its network of branches. The company operates across residential lettings, property sales and financial services, with a strategy focused on expanding recurring lettings income while growing its sales and mortgage advisory operations.

MTI Wireless Edge (LSE:MWE) has secured approximately US$4 million of new contracts spanning each of its three operating divisions, reflecting a stronger-than-usual period of customer demand. The latest awards cover defence, commercial communications and irrigation projects, further strengthening the group’s diversified revenue base and providing increased visibility for future earnings.

Broad range of contract wins strengthens order book

The new business includes orders for power amplifier solutions, electronic detection systems and data room technologies for defence customers in Israel. The company has also secured commercial antenna contracts supporting RFID applications and 5G backhaul infrastructure, alongside a landscape irrigation project in the Arabian Gulf.

Most of the contracts are scheduled for delivery during the second half of 2026 and by the end of the first quarter of 2027, providing a meaningful boost to MTI Wireless Edge’s order book for both FY26 and FY27.

The breadth of the awards highlights continued demand across the group’s diverse end markets and reduces reliance on any single customer segment.

Diversified business model supports growth

By securing contracts across defence, communications and water management, MTI Wireless Edge continues to demonstrate the benefits of its diversified operating model. Demand for advanced radio frequency technologies, communications infrastructure and smart irrigation solutions remains supportive, positioning the company to benefit from investment across multiple industries.

The expanded order pipeline provides additional confidence in the group’s growth prospects as deliveries progress over the coming quarters.

Investment outlook

MTI Wireless Edge continues to benefit from strong revenue growth, stable profitability and a conservatively financed balance sheet with very low leverage. While trailing free cash flow has softened over the past year, the latest contract wins enhance revenue visibility and support expectations for continued business momentum.

The shares also offer an attractive valuation, combining a reasonable earnings multiple with a solid dividend yield. Although recent technical indicators have been mixed, the longer-term trend remains constructive.

About MTI Wireless Edge

MTI Wireless Edge is an Israel-based technology company specialising in communication and radio frequency solutions for both military and commercial markets. Through its antenna, water control and management, and distribution and consulting divisions, the group supplies advanced antenna systems, irrigation control technologies and RF and microwave engineering services to customers worldwide.

Its antenna division develops smart, MIMO and dual-polarity antennas for applications including 5G backhaul, RFID and defence platforms. Subsidiary Mottech provides remote water and irrigation management systems, while MTI Summit Electronics delivers consulting, integration and representation services for RF, SIGINT, RADAR and communications technologies serving government and defence customers.

Northern Bear (LSE:NTBR) delivered a solid set of unaudited results for the year ended 31 March 2026, reporting double-digit revenue growth, higher profitability and a stronger cash position. The group’s robust financial performance enabled it to increase its ordinary dividend and declare a special dividend following an exceptionally strong year.

Revenue and profits move higher

Revenue climbed 10.2% to £86.1 million, while gross profit increased 14.6% to £22.0 million, lifting the gross margin to 25.5%. Operating profit improved to £5.1 million, adjusted earnings per share rose 17.6%, and Northern Bear finished the year with net cash of £6.2 million, providing significant financial flexibility and supporting enhanced shareholder returns.

The results reflect another year of resilient execution despite more difficult trading conditions during the second half, when adverse weather and wider economic pressures affected activity across parts of the construction sector.

Specialist services drive growth

While roofing operations experienced softer demand, Northern Bear continued to benefit from strong performance across its specialist building services businesses. The company also expanded its offering through growth in photovoltaic roofing systems and architectural glass façade projects, positioning the business to benefit from increasing demand for energy-efficient construction solutions.

Management is continuing to invest in both its workforce and operational footprint. During the year, the group exited the loss-making Peel business, expanded its passive fire protection activities through new framework agreements, and established a London office to support further growth in the sector.

Looking ahead, Northern Bear expects revenue for FY27 to be broadly consistent with FY26 while continuing to strengthen its presence in key markets including social housing, passive fire protection and new-build construction.

Investment outlook

Northern Bear enters the new financial year with a strong balance sheet, improving profitability and healthy cash generation. The combination of net cash, rising earnings and increased shareholder distributions highlights the group’s financial strength and provides a solid platform for future investment.

The shares also continue to trade on a notably low earnings multiple, which may appeal to value-focused investors. However, this is balanced by weaker technical indicators, with the share price remaining in a short- to medium-term downtrend despite appearing oversold.

About Northern Bear

Northern Bear PLC is a UK construction and building services group providing roofing, specialist building services and property maintenance solutions to both public and private sector clients. Its operations span traditional roofing, social housing refurbishment, passive fire protection and architectural glass façades, while the company is also expanding its presence in renewable energy and decarbonisation through photovoltaic roofing and related technologies.

Diploma PLC (LSE:DPLM) has upgraded its full-year guidance after delivering another strong quarter, supported by double-digit organic growth and the completion of a strategic acquisition in the United States. The company reported continued strength across its Controls division, improving trends in Seals, and resilient demand in Life Sciences despite mixed market conditions.

Strong trading supports higher guidance

Organic revenue increased 15% during the third quarter, extending the momentum established in the first half of the financial year. Controls remained the standout performer, while Seals recorded a modest improvement and Life Sciences continued to perform steadily despite more challenging end markets.

Diploma also completed the acquisition of CDM, strengthening its position in the US interconnect market with a platform focused primarily on the defence sector. The deal expands the group’s presence in an attractive niche and supports its long-term acquisition strategy.

Reflecting the strong performance, the company now expects full-year organic revenue growth of approximately 14%, an operating margin of around 26.5%, and operating profit growth of roughly 42%. The revised guidance represents another upgrade to market expectations and highlights the group’s confidence in its trading outlook, acquisition pipeline and financial flexibility.

Growth strategy continues to deliver

The latest update demonstrates the strength of Diploma’s model of combining sustained organic expansion with carefully selected acquisitions. Businesses including IS Group, Clarendon, Peerless and Windy City Wire all delivered double-digit growth, reinforcing the company’s ability to generate consistent performance across its portfolio.

Management also pointed to favourable trading conditions within Controls and resilient demand across the wider business, giving investors greater confidence that earnings momentum can continue while the company pursues further acquisition opportunities supported by a strong balance sheet.

Investment outlook

Diploma’s latest trading update reflects a business benefiting from robust revenue growth, expanding margins and healthy cash generation. The upgraded guidance and continued operational execution provide additional confidence in the group’s earnings trajectory, while its active acquisition strategy remains a key driver of long-term growth.

Although the shares continue to trade on a relatively demanding valuation with a high price-to-earnings multiple and a modest dividend yield, the company’s consistent execution and positive trading momentum help support its premium rating.

About Diploma

Diploma PLC is an international value-added distribution group supplying specialised products and services across a wide range of industries. Operating throughout the US, Canada, the UK, Europe and Australia, the FTSE 100 company employs around 3,500 people. Over the past five years, it has delivered average adjusted earnings per share growth of approximately 26% annually through a combination of organic expansion and strategic acquisitions.

Gold prices moved lower on Thursday as investors shifted their focus from weaker U.S. inflation data to the recent recovery in oil prices, raising concerns that inflation could remain elevated and delay any move by the Federal Reserve to lower interest rates.

Precious metals lose momentum

At 04:41 ET (08:41 GMT), spot gold (XAU/USD) declined 0.63 percent to 4,027.31 dollars an ounce, while gold futures fell 0.89 percent to 4,033.35 dollars.

Silver (XAG/USD) dropped 0.70 percent to 58.30 dollars an ounce, while platinum (XPT/USD) gained 0.34 percent to 1,638.20 dollars.

Softer inflation provides only temporary support

Earlier this week, gold rallied more than 2 percent after U.S. consumer price data showed the first monthly decline in inflation since 2020.

The weaker inflation reading lowered Treasury yields and weighed on the U.S. dollar as investors reduced expectations of an immediate interest rate increase.

However, the rally proved short-lived as attention quickly returned to the inflationary impact of rising energy prices.

Oil keeps pressure on the Federal Reserve outlook

Crude oil has remained close to recent highs following renewed geopolitical tensions in the Middle East, increasing concerns that higher energy costs could keep inflation above the Federal Reserve’s target.

Although gold is often viewed as a hedge against inflation, a prolonged period of elevated interest rates generally reduces demand for non-yielding assets by increasing the attractiveness of fixed-income investments.

Markets await producer price data

Federal Reserve policymakers welcomed the latest inflation figures but stressed that more evidence is needed before concluding that inflation is moving sustainably back towards target.

ANZ analysts said:

“Gold could remain rangebound in the near term as expectations for at least one Federal Reserve rate hike this year continue to limit upside.”

They also believe buyers are likely to return if prices weaken further because the longer-term outlook for gold remains constructive.

Investors are now awaiting U.S. producer price data for additional guidance on inflation. CME FedWatch currently indicates a 58 percent probability of a Federal Reserve rate increase in September, down from around 76 percent before the latest CPI release.

Crude oil prices moved higher for a third consecutive session on Wednesday after U.S. President Donald Trump signalled that military operations against Iran could intensify. At the same time, the United States reinstated its maritime blockade on Iranian shipping through the Strait of Hormuz, reinforcing concerns over potential disruptions to global energy supplies.

Brent and WTI remain close to monthly highs

At 03:53 ET (07:53 GMT), Brent crude futures for September delivery rose 0.6 percent to 85.23 dollars a barrel, while West Texas Intermediate crude futures gained 0.4 percent to 79.67 dollars a barrel.

Both benchmarks continued to trade near one-month highs after rallying almost 10 percent earlier in the week.

Trump signals further military action

The U.S. military confirmed it launched additional strikes against Iranian targets early Wednesday, focusing on capabilities linked to attacks on commercial shipping in the Strait of Hormuz.

Speaking to Fox News, President Trump said military operations would continue unless Iran agreed to resume negotiations.

“We will continue striking Iran until it returns to the negotiating table,”

he said, adding that power stations and bridges could become targets as early as next week if no agreement is reached.

Trump also stated that military and coastal infrastructure would remain legitimate targets, while energy facilities would not be attacked for the time being.

Maritime blockade supports crude prices

Investor concerns over oil supplies also increased after Washington officially reinstated its blockade on Iranian shipping.

However, Trump later abandoned a proposal to introduce a 20 percent transit fee on cargo moving through the Strait of Hormuz following opposition from several Gulf allies.

Despite that decision, traders continue to monitor developments closely, as any disruption to oil exports from the region could tighten global supply and keep upward pressure on crude prices.

European stock markets traded cautiously on Wednesday as investors balanced stronger-than-expected results from semiconductor equipment maker ASML (EU:ASML) against renewed weakness in global technology stocks following disappointing results from IBM (NYSE:IBM).

The pan-European STOXX 600 traded close to unchanged, reflecting uncertainty as investors weighed corporate earnings alongside expectations for interest rates and upcoming economic data.

Germany’s DAX fell almost 1 percent, France’s CAC 40 declined 0.4 percent and London’s FTSE 100 lost 0.6 percent.

ASML provides support for European technology shares

ASML, Europe’s largest listed technology company, rose 3.3 percent after reporting second-quarter revenue that comfortably exceeded market expectations.

The company attributed its strong performance to continued demand for artificial intelligence chip manufacturing equipment and raised its full-year guidance, reinforcing confidence that investment in AI infrastructure remains robust.

The upbeat results provided support for the semiconductor sector and helped limit broader market declines.

IBM results weigh on investor sentiment

Despite ASML’s strong performance, gains across European technology stocks were limited by the market reaction to IBM’s preliminary second-quarter results in the United States.

IBM missed revenue expectations, prompting a sharp sell-off in its shares and raising concerns that corporate spending is shifting away from traditional software and infrastructure towards artificial intelligence hardware.

The weaker sentiment affected several European technology companies, with SAP (TG:SAP) falling 2.1 percent and Capgemini (EU:CAP) declining 1.1 percent.

Markets remain focused on inflation and interest rates

Investors also continued to assess the implications of the latest United States inflation data.

Although headline inflation eased more quickly than economists had expected, underlying inflation remained persistent enough for financial markets to continue pricing in the possibility of another Federal Reserve interest rate increase before the end of the year.

Expectations that borrowing costs could remain elevated for longer continued to limit appetite for risk assets.

Attention later in the session was expected to turn to eurozone industrial production data, which investors will watch closely for further signs of the health of Europe’s manufacturing sector.

Other market movers

Among individual stocks, Seco (BIT:IOT) gained 6.6 percent after reporting higher first-half sales.

TomTom (EU:TOM2) fell 2.5 percent following the release of its latest quarterly results.