Author: Fiona Craig

InterContinental Hotels Group (LSE:IHG) reported first-quarter revenue per available room (RevPAR) growth of 4.4% compared with the same period last year, outperforming analyst expectations of 3.3%.

The company said performance was supported by both higher occupancy and room pricing. Occupancy increased by 1.5 percentage points during the quarter, while average daily room rates rose 2.0%.

Growth recorded across key global regions

The Americas division achieved RevPAR growth of 3.6%, with the United States market contributing a 3.4% increase. The EMEAA region — covering Europe, the Middle East, Asia and Africa — recorded growth of 5.6%, while Greater China delivered a 5.7% increase.

Management noted that trading in the Americas strengthened further during March and April, indicating improving momentum in the company’s largest operating region.

Hotel pipeline and system expansion continue

IHG expanded its net system size by 5.0% during the quarter, opening approximately 14,900 rooms globally. Gross system growth reached 6.6%.

The company also signed agreements for an additional 21,400 rooms during the period, representing 6% growth, bringing its total development pipeline to roughly 343,000 rooms worldwide.

Management said continued expansion of the hotel network reflects ongoing demand from owners and franchise partners across multiple brands and regions.

Middle East conflict affects EMEAA trading in April

The company reported softer trading conditions in the EMEAA region during April, with RevPAR declining 7% year-on-year. Within that figure, the Middle East experienced a sharp 50% drop, reflecting the impact of ongoing regional conflict and wider international travel disruption. The Middle East accounts for around 19% of the EMEAA division.

Despite the short-term weakness, group booking trends suggest improving performance in the region during May and June.

Full-year outlook remains unchanged

IHG said it remains confident in meeting full-year market expectations, including consensus forecasts for RevPAR growth of 2.2% and adjusted earnings per share of 566 cents.

Management pointed to continued booking growth across the group and improving trends in several regions as supporting factors for the remainder of 2026.

More about InterContinental Hotels Group

InterContinental Hotels Group is a global hospitality company operating a portfolio of hotel brands across luxury, premium, midscale and lifestyle segments. The group manages, franchises and owns hotels worldwide under brands including InterContinental, Holiday Inn, Crowne Plaza, Six Senses and Kimpton, serving both leisure and business travellers across more than 100 countries.

Rathbones Group plc (LSE:RAT) reported total net outflows of £0.8 billion during the first quarter of 2026, with the majority attributed to its Wealth Management division, which recorded £0.5 billion of net outflows.

The company noted that Wealth Management flows were broadly flat when excluding execution-only activity and a £0.2 billion tax-related outflow linked to measures introduced in the 2024 UK budget.

Revenue rises ahead of market expectations

Operating income increased 9.4% year-on-year to £241 million, slightly exceeding analyst consensus forecasts for the quarter. Total net operating income rose by £20.6 million compared with the previous year to reach £240.7 million.

Growth was primarily driven by higher fee income, which contributed an additional £14.8 million, alongside a £7.1 million increase in net interest income. Other income categories declined by £5.6 million over the same period.

Management’s revenue performance outpaced market expectations despite lower-than-anticipated funds under management and administration levels, indicating that previous consensus margin assumptions may have been overly cautious.

Asset Management division also records outflows

Within the Asset Management business, net flows were negative £0.4 billion excluding intra-group adjustments, or negative £0.3 billion including those adjustments. The Wealth Management division experienced gross outflows totalling £3.2 billion during the quarter.

Total funds under management and administration ended the period at £113.6 billion, approximately 2% below Visible Alpha consensus estimates. Market movements reduced overall asset values by £1.14 billion during the quarter.

More about Rathbones Group

Rathbones Group plc is a UK-based wealth and asset management company providing investment management, financial planning and advisory services to private individuals, charities, trustees and professional intermediaries. The group oversees a broad range of investment strategies and wealth solutions through its Wealth Management and Asset Management divisions across the UK.

Hiscox Ltd (LSE:HSX) reported a 10% increase in insurance contract written premiums for the first quarter of 2026, with total premiums reaching $1.72 billion. On a constant currency basis, growth was 7%, reflecting continued expansion across several key business areas.

Retail division leads performance across major markets

The company’s retail business produced particularly strong growth, with premiums rising 15% to $847.2 million, or 8% in constant currency terms. Hiscox UK recorded a 17% increase in premiums to $244.3 million, while Hiscox Europe grew 20% to $328.2 million. Hiscox USA also delivered solid performance, reporting 9% growth to $274.7 million.

Management highlighted continued momentum across its retail operations as demand remained strong in core personal and commercial insurance markets.

London Market and reinsurance operations remain resilient

Hiscox’s London Market division reported premium growth of 4% to $342.8 million, supported primarily by casualty business where pricing conditions remained favourable despite broader softening trends across parts of the insurance market.

Within the Re & ILS division, gross written premiums increased 7% to $527.1 million. However, net written premiums declined 6% as the company reduced net exposure to property catastrophe risks.

Pricing trends varied across the group during the quarter. Retail lines recorded average rate increases of 2%, while London Market pricing declined by 4% and Re & ILS rates fell by 13%.

Investment portfolio remains stable

Hiscox ended the quarter with invested assets of $9.3 billion, carrying an average duration of 2.0 years and maintaining an A credit rating profile. The company generated an investment return of $34.1 million during the period, equivalent to a positive year-to-date return of 0.4%.

More about Hiscox

Hiscox Ltd is an international specialist insurer operating across retail insurance, London Market underwriting and reinsurance. The company provides a range of products covering commercial, property, casualty and specialty risks, serving businesses and individuals across the UK, Europe, the United States and international markets.

Auto Trader Group (LSE:AUTO) shares climbed more than 6% on Thursday following reports that activist investment firm Palliser Capital has acquired a stake in the company.

According to a report from Sky News, Palliser Capital has built a holding estimated at between 1% and 2% in the UK-based automotive marketplace operator. The investment marks the activist firm’s entry into the shareholder register of one of Britain’s largest online vehicle trading platforms.

Investor interest focuses attention on growth potential

The development is likely to increase market attention on Auto Trader’s strategic direction and future growth opportunities, as activist investors typically seek to influence operational performance, capital allocation or shareholder returns. No further details regarding Palliser Capital’s intentions have been disclosed publicly.

The share price reaction reflected investor optimism that increased shareholder engagement could support further value creation within the business.

More about Auto Trader Group

Auto Trader Group operates the UK’s largest digital automotive marketplace, providing an online platform that connects vehicle buyers and sellers across new and used car markets. The company generates revenue through advertising, retailer services and digital automotive solutions, serving dealers, manufacturers and private sellers throughout the UK automotive sector.

M&G plc (LSE:MNG) delivered a resilient first-quarter performance in 2026, reporting £0.6 billion of net inflows from open business compared with net outflows during the same period last year. Total assets under management and administration remained broadly stable at £371 billion despite heightened market volatility.

The improvement was largely driven by Asset Management, which generated £0.7 billion of net inflows supported by strong wholesale demand and continued investor interest in European equities, structured credit products and impact-focused investment funds.

New with-profits annuity business supports growth strategy

Within the Life division, expected outflows from legacy with-profits products were partly offset by the completion of the group’s first With-Profits bulk purchase annuity transaction, valued at £0.3 billion. Management said the launch of the with-profits BPA offering represents an important strategic development, with expectations for transaction volumes to increase further later in 2026.

The company also highlighted a strong pipeline of new business opportunities and continued institutional demand supported by solid investment performance across its strategies.

PruFund flows affected by volatility but outlook remains positive

PruFund recorded modest net outflows during the quarter as increased market volatility in March weighed on investor activity after a stronger start to the year. However, M&G said flows stabilised during April and expects a return to positive inflows, supported in part by plans to expand PruFund distribution onto third-party financial adviser platforms.

Management reiterated confidence in achieving further growth during 2026 as it continues to broaden distribution channels and expand product offerings across both investment management and insurance operations.

Mixed financial profile balanced by attractive dividend yield

The company’s outlook reflects a mixed financial picture. While M&G delivered a strong recovery during 2025, profitability margins remain relatively thin and earnings performance has shown volatility over multiple years. Leverage also remains comparatively elevated.

Technical indicators currently suggest weaker short-term momentum, although valuation remains supported by an attractive dividend yield. However, the stock’s price-to-earnings ratio of roughly 22.8 moderates some of that valuation appeal.

More about M&G Plc

M&G plc is a UK-based international savings and investment company combining asset management and insurance operations. The group manages approximately £371.4 billion in assets on behalf of around 4.2 million retail customers and more than 1,000 institutional clients across 38 offices globally. Operating under the M&G and Prudential brands in the UK and Europe, and M&G Investments internationally, the company provides a broad range of investment, savings and retirement solutions.

S4 Capital (LSE:SFOR) reported first-quarter 2026 net revenue of £149.2 million, representing a year-on-year decline of 8.9%, as demand was affected by broader macroeconomic uncertainty, geopolitical tensions in the Middle East and cautious spending patterns among technology-sector clients. Despite the weaker revenue performance, the company said trading remained in line with expectations and pointed to improved operating margins following cost reduction measures implemented during 2025.

Margin improvement and debt reduction support outlook

The group reaffirmed its full-year guidance, expecting 2026 like-for-like net revenue to remain broadly aligned with analyst forecasts, although slightly below 2025 levels. Management also maintained its target of increasing operational EBITDA margin by at least 100 basis points over the year.

Net debt was reduced to £111.8 million, equivalent to 1.4 times pro-forma operational EBITDA, helped by the repurchase of €85.2 million of Term Loan B debt at a discount. S4 Capital also reiterated its year-end net debt target range of between £60 million and £90 million.

Dividend plans signal confidence in restructuring progress

The board said shareholder returns remain a key priority within its capital allocation strategy, placing dividends ahead of debt reduction and share buybacks. Over the medium term, the company intends to target dividend payments equivalent to 50% of adjusted basic earnings, subject to achieving financial performance objectives.

As an initial move, S4 Capital plans to approve interim and final dividends totalling 1.1 pence per share for 2026. Management said the proposed payout reflects confidence in the company’s restructuring progress and its ability to benefit from growing demand for AI-driven marketing, media and technology services despite ongoing caution among clients.

Revenue pressures continue to weigh on valuation

The company’s outlook remains constrained by several years of revenue contraction and continued net losses, including a significant loss reported in 2024. However, substantial debt reduction during 2025 and stronger operating and free cash flow performance have provided some improvement in financial stability.

Technical indicators remain supportive overall, with the shares trading strongly relative to key moving averages, although highly elevated RSI and stochastic readings suggest the stock may face increased short-term volatility. Valuation metrics remain limited by the group’s negative earnings profile, while dividend yield support remains relatively modest.

More about S4 Capital Plc

S4 Capital plc is a digital advertising and marketing services company specialising in data-driven content, media and technology solutions. Through its Monks-branded agencies, the group works with major global brands and technology platforms, providing digital marketing, creative production and AI-enabled transformation services designed to support clients’ evolving online advertising and customer engagement strategies.

Harbour Energy (LSE:HBR) delivered strong operational performance during the first quarter of 2026, producing 506,000 barrels of oil equivalent per day while reducing unit operating costs and maintaining stable safety and emissions performance. The company also completed its $3.2 billion acquisition of LLOG earlier than expected, significantly expanding its presence in the US Gulf of Mexico.

Alongside the acquisition, Harbour continued to progress development activity across its operations in Norway, the UK, Argentina, Egypt and Mexico, while also securing additional exploration licences in both Norway and the Gulf of Mexico.

Revenue growth supported by resilient cash generation

First-quarter revenue increased to $3 billion, while free cash flow remained solid at approximately $700 million despite higher working capital requirements. Net debt rose to $6.3 billion as a result of the LLOG transaction, although management noted that strong operational cash generation partially offset the increase in leverage.

The company also strengthened its hedge portfolio and debt structure during the period, supporting greater financial flexibility as it integrates newly acquired assets.

Production guidance tightened as deleveraging outlook improves

Harbour narrowed its full-year production guidance upward to a range of 480,000 to 500,000 barrels of oil equivalent per day while maintaining planned capital expenditure guidance of between $2.2 billion and $2.4 billion.

Management also upgraded its free cash flow outlook for 2026, highlighting the potential for faster balance sheet deleveraging while continuing to support shareholder returns through its existing capital distribution framework.

Market outlook supported by strong operational momentum

The company’s outlook remains supported by robust cash flow generation, improving financial resilience and a constructive production outlook. Technical indicators continue to appear positive, although recent share price performance may suggest the stock is becoming overextended in the near term.

Valuation remains mixed, with an attractive dividend yield offset by the company’s negative earnings profile and associated volatility.

More about Harbour Energy

Harbour Energy is an independent oil and gas producer with operations across the UK, Norway, the US Gulf of Mexico, Latin America, North Africa and Southeast Asia. The company focuses on operated, infrastructure-led developments and gas-weighted production assets while also investing in carbon capture and storage projects, including developments in Denmark, as part of its longer-term energy transition strategy.

Tritax Big Box REIT (LSE:BBOX) reported solid operational progress so far in 2026, adding £10.8 million in annualised income through a combination of asset management initiatives and development activity. The company also achieved record rental reversion levels, particularly from logistics and urban assets acquired through its Blackstone portfolio transaction.

Management highlighted continued resilience in the UK logistics market, supported by falling vacancy rates and stable prime yields. The group believes these market conditions provide a favourable backdrop for further rental growth, especially as a larger number of lease reviews and renewals are scheduled across 2026 and 2027.

Development activity supports future earnings growth

The company’s development platform secured significant lettings at Newark and Cambridge, with both schemes expected to generate yields on cost above 7%. Tritax also confirmed that additional rental agreements are currently progressing through legal completion, while maintaining guidance for development starts during 2026 targeting yields between 6% and 8%.

Management said the combination of development completions, lease activity and rental growth is expected to support continued earnings expansion over the medium term.

Data centre expansion forms key part of long-term strategy

Alongside its logistics operations, Tritax is continuing to build out its UK data centre pipeline. Current projects include a 107MW site near Heathrow as well as a second proposed development in Chelmsford. The company sees increasing demand for power-intensive digital infrastructure as an important long-term growth opportunity that complements its existing logistics platform.

To support balance sheet flexibility, Tritax has also recycled capital through more than £270 million in asset disposals and is completing share issuance connected to the £1.04 billion Blackstone portfolio acquisition.

Outlook supported by growth pipeline and valuation

The company’s outlook is underpinned by solid operational and financial performance, although weaker free cash flow conversion during 2025 and rising debt levels remain areas of caution. Technical indicators remain supportive, with the shares continuing to trade within a positive upward trend.

Valuation metrics are viewed as attractive, supported by a low-teens price-to-earnings ratio and a dividend yield of around 4.6%. Management commentary has also reinforced confidence in the company’s visible development pipeline and disciplined capital allocation strategy, although execution risks and near-term income normalisation remain factors to monitor.

More about Tritax Big Box REIT

Tritax Big Box REIT is the UK’s largest listed investor in large-scale logistics warehouse assets and controls the country’s biggest logistics-focused land platform. The FTSE 100 real estate investment trust focuses on generating sustainable returns through ownership and active management of modern logistics and urban distribution facilities leased to major corporate tenants on long-term agreements. The company is also expanding into UK data centre development to capitalise on rising demand for digital infrastructure.