Author: Fiona Craig

NCC Group plc (LSE:NCC) announced the appointment of Guy Ellis as chief executive officer with immediate effect, succeeding Mike Maddison, alongside a trading update indicating that full-year adjusted EBITDA is expected to exceed market expectations.

The cybersecurity services group expects revenue from its continuing Cyber business to reach approximately £235 million for the year ended 30 September 2026, representing growth of 3.7% on a comparable basis.

Cyber adjusted EBITDA is expected to reach £16.3 million, equivalent to approximately 6.9% of revenue, while gross margin is forecast to increase by 1.8 percentage points to a record 38.4%.

The company also expects to report net cash of approximately £53 million at the financial year-end, following the disposal of its Escode business and the completion of a £170 million shareholder tender offer.

NCC confirmed that its financial expectations for FY2027 remain unchanged.

Cyber Revenue Expected to Reach £235 Million

NCC Group expects its continuing Cyber business to report revenue of approximately £235 million for FY2026, compared with £227.4 million in FY2025.

The company reported comparable revenue growth of 3.7%, excluding the effects of non-core disposals.

Cyber gross margin is expected to reach 38.4%, representing an increase of 1.8 percentage points from the previous year.

Adjusted EBITDA for the Cyber business is forecast at £16.3 million, equivalent to approximately 6.9% of revenue.

The company said its planned cost reduction and operational efficiency programme remains on track.

NCC expects its audited FY2026 results to be in line with market expectations for revenue and ahead of expectations for adjusted EBITDA.

The results are scheduled for publication on 10 December 2026.

Group Revenue Expected to Reach £280 Million Including Escode

Including the contribution from Escode before its disposal, NCC expects to report total group revenue of approximately £280.0 million for FY2026.

Group adjusted EBITDA is expected to reach approximately £36.0 million.

Escode, which was disposed of in May 2026, is expected to have contributed approximately £44 million in revenue and £19.7 million in adjusted EBITDA during the eight-month period to May.

The disposal formed part of NCC’s strategy to concentrate its operations on cybersecurity services.

The company continues to provide transitional services to the buyer under an agreement scheduled to run until 28 May 2027.

Following the transaction, NCC’s continuing operations are focused on its Cyber business.

Guy Ellis Appointed Chief Executive Officer

NCC Group confirmed that Guy Ellis has been appointed chief executive officer with immediate effect, replacing Mike Maddison.

Ellis joined the company’s board as chief financial officer in June 2023 and has been involved in the group’s financial and operational restructuring.

His responsibilities have included supporting improvements in financial performance, commercial operations and the disposal of Escode.

NCC said the board selected Ellis following an internal and external appointment process.

As part of the leadership transition, Andy Beaver, currently group financial director, will become interim chief financial officer.

The company confirmed that there is no additional information concerning Ellis requiring disclosure under UK Listing Rule 6.4.8R.

The leadership changes follow the completion of NCC’s transformation into a business focused on cybersecurity services.

Mike Maddison Steps Down Following Business Restructuring

Mike Maddison is stepping down as chief executive following a period in which NCC completed several changes to its operating structure and capital allocation.

These included the disposal of Escode, refinancing arrangements and shareholder capital returns.

Chris Stone, chair of NCC Group, commented on Maddison’s departure and the appointment of his successor:

“Over the past four and a half years, Mike and the Executive team have transformed NCC into a focused and strategically positioned cyber security business. The successful disposal of Escode, the strengthening of our balance sheet and the substantial return of capital to shareholders have created a strong platform for future growth. After delivering our planned transformation, Mike is stepping down as CEO.

“Today’s trading update demonstrates the progress that has been made, with revenue growth, significantly improved profitability and a business that is increasingly focused on delivering sustainable shareholder value.

“As the Group moves forward, the Board concluded, following an internal and external process, that Guy is the right person to lead NCC through this next chapter.

“Having helped shape and deliver our strategy, Guy brings a unique combination of operational, commercial and financial leadership experience, together with a deep understanding of our clients, people and markets. Since joining the Board as Chief Financial Officer in June 2023, he has played a central role in strengthening the Group’s financial performance and commercial discipline including delivering the successful divestment of Escode.

“To support a seamless transition, Andy Beaver, currently Group Financial Director, will assume the role of Interim Chief Financial Officer.

“On behalf of the Board, I would like to thank Mike for his vision and leadership. He leaves NCC as a stronger business with significant opportunities ahead.”

Maddison also commented on his departure:

“I am incredibly proud of what our people have achieved. Together we have transformed NCC into a focused cyber security business with stronger foundations, and a clear strategic direction.

“I leave knowing the business is in capable hands and look forward to seeing the next phase of growth under Guy’s leadership.”

Net Cash Expected to Reach £53 Million

NCC expects to report a net cash position of approximately £53 million at 30 September 2026.

The company completed a £170 million tender offer in August 2026, following the completion of an initial £40 million share buyback programme in April.

A further £15 million share buyback programme is underway.

NCC reported that approximately 35% of the allocated £15 million programme had been executed during the financial year.

The group also completed refinancing arrangements in September 2026, signing a new three-year revolving credit facility worth £60 million.

The financing arrangement provides an additional source of liquidity for the continuing business.

The company did not disclose a revised capital allocation policy alongside the trading update.

Cybersecurity Strategy Targets Recurring Revenue and Margin Expansion

Under Ellis’s leadership, NCC intends to focus on developing its cybersecurity operations through organic growth, managed services and recurring revenue.

The company identified closer relationships with existing clients and expansion of its cybersecurity capabilities as priorities.

Management also intends to pursue further improvements in operating profitability.

Ellis outlined a longer-term objective of achieving adjusted EBITDA margins in the mid-teens, compared with the approximately 6.9% margin expected for the continuing Cyber business in FY2026.

The announcement did not specify a timetable for reaching this margin objective.

NCC also identified developments in artificial intelligence and the associated changes in cybersecurity requirements as areas relevant to its services.

The company plans to provide further information on its growth strategy when it publishes its audited annual results in December.

FY2027 Financial Expectations Remain Unchanged

NCC Group reaffirmed its financial expectations for the year ending 30 September 2027.

The board said it remains confident in the outlook for the continuing Cyber business following the completion of the Escode disposal and progress with its cost and efficiency programme.

The company expects FY2026 adjusted EBITDA to exceed market expectations while revenue remains in line with forecasts.

Its next scheduled financial update will be the publication of audited FY2026 results on 10 December 2026.

NCC said the results presentation will include further details of its strategy, growth opportunities and operational priorities.

No revised numerical guidance for FY2027 was provided in the announcement.

New Chief Executive Comments on Growth Strategy

Guy Ellis, chief executive officer of NCC Group, commented on the company’s strategy following his appointment:

“With the transformation of NCC into a pure-play cyber security business now complete, our strategy is clear: deepen client relationships, expand our managed services capabilities, scale our cyber expertise and help organisations respond to an increasingly complex threat landscape.

“We are privileged to work with many of the world’s leading organisations and there is a significant opportunity to build on those relationships. As AI continues to reshape the risk landscape, the need for trusted independent cyber expertise has never been greater.

“I want to thank all our colleagues for their commitment, hard work and focus throughout FY26.

“Everyone at NCC is focused on the significant opportunity ahead of us as we target organic growth, recurring revenues and to drive profits through a continued margin expansion with a plan to get to mid teen EBITDA margins.”

The company’s continuing strategy is focused on cybersecurity services, with management targeting organic revenue growth, an increased contribution from recurring services and improved profitability.

More About NCC Group

NCC Group plc (LSE:NCC) is a cybersecurity services company providing specialist security expertise and related services to organisations.

Following the disposal of its Escode business in May 2026, the group has concentrated its operations on cybersecurity.

For FY2026, NCC expects Cyber revenue of approximately £235 million, adjusted EBITDA of £16.3 million and gross margin of 38.4%.

Including Escode’s contribution before disposal, total group revenue is expected to reach approximately £280 million, with adjusted EBITDA of £36 million.

The company expects to report net cash of approximately £53 million at 30 September 2026.

Guy Ellis has been appointed chief executive officer, succeeding Mike Maddison, while Andy Beaver assumes the role of interim chief financial officer.

NCC is scheduled to publish its audited FY2026 results on 10 December 2026.

Ultimate Products PLC (LSE:ULTP) reported revenue of £144.9 million for the financial year ended 31 July 2026, a decline of 3% from £150.1 million in FY2025, reflecting subdued consumer demand and a reduction in third-party clearance sales.

The owner of homeware brands including Salter and Beldray reported adjusted EBITDA of £10.0 million, compared with £12.5 million a year earlier, while statutory profit before tax declined 37% to £5.1 million.

International branded sales increased 20% to £56.5 million, contributing to a 2% rise in total branded revenue to £139.4 million. The company also reduced net bank debt by 39% to £8.6 million.

Ultimate Products said current trading remained in line with market expectations, with management continuing to focus on its proprietary brands, commercial operations and operational efficiency.

Annual Revenue Declines 3% to £144.9 Million

Ultimate Products reported revenue of £144.9 million for FY2026, compared with £150.1 million in the previous financial year.

The £5.2 million reduction reflected lower UK branded sales and the company’s decision to reduce third-party clearance and white-label activities.

UK branded revenue declined 7% to £82.9 million from £89.2 million, reflecting subdued demand for general merchandise.

International branded sales increased 20% to £56.5 million, compared with £47.1 million in FY2025.

Revenue from third-party clearance and white-label products declined 60% to £5.5 million from £13.8 million.

Despite the reduction in total group revenue, combined UK and international branded sales increased 2% to £139.4 million, compared with £136.3 million in the prior year.

The company said the changes reflected its strategy of concentrating on its own brands and reducing exposure to third-party clearance activities.

International Branded Sales Increase 20%

International branded revenue reached £56.5 million during FY2026, an increase of approximately £9.4 million from the previous year.

The international business accounted for a larger proportion of group revenue as UK sales declined.

Ultimate Products identified international branded sales as an important part of its commercial strategy, alongside efforts to return the UK business to growth.

The company’s proprietary brands include Salter, established in 1760, and Beldray, established in 1872.

Management said the continued development of these brands would remain central to its future sales strategy.

The group reported that proprietary brands now account for 88% of total sales.

Gross Profit Declines to £32.8 Million

Ultimate Products reported gross profit of £32.8 million for FY2026, compared with £34.8 million in FY2025.

The reduction of £2.0 million represented a year-on-year decline of 6%.

Gross margin decreased to 22.6% from 23.2%, a reduction of 0.6 percentage points.

The decline occurred alongside lower overall revenue and changes in the composition of group sales.

The company continues to focus on its proprietary brand portfolio and improvements in commercial execution as part of its operating strategy.

Adjusted EBITDA Falls 20% to £10 Million

Adjusted EBITDA declined 20% to £10.0 million during FY2026, compared with £12.5 million in the previous financial year.

The reported figure included £0.8 million of reorganisation costs associated with restructuring the company’s commercial function.

Adjusted profit before tax decreased 28% to £6.3 million from £8.7 million.

Statutory profit before tax declined 37% to £5.1 million, compared with £8.0 million in FY2025.

Adjusted basic earnings per share fell 26% to 5.5p from 7.4p.

Statutory basic earnings per share declined 36% to 4.3p, compared with 6.8p in the previous year.

The company defines its adjusted measures as excluding share-based payment expenses and non-recurring items.

Net Bank Debt Falls 39% to £8.6 Million

Ultimate Products reduced net bank debt to £8.6 million at 31 July 2026, compared with £14.1 million a year earlier.

The £5.5 million reduction represented a decline of 39%.

Net bank debt relative to adjusted EBITDA improved to 0.9 times from 1.1 times in FY2025.

The company also reported a £4.1 million reduction in working capital, reflecting lower trading activity, reduced stock levels and more predictable freight delivery times.

The financial summary reported operating cash conversion of 130%, compared with 77% in FY2025. Separately, the financial highlights stated operating cash conversion of 140%, compared with 82% in the previous year.

The announcement did not explain the difference between these two sets of cash conversion figures.

Management identified inventory control and working capital management as contributors to the reduction in net debt.

Full-Year Dividend Declines to 2.7p Per Share

Ultimate Products reported a dividend of 2.7p per share for FY2026, compared with 3.7p in FY2025.

The reduction of 1.0p per share represents a year-on-year decline of 27%.

The lower dividend accompanied reductions in adjusted earnings, statutory profit and earnings per share.

The announcement did not provide further details of the dividend payment timetable.

Commercial Restructuring Targets UK Revenue Growth

Ultimate Products completed changes to its commercial function during FY2026.

The company said the restructuring was intended to improve customer relationships, strengthen commercial execution and support future sales growth.

Returning the UK business to growth remains a particular focus following the 7% reduction in domestic branded revenue during the year.

The restructuring also forms part of the group’s broader strategy of concentrating on proprietary brands rather than third-party clearance sales.

Ultimate Products acknowledged that the organisational changes had caused some short-term disruption.

Management expects the revised commercial structure to support its future operating objectives.

Automation and AI Deliver Operational Savings

Ultimate Products continued investing in operational systems, automation and artificial intelligence during FY2026.

The company reported that its Product Information Management system and related automation initiatives generated annualised time savings of approximately 33,000 hours.

These savings were associated with 355 tasks automated during the financial year.

Management said the initiatives were intended to improve operational efficiency and support the company’s commercial activities.

The group continues to invest in technology and business processes as part of its longer-term development strategy.

The announcement did not quantify the financial contribution of these operational savings to FY2026 profitability.

Simon Harrison Appointed Chief Executive

Ultimate Products appointed Simon Harrison as its new chief executive officer during the year.

The company said Harrison brings leadership, operational and commercial experience to the role.

His appointment follows the restructuring of the commercial function and continued investment in the group’s operating capabilities.

Ultimate Products also completed the transfer of its stock market listing from the London Stock Exchange’s Main Market to AIM during FY2026.

The company identified these developments as part of its wider operational and organisational changes.

FY2027 Trading Remains in Line With Market Expectations

Ultimate Products confirmed that current trading remains in line with market expectations.

The company continues to operate against a backdrop of subdued consumer demand and geopolitical uncertainty.

Management said its ongoing investment in commercial capabilities and operational systems is intended to support future growth opportunities.

Company-compiled analyst consensus immediately before the announcement indicated FY2027 revenue expectations of £145.5 million, compared with actual FY2026 revenue of £144.9 million.

Consensus adjusted EBITDA for FY2027 stood at £10.1 million, compared with the £10.0 million reported for FY2026.

Analysts also expected adjusted earnings per share of 5.5p for FY2027, unchanged from the FY2026 reported figure.

The consensus figures were compiled from forecasts published by Equity Development, Shore Capital and Canaccord Genuity as of 19 August 2026.

Ultimate Products did not announce revised numerical guidance for FY2027.

Chief Financial Officer Comments on Annual Results

Chris Dent, chief financial officer of Ultimate Products, commented on the company’s FY2026 performance and strategic changes:

“FY26 was a year of important strategic progress for Ultimate Products against a challenging consumer backdrop. Our proprietary brands continued to grow, particularly across our strategically important international segment, while we took the difficult but necessary decision to exit third-party clearance. This has sharpened our focus and reinforced the central role our proprietary brands will play in the Group’s long-term growth.

“We also made substantial changes to our commercial function to ensure we have the right capabilities, structure and ways of working to build deeper customer relationships and improve commercial execution. While this has inevitably created some disruption in the short term, we believe the business is now better placed to translate the strength of our brands into sustainable top-line growth. Alongside our continued investment in technology and Simon Harrison’s appointment as CEO, these changes give us renewed confidence as we enter the next phase of Ultimate Products’ development and pursue the growth opportunities ahead.”

The company continues to prioritise its branded product portfolio, international operations and commercial development as it enters FY2027.

More About Ultimate Products

Ultimate Products PLC (LSE:ULTP) is a UK-based homeware products company whose portfolio includes Salter and Beldray.

The group develops and distributes branded household products across the UK and international markets.

Its strategy focuses on proprietary brands, which account for approximately 88% of sales, alongside investment in commercial operations, automation and inventory management.

For the financial year ended 31 July 2026, Ultimate Products reported revenue of £144.9 million, adjusted EBITDA of £10.0 million and statutory profit before tax of £5.1 million.

International branded revenue increased 20% to £56.5 million, while net bank debt declined to £8.6 million.

The company reported that current trading remains in line with market expectations for FY2027.

Alumasc Group PLC (LSE:ALU) reported a 9.6% increase in revenue for the first quarter of its financial year ending 30 June 2027, supported by growth across all three operating divisions and contributions from international infrastructure projects.

The sustainable building products group said its order book at the end of September 2026 was 67% higher than a year earlier, reflecting continued order intake despite an increased rate of project deliveries.

Revenue growth was supported by Water Management, Building Envelope and Housebuilding Products, while operating margins improved year on year following restructuring measures and higher activity levels.

The company reaffirmed its expectations for FY2027, citing trading performance during the opening quarter and additional contracts secured in October.

First-Quarter Revenue Increases Across All Divisions

Alumasc reported group revenue growth of 9.6% for Q1 FY2027 compared with the corresponding period in the previous financial year.

The company described the increase as approximately 10%, reflecting the contribution of its three operating divisions and international project activity.

Water Management recorded the largest percentage increase, with revenue rising 13.3% year on year.

Building Envelope reported revenue growth of 7.0%, while Housebuilding Products increased revenue by 6.4%.

The company attributed the overall improvement to the implementation of its commercial strategy and continued progress in securing and delivering customer orders.

Alumasc said revenue increased despite subdued demand in parts of the UK construction market, particularly residential building activity.

Excluding contributions from airport projects in Singapore and Hong Kong, group revenue was still approximately 5% higher than in Q1 FY2026.

The trading update did not disclose absolute quarterly revenue figures for the group or its individual divisions.

International Airport Projects Contribute to Revenue Growth

Alumasc reported initial deliveries under a £2 million project at Changi Airport in Singapore during the first quarter.

The company also recorded additional sales associated with Chek Lap Kok Airport in Hong Kong.

These projects contributed to the group’s revenue increase during the reporting period.

Excluding the airport-related sales, Alumasc reported approximately 5% growth in group revenue compared with the prior-year quarter.

The international contracts form part of the group’s activities outside the UK construction market.

Alumasc continues to pursue opportunities in overseas infrastructure markets as part of its commercial development strategy.

Water Management Revenue Rises 13.3%

The Water Management division reported a 13.3% increase in revenue during Q1 FY2027.

This represented the highest percentage growth among Alumasc’s three operating divisions.

The division’s performance contributed to the group’s overall revenue increase, alongside deliveries to international projects.

Alumasc also reported additional contract activity in Water Management following the end of the quarter.

During the opening weeks of October, the division secured a £0.4 million contract for the first phase of an upgrade project at the Tin Can Island Port Complex in Nigeria.

The award reflects the group’s efforts to expand its export activities beyond its established markets in the Middle East and Asia.

The company did not provide a timetable for completing the Nigerian contract or disclose the potential value of subsequent project phases.

Building Envelope Revenue Increases 7%

Alumasc’s Building Envelope division reported year-on-year revenue growth of 7.0% during the first quarter.

The division also secured a new contract during the opening weeks of Q2 FY2027.

The £2.1 million award relates to the first phase of a student accommodation refurbishment project at Manchester University.

The company did not disclose the expected delivery timetable or the potential value of further phases.

The contract contributed to order intake momentum following the end of September.

Alumasc said its order book continued to increase despite an accelerated rate of project call-offs during the first quarter.

Housebuilding Products Revenue Grows 6.4%

Alumasc’s Housebuilding Products division recorded revenue growth of 6.4% during Q1 FY2027.

The division includes Timloc, which operates a next-day delivery business model.

Unlike the group’s other divisions, Timloc does not maintain a conventional forward order book because of its delivery structure.

Alumasc said the business continued to increase revenue and gain market share despite subdued conditions in the UK housebuilding sector.

The company identified residential construction as an area where underlying market demand remained constrained during the period.

Nevertheless, the Housebuilding Products division contributed to the group’s overall quarterly revenue increase.

Order Book Increases 67% Year on Year

Alumasc reported that its order book at the end of September 2026 was 67% higher than at the corresponding point in 2025.

The increase reflected order intake during the first quarter, with the order book growing both in absolute terms and relative to the previous year.

The company said this occurred despite a faster rate of project call-offs, indicating that new orders continued to replenish the pipeline as existing work progressed.

Management also reported early indications of improved conversion rates from its commercial activities.

Order intake momentum continued into October, with the Manchester University and Tin Can Island Port Complex contracts representing a combined £2.5 million in new awards.

The announcement did not disclose the absolute value of the order book at the end of September.

Operating Margins Improve Following Restructuring

Alumasc reported a year-on-year improvement in operating margins during Q1 FY2027.

The company attributed the improvement to higher revenue and the effects of restructuring measures implemented previously.

Management also identified operational gearing as a contributing factor, with increased activity supporting profitability.

The trading update did not provide specific margin percentages or adjusted operating profit figures for the quarter.

The company expects the benefits of its operational and commercial initiatives to continue contributing to performance during the current financial year.

FY2027 Trading Remains in Line With Expectations

Alumasc confirmed that the trading trends reported during the first quarter continued into the opening weeks of Q2 FY2027.

The company highlighted revenue growth across all divisions, the increase in its order book and additional contract awards as factors supporting its full-year outlook.

Management expects FY2027 performance to remain in line with existing expectations.

The company also continues to pursue its strategic objectives through internal operational improvements and organic revenue growth.

Although UK residential construction demand remains subdued, Alumasc said its international project activity and order pipeline provide opportunities across its operating divisions.

The announcement did not include revised numerical revenue or profit guidance for FY2027.

Interim Executive Chair Comments on Trading Performance

Vijay Thakrar, interim executive chair of Alumasc, commented on the company’s first-quarter performance and outlook:

“Against such a tough economic and construction market backdrop, it is encouraging to see the positive revenue and order intake momentum continue over Q1 FY27 and into the first weeks of Q2 across all of our divisions. Our management teams are performing well, under the leadership of the Executive Board, progressing our strategic self-help and organic growth objectives.

The Board remains confident of progress in FY27, in line with expectations, and in the Group’s ability to outperform its underlying markets and deliver significant shareholder value.”

The company expects to continue implementing its commercial strategy while managing conditions across its UK and international markets.

More About Alumasc Group

Alumasc Group PLC (LSE:ALU) is a UK-based supplier of building products, systems and solutions, with operations across Water Management, Building Envelope and Housebuilding Products.

The group supplies products and systems for construction and infrastructure applications in the UK and international markets.

Its Housebuilding Products division includes Timloc, which operates a next-day delivery model.

For Q1 FY2027, Alumasc reported revenue growth of 9.6%, with increases of 13.3% in Water Management, 7.0% in Building Envelope and 6.4% in Housebuilding Products.

The company’s order book at the end of September 2026 was 67% higher than a year earlier.

Alumasc also secured contracts worth a combined £2.5 million during the opening weeks of October and continues to expect full-year performance in line with management expectations.

Reckitt Benckiser Group PLC (LSE:RKT) reported 3.3% like-for-like net revenue growth in its Core Reckitt business during the third quarter of 2026, supported by growth in Emerging Markets and a return to positive sales growth in Europe.

Core Reckitt revenue reached £2.69 billion during the quarter, while revenue from Core Reckitt and Mead Johnson Nutrition combined increased 3.2% on a like-for-like basis to £3.24 billion.

The consumer health and hygiene group revised its full-year Core Reckitt like-for-like revenue growth guidance to between 3.5% and 4.5%, reflecting temporary Lysol manufacturing constraints in North America, slower growth in China’s vitamins, minerals and supplements market, and increased demand for seasonal cold and flu products early in the fourth quarter.

Reckitt maintained its full-year adjusted operating profit margin guidance of 24.9% to 25.6% for Core Reckitt and Mead Johnson Nutrition combined.

Core Reckitt Revenue Increases to £2.69 Billion

Core Reckitt generated third-quarter net revenue of £2.69 billion, representing growth of 3.3% on both a like-for-like and reported IFRS basis.

Excluding the Russia Hygiene business, Core Reckitt’s like-for-like revenue increased 3.9%.

The quarterly performance reflected a 0.1% increase in sales volumes and a 3.2% contribution from pricing and product mix.

For the first nine months of 2026, Core Reckitt reported net revenue of £7.80 billion, up 2.9% on a like-for-like basis and 2.5% under IFRS.

Excluding Russia Hygiene, year-to-date like-for-like revenue growth was 3.5%.

Across Core Reckitt and Mead Johnson Nutrition combined, quarterly revenue reached £3.24 billion, an increase of 3.2% on a like-for-like basis and 3.5% on a reported basis.

Total group revenue, including transitional services associated with the Essential Home disposal, was £3.36 billion, representing a reported decline of 6.9%.

Reckitt attributed the reported group revenue reduction primarily to the absence of revenue from Essential Home, which was included in the prior-year comparison before its disposal was completed on 31 December 2025.

Emerging Markets Revenue Grows 8%

Reckitt’s Emerging Markets business reported third-quarter net revenue of £1.17 billion, representing like-for-like growth of 8.0%.

Excluding Russia Hygiene, revenue growth reached 9.8%.

The regional performance included a 2.3% increase in sales volumes and a 5.7% contribution from price and product mix.

Reckitt reported growth across all Emerging Markets regions, with double-digit increases in South Asia and India, ASEAN and Africa.

Latin America recorded mid-single-digit growth, while China also delivered mid-single-digit growth despite slower demand in the vitamins, minerals and supplements category.

In China, Dettol contributed to revenue growth, while Durex returned to growth during the quarter.

The company said performance in the Chinese vitamins, minerals and supplements market was affected by weaker category trends and consumer perceptions associated with claims made by smaller local competitors.

India recorded double-digit growth, supported by expansion across product categories. Reckitt also noted that the comparative period benefited from inventory movements associated with changes to goods and services taxation, an effect expected to reverse during Q4.

For the first nine months of 2026, Emerging Markets revenue reached £3.41 billion, representing like-for-like growth of 8.4%.

Europe Returns to Growth in Third Quarter

Reckitt reported third-quarter revenue of £867 million in Europe, representing like-for-like growth of 0.8%.

The increase followed a period of declining revenue in the region and reflected a 4.0% contribution from pricing and product mix, offset by a 3.2% reduction in sales volumes.

The company reported growth across several brands, including Gaviscon, Vanish and Veet.

Finish, Durex and Harpic also returned to like-for-like revenue growth in Europe.

Gaviscon benefited from the rollout of Gaviscon Double Action, while Vanish recorded mid-single-digit growth following the introduction of Vanish Turbo.

Durex increased revenue by a mid-single-digit percentage, supported by the Durex Intensity range, and Veet recorded double-digit growth.

Reckitt said European consumer demand remained affected by promotional activity and purchasing decisions favouring lower-priced products.

The company also reported lower cold and flu incidence during the quarter, affecting seasonal healthcare brands including Nurofen and Strepsils.

For the first nine months of 2026, European revenue totalled £2.54 billion, representing a like-for-like decline of 1.7%.

North America Revenue Declines 1.3% Amid Lysol Supply Constraints

Reckitt’s North American business reported third-quarter net revenue of £649 million, down 1.3% on a like-for-like basis.

The result reflected a 0.7% increase in volumes and a 2.0% negative contribution from price and product mix.

The company attributed part of the decline to temporary manufacturing capacity constraints affecting Lysol products.

Reckitt said consumer demand for Lysol remained positive, but production limitations prevented the business from fully meeting demand during the quarter.

The company is upgrading manufacturing capabilities and expects the operational constraints to ease, supporting a recovery in Lysol and broader North American performance during Q4.

North American revenue was also affected by the comparison with the previous year’s Mucinex Sinus portfolio changes and the timing of orders from retail customers.

Reckitt expects some of the retailer order timing effects recorded late in Q3 to reverse during the final quarter.

The company also reported increased competitive activity in automatic dishwashing products, affecting Finish sales.

For the first nine months of 2026, North American revenue reached £1.86 billion, representing like-for-like growth of 0.1%.

Germ Protection and Intimate Wellness Lead Category Growth

Reckitt reported like-for-like revenue growth of 6.0% in Germ Protection during Q3, with net revenue reaching £892 million.

The category benefited from Dettol sales growth across Emerging Markets, although Lysol performance in North America was affected by manufacturing constraints.

Harpic also recorded double-digit growth during the quarter.

Intimate Wellness revenue increased 6.4% on a like-for-like basis to £405 million.

Durex delivered mid-single-digit growth, supported by sales in Emerging Markets, improving performance in China and demand for premium products including Durex Intensity.

Veet recorded double-digit growth during the quarter.

Self Care revenue increased 2.2% on a like-for-like basis to £880 million.

Excluding seasonal over-the-counter products, Self Care revenue increased 4.2%, supported by Gaviscon.

Seasonal healthcare revenue declined by a low-single-digit percentage, reflecting lower cold and flu incidence in Europe and North America.

Household Care revenue declined 1.5% on a like-for-like basis to £513 million.

Reckitt attributed the decline to performance in North America and Russia Hygiene, partly offset by improvements in Europe and growth across other Emerging Markets.

Mead Johnson Nutrition Revenue Increases 2.7%

Reckitt’s non-core Mead Johnson Nutrition business reported third-quarter revenue of £549 million.

Like-for-like revenue increased 2.7%, while reported IFRS revenue rose 4.2%.

The performance reflected a 7.7% contribution from price and product mix, offset by a 5.0% decline in volumes.

Reckitt said the business benefited from premium product sales and innovation in Latin America and Southeast Asia.

The company also reported that North American trading conditions were becoming more comparable with historical levels following disruption caused by the 2024 Mount Vernon tornado and subsequent inventory rebuilding.

For the first nine months of 2026, Mead Johnson Nutrition revenue reached £1.62 billion, representing like-for-like growth of 2.2%.

Reckitt continues to expect low-single-digit like-for-like revenue growth from the business for FY2026.

Full-Year Revenue Guidance Adjusted to 3.5%–4.5%

Reckitt revised its FY2026 Core Reckitt like-for-like net revenue growth guidance to between 3.5% and 4.5%.

The updated outlook reflects the impact of Lysol manufacturing constraints, slower growth in China’s vitamins, minerals and supplements category, and more favourable early fourth-quarter demand for seasonal cold and flu products.

Within the guidance, Reckitt expects Emerging Markets to deliver high-single-digit like-for-like revenue growth for the full year.

The company also anticipates improved seasonal over-the-counter healthcare performance compared with its previous expectations.

Reckitt maintained its adjusted operating profit margin guidance for Core Reckitt and Mead Johnson Nutrition combined at 24.9% to 25.6%.

Management expects the second-half margin to be materially higher than the 23.6% recorded in the first half.

The company attributed the expected improvement to changes in product mix, measures to offset commodity cost inflation and efforts to reduce costs remaining after the Essential Home disposal.

Reckitt also reiterated its medium-term objective of delivering consistent annual like-for-like revenue growth of 4% to 5% in Core Reckitt.

Finance Costs and Tax Guidance Updated

Reckitt revised its expected adjusted net finance expense for FY2026 to between £250 million and £270 million, compared with £346 million in 2025.

The change primarily reflects the successful tender of a Mead Johnson bond during the third quarter.

For 2027, the company expects net finance expenses of between £390 million and £410 million.

Reckitt said the anticipated increase reflects the absence of certain one-off benefits recorded in 2026, prevailing interest rates and higher gross borrowings.

The group also updated its expected adjusted effective tax rate for FY2026 to between 26% and 27%, compared with 24.7% in 2025.

Its longer-term effective tax rate assumption remains approximately 27%.

Capital expenditure is expected to represent around 4% of net revenue in 2026, compared with 4.2% in the previous year.

North American Investment and Share Buyback Programme

Reckitt continues to implement its previously announced investment programme of up to US$600 million in North America.

The multi-year programme, announced in September 2026, is intended to expand manufacturing and innovation capabilities, improve supply resilience and increase access to healthcare products.

The company identified upgrades to Lysol manufacturing capacity as part of its efforts to address the operational constraints experienced during Q3.

Reckitt also confirmed that its £500 million share buyback programme commenced on 5 August 2026.

As of 23 October, approximately £90 million of the programme had been completed.

The company continues to expect completion of its Russia Hygiene divestment during the second half of 2026.

Reckitt has scheduled a North America-focused investor event at its New Jersey headquarters for 19 November 2026.

Chief Executive Comments on Third-Quarter Trading

Kris Licht, chief executive officer of Reckitt, commented on the group’s trading performance and updated outlook:

“We delivered 3.3% like-for-like net revenue growth in Q3 across Core Reckitt, 3.9% excluding Russia Hygiene. We are driving good underlying performance despite a challenging consumer environment. Growth is increasingly broad-based across our markets. Emerging Markets delivered growth in all regions and, importantly, we returned Europe to growth. North America was below our expectations. While consumer demand for Lysol remains strong, temporary manufacturing constraints limited our ability to fully meet demand.

“We have adjusted our Core Reckitt full year like-for-like net revenue guidance to +3.5% to +4.5% growth. This reflects the Lysol disruption and category slowdown in China VMS in Q3 and positive demand for our seasonal cold & flu brands in early Q4. We enter Q4 with good momentum, continue to execute our strategy and invest behind our brands and capabilities.”

The company expects its fourth-quarter performance to reflect the resolution of manufacturing constraints in North America, seasonal healthcare demand and continued growth across Emerging Markets.

More About Reckitt Benckiser Group

Reckitt Benckiser Group PLC (LSE:RKT) is a consumer health, hygiene and nutrition company with operations across Europe, North America and Emerging Markets.

Its product portfolio includes Dettol, Lysol, Durex, Gaviscon, Finish, Vanish, Veet, Harpic, Mucinex and other consumer brands.

The group operates through Core Reckitt and Mead Johnson Nutrition, alongside transitional activities associated with the disposal of its Essential Home business.

For Q3 2026, Core Reckitt reported revenue of £2.69 billion, representing 3.3% like-for-like growth.

Revenue from Core Reckitt and Mead Johnson Nutrition combined reached £3.24 billion, while total reported group revenue was £3.36 billion.

Reckitt expects Core Reckitt like-for-like revenue growth of 3.5% to 4.5% for FY2026 and continues to forecast an adjusted operating profit margin of 24.9% to 25.6% for Core Reckitt and Mead Johnson Nutrition combined.

Revolution Beauty Group plc (LSE:REVB) reported adjusted EBITDA of £2.0 million for the six months ended 31 August 2026, compared with a loss of £12.5 million in the corresponding period last year, reflecting improvements in gross margins and reductions in operating costs.

The beauty products group reported revenue of £48.4 million, down 2.0% from £49.4 million, although underlying revenue increased 8.3% after adjusting for discontinued brands, clearance sales and non-recurring licence income in the comparative period.

Gross margin increased by 11.4 percentage points to 43.6%, while operating costs declined 32.7% to £19.1 million. The company also reported 22% growth in online sales and confirmed that trading during the opening months of the second half remained in line with expectations.

Management expects full-year FY2027 performance to be at the upper end of current market forecasts.

First-Half Revenue Reaches £48.4 Million as Underlying Sales Increase

Revolution Beauty reported revenue of £48.4 million for the first half of FY2027, compared with £49.4 million in the corresponding period of FY2026.

The reported decline of 2.0% reflected changes to the company’s product portfolio and the absence of certain sales recorded in the previous year.

The comparative period included clearance sales, revenue from discontinued brands and non-recurring licence income.

Excluding these items, underlying revenue increased 8.3%, from an adjusted comparative figure of £44.7 million.

The company said its revised product ranges and inventory management approach contributed to the change in sales composition.

Revolution Beauty operates across approximately 17,500 retail locations internationally, alongside its own digital channels and third-party online platforms.

Gross Margin Improves by 11.4 Percentage Points

Gross profit increased 32.7% to £21.1 million during the first half, compared with £15.9 million a year earlier.

Gross margin rose to 43.6% from 32.2%, representing an improvement of 11.4 percentage points.

The company attributed the increase to the absence of prior-year clearance activity, lower gross-to-net charges and changes to product range and inventory management.

The improvement in gross margin occurred despite the 2.0% reduction in reported revenue.

Management said its revised approach to product selection, pricing and inventory control is intended to support profitability and reduce reliance on clearance sales.

The company also reported a reduction in gross inventory to £30.8 million, compared with £34.1 million at the end of the corresponding period last year.

Operating Costs Fall 32.7% to £19.1 Million

Revolution Beauty reduced operating costs to £19.1 million in H1 FY2027, compared with £28.4 million a year earlier.

The £9.3 million reduction represents a decline of 32.7%.

Cost savings were achieved across distribution, marketing and administrative activities.

The company said more than £9 million of annualised cost savings implemented during FY2026 are now reflected in its operating cost base.

The reported operating cost measure excludes depreciation, amortisation, specified adjusting items and share-based payment charges.

Revolution Beauty also reported that cash adjusting items declined to £0.3 million from £1.7 million, an 85% reduction, as restructuring expenditure and legacy legal costs decreased.

Adjusted EBITDA Improves by £14.5 Million

Revolution Beauty recorded adjusted EBITDA of £2.0 million for the six-month period, compared with a loss of £12.5 million in H1 FY2026.

The improvement of £14.5 million reflects the combined effect of higher gross profit and reduced operating costs.

Adjusted EBITDA represented 4.1% of revenue, compared with a negative margin of 25.3% in the prior-year period.

The company’s statutory operating loss narrowed to £0.9 million from £16.7 million, an improvement of £15.8 million.

Loss before tax declined to £1.9 million from £18.4 million, representing a £16.5 million improvement.

The group therefore returned to positive adjusted EBITDA during the first half, although it continued to report a statutory loss before tax.

Management also confirmed that Revolution Beauty had generated positive adjusted EBITDA in each of the 13 consecutive months to 30 September 2026.

UK Revenue Returns to Growth as International Sales Decline

Revolution Beauty reported a 1.7% increase in UK revenue to £15.6 million during the first half.

The company attributed the increase to a recovery in its UK digital channels, which more than offset the effect of discontinuing the Relove and iHeart brands.

Revenue in the United States declined 2.8% to £10.2 million, compared with £10.5 million in the prior-year period.

Rest of World revenue decreased 4.0% to £22.6 million from £23.5 million.

The company said the international revenue declines reflected the absence of non-recurring licence sales and revenue from discontinued brands.

Revolution Beauty also reported securing new customers through its international direct and distributor channels.

Online Sales Increase 22%

Online sales increased 22% during H1 FY2027, supported by growth through TikTok Shop.

The company’s online sales measure includes revenue generated through revolutionbeauty.com, TikTok Shop and Amazon.

Management uses this measure to assess consumer engagement with the brand and as an indicator of potential demand through physical retail channels.

The increase in digital sales formed part of the group’s strategy to focus on its core Revolution Beauty brand and refresh its product offering.

The company reported that changes to its product ranges and new product development pipeline were beginning to be reflected in retailer order books.

Revolution Beauty continues to distribute its products through approximately 17,500 retail locations across the UK, United States and other international markets.

Net Debt Declines to £25.7 Million

Revolution Beauty reported net debt of £25.7 million at 31 August 2026, compared with £30.2 million a year earlier.

The £4.5 million year-on-year reduction occurred alongside an increase in cash and cash equivalents to £4.3 million from £1.8 million.

Net debt was slightly higher than the £24.7 million reported at the previous financial year-end, reflecting the seasonal increase in working capital ahead of the second half.

Gross inventory declined by £3.3 million year on year to £30.8 million.

The company said the reduction reflected changes in stock management and a more focused product portfolio.

Management continues to identify inventory control and cash generation as priorities within its financial strategy.

Debenhams Licensing Partnership Targets Christmas Product Launches

Revolution Beauty continued implementing changes to its product strategy during the first half under its founder-led management team.

Chief executive Tom Allsworth and Adam Minto have focused on the group’s core beauty offering, including product development, pricing and speed to market.

In June 2026, Revolution Beauty announced a licensing partnership with Debenhams Group covering fragrance and gifting products.

The agreement includes products under the PrettyLittleThing, Karen Millen and boohooMAN brands.

The first collections are scheduled to launch ahead of Christmas 2026.

The company expects the partnership to contribute to its product offering during the second half, alongside refreshed ranges across its existing beauty categories.

No financial forecasts specific to the licensing agreement were disclosed.

Second-Half Trading Supports Full-Year Expectations

Revolution Beauty reported that trading during September and October remained in line with the board’s expectations.

The company said its second half typically accounts for a larger proportion of annual profitability, reflecting the seasonal contribution from autumn, winter and Christmas trading.

Management reported encouraging sales and order books for the period, supported by refreshed product ranges, online growth and planned launches under the Debenhams Group licensing partnership.

The board expects full-year FY2027 performance to be at the upper end of the current range of market expectations.

These expectations were revised upwards following the company’s trading update on 17 September 2026.

The announcement did not specify the numerical range of current market forecasts.

The company also reiterated its intention to pursue further improvements in revenue, profitability and cash generation beyond FY2027.

Chief Executive Comments on First-Half Performance

Tom Allsworth, chief executive officer of Revolution Beauty, commented on the group’s financial performance and operational changes:

“I am delighted with the progress we have made in the first half. When Adam and I came back to the business, we set out to get Revolution doing what it does best – bold, on-trend, affordable beauty, brought to market quickly – on a platform that is profitable and properly controlled. These results show we are doing exactly that: gross margin is up more than 11 percentage points, our cost base is a third lower, and we have turned a £12.5m EBITDA loss into a £2.0m profit.

Our customers are responding. Online sales are up 22%, our retail partners are backing our new ranges, and we are opening up exciting new opportunities such as our licensing partnership with Debenhams Group.

I would like to thank the whole Revolution team, whose energy and commitment have made this possible. We enter the all-important second half with real momentum, and I am very excited about the future of Revolution Beauty.”

Chairman Comments on Business Strategy

Iain McDonald, chairman of Revolution Beauty, also commented on the company’s financial and operational progress:

“This is a very encouraging set of results which shows that the turnaround of Revolution Beauty is well under way. The Board’s first priority was to put the business on a sound and disciplined footing and that has been achieved, with the Group now EBITDA positive in every month for over a year.

Our focus now turns to growth. Revolution is a much-loved brand with a strong retail footprint and an engaged, digitally native customer base, and the Board believes it has the potential to be a very large business. I would like to thank Tom, Adam and the whole team, together with our shareholders, banking partners and retail customers, for their continued support.”

The company continues to focus on its revised product portfolio, operating cost structure and digital distribution channels as it progresses through FY2027.

More About Revolution Beauty Group

Revolution Beauty Group plc (LSE:REVB) is a multi-channel beauty products company operating across the UK, United States and international markets.

Its products are distributed through approximately 17,500 retail locations, alongside direct-to-consumer and third-party digital platforms.

The company operates a UK manufacturing facility and has expanded its product offering through licensing arrangements, including its partnership with Debenhams Group.

For the six months ended 31 August 2026, Revolution Beauty reported revenue of £48.4 million, adjusted EBITDA of £2.0 million and gross margin of 43.6%.

Its statutory loss before tax narrowed to £1.9 million, while net debt declined to £25.7 million from £30.2 million a year earlier.

Management expects full-year FY2027 performance to be at the upper end of current market expectations following the improvements reported during the first half.

Shearwater Group plc (LSE:SWG) reported revenue of £42.3 million for the financial year ended 30 June 2026, representing annualised growth of 34%, supported by contract renewals and new business within its cybersecurity services operations.

The cybersecurity, advisory and managed security services group also reported a 44% annualised increase in adjusted EBITDA to £2.6 million, while its statutory loss before tax narrowed to £0.3 million from £13.4 million in the preceding reporting period.

Shearwater ended the financial year with £5.6 million in cash and no borrowings. The company also confirmed that trading in FY2027 has remained in line with management expectations, supported by further contract awards.

FY2026 Revenue and Adjusted Profit Increase

Shearwater reported revenue of £42.3 million for the 12 months ended 30 June 2026, compared with £39.5 million for the previous 15-month reporting period.

On an annualised basis, revenue increased 34%, reflecting higher activity in the group’s Services business, particularly among telecommunications and financial services customers.

Adjusted EBITDA increased to £2.6 million from £2.2 million in the preceding 15-month period, representing annualised growth of 44%.

Adjusted profit before tax reached £1.4 million, compared with £0.6 million in FY2025, an annualised increase of 186%.

The company attributed the improvement in adjusted profitability to revenue growth and continued cost management.

Because the comparative FY2025 reporting period covered 15 months rather than 12 months, the annualised growth figures provide a comparison adjusted for the different reporting durations.

Statutory Loss Before Tax Narrows to £0.3 Million

Shearwater reported a statutory loss before tax of £0.3 million for FY2026, compared with a loss of £13.4 million in the preceding reporting period.

The company described this as a 97% reduction in its statutory loss.

The result contrasts with adjusted profit before tax of £1.4 million, reflecting the difference between statutory and adjusted measures of profitability.

Shearwater did not provide a detailed reconciliation between these measures in the trading highlights.

At the financial year-end, the group held cash balances of £5.6 million, an increase of 10% from £5.1 million at the previous year-end.

The company also confirmed that it had no outstanding borrowings as of 30 June 2026.

Services Division Secures Major Telecommunications and Financial Contracts

The Services division accounted for much of Shearwater’s revenue growth during FY2026, supported by contract activity in telecommunications and financial services.

Among the principal agreements was a contract renewal and expansion valued at approximately £25 million with a major UK-based global telecommunications provider.

The agreement contributed £12.5 million in revenue during FY2026.

Shearwater also secured a three-year contract renewal and expansion worth approximately £9 million with a global financial organisation. This agreement generated £2.7 million in revenue during the financial year.

A further £7.3 million contract extension with a UK mobile network operator was fully delivered during FY2026.

Together, these agreements represented approximately £41.3 million in contract value, although the revenue associated with them is recognised over different periods.

The company said the Services division continued to benefit from customer activity in its telecommunications and financial services markets.

Public Sector Offering Expands Through G-Cloud 15

Shearwater increased its public sector offering through the G-Cloud 15 procurement framework during FY2026.

The number of approved technologies available through its Brookcourt business increased from 31 to 55, representing growth of approximately 77%.

The expansion provides additional products available to public sector customers through the framework.

The group also continued investing in its proprietary software products and implementing operational changes within its Software division.

Management said these initiatives are intended to support the division’s performance during FY2027 and subsequent financial periods.

The announcement did not disclose separate revenue or profit figures for the Software division.

FY2027 Trading in Line With Expectations

Shearwater confirmed that trading during the opening months of FY2027 has been consistent with management expectations.

The company reported additional contract wins, including a £1.2 million agreement with one of Japan’s largest financial groups to supply core email protection technology.

Shearwater also secured a two-year contract renewal and expansion valued at £1.7 million with a central government department.

The government agreement covers the provision of an advanced threat intelligence platform.

These two contracts have a combined value of £2.9 million.

The company said its current business pipeline reflects continued demand for cybersecurity services, which management associates with the increasing frequency and complexity of cyber threats.

Shearwater expects its FY2027 financial results to be in line with market expectations, although the announcement did not specify the corresponding revenue or profit forecasts.

Board Appointments and Capital Reduction Process

Shearwater confirmed changes to its board during and after the financial year.

Robin Southwell was appointed chair in February 2026, while Jon Entract joined the board as a non-executive director following the end of the reporting period.

The company has also commenced a capital reduction process intended to provide additional flexibility in managing its capital structure.

According to Shearwater, the proposed reduction could support future shareholder distributions, including dividends or share buybacks.

The announcement did not confirm any dividend or share repurchase programme.

Chief Executive Comments on FY2026 Results

Phil Higgins, group chief executive officer of Shearwater, commented on the financial results and the company’s outlook:

“I am delighted to report a second consecutive year of strong growth in revenue and underlying profitability. Our Services business has continued to perform strongly, supported by major multi-year contract renewals and expansions and the quality of our specialist cybersecurity offering.

“We have entered FY27 from a position of strength, with a growing blue-chip customer base, continued momentum across Services and no debt. Combined with the actions taken to improve performance in Software, this gives us confidence that we can continue to deliver profitable growth and long-term value for shareholders.”

The company expects continued customer demand across its Services operations and is pursuing operational improvements within Software as part of its FY2027 plans.

More About Shearwater Group

Shearwater Group plc (LSE:SWG) provides cybersecurity, advisory and managed security services, alongside proprietary software products.

The group’s activities include cybersecurity technology provision, managed services, threat intelligence and email protection solutions for customers in telecommunications, financial services and the public sector.

For FY2026, Shearwater reported revenue of £42.3 million, adjusted EBITDA of £2.6 million and adjusted profit before tax of £1.4 million.

Its statutory loss before tax narrowed to £0.3 million, while year-end cash increased to £5.6 million, with no borrowings.

The company has reported further contract awards in FY2027 and continues to expect full-year results in line with market expectations.