Author: Fiona Craig

French videogame publisher Ubisoft (EU:UBI) warned on Wednesday that it expects another difficult financial year ahead after reporting a record operating loss for the year ended March 2026, intensifying pressure on the company as it continues its restructuring efforts.

The group posted an International Financial Reporting Standards (IFRS) operating loss of €1.3 billion (US$1.40 billion), which chief financial officer Frederic Duguet described during a press call as a record result for the company. Net bookings declined 17.4% year-on-year to €1.53 billion.

Investor reaction was sharply negative, with Ubisoft shares falling more than 15% in early Thursday trading by 08:04 GMT.

Looking ahead, Ubisoft said it expects revenue in 2026-27 to decline by around 8% to 9%, while forecasting a high single-digit operating loss margin and potential cash burn of up to €500 million. Management said the company aims to return to profitability and positive free cash flow in 2027-28, supported by a stronger pipeline of game releases and expansion in live-service multiplayer titles designed to encourage long-term player spending, similar to Riot Games’ “League of Legends.”

The company added that it currently has sufficient liquidity to meet near-term debt obligations and confirmed it is in discussions with lenders regarding refinancing upcoming maturities.

“Ubisoft appears to be responding to the (difficult) market environment, but with significant uncertainties around delivery as well as effectiveness of the new operational structure, we expect the risk-reward to remain wide,” Morgan Stanley analysts commented on the stock in a post-earnings note.

Ubisoft also announced that Nicolo Laurent, former chief executive of Tencent-owned Riot Games, will join Vantage Studios — the Tencent-Ubisoft partnership overseeing Ubisoft’s major franchises — as a special adviser.

The publisher said first-quarter net bookings are expected to reach around €250 million, ahead of the launch of “Assassin’s Creed Black Flag Resynced,” a remake of the company’s 2013 Caribbean-themed hit title.

As part of its restructuring programme, Ubisoft reduced its workforce by around 1,200 employees over the past year, leaving total headcount at approximately 16,600 staff. The group also cut fixed costs by €118 million to €1.435 billion during 2025-26 and is targeting a further reduction to €1.25 billion by March 2028 as it works to stabilise cash flow generation.

ICG (LSE:ICG) shares slipped 1.8% on Thursday after the alternative asset manager reported full-year 2026 results that beat expectations in its fund management operations but disappointed on investment returns.

The group’s Fund Management Company division delivered pre-tax profit that was 26% ahead of company-compiled analyst consensus. The stronger performance was driven by management fees that exceeded forecasts by 12%, while operating expenses came in 9% lower than expected. ICG said management fee growth benefited from around £51.4 million in catch-up fees during the year, alongside a continued shift toward higher-return investment strategies.

However, performance from the Investment Company segment fell short of expectations after a 2% negative return in the debt portfolio weighed on net investment returns. The decline was mainly linked to mark-to-market movements within collateralised loan obligations, although other asset classes generated annual returns of between 5% and 8%.

Fee-paying assets under management rose to US$86.5 billion, around 2% ahead of analyst consensus, supported by fundraising of US$7.6 billion during the period. Across fiscal year 2025, the company raised roughly US$40 billion, equivalent to around 73% of its target to raise at least US$55 billion between fiscal years 2025 and 2028.

Much of the latest fundraising activity was driven by Europe IX, which is expected to become ICG’s first commingled investment fund to exceed €10 billion in size. Fourth-quarter fundraising alone totalled US$3.2 billion.

The company also updated its medium-term financial guidance to include expectations for expansion in fee-related earnings margins, excluding catch-up fees. ICG maintained its target of raising at least US$55 billion over the four-year period ending March 2028, while reiterating guidance for performance fees to contribute around 10% to 20% of total fee income.

Management indicated that fundraising activity in fiscal year 2027 is expected to come in below the levels achieved in fiscal year 2026.

More about ICG

ICG is a global alternative asset management firm specialising in private debt, credit and structured capital strategies. The company manages investments across corporate, real asset and secondary markets for institutional clients worldwide, generating revenue through management fees, investment returns and performance-related income.

Autotrader (LSE:AUTO) shares moved lower on Thursday after the UK automotive marketplace operator reported full-year results that fell short of company-compiled consensus forecasts amid continued pressure in the used car market.

The stock declined more than 3% in early London trading following the release of results for the year ended 31 March 2026.

Group revenue increased 4% to £624.3 million, including £585.3 million from the core Autotrader platform and £39.0 million from Autorama. Operating profit also rose 4% to £392.7 million, while the main Autotrader business maintained an operating margin of 70%.

However, both revenue and operating profit came in below analyst expectations. Average revenue per retailer increased 5% to £2,995, while profit before tax rose 3% to £388.8 million. Basic earnings per share climbed 8% to 34.17 pence.

“We continued to grow both revenue and profits this year, despite a challenging backdrop,” chief executive Nathan Coe said. “Our competitive position has strengthened, with six times more time spent on Autotrader than all our main competitors combined.”

Looking ahead, the company forecast FY2027 group operating profit in the range of £395 million to £415 million, with the midpoint slightly below analyst consensus of £418 million.

Management said it expects the stock lever to recover to between minus £30 million and minus £40 million over the full year, while average retailer forecourts are forecast to decline by 1% to 2%. The product lever is expected to contribute between £65 million and £75 million to ARPR growth, and Autorama is anticipated to deliver a small profit during FY2027.

“FY27 guidance is also softer than expected, with ARPR growth expected to come in below consensus, mainly due to a weaker stock lever in ARPR,” Citi analysts noted.

Autotrader also announced plans to return around £600 million to shareholders through a combination of approximately £500 million in share buybacks and dividends equivalent to one-third of net income. Total shareholder returns across FY2026 and FY2027 are expected to exceed £1 billion.

The board proposed a final dividend of 7.8 pence per share, taking the full-year payout to 11.6 pence, compared with 10.6 pence in the previous year.

During the year, the company returned £463.2 million to shareholders through dividends and an accelerated share buyback programme, repurchasing 58.5 million shares, equivalent to 6.6% of issued share capital. The group also drew £165 million from its debt facility, leaving leverage at 0.3 times.

More about Autotrader

Auto Trader Group plc operates the UK’s largest digital automotive marketplace, connecting car buyers, retailers and manufacturers through online vehicle advertising and data-driven services. The company generates revenue primarily through retailer subscriptions, advertising products and automotive software solutions, while also expanding into vehicle leasing through its Autorama division.

Smiths Group Plc (LSE:SMIN) has reduced its full-year FY2026 organic revenue growth forecast to around 2%, down from previous guidance of 3% to 4%, after disruption linked to the Middle East conflict negatively affected third-quarter trading.

The revised outlook fell short of analyst expectations of 2.8% organic growth, although it remained ahead of Jefferies’ forecast of 1.8%.

For the third quarter ended 2 May, organic revenue growth from continuing operations — comprising John Crane and Flex-Tek — was flat compared with the previous year. Across the first nine months of the financial year, organic revenue growth stood at 0.2%, while reported revenue growth reached 1.6%, supported by acquisitions.

Chief executive Roland Carter said, “Whilst this moderates growth in the near term, it is set against a backdrop of increasing global demand for energy security and resilience, and we are well positioned to support our customers. This underpins our confidence in the strength of our medium-term growth outlook.”

Smiths said the Middle East conflict reduced John Crane sales by approximately £10 million during the quarter, with disruption lasting around two months. Despite this, the division still delivered organic revenue growth of 2.8%, while management highlighted continued strength in the order book and a positive book-to-bill ratio.

“JC was impacted by the ME, although the order book strengthened and book-to-bill was positive, while Flex-Tek saw ongoing sales declines yoy given a tough comp and challenging US construction market. There is nothing in here that should be a surprise to the Street, in our view, although sales expectations were a touch high,” said analysts at Jefferies.

Flex-Tek recorded an organic revenue decline of 3.9% during the quarter against a strong prior-year comparison. The construction segment continued to be affected by weakness in the U.S. residential housing market, although the company said sequential improvement from the second quarter is expected to continue into the fourth quarter, supported by pricing initiatives.

Within Thermal Solutions, revenue declined mainly due to the completion of a major ultra-high heating project in the prior year. Aerospace operations, however, delivered strong growth driven by execution of the order book and improved pricing and volumes following contract renewals.

On profitability, management now expects FY2026 headline operating margins to come in slightly above 20%, compared with previous guidance of around 20%. The updated forecast is marginally ahead of analyst consensus expectations of 20.1%.

Smiths also confirmed that the disposal of Smiths Interconnect to Mole was completed on 1 April and that £506 million of its planned £1 billion share buyback linked to the transaction has already been executed.

The regulatory approval process for the proposed sale of Smiths Detection remains ongoing, with completion currently anticipated during the second half of calendar year 2026.

More about Smiths Group

Smiths Group Plc is a UK-based engineering and technology group serving energy, industrial, aerospace and infrastructure markets. Through businesses including John Crane and Flex-Tek, the company provides engineered components, industrial technologies and specialised systems focused on energy efficiency, safety, connectivity and operational resilience across global markets.

BTG Consulting plc (LSE:BTG) said trading for the year ended 30 April 2026 is expected to come in above the upper end of market expectations, supported by broad-based strength across its advisory operations. The company forecasts revenue of around £169 million, adjusted EBITDA of approximately £33.3 million and adjusted pre-tax profit of £25 million.

Management said performance was driven by roughly 8% organic growth alongside strong demand across its restructuring, real estate and financial advisory businesses. The group also highlighted its position as the UK’s leading firm for corporate restructuring appointments during the year.

Activity levels remained robust across several divisions, including property auctions and valuation services, while recent acquisitions within the real estate business contributed to growth. BTG said it expects its diversified advisory model and expanding restructuring pipeline to position the business well against a backdrop of increasing macroeconomic uncertainty.

The company added that ongoing capital returns to shareholders, combined with recent strategic acquisitions, continue to support its long-term growth strategy and reinforce its track record of profitable expansion.

BTG’s outlook remains supported primarily by strong financial performance and favourable recent corporate developments. However, management acknowledged that technical indicators suggest a more cautious market backdrop, while valuation metrics imply the shares may already reflect a significant portion of the company’s growth prospects. Even so, strategic expansion initiatives and a solid dividend yield continue to provide support for the investment case.

More about BTG Consulting

BTG Consulting plc is a UK-based financial and property advisory company providing services across restructuring, corporate finance, real estate consultancy, planning, property valuation, building consultancy and property auctions. The group has built a leading presence in UK corporate restructuring while continuing to expand its footprint across regional and southern England real estate markets through a diversified advisory model.

Hardide (LSE:HDD) reported record first-half results for the six months ended 31 March 2026, with revenue rising 71% to £4.8 million as demand from the energy sector continued to strengthen. Gross margins improved to 65%, while operating profit reached £1.3 million, resulting in positive earnings per share for the period.

The company said growth was driven largely by increased business from a major new North American energy customer, alongside operational efficiency improvements that helped lift operating margins to 26.8%. Cash balances also increased to £1.5 million despite higher working capital requirements linked to expanding activity levels.

Management expects momentum to continue into the second half of the financial year, supported by an additional £1.8 million order from the energy sector. The group also anticipates revenue contributions from the transition of an aerospace cargo door coating contract into production, as well as its first industrial turbine blade order since 2022.

Hardide is continuing to invest in infrastructure and process improvements at its Martinsville facility in the United States. The company said these upgrades are expected to increase annual production capacity toward approximately £20 million of revenue without requiring significant additional capital expenditure.

The group added that current trading momentum positions it to exceed its objective of doubling FY24 revenue ahead of schedule while improving long-term returns on capital.

The company’s broader outlook continues to be supported by improving profitability, positive free cash flow generation and a stronger financial trajectory. However, these positives are tempered by relatively thin margins and higher leverage levels. Technical indicators remain supportive through a longer-term upward trend, while valuation metrics are viewed favourably due to the shares’ relatively low price-to-earnings ratio.

More about Hardide

Hardide plc is a UK-based engineering technology company specialising in advanced tungsten carbide and tungsten metal matrix coating solutions for components operating in demanding industrial environments. Its patented coating technologies are designed to improve resistance to abrasion, erosion and corrosion while maintaining toughness and precision application across complex engineering parts. Hardide serves industries including energy, aerospace, industrial gas turbines, valve and pump manufacturing, and precision engineering.