Category: Market News

Smith & Nephew PLC (LSE:SN.) saw its shares drop 7.6% on Thursday after posting third-quarter results that came in below analyst forecasts, despite reaffirming its full-year guidance. The medical technology group reported underlying revenue growth of 5.0%—missing the consensus estimate of 6.3%—as weakness in U.S. knee implant sales and a slower-than-expected recovery in Sports Medicine offset gains in its wound care division.

Revenue for the three months ended 27 September 2025 totaled $1.50 billion, up 5.0% on an underlying basis and 6.3% on a reported basis, including a 1.3% positive currency impact. The results marked a slowdown from the 6.7% growth recorded in the prior quarter, even as year-over-year comparisons eased.

Chief Executive Officer Deepak Nath said, “Our third-quarter results again demonstrate how the 12-Point Plan has improved Smith+Nephew’s revenue growth profile, keeping us on track to meet our full-year outlook for revenue growth and a step-up in trading profit margin. As we approach the end of the 12-Point Plan, our business is undoubtedly in a better place.”

By segment, Orthopaedics revenue rose 4.1%, missing expectations of 6.2%, with U.S. Knee Implants down 2.3% amid ongoing portfolio rationalization. This was partly offset by a 6.3% rise in U.S. Hip Implants, supported by the successful rollout of the CATALYSTEM Primary Hip System. Sports Medicine & ENT grew 5.1%, below the 7.2% forecast, as recovery from China’s Volume-Based Procurement (VBP) program lagged. Advanced Wound Management was the strongest performer, climbing 6.0%—ahead of expectations—driven by a 12.2% increase in Advanced Wound Bioactives.

Despite the top-line miss, Smith+Nephew reaffirmed its guidance for around 5% underlying revenue growth and a trading profit margin between 19% and 20%. The company also raised its free cash flow forecast to approximately $750 million, up from the previous target of more than $600 million, citing improved working capital management and operational efficiencies. In addition, Smith+Nephew confirmed the completion of its $500 million share buyback program on 7 October.

More about Smith & Nephew PLC

Smith & Nephew PLC is a global medical technology company specializing in advanced wound management, orthopaedics, and sports medicine solutions. Headquartered in London, the company operates in more than 100 countries, providing innovative surgical and medical products that improve patient outcomes and enhance recovery times. Its growth strategy focuses on expanding in high-demand markets and improving profitability through operational discipline and portfolio optimization.

Watches of Switzerland Group PLC (LSE:WOSG) saw its shares rise 4.9% on Thursday after reporting a strong first-half performance for fiscal 2026, fueled by exceptional growth in the U.S. market. Group revenue reached £845 million for the six months, representing a 10% increase at constant currency and topping analyst expectations of £825 million. U.S. sales were the standout contributor, surging 20% in constant currency—double market forecasts—while UK revenue rose 2% amid a “challenging retail environment.”

Adjusted EBIT is expected to come in between £66 million and £68 million, slightly below consensus of £68.3 million, with operating margins approximately 50 basis points lower year-on-year. Chief Executive Officer Brian Duffy said, “We have delivered a strong first half, with group revenue up 10% in constant currency, showing continued momentum across the business, disciplined execution, and improved market trends.”

Despite the introduction of a 39% tariff on Swiss watch imports to the U.S. since August 7, Watches of Switzerland reaffirmed its full-year guidance for constant currency sales growth between 6% and 10%, noting no significant shift in consumer behavior. Luxury watch sales grew 10% at constant currency, while luxury jewelry rose by the same percentage and now accounts for 12% of total revenue. E-commerce sales were also strong, up 16% year-on-year.

The group continues to invest in its retail network, completing several flagship refurbishments and opening new boutiques during the first half, with additional high-profile store launches planned for the second half of the fiscal year. “While we remain mindful of ongoing economic and geopolitical uncertainties, including the impact of U.S. tariffs, we are confident in delivering another year of strong growth and in consolidating our leadership in luxury watch and jewelry retailing,” Duffy added.

More about Watches of Switzerland Group PLC

Watches of Switzerland Group PLC is a leading luxury watch and jewelry retailer with operations in the UK, U.S., and Europe. The company represents major Swiss brands including Rolex, Patek Philippe, and Omega, offering both in-store and online experiences. Through continued investment in digital innovation and high-end retail spaces, the group aims to strengthen its position as a global leader in the luxury timepiece and jewelry sector.

IMI plc (LSE:IMI), the global engineering group specializing in fluid and motion control technologies, reported a 12% year-on-year increase in organic revenue for the third quarter of 2025, surpassing analyst expectations and sending its shares up 4.3% in early trading. The FTSE 100 company remains on track to deliver a fourth consecutive year of mid-single-digit organic revenue growth, with year-to-date organic revenue up 5%.

The Process Automation segment was the key growth driver, posting a 26% organic revenue rise during the quarter, supported by heightened global energy demand and robust aftermarket sales, which are up 7% year-to-date. Chief Executive Roy Twite commented, “IMI has delivered an excellent performance in the third quarter, demonstrating the continued success of our growth strategy and the strength of our One IMI operating model.”

IMI’s Automation division, accounting for 64% of 2024 sales, reported 17% organic growth, while the Life Technology division, representing 36% of sales, saw a 4% increase. Climate Control revenue grew 5%, reflecting sustained demand for energy-efficient building systems and advanced cooling technologies for data centers. Meanwhile, Life Science and Fluid Control sales climbed 13%, partially offset by a 9% decline in Transport revenue amid weakness in the global heavy-duty truck market.

The company reaffirmed its full-year guidance, projecting adjusted basic earnings per share between 129p and 136p. IMI also noted that prevailing exchange rates could trim approximately 1% from revenue and 1.5% from adjusted operating profit for the year compared to 2024. Despite earlier challenges—including a first-quarter cyber incident that disrupted shipments—the company continues to strengthen its portfolio, with a strategic review of its Transport sector underway to prioritize higher-margin, higher-growth areas.

More about IMI plc

IMI plc is a UK-based global engineering company specializing in motion and fluid control technologies that enable safe and efficient energy, industrial, and life science applications. Operating across more than 50 countries, IMI serves sectors including process automation, climate control, and life sciences. The company’s “One IMI” strategy focuses on driving sustainable growth through innovation, operational excellence, and selective investment in high-margin, high-demand markets.

Workspace Group plc (LSE:WKP) has signed a 20-year lease agreement with Qube, a fast-growing members’ club for music and content creators, securing 32,000 square feet at The Old Dairy in Shoreditch, London EC2. The site will serve as Qube’s new flagship creator hub, featuring state-of-the-art recording studios, co-working spaces, and premium amenities designed for creative professionals.

As part of the partnership, Workspace has invested £3 million for a minority equity stake in Qube, gaining board observer rights. The investment will primarily fund customized fit-out works, complemented by a £3.45 million landlord contribution. Together, the two companies plan to expand a scalable, specialist workspace offering for London’s creative industries, combining Workspace’s flexible property portfolio with Qube’s community-driven, Soho House-style concept.

Chief Executive Lawrence Hutchings said the collaboration reflects Workspace’s strategy of disciplined capital allocation and market-led partnerships, positioning the group as “the destination of choice for London’s creators and innovators.”

More about Workspace Group plc

Workspace Group plc is a leading provider of flexible office space in London, catering primarily to small and medium-sized enterprises, entrepreneurs, and creative professionals. The company owns and manages a portfolio of freehold properties in high-demand locations, offering adaptable spaces designed to foster innovation and collaboration across industries.

Wood Group plc (LSE:WG.) saw its shares surge as much as 38% to 25 pence on Thursday after trading resumed in London, ending a five-month suspension triggered by delays in publishing its financial accounts. The rally reflects investor reaction to the company’s long-awaited readmission and the pending £216 million takeover offer from UAE-based engineering group Sidara, valuing the stock at 30 pence per share.

Trading was suspended earlier this year following an independent review that exposed “failures” in Wood Group’s financial culture, including instances where information was withheld from auditors. The company has since released its 2024 annual report and interim results for the first half of 2025, allowing the resumption of trading. The 2024 accounts revealed a pre-tax loss from continuing operations of $2.7 billion, compared with $152 million in 2023, largely due to a $2.2 billion goodwill and intangible asset impairment. For the first half of 2025, Wood Group reported a $67.1 million pre-tax loss and negative cash flow of $404 million.

Auditors KPMG issued a qualified opinion on the 2024 results, citing time constraints and an inability to obtain sufficient audit evidence. Analysts at Peel Hunt described the half-year results as “terrible,” noting weak financial performance aside from a rise in new orders.

Wood Group, which provides engineering and project management services across the global energy and mining sectors, employs about 35,000 people in more than 60 countries. Once valued at £5.3 billion in 2018, the company has struggled since its £2.2 billion acquisition of Amec Foster Wheeler, burdened by high debt and heavy cash outflows. Its market capitalization had fallen to just £126 million before the suspension.

Shareholders are scheduled to vote later this month on the Sidara takeover proposal, which the board has recommended, saying alternative options would “likely generate materially less, and potentially zero, value for shareholders.” The latest offer is more than 80% lower than Sidara’s previous bids rejected last year.

In a statement accompanying the 2024 results, Chair Roy Franklin described the past year as “an incredibly challenging period” and expressed disappointment at the company’s position. He has announced plans to step down once the company’s future becomes clearer, while Chief Executive Ken Gilmartin, who has led the group since July 2022, is expected to depart following the shareholder vote on the Sidara deal.

More about Wood Group plc

Wood Group plc is a global engineering and consulting company providing project management, operations, and technical services to clients in the energy, industrial, and mining sectors. Headquartered in Aberdeen, Scotland, the company operates in more than 60 countries and employs approximately 35,000 people worldwide.

ITV plc (LSE:ITV) delivered better-than-expected results for the first nine months of 2025, supported by strong performance in ITV Studios and continued momentum in digital advertising. Despite a challenging UK advertising environment, the company’s diversified business model helped mitigate headwinds. ITV expects a decline in total advertising revenue in the fourth quarter due to ongoing economic uncertainty but has implemented £35 million in temporary cost savings to offset the impact. Management reaffirmed confidence in achieving full-year revenue growth targets, backed by disciplined cost control and a robust programming pipeline for the months ahead.

The company’s outlook remains balanced, with solid operational execution offset by pressures on revenue growth and cash flow. Technical analysis indicates bearish momentum in the short term, though the current valuation suggests the stock may be undervalued, supported by an attractive dividend yield.

More about ITV plc

ITV plc is a leading UK-based media and entertainment company engaged in television broadcasting, content production, and digital media. Through its ITV Studios division, the company produces and distributes content globally, while its broadcasting operations reach millions of viewers across the UK. ITV is also expanding its presence in digital advertising and streaming, aligning its strategy with changing audience behaviors and the evolving media landscape.

BT Group plc (LSE:BT.A) announced solid half-year results, showcasing continued progress in its strategic transformation and infrastructure rollout. The company achieved record growth in full fibre broadband and 5G coverage, with Openreach now passing more than 20 million premises across the UK. Despite challenges in its international and legacy operations, BT remains on track to meet its full-year financial targets, supported by ongoing cost efficiencies and higher dividend payouts. Its intensified focus on the UK market, network modernization, and improved customer experience are helping offset revenue pressures in other business segments.

The company’s outlook remains stable, underpinned by strong operational execution and positive commentary from its recent earnings call. While short-term technical indicators suggest a bearish trend, BT’s strategic initiatives and attractive dividend yield provide a balanced longer-term view. Risks remain linked to high leverage and slower revenue growth.

More about BT Group plc

BT Group plc is one of the UK’s leading telecommunications providers, offering broadband, mobile, and digital TV services. Through its Openreach division, the company is spearheading the nationwide rollout of full fibre broadband, while its EE network continues to expand 5G coverage across the country. BT’s strategy focuses on strengthening the UK’s digital infrastructure, enhancing service quality, and driving sustainable long-term growth.

Harbour Energy (LSE:HBR) has increased its production guidance for 2025 following strong operational performance and progress across key strategic initiatives. Despite ongoing volatility in commodity prices, the company reaffirmed its free cash flow target of $1 billion for the year, supported by higher production volumes and continued cost efficiencies. Harbour has made notable headway in major projects, including liquefied natural gas (LNG) developments in Argentina and new oil field ventures in Mexico, both expected to enhance long-term output and reserves. The company has also streamlined its UK operations through organizational restructuring and the divestment of non-core assets, sharpening its focus on high-return opportunities.

The company’s outlook remains constructive, underpinned by strong commentary from its latest earnings call highlighting operational improvements and cash generation. While financial performance reflects solid revenue growth, profitability pressures persist. Technical indicators point to potential resistance levels, and valuation metrics show a mixed picture, with a negative price-to-earnings ratio offset by an attractive dividend yield.

More about Harbour Energy

Harbour Energy is a leading independent oil and gas producer with a diversified portfolio spanning the UK, Norway, Argentina, and Mexico. The company focuses on exploration and production projects that deliver strong returns and long-term resource growth. In addition to its core operations, Harbour is investing in strategic LNG and energy transition initiatives, positioning itself to play a key role in the evolving global energy landscape.

Vistry Group PLC (LSE:VTY) has reaffirmed its full-year guidance, reporting steady progress through the second half of 2025. The company continues to benefit from strong activity in the affordable housing sector, bolstered by a £50 million grant from Homes England and rising demand from strategic partners. While broader economic uncertainty persists, Vistry noted a modest uptick in open market sales and continued success in managing build cost inflation. The group remains focused on reducing net debt, improving operational efficiency, and pursuing new development opportunities across the UK.

The company’s outlook is supported by consistent revenue growth and healthy cash flow generation, although margin pressures and elevated leverage continue to challenge overall profitability. Technical indicators point to moderate momentum, while valuation remains subdued due to a negative price-to-earnings ratio and the absence of a dividend yield.

More about Vistry Group PLC

Vistry Group PLC is a leading UK-based housebuilder specializing in the development of affordable and mixed-tenure housing. Working closely with government bodies, housing associations, and local partners, the company plays a central role in delivering projects under the Affordable Homes Programme. Vistry’s focus on partnership housing supports both financial sustainability and social impact, positioning it as a key contributor to the UK’s housing supply.

S4 Capital plc (LSE:SFOR) reported a mixed performance for the third quarter of 2025, with modest growth in billings offset by declines in both revenue and net revenue. The company continues to face headwinds from global economic uncertainty and reduced client spending, particularly within the technology sector. Despite these challenges, S4 Capital remains optimistic about its long-term prospects, citing recent new business wins and growing adoption of its AI-driven marketing and digital solutions. The company reaffirmed its operational EBITDA and net debt guidance, expecting improved liquidity in the coming quarters and the potential for a higher final dividend if performance targets are achieved.

The outlook for S4 Capital reflects ongoing financial pressures and valuation concerns, stemming from weaker revenue trends and profitability challenges. While short-term technical indicators suggest some positive momentum, longer-term trends remain subdued. The company’s high dividend yield may appeal to income investors but also highlights underlying risk factors.

More about S4 Capital plc

S4 Capital plc is an international digital advertising and marketing services group specializing in data, digital content, and technology-led solutions. The company focuses on integrating AI and automation across its service offerings to deliver faster, more personalized marketing campaigns for global clients. By combining creativity with advanced analytics, S4 Capital aims to maintain its competitive edge in an evolving digital media landscape.