ADVFN UK Market News

Author: Fiona Craig

  • Lloyds Banking Group Raises Capital Returns and Upgrades Outlook After Strong 2025

    Lloyds Banking Group Raises Capital Returns and Upgrades Outlook After Strong 2025

    Lloyds Banking Group plc (LSE:LLOY) reported a robust set of unaudited results for 2025, reflecting continued progress through the second phase of its five-year strategic plan and prompting higher shareholder distributions alongside upgraded guidance.

    Statutory profit before tax increased to £6.7bn from £6.0bn, supported by a 7% rise in net income to £18.3bn. Growth was driven by higher net interest income and other income streams, as well as disciplined cost management, although this was partly offset by higher operating expenses, increased impairments and remediation charges, including an £800m provision related to motor finance commission issues. Lending expanded by 5% to £481.1bn, while deposits grew 3% to £496.5bn, with credit quality remaining resilient and the asset quality ratio at 17 basis points.

    Capital generation remained strong during the year. On a pro forma basis, the CET1 ratio stood at 13.2% after accounting for a higher ordinary dividend and a planned £1.75bn share buyback, taking total capital returns for 2025 to around £3.9bn. Tangible net asset value per share increased to 57.0p, underlining balance sheet strength. Management also highlighted £1.4bn of annualised additional revenue delivered from strategic initiatives in 2025 and raised its target to around £2bn by the end of 2026. Since 2021, the group has achieved £1.9bn of cost savings through transformation programmes and scale benefits.

    Looking ahead, Lloyds upgraded its 2026 guidance, now expecting underlying net interest income of around £14.9bn, a cost-to-income ratio below 50%, a return on tangible equity above 16% and capital generation in excess of 200 basis points. Management said these targets reflect confidence in the delivery of its current strategy and reinforce Lloyds’ position as a well-capitalised UK banking leader with the capacity to sustain attractive shareholder returns.

    Overall, the outlook is supported by strong trading momentum, positive management commentary and favourable technical indicators. These strengths are partially offset by ongoing considerations around cash flow dynamics and leverage, while valuation appears fair, with a reasonable earnings multiple and an attractive dividend yield.

    More about Lloyds Banking Group

    Lloyds Banking Group is one of the UK’s largest financial services providers, with leading positions in retail and commercial banking as well as insurance, pensions and investment products. The group is focused on serving UK households and businesses, with a strategy centred on deepening customer relationships, growing higher-value activities and using digital and AI capabilities to improve efficiency and competitiveness.

  • ITM Power Cuts Losses and Builds Backlog as Green Hydrogen Opportunities Accelerate

    ITM Power Cuts Losses and Builds Backlog as Green Hydrogen Opportunities Accelerate

    ITM Power plc (LSE:ITM) reported further operational and financial progress for the six months to 31 October 2025, with revenue increasing to £18m from £15.5m a year earlier and the adjusted EBITDA loss narrowing to £11.9m. The group ended the period with a strong cash position of £197.8m, providing headroom to support ongoing growth initiatives.

    Contracted backlog expanded sharply to £152m and is now largely made up of profitable contracts, reflecting improved project economics as lower-margin legacy work continues to roll off. Commercial momentum was supported by several new equipment and engineering awards, significant capacity reservation agreements with utilities including RWE, and selection for large-scale green hydrogen projects across Europe and the Asia-Pacific region. Since the period end, ITM has also launched its ALPHA 50, a 50MW full-scope plant, while demand for the NEPTUNE V platform has continued to build, further strengthening the group’s medium-term pipeline.

    ITM is also moving into recurring, asset-backed revenue through Hydropulse, its newly established build-own-operate business focused on decentralised green hydrogen production for industrial customers. The initiative is intended to leverage government funding frameworks in markets such as the UK and Germany, diversifying revenue streams beyond pure equipment sales.

    On the operational side, the company is investing in automation with the introduction of a new autostacker manufacturing line, advancing development of its next-generation CHRONOS stack platform, and transitioning parts of its portfolio to percentage-of-completion revenue recognition. Management said these measures are designed to lift margins, improve revenue visibility and reinforce ITM’s competitive position as global investment and policy support for green hydrogen continues to gather pace.

    Despite the progress, the outlook remains constrained by ongoing losses and cash flow challenges, with technical indicators and valuation metrics suggesting a cautious near-term view. However, strong revenue growth, a significantly larger backlog and clear strategic execution provide longer-term support as the green hydrogen market develops.

    More about ITM Power

    ITM Power is a Sheffield-based specialist in proton exchange membrane (PEM) electrolysers used to produce green hydrogen from renewable electricity and water. Founded in 2000 and listed on London’s AIM market since 2004, the company focuses on industrial-scale decarbonisation and plays a role in the emerging global clean hydrogen economy.

  • easyJet Maintains 2026 Guidance as Strong Demand and Holidays Growth Cushion Q1 Loss

    easyJet Maintains 2026 Guidance as Strong Demand and Holidays Growth Cushion Q1 Loss

    easyJet plc (LSE:EZJ) reported a wider headline loss before tax of £93m for the first quarter of its 2026 financial year, reflecting the seasonally weaker winter period, but reiterated its full-year outlook as robust demand and a strong contribution from easyJet holidays helped offset the broader loss.

    Passenger numbers increased 7% year on year, supported by capacity expansion, while load factors improved to 90%. Demand trends remained healthy, and easyJet holidays delivered a standout performance, generating £50m of profit and recording 20% growth in customer numbers. The airline also reported operational improvements, including better on-time performance and higher customer satisfaction scores.

    Booking momentum was encouraging, with January delivering record booking volumes and forward sales for summer 2026 described as strong. As a result, management maintained full-year guidance, including around 7% growth in available seat kilometres, modest unit cost inflation and continued revenue benefits from recent capacity investments in Italy and newly opened bases.

    The group said it remains focused on delivering sustainable profit growth over the medium term, while continuing to invest in operational reliability, customer experience and sustainability initiatives, which it views as key differentiators in the competitive European aviation market.

    Overall, easyJet’s outlook is supported by constructive technical indicators and an attractive valuation. Financial performance is showing improvement, with profitability trending positively and the balance sheet remaining stable, although cash flow pressures remain an area to monitor. The absence of recent earnings call updates or major corporate events does not materially alter the current assessment.

    More about easyJet

    easyJet is a UK-based low-cost airline group operating short-haul flights across Europe and nearby markets. Alongside its core airline business, the group runs easyJet holidays, a fast-growing package travel operation. The company focuses on high-frequency routes from major European airports, combining a value-led model with an increasing emphasis on operational reliability, customer experience and sustainability.

  • Saga Upgrades Profit Outlook as Travel and Insurance Momentum Builds

    Saga Upgrades Profit Outlook as Travel and Insurance Momentum Builds

    Saga plc (LSE:SAGA) said it now expects underlying profit before tax for 2025/26 to be higher than both the prior year and its earlier half-year guidance, supported by strong trading across its Ocean and River Cruise, Holidays and Insurance Broking divisions.

    Cruise operations benefited from higher load factors and improved per diem pricing, while the Holidays business delivered double-digit growth in both revenues and passenger numbers. In Insurance Broking, policy sales exceeded expectations, contributing to stronger trading EBITDA across the group. These performances have supported a reduction in net debt, with leverage falling below 4.0x, and management said further deleveraging is anticipated in the next financial year.

    Strategically, Saga has continued to simplify and strengthen its operations by bringing its travel businesses under a single management structure and completing the disposal of its insurance underwriting arm. The group has also launched new partnerships, including with Ageas in insurance and NatWest Boxed in savings, broadening its product offering. Combined with robust forward bookings for 2026/27, management believes these initiatives position the business for ongoing growth and progress toward longer-term profitability and leverage targets.

    Overall, Saga’s outlook reflects a blend of improving operational momentum and lingering balance-sheet challenges. Cash generation is strong and recent trading updates have been constructive, but profitability remains under pressure and leverage is still elevated. Technical indicators point to a strong share price trend, although overbought signals suggest some risk of near-term consolidation, while valuation remains constrained by negative earnings and the absence of a dividend.

    More about Saga plc

    Saga plc is a UK-based provider of products and services designed specifically for people aged over 50. Operating under a well-established consumer brand, the group’s activities span ocean and river cruises, package holidays, insurance broking, personal finance products and publishing, with a focus on premium offerings and high standards of customer service for its core demographic.

  • Smiths News Says FY2026 Trading Is on Track and Increases Shareholder Returns

    Smiths News Says FY2026 Trading Is on Track and Increases Shareholder Returns

    Smiths News PLC (LSE:SNWS) said trading for the financial year ending 29 August 2026 remains in line with market expectations, reflecting a solid start to the year and continued stability in its core newspaper and magazine distribution operations.

    The board reiterated its strategy of maintaining attractive shareholder returns while investing in the development of additional revenue streams that leverage the group’s nationwide logistics infrastructure. Subject to approval at the upcoming AGM, Smiths News plans to pay a final dividend of 3.8p per share for FY2025 alongside a special dividend of 3.0p per share. This would bring total dividends for the year to 8.55p per share, underlining management’s confidence in the company’s cash generation and its ability to fund growth into adjacent markets.

    Overall, the outlook is supported by favourable valuation metrics, including a low earnings multiple and a high dividend yield, as well as positive technical indicators that point to constructive market sentiment. These strengths are balanced against more moderate underlying financial performance, with ongoing concerns around leverage levels and negative equity remaining areas to monitor.

    More about Smiths News PLC

    Smiths News PLC is the UK’s largest news wholesaler and a leading provider of early-morning, end-to-end supply chain services. The group distributes newspapers and magazines for major national and regional publishers and, by leveraging its dense delivery network and logistics expertise, has expanded into additional services such as waste recycling collections and the distribution of books and home entertainment products, serving more than 22,000 customers across England and Wales.

  • Fever-Tree Outperforms 2025 Forecasts and Expands Buyback as US Rollout Progresses

    Fever-Tree Outperforms 2025 Forecasts and Expands Buyback as US Rollout Progresses

    Fever-Tree Drinks plc (LSE:FEVR) said it expects both adjusted revenue and adjusted EBITDA for 2025 to edge ahead of market expectations, underpinned by steady brand growth and improved momentum in the second half. Fever-Tree brand revenue increased 4% at constant currency over the full year, reflecting resilient demand across most regions.

    Geographically, performance was mixed. In the US, revenue rose 6% at constant currency as the transition into Molson Coors’ national distribution network continued to progress well. Europe delivered modest growth, while the rest of the world recorded strong gains, more than offsetting a small decline in the UK. UK trading improved meaningfully in the second half, helping to stabilise performance in what remains a highly competitive market.

    During 2025, the group completed a £100m share buyback programme and announced plans to launch a further £30m tranche in February 2026, signalling confidence in its balance sheet strength and outlook. Management also reiterated its strategic focus on expanding beyond tonic into premium soft drinks, positioning the business to benefit from long-term consumer trends toward moderation, premiumisation and quality-led brand choice. On this basis, the board said it remains comfortable with current market expectations for 2026.

    Overall, Fever-Tree’s outlook is supported by solid financial delivery and shareholder-friendly capital returns. These positives are partly tempered by a relatively high valuation and mixed technical signals, while the absence of recent earnings call detail limits visibility on near-term sentiment despite the encouraging operational backdrop.

    More about Fever-Tree Drinks plc

    Fever-Tree Drinks plc is a UK-based producer and global leader in premium carbonated mixers by retail sales value, distributing its products to more than 95 countries. Founded in 2005, the company was created to meet rising demand for high-quality mixers to accompany premium spirits and has since expanded its range to include a broad portfolio of mixers and premium soft drinks sold through both hospitality and retail channels worldwide.

  • Ocado Repositions Canadian E-Grocery Partnership as Calgary Site Closes

    Ocado Repositions Canadian E-Grocery Partnership as Calgary Site Closes

    Ocado Group (LSE:OCDO) has reworked its Canadian strategy with Sobeys following a review of regional online grocery demand, resulting in the planned closure of Sobeys’ Calgary customer fulfilment centre. The decision reflects slower-than-anticipated e-commerce adoption in Alberta, while investment continues in Ontario and Quebec through Ocado-powered facilities serving Greater Toronto and Montreal under the Voilà brand.

    Under the updated arrangement, Ocado will roll out enhanced technology capabilities, including its Swift Router to enable faster and same-day delivery, alongside deeper integration with third-party platforms. The partners will also continue to deploy Ocado’s AI-driven in-store fulfilment solution across 87 stores nationwide. Plans for a Vancouver fulfilment centre remain on hold as the partnership prioritises regions with stronger demand visibility.

    From a financial perspective, Ocado expects to receive around £18m in compensation during the current year related to the Alberta closure, while fee revenue in FY26 is forecast to be around £7m lower as a result. The group reiterated its ambition to reach cash-flow breakeven in FY26, framing the changes as part of a broader reset of its North American operations aimed at improving capital efficiency and long-term returns.

    Overall, Ocado’s outlook continues to be weighed down by ongoing losses and revenue pressure, with technical indicators pointing to a cautious near-term backdrop. While liquidity remains solid and management highlighted progress in technology deployment and partner relationships, these positives only partially offset the financial and operational challenges facing the group.

    More about Ocado Group

    Ocado Group is a UK-based technology and logistics company that develops automated grocery fulfilment and e-commerce solutions for food retailers. Its offering spans robotics, software, customer fulfilment centres and AI-enabled in-store picking, supporting partners such as Sobeys in Canada and Kroger in North America as they expand online grocery capabilities.

  • Luceco Upgrades 2026 Expectations After Strong 2025 Performance and Lower Debt

    Luceco Upgrades 2026 Expectations After Strong 2025 Performance and Lower Debt

    Luceco plc (LSE:LUCE) reported a robust trading performance in 2025, prompting the group to raise its outlook for 2026 after delivering results ahead of market expectations and strengthening its balance sheet. Revenue for the year rose 12% to approximately £271m, while adjusted operating profit is expected to be at least £33.5m, representing growth of around 15%.

    Momentum accelerated in the second half, supported by particularly strong demand for EV charging products, where sales increased by 85% to around £18m. The group also delivered steady growth across its wiring accessories and LED lighting ranges. Profit margins expanded to above 12%, reflecting operating leverage, manufacturing efficiency improvements and the benefits of recent acquisitions.

    Luceco generated roughly £30m of adjusted free cash flow during the year, enabling it to reduce net debt to around £53m, equivalent to 1.3x EBITDA. Management said the improved financial position, combined with ongoing efficiency gains and acquisition synergies, has given the board confidence to lift revenue and profit expectations for 2026. The company added that it retains balance-sheet capacity to support further organic investment and selective bolt-on acquisitions, while continuing to benefit from structural growth linked to electrification and the energy transition.

    Overall, the outlook is underpinned by strong revenue growth, expanding margins and positive strategic momentum, particularly in EV charging. These strengths are tempered by concerns around leverage trends and softer technical indicators, while valuation appears broadly reasonable based on current earnings and dividend metrics.

    More about Luceco plc

    Luceco plc is a UK-listed designer and manufacturer of residential and commercial electrification products. Its portfolio includes wiring accessories, EV chargers, LED lighting and portable power solutions, manufactured at its own facilities and distributed through professional, wholesale and retail channels.

  • Renew Holdings Reports Record Order Book and Reaffirms Positive Outlook

    Renew Holdings Reports Record Order Book and Reaffirms Positive Outlook

    Renew Holdings plc (LSE:RNWH) said trading in the first quarter has been in line with expectations, supported by strong positions on key frameworks and a record order book. As at 31 December 2025, the group’s order book stood at £924m, up from £905m a year earlier, providing increased revenue visibility.

    In a statement ahead of its annual general meeting, Renew also pointed to the strength of its balance sheet and an active acquisition pipeline focused on its core growth markets. The recently acquired Emerald Power has integrated well and is trading in line with expectations, reinforcing management’s confidence in the group’s ability to execute its buy-and-build strategy.

    The board said Renew remains well positioned to benefit from long-term structural growth in regulated UK infrastructure markets, underpinned by non-discretionary spending and long-term funding visibility. A further trading update is scheduled for 1 April 2026.

    Overall, the outlook is supported by consistent revenue growth, disciplined cash management and a reasonable valuation, including a moderate dividend yield. While technical indicators suggest some short-term share price weakness, management believes the fundamentals provide scope for a potential rebound over time.

    More about Renew Holdings plc

    Renew Holdings plc is a leading UK engineering services group providing essential maintenance and renewal services across the nation’s infrastructure. Through a portfolio of independently branded subsidiaries, the group operates in regulated markets including rail, wider infrastructure, energy—particularly wind and nuclear—and environmental services. Its activities are supported by a directly employed, highly skilled workforce and long-term, visibility-backed funding streams.

  • James Halstead Flags Slight H1 Sales Decline but Expects Stronger Second Half

    James Halstead Flags Slight H1 Sales Decline but Expects Stronger Second Half

    James Halstead plc (LSE:JHD) said sales for the six months to 31 December 2025 are expected to be modestly lower than the prior year, as weaker conditions in Central Europe and the Asia-Pacific region offset otherwise resilient trading elsewhere. UK revenues remain marginally ahead year on year, while activity in North America, the Middle East and South Africa continues to show growth.

    The group noted that a more cautious stance on customer credit has weighed on revenues and is likely to lead to a small decline in profitability for the first half. Despite this near-term softness, the board highlighted a strengthening cash position, an ungeared balance sheet and continued investment across its UK manufacturing sites as key supports for future performance. The company is also rolling out new and refreshed product ranges and has implemented management changes in the Asia-Pacific region, which it expects will help drive improved revenue and profitability in the second half.

    Overall, James Halstead’s outlook remains underpinned by a stable financial position and an attractive valuation. These strengths are tempered by weak technical indicators pointing to short-term downside risk, while the lack of near-term revenue and free cash flow growth remains an area of focus as the group looks to reaccelerate performance.

    More about James Halstead plc

    James Halstead plc is a UK-based manufacturer and international distributor of commercial flooring products, specialising in vinyl and related surfaces. The group serves customers across a range of global markets, with a strong base in the UK and growing exposure in North America, the Middle East and South Africa, alongside operations in Central Europe and the Asia-Pacific region.