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  • European Stocks Fall as Apple Margin Warning and Oracle Funding Plans Trigger Technology Sell-Off: DAX, CAC, FTSE100

    European Stocks Fall as Apple Margin Warning and Oracle Funding Plans Trigger Technology Sell-Off: DAX, CAC, FTSE100

    European stock markets declined on Tuesday, 3 November, as renewed concerns about technology sector profitability and the rising cost of artificial intelligence infrastructure prompted widespread selling across the region.

    Apple (NASDAQ:AAPL) unsettled investors after warning that higher memory chip prices would put pressure on gross margins during the holiday shopping quarter. Meanwhile, Oracle (NYSE:ORCL) announced plans to raise $20 billion through debt and equity financing to support its expanding cloud computing and data centre operations.

    The pan-European STOXX 600 index fell 0.7%, with technology stocks among the hardest hit. Germany’s DAX declined nearly 1%, while France’s CAC 40 lost 0.5% and London’s FTSE 100 retreated 0.4%.

    Italy’s FTSE MIB and Spain’s IBEX 35 recorded steeper losses, with both benchmarks falling more than 1%.

    The declines came as investors prepared for a busy period of European corporate earnings announcements, the US midterm elections and key American employment figures due later in the week.

    Technology Stocks Lead European Market Declines

    The European technology sector came under significant pressure following Apple’s warning about rising semiconductor component costs.

    The US technology company indicated that persistent increases in memory chip prices would affect gross margins during the important holiday shopping period.

    The announcement raised concerns about the profitability of consumer electronics manufacturers and the potential consequences for semiconductor suppliers.

    Investors also questioned whether companies would be able to absorb higher input costs without reducing profitability or increasing prices for customers.

    Passing additional costs on to consumers could weaken demand for electronic devices, creating further uncertainty for manufacturers and suppliers.

    The resulting selling pressure extended across Europe’s semiconductor industry, affecting companies involved in chip manufacturing equipment, electronic components and related technologies.

    ASML, ASM International and STMicroelectronics Retreat

    Several major European semiconductor companies recorded substantial share price declines.

    ASML (EU:ASML), a leading supplier of lithography equipment used in semiconductor manufacturing, fell alongside other businesses exposed to global chip investment and production.

    ASM International (EU:ASM) and BE Semiconductor Industries (EU:BESI), which supply equipment used in semiconductor manufacturing and assembly, also came under pressure.

    Shares in the three companies declined between 2% and 4%.

    STMicroelectronics (BIT:STMMI) and Infineon (TG:IFX) suffered losses exceeding 3% each.

    The declines reflected concerns about the broader semiconductor supply chain, which serves consumer electronics manufacturers, industrial businesses and operators of computing infrastructure.

    Although these companies operate in different segments of the industry, investors viewed the warning from Apple as another indication that rising component costs could affect profitability and demand.

    The sell-off also highlighted the sensitivity of European semiconductor shares to developments among major US technology companies.

    Oracle’s $20 Billion Financing Plan Raises AI Spending Concerns

    Investor caution intensified following Oracle’s announcement that it intends to raise $20 billion through a combination of bond issuance and share sales.

    The financing is intended to support the company’s substantial investment in cloud computing infrastructure and data centre capacity.

    Oracle’s plans brought renewed attention to the scale of capital expenditure required to expand artificial intelligence services.

    Major technology companies have committed significant resources to building data centres, acquiring computing equipment and developing the infrastructure necessary to support increasingly complex AI applications.

    While these investments are expected to create opportunities for future revenue growth, investors remain concerned about financing requirements and the time needed to generate sufficient returns.

    Oracle’s proposed fundraising added to questions about the sustainability of AI-related spending and the potential implications for cash flow, borrowing and shareholder returns.

    These concerns contributed to the wider decline in technology stocks across international markets.

    European Earnings Season Enters Busy Period

    Alongside developments in the technology sector, investors were preparing for one of the busiest weeks of the European third-quarter reporting season.

    Approximately 20% of companies included in the STOXX 600 index are expected to publish quarterly results during the week.

    The announcements will provide further information about corporate profitability, consumer demand and the effects of rising operating costs.

    Investors will also be assessing management guidance for the remainder of 2026 and indications of business conditions heading into 2027.

    The reporting period comes at a time when financial markets are increasingly focused on companies’ ability to maintain margins despite economic and geopolitical uncertainty.

    Lufthansa Gains Despite Higher Fuel Costs

    Lufthansa (TG:LHA) shares advanced 1.6%, outperforming the broader European market.

    The German airline group narrowed its full-year 2026 operating profit forecast as it assessed the impact of higher aviation fuel costs.

    Jet fuel prices have been affected by tensions in the Middle East and concerns about potential disruptions to energy supplies.

    Higher fuel expenses represent an important cost pressure for airlines, potentially affecting operating margins if companies are unable to recover the additional expenditure through ticket prices or other measures.

    Despite these challenges, Lufthansa shares moved higher during the session.

    The performance contrasted with the widespread declines recorded across European technology and industrial stocks.

    Philips Shares Rise 6.4% Following Profit Growth

    Koninklijke Philips (EU:PHIA) was another notable outperformer, with its shares gaining 6.4%.

    The Dutch medical technology company reported an increase in quarterly profit, providing support for its share price despite the negative wider market environment.

    The results attracted investor interest as European equities faced pressure from developments in the technology sector and uncertainty surrounding US economic policy.

    Philips’ advance demonstrated that company-specific earnings announcements continued to influence individual stock performance, even during a broadly negative trading session.

    US Midterm Elections Add to Market Uncertainty

    Investors were also adopting a cautious approach ahead of the US midterm elections taking place on Tuesday.

    The vote will determine the composition of Congress during the remainder of President Donald Trump’s second presidential term.

    A change in congressional control could complicate the administration’s ability to advance legislation, particularly if Democrats gain control of one or both chambers.

    Divided government could affect the pace of regulatory changes, federal spending initiatives and negotiations over the US debt ceiling.

    The potential implications for economic policy have added to uncertainty across international financial markets.

    European investors are monitoring the elections because changes in US fiscal and regulatory policy could influence global growth expectations, corporate investment and financial market sentiment.

    US Employment Report and Federal Reserve Outlook in Focus

    Attention will also turn to Friday’s US employment report for October.

    The nonfarm payrolls figures are expected to provide further insight into the strength of the American labour market.

    Investors will examine the data for indications of how the Federal Reserve might approach its December interest rate decision.

    Signs of weaker employment growth could influence expectations for monetary easing, while a resilient labour market may support arguments for maintaining borrowing costs.

    The employment report will therefore represent another important event for global equities, government bonds and currency markets.

    With the elections and employment figures approaching, investors have generally maintained a cautious approach to risk.

    Outlook

    European equities face a combination of technology sector uncertainty, geopolitical developments and important economic and political events.

    Apple’s warning about rising memory chip costs has increased concerns about profitability across the semiconductor supply chain, while Oracle’s proposed $20 billion fundraising has intensified scrutiny of artificial intelligence infrastructure spending.

    The STOXX 600’s 0.7% decline reflects broader selling pressure, although gains in Lufthansa and Philips demonstrate that individual corporate developments continue to create opportunities for stock-specific performance.

    Investors will now focus on European earnings announcements, the outcome of the US midterm elections and Friday’s American employment report.

    These developments could influence expectations for corporate profitability, economic growth and the Federal Reserve’s interest rate policy heading into the final weeks of 2026.

  • FTSE 100 Retreats as AB Foods Earnings Disappoint and Global Technology Sell-Off Weighs on Markets

    FTSE 100 Retreats as AB Foods Earnings Disappoint and Global Technology Sell-Off Weighs on Markets

    London’s FTSE 100 declined on Tuesday, ending a four-session winning streak as disappointing corporate earnings, weakness in global technology stocks and uncertainty ahead of the US midterm elections weighed on investor sentiment.

    The benchmark index fell 0.4%, retreating from near three-month highs reached following a positive market response to Chancellor John Healey’s first Budget and resilient third-quarter company results.

    Shares in Associated British Foods (LSE:ABF) came under pressure after the Primark owner reported a decline in annual profitability, adding to losses across retail and consumer staples stocks.

    Investors were also assessing concerns about rising artificial intelligence infrastructure costs and preparing for the Bank of England’s interest rate decision on Thursday, 5 November.

    Associated British Foods Leads Retail Sector Declines

    Associated British Foods shares fell approximately 3% after the diversified retail and food group reported weaker annual earnings.

    The company recorded adjusted operating profit of £1.508 billion for the financial year ended 12 September 2026, representing a 14% decline from the previous year.

    The deterioration reflected pressure on profitability at its Primark clothing business, where challenging consumer spending conditions affected performance.

    Lower European sugar prices also contributed to weaker results across the group’s sugar operations.

    The earnings announcement added to concerns about consumer-facing businesses and their ability to maintain profitability amid subdued spending and changing market conditions.

    Weakness in Associated British Foods contributed to broader declines across the FTSE 100’s retail and consumer staples sectors.

    Global Technology Sell-Off Adds to Market Pressure

    London equities also faced pressure from a wider international sell-off in technology shares, as investors reassessed earnings prospects and the cost of expanding artificial intelligence infrastructure.

    Concerns intensified following a warning from Apple that rising memory chip costs could affect gross margins during the important holiday shopping quarter.

    The warning highlighted potential cost pressures facing consumer electronics manufacturers and other businesses dependent on semiconductor components.

    Investors also reacted to Oracle’s (NYSE:ORCL) announcement that it plans to raise $20 billion through debt and equity financing to support its cloud computing and artificial intelligence infrastructure investments.

    The proposed fundraising drew attention to the substantial capital requirements associated with expanding AI data centres and related computing capacity.

    The combination of higher component costs and increased infrastructure spending prompted renewed scrutiny of technology company profitability and cash flow.

    The resulting shift in sentiment affected growth-oriented equities across international markets, contributing to the weaker trading environment in London.

    Investors Reassess AI Infrastructure Spending

    The latest developments at Apple and Oracle added to an ongoing debate over the financial implications of rapid investment in artificial intelligence.

    Technology companies have committed substantial resources to developing data centres, expanding cloud capacity and securing the computing equipment required to support AI applications.

    While these investments are intended to support future growth, investors are increasingly focused on the timing of potential returns and the effect of higher expenditure on near-term profitability.

    Oracle’s proposed $20 billion financing highlighted the scale of funding required for large infrastructure programmes.

    At the same time, Apple’s warning about memory chip costs suggested that demand for computing components could create additional pressures elsewhere in the technology supply chain.

    The broader sell-off encouraged a more defensive approach among investors, with increased interest in European government bonds as market participants reduced exposure to riskier assets.

    US Midterm Elections Create Additional Uncertainty

    Political developments in the United States were another focus for global financial markets as voters headed to the polls on Tuesday.

    The midterm elections will determine control of all 435 seats in the House of Representatives and 35 Senate seats, potentially reshaping the balance of power in Washington.

    Polling ahead of the vote indicated that Democrats could regain control of the House, creating the possibility of divided government during the remainder of President Donald Trump’s second term.

    Such an outcome could complicate the passage of legislation and influence negotiations over federal spending, borrowing and regulatory policy.

    Investors are particularly attentive to the potential implications for fiscal policy, future debt-ceiling discussions and regulation affecting major technology companies.

    The election results could also influence the policy environment surrounding artificial intelligence infrastructure and other areas of corporate investment.

    However, the eventual impact on financial markets will depend on the composition of Congress and the policies pursued following the election.

    Bank of England Rate Decision in Focus

    UK investors are also looking ahead to the Bank of England’s monetary policy announcement on Thursday, 5 November.

    The Monetary Policy Committee is scheduled to decide whether to adjust borrowing costs against a backdrop of domestic economic uncertainty and developments in global financial markets.

    The decision will be closely watched for indications of the central bank’s assessment of inflation, economic growth and the appropriate direction of interest rates.

    Any accompanying guidance could influence expectations for future monetary policy and affect sterling, government bond yields and interest-rate-sensitive equities.

    The meeting follows the UK Budget, which had previously helped support investor confidence and contributed to the FTSE 100’s recent gains.

    With the index having advanced for four consecutive sessions before Tuesday’s decline, investors are now reassessing valuations and positioning ahead of the monetary policy announcement.

    Outlook

    The FTSE 100’s 0.4% decline ended its longest winning streak since August, as weaker earnings from Associated British Foods combined with a global retreat from technology stocks.

    Concerns about rising semiconductor costs and the financing requirements of AI infrastructure projects have added to uncertainty surrounding corporate profitability and investment returns.

    Attention will now turn to the outcome of the US midterm elections and the Bank of England’s interest rate decision on Thursday.

    These developments could influence market sentiment, currency movements and expectations for economic policy over the coming weeks.

    For London equities, the near-term direction is likely to depend on corporate earnings, developments in international technology markets and the outlook for UK borrowing costs.

  • IWG Raises 2026 EBITDA Outlook as Third-Quarter Revenue Climbs 9% to $1.03 Billion

    IWG Raises 2026 EBITDA Outlook as Third-Quarter Revenue Climbs 9% to $1.03 Billion

    International Workplace Group (LSE:IWG) reported a 9% increase in third-quarter revenue to $1.03 billion, supported by growth across its flexible workspace operations and continued expansion of its managed and franchised business.

    The company, which operates a global network of flexible workspaces, also narrowed its full-year 2026 adjusted EBITDA guidance to between $585 million and $625 million, with the midpoint exceeding current analyst expectations.

    System-wide revenue increased 12% year on year to $1.26 billion, taking the annualised revenue run-rate above $5 billion as IWG’s global network surpassed 5,000 locations.

    Management said the performance reflected continued demand for flexible workspace solutions, alongside growth in its managed and franchised operations.

    Third-Quarter Revenue Growth Accelerates

    IWG generated group revenue of $1.03 billion during the third quarter, representing a 9% increase compared with the corresponding period in 2025.

    System-wide revenue, which includes activity across the wider managed and franchised network, reached $1.26 billion, up 12% year on year.

    The performance lifted the company’s annualised system-wide revenue run-rate beyond $5 billion.

    Company-owned operations recorded revenue growth of 8%, while revenue per available room increased 2%.

    The company said the improvement reflected continued growth across its operating businesses, with company-owned locations contributing to the stronger quarterly performance.

    The results also demonstrated the increasing scale of IWG’s global workspace network, which now comprises more than 5,000 centres.

    Managed and Franchised Revenue Rises 28%

    IWG’s managed and franchised division continued to expand during the quarter, with fee revenue increasing 28% year on year to $45 million.

    The business forms an important part of the company’s strategy to expand its global network through agreements with property owners and franchise partners.

    IWG signed agreements for 332 new locations during the third quarter, compared with 335 in the same period last year.

    The company also opened 211 centres, slightly below the 215 openings recorded in the third quarter of 2025.

    Despite the modest year-on-year decline in new signings and openings, the wider network continued to grow.

    Chief Executive Officer Christian Schmitz highlighted the performance of the managed and franchised business as a contributor to the group’s overall revenue growth.

    “This has been another strong quarter, with revenue growth across the business and continued momentum in our Managed & Franchised operations,” Schmitz said.

    Full-Year Adjusted EBITDA Guidance Narrowed

    Following the third-quarter performance, IWG revised its adjusted EBITDA guidance range for 2026 to between $585 million and $625 million.

    The midpoint of the updated range is $605 million, approximately 1% above the current analyst consensus estimate of $599 million.

    Management indicated that it expects full-year adjusted EBITDA to exceed the prevailing consensus forecast.

    The revised guidance reflects the company’s assessment of trading performance and its expectations for the remainder of the financial year.

    IWG also maintained its existing operating targets for 2026, including company-owned revenue growth of at least 4%.

    The company continues to expect recurring managed fee revenue of approximately $80 million for the full year.

    Its target for net debt to adjusted EBITDA leverage remains approximately 1.4 to 1.5 times.

    Net Debt Declines to $874 Million

    IWG reported a modest reduction in net debt during the third quarter, with the balance declining to $874 million from $880 million at the end of the first half of 2026.

    The improvement came as the company continued investing in its workspace network and returning capital to shareholders.

    Management maintained its existing leverage expectations, indicating that it continues to focus on balancing business expansion with financial discipline.

    The company also reiterated its full-year financial targets, including its expectations for debt and cash performance.

    Share Buybacks Reach $139 Million

    IWG returned $39 million to shareholders through share repurchases during the third quarter.

    This brought the total amount spent on buybacks during the first nine months of 2026 to $139 million.

    The company confirmed that it remains committed to its previously announced objective of repurchasing up to $200 million of shares during the full financial year.

    The programme forms part of IWG’s capital allocation strategy alongside investment in its operating network and managed and franchised expansion.

    The remaining capacity under the annual target is approximately $61 million, although the final amount repurchased will depend on the company’s capital allocation decisions.

    Analysts Respond Positively to Trading Update

    Analysts at Jefferies described IWG’s third-quarter trading statement as reassuring, highlighting the stronger revenue performance and updated earnings guidance.

    The investment bank noted that the revised full-year adjusted EBITDA outlook now points to a result above market consensus.

    Jefferies also highlighted accelerating group revenue growth, improved performance in company-owned operations and the company’s commentary on cash flow and debt.

    The analysts viewed these developments as supportive of confidence in IWG’s financial outlook.

    Medium-Term EBITDA Target Remains at $1 Billion

    Beyond the current financial year, IWG reiterated its medium-term ambition to generate at least $1 billion in adjusted EBITDA.

    The company expects continued expansion of its global network and growth in managed and franchised operations to support progress towards this objective.

    Its strategy combines the development of additional workspace locations with efforts to increase revenue and profitability across existing centres.

    The managed and franchised model remains a key element of the group’s expansion plans, allowing IWG to increase its global presence through partnerships with property owners and other operators.

    Management has not provided a specific timetable for achieving the $1 billion adjusted EBITDA target.

    Outlook

    IWG enters the final quarter of 2026 following stronger revenue growth and continued expansion of its global flexible workspace network.

    The company now expects adjusted EBITDA of between $585 million and $625 million for the full year, with the midpoint of $605 million above the current market consensus of $599 million.

    Its existing targets for company-owned revenue growth, recurring managed fee revenue and leverage remain unchanged.

    The group also continues to target up to $200 million in share repurchases during 2026, having completed $139 million in the first nine months.

    Looking further ahead, IWG remains focused on expanding its managed and franchised operations and progressing towards its medium-term adjusted EBITDA target of at least $1 billion.

  • Likewise Group Raises FY2026 Profit Outlook to at Least £6 Million as October Revenue Surges 36.7%

    Likewise Group Raises FY2026 Profit Outlook to at Least £6 Million as October Revenue Surges 36.7%

    Likewise Group plc (LSE:LIKE) expects to deliver full-year 2026 results materially ahead of market expectations after reporting a 36.7% increase in October revenue, extending the strong sales momentum recorded during the preceding months.

    The UK flooring distributor said revenue growth for the year to date reached 22.8% compared with the corresponding period in 2025, supported by contributions from across its operating businesses.

    The combination of higher sales, operational efficiencies and improving profitability has prompted the board to forecast profit before tax of at least £6 million for the financial year ending 31 December 2026.

    The company is also progressing with the integration of assets acquired from the administrators of Headlam Group plc, which it expects to support further expansion during 2027.

    October Revenue Growth Accelerates to 36.7%

    Likewise reported that the positive trading trends highlighted during late summer and early autumn continued into October, with revenue growth accelerating to 36.7% for the month.

    The performance lifted year-to-date revenue growth to 22.8%, reflecting increased activity across the group’s distribution operations.

    The company said all its principal businesses contributed to the improvement, including Likewise Floors, Delta, A&A, H&V, Lewis Abbott, Likewise Rugs & Matting and Valley Wholesale Carpets.

    Management attributed the stronger financial performance to rising sales volumes and operational gearing, with the existing distribution infrastructure supporting higher revenue and improved profitability.

    As a result, the board now expects FY2026 profit before tax to reach a minimum of £6 million, materially exceeding prevailing market forecasts.

    The company did not provide a revised full-year revenue estimate in the trading statement.

    Headlam Asset Integration Advances

    Likewise continues to integrate the businesses, brands and distribution assets acquired from the administrators of Headlam Group.

    The transaction has expanded the group’s logistics infrastructure, product portfolio and customer reach across the UK flooring market.

    Management said integration activities are progressing across the acquired operations, with efforts focused on restoring stock availability, maintaining customer service and incorporating additional distribution capacity.

    The company expects the acquired assets to strengthen its competitive position and contribute to future revenue growth.

    Likewise is also managing a stock agency agreement covering inventory from the administration process, with the objective of selling existing stock while minimising disruption to suppliers and customers.

    Several exclusive product ranges associated with the acquired brands are being replenished within Likewise Floors and Valley Wholesale Carpets.

    These measures are intended to maintain continuity of supply across residential and commercial flooring markets.

    Thatcham Distribution Hub Expands Logistics Capacity

    A central element of the acquisition is the 90,000-square-foot High Bay Distribution Hub in Thatcham, which Likewise purchased on a freehold basis.

    The acquisition was funded from existing cash resources following the group’s equity placing in July 2026.

    Following the purchase, Likewise owns the freehold of eight properties with a combined valuation of approximately £56 million, against £11 million of fixed debt.

    Stock deliveries to the Thatcham facility commenced on 22 October, allowing the company to begin building inventory ahead of its integration into the wider logistics network.

    The distribution centre is expected to become an important part of Likewise Floors’ operations during November, particularly in serving customers across southern England.

    Management also expects the facility to improve distribution services supporting Newport, Birmingham, Sudbury, Plymouth and Sidcup.

    The additional capacity forms part of the group’s strategy to strengthen its national distribution network and support higher sales volumes.

    Concept Flooring Supplies and Crucial Trading Prepare for Growth

    Likewise reported progress in restoring operations at Concept Flooring Supplies following the acquisition of its assets.

    The business, which operates from West Bromwich and Stoke-on-Trent, has replenished inventory and is approaching a return to normal service levels for its suppliers and customers.

    The company is also rebuilding stock availability at premium carpet brand Crucial Trading.

    Orders have been placed with key suppliers to supplement existing inventory, while the bespoke rug manufacturing operation in Kidderminster has resumed processing incoming orders.

    Likewise expects both Concept Flooring Supplies and Crucial Trading to make positive earnings contributions during FY2027.

    Management believes the businesses will broaden the group’s product offering, improve market coverage and create additional opportunities to increase sales and profitability.

    Delivery Fleet to Expand to 192 Vehicles

    To support the enlarged distribution network, Likewise plans to increase its delivery fleet by 16 trucks during 2026.

    The expansion will take the total number of delivery vehicles to 192 by the end of the year.

    Further increases are being considered during the first and second quarters of 2027 as the company integrates additional operations and expands distribution capacity.

    The investment is intended to support higher delivery volumes and maintain service standards across the group’s growing customer base.

    Combined with the Thatcham distribution hub and other acquired facilities, the additional transport capacity is expected to strengthen Likewise’s ability to serve customers throughout the UK.

    Group Targets £300 Million in Annual Revenue

    Likewise reiterated its longer-term objective of achieving annual sales revenue of £300 million.

    The board believes the combination of organic growth, expanded logistics infrastructure and acquired businesses could accelerate progress towards that target over the coming years.

    However, management acknowledged that trading conditions in FY2027 remain difficult to forecast.

    The company expects the integration of the Headlam assets to provide additional growth opportunities, while continued development of its existing businesses should support further market share gains.

    Chief Executive Officer Tony Brewer said the group’s progress during 2026 reflected the impact of product development, display initiatives and investment in its commercial operations.

    “The Group has made significant progress during the year,” Brewer said.

    He also welcomed employees joining Likewise through the Headlam transaction and recognised the contribution of the group’s workforce, which now totals 738 people.

    Management expects 2027 to be an important period as the business works to realise the commercial opportunities created by its expanded operations.

    Outlook

    Likewise Group enters the final two months of 2026 with strong sales momentum and an upgraded profit outlook.

    October revenue growth of 36.7% and year-to-date growth of 22.8% have strengthened the board’s confidence that full-year profit before tax will reach at least £6 million, materially ahead of current market expectations.

    The integration of acquired Headlam assets, including the Thatcham distribution centre, Concept Flooring Supplies and Crucial Trading, is expected to provide additional capacity and earnings opportunities during 2027.

    While the board remains cautious about predicting next year’s trading performance, it believes the enlarged distribution network and continued growth of existing businesses will support progress towards its longer-term annual revenue target of £300 million.

  • Jadestone Energy Production Rises to 19,000 Boepd Following CWLH Restart, Maintains 2026 Guidance

    Jadestone Energy Production Rises to 19,000 Boepd Following CWLH Restart, Maintains 2026 Guidance

    Jadestone Energy plc (LSE:JSE) reported an increase in group production to approximately 19,000 barrels of oil equivalent per day (boepd) following the successful restart of operations at its CWLH fields offshore Australia.

    The Asia-Pacific-focused oil and gas producer confirmed that output had recovered following repairs to subsea infrastructure at CWLH, although its Stag field remains offline.

    Despite the improvement in current production, Jadestone maintained its full-year 2026 production guidance of 16,000 to 18,000 boepd.

    The company also reported progress across its operations in Australia, Indonesia and Malaysia, alongside ongoing negotiations for the development of its Nam Du/U Minh gas project in Vietnam.

    CWLH Production Restored to Approximately 8,000 Barrels Per Day

    Production at the CWLH fields resumed following repairs to a subsea riser J-tube connected to the Okha floating production, storage and offloading vessel (FPSO).

    The infrastructure issue had prevented the safe restart of operations after the vessel underwent scheduled dry-dock maintenance earlier in 2026.

    Following completion of the repairs, the Okha FPSO was successfully reconnected to the fields’ subsea infrastructure.

    Production operations and well testing resumed in late September, with all but one of the production wells subsequently brought back online.

    In recent days, CWLH has produced approximately 8,000 barrels of oil per day (bopd) on a gross basis, equivalent to around 2,700 bopd net to Jadestone.

    The remaining well has been assessed and found to require further remedial work.

    The field operator is evaluating options to restore production safely, with Jadestone expecting to provide further information as the assessment progresses.

    Vietnam Gas Project Moves Closer to Investment Decision

    Jadestone continues to advance its Nam Du/U Minh gas development in Vietnam, with negotiations over a potential farm-out approaching their final stages.

    The company is holding discussions with a selected group of prospective counterparties while progressing the principal contracts required for development.

    Jadestone said the project continues to receive support from Vietnamese government stakeholders.

    In late October 2026, the parties to the project’s Gas Sales and Purchase Agreement agreed to extend the period for satisfying outstanding conditions precedent.

    The extension is intended to provide additional time to finalise key contract awards.

    Jadestone continues to target a final investment decision before the end of 2026.

    However, the project remains dependent on completing the outstanding commercial arrangements and securing the necessary approvals.

    Montara Achieves 97% Uptime Following Compressor Upgrade

    The Montara field has become Jadestone’s most reliable producing asset following the successful upgrade of its gas re-injection compressor earlier in 2026.

    Since returning to stable operations, Montara has averaged approximately 97% uptime.

    The company also completed a crude oil lifting of approximately 300,000 barrels in early October.

    The cargo achieved a realised price of around US$133 per barrel, representing a premium of approximately US$8 per barrel to the average Dated Brent price for October 2026.

    Jadestone continues working to address outstanding requirements under General Direction #2043 and Prohibition Notice #1875 issued by Australia’s offshore energy regulator, NOPSEMA.

    The company reported progress towards completing the remaining requirements by early 2027.

    Akatara Production Remains in Line with Expectations

    Jadestone’s Akatara gas development in Indonesia continues to perform in line with management’s expectations.

    The company maintained its forecast that full-year 2026 production will be broadly consistent with 2025 levels.

    Akatara resumed production following a short maintenance-related shutdown in April 2026.

    Since returning to operations, the facility has achieved average uptime of approximately 96%.

    The performance reflects continued operational stability at the asset following the earlier maintenance interruption.

    Stag Field Restart Targeted for Second Quarter of 2027

    The Stag oil field remains offline while Jadestone prepares to replace its catenary anchor leg mooring (CALM) buoy.

    The company continues to expect deployment of the replacement buoy during the first quarter of 2027.

    Production is subsequently targeted to resume in the second quarter of 2027.

    Jadestone confirmed that its business interruption insurance coverage for Stag extends until May 2027.

    Separate insurance coverage of approximately US$30 million is expected to cover the costs of retrieving the existing buoy and purchasing and installing its replacement.

    The planned timetable remains dependent on completing the replacement and associated operational preparations.

    Malaysian Production Exceeds Expectations

    Jadestone reported that year-to-date production from its Peninsular Malaysia operations remains ahead of expectations.

    The stronger performance reflects positive results from the Phase 9 drilling programme at the PM323 field earlier in 2026.

    Operational reliability has also remained high, with unplanned downtime of approximately 4% during the year to date.

    The company continues discussions with Malaysia’s upstream regulator regarding an extension of the PM323 production sharing contract.

    Jadestone is seeking improved commercial terms and remains confident that an agreement can be secured in the near term.

    Recent crude oil liftings from its Malaysian operations have achieved premiums of approximately US$4 to US$7 per barrel.

    Oil Hedging Covers 47% of Forecast Liftings

    Jadestone confirmed that approximately 800,000 barrels of oil are currently covered by hedging arrangements for the six months ending March 2027.

    The contracts have a weighted average price of US$81.45 per barrel, excluding premiums associated with individual producing assets.

    The hedged volumes represent approximately 47% of forecast oil and condensate liftings during the period.

    The arrangements include recently established zero-cost collars covering 100,000 barrels, with floor prices ranging from US$80 to US$90 per barrel and ceiling prices between US$100 and US$112 per barrel.

    These contracts provide a degree of protection against lower oil prices while limiting the benefit from higher prices on the volumes covered.

    The hedging programme forms part of Jadestone’s approach to managing commodity price exposure and supporting cash flow visibility.

    Outlook

    Jadestone Energy enters the final months of 2026 with group production running at approximately 19,000 boepd following the restart of CWLH.

    The company has maintained its annual production guidance of 16,000 to 18,000 boepd, supported by stable operations at Montara and Akatara and stronger-than-expected performance in Peninsular Malaysia.

    Near-term priorities include restoring the remaining CWLH production well, completing outstanding regulatory requirements at Montara and progressing the PM323 contract extension.

    In Vietnam, Jadestone continues targeting a final investment decision on Nam Du/U Minh before the end of 2026, while the Stag field is expected to return to production during the second quarter of 2027.

    The combination of recovered production, operational reliability and existing hedging arrangements provides greater visibility over near-term activity, although future performance remains subject to operational conditions, project execution and commodity prices.

  • Shield Therapeutics Reports 5% Rise in US ACCRUFeR Revenue to $10.8 Million but Revises FY2026 Profit Outlook

    Shield Therapeutics Reports 5% Rise in US ACCRUFeR Revenue to $10.8 Million but Revises FY2026 Profit Outlook

    Shield Therapeutics plc (LSE:STX) reported a 5% increase in US ACCRUFeR net revenue to $10.8 million for the third quarter ended 30 September 2026, supported by higher revenue per prescription and continued growth among commercially insured patients.

    The pharmaceutical company, which specialises in treatments for iron deficiency, generated unaudited group net revenue of $11.5 million during the quarter, representing a 2% increase from the previous quarter after excluding a one-off milestone payment.

    However, Shield revised its full-year guidance and no longer expects to achieve operating profitability in 2026, citing additional costs associated with assuming full commercial responsibility for ACCRUFeR in the United States.

    The company now anticipates a single-digit US dollar million operating loss for the financial year ending 31 December 2026.

    US ACCRUFeR Revenue Increases as Prescription Value Improves

    Net revenue from ACCRUFeR in the United States increased to $10.8 million from $10.3 million in the second quarter.

    The improvement was supported by a 4% increase in average net revenue per prescription, which reached $217 compared with $208 in the preceding three months.

    Group net revenue totalled $11.5 million, while revenue generated outside the United States declined to $0.7 million from $1.0 million.

    Shield said the underlying commercial business continued to expand, with a greater proportion of prescriptions coming from commercially insured patients.

    The company ended September with cash of $6.8 million, reflecting continued investment in commercial activities alongside efforts to manage operating expenditure.

    Commercial Prescriptions Rise 17% Despite Medicaid Decline

    Approximately 49,000 ACCRUFeR prescriptions were dispensed during the third quarter, broadly unchanged from the previous three-month period.

    However, the composition of prescriptions continued to shift towards commercially insured patients, which Shield considers an important component of its revenue strategy.

    Within the profitable retail business, excluding consignment activity, commercial prescriptions accounted for approximately 80% of the total, while Medicaid represented around 20%.

    Between the first and third quarters of 2026, commercial prescriptions increased by 17%, offsetting a 56% decline in Medicaid prescriptions.

    The reduction in Medicaid activity followed the introduction of prior authorisation requirements under New York’s Medicaid programme in April 2026.

    Shield responded by redirecting sales efforts towards commercially insured patients, adopting an approach previously implemented in Texas.

    The company said the change had supported commercial prescription growth and improvements in average revenue per prescription.

    For the nine months ended 30 September 2026, commercial prescriptions increased 19% compared with the corresponding period last year.

    Medicaid prescriptions declined 22% over the same period, while total prescriptions increased 3%.

    Shield indicated that the third quarter represented the final quarter affected by the initial impact of the New York Medicaid authorisation changes.

    Shield Assumes Full US Commercial Control of ACCRUFeR

    A significant development occurred immediately after the reporting period, when Shield assumed full commercial responsibility for ACCRUFeR in the United States on 1 October 2026.

    The transition gives the company direct control over its US commercial strategy, sales execution and associated economics.

    As part of the arrangement, Shield took responsibility for the entire US sales organisation, which now covers 80 territories.

    The company expects the transaction to improve gross margins and increase the proportion of product revenue retained through a lower royalty rate.

    Management believes these changes will strengthen the financial contribution from US sales as the business expands.

    However, the enlarged commercial operation also introduces additional operating expenditure, particularly in the near term.

    Shield said the combination of improved revenue retention, a stronger prescription mix and disciplined cost management would support its longer-term objective of achieving sustainable profitability.

    Full-Year Profit Guidance Revised Following US Transition

    Following a review of third-quarter performance and the outlook for the remainder of 2026, Shield withdrew its previous expectation of achieving group operating profitability for the full financial year.

    The company now expects to report an operating loss in the single-digit millions of US dollars.

    The revised outlook primarily reflects the additional commercial costs associated with taking full control of ACCRUFeR in the United States from October, including responsibility for the expanded sales force.

    Although the transaction is expected to improve the economics of US sales, the additional expenditure will affect the group’s near-term financial performance.

    Shield said achieving sustainable operating profitability as soon as possible remains the board’s principal financial priority.

    The company intends to provide guidance for 2027 alongside its fourth-quarter and full-year 2026 trading update.

    Clinical Publication and Management Appointment

    Alongside its commercial developments, Shield reported the publication of the full paediatric safety and efficacy manuscript for ACCRUFeR in the medical journal Pediatric Drugs on 15 July 2026.

    The publication forms part of the company’s ongoing clinical and product development activities.

    Shield also confirmed that Michael Jensen joined the business as Chief Financial Officer on 1 September 2026.

    His appointment comes as the company transitions to a fully controlled US commercial operation and focuses on improving profitability.

    Management Highlights Improving Revenue Quality

    Chief Executive Officer Anders Lundstrom said the third quarter demonstrated continued progress in expanding the commercial business while completing the transition to full US control of ACCRUFeR.

    He highlighted the increasing contribution from commercially insured patients, higher average revenue per prescription and improved revenue retention expected under the new commercial arrangements.

    “Our commercial business continues to grow while successfully completing the transition to full US control of ACCRUFeR,” Lundstrom said.

    Management believes the expanded sales organisation and greater control over commercial operations will provide opportunities to increase revenue and improve margins over time.

    However, the company acknowledged that the additional costs associated with the transition will delay its previously anticipated return to operating profitability.

    Outlook

    Shield Therapeutics enters the final quarter of 2026 with full commercial responsibility for ACCRUFeR in its largest market and an expanded US sales organisation.

    The company expects improved gross margins and greater revenue retention following the transition, while continued growth in commercially insured prescriptions remains central to its strategy.

    Nevertheless, the additional costs of operating the enlarged commercial platform have prompted a revision to full-year guidance, with a single-digit US dollar million operating loss now anticipated.

    Management remains focused on achieving sustainable profitability and will provide further financial guidance for 2027 when it publishes its fourth-quarter and full-year trading update.

  • Drax Signs Strategic Partnership with Brookfield and Radiant for £20 Billion AI Data Centre Development

    Drax Signs Strategic Partnership with Brookfield and Radiant for £20 Billion AI Data Centre Development

    Drax Group plc (LSE:DRX) has signed an agreement to develop a strategic partnership with Brookfield and its UK-based AI infrastructure platform Radiant to establish a large-scale artificial intelligence data centre at Drax Power Station in northern England.

    The proposed development could eventually exceed 1 gigawatt (GW) of computing capacity, with Brookfield estimating potential investment of more than £20 billion, including semiconductor chips, if the project is developed in full.

    An initial investment of approximately £2.5 billion is envisaged for the first phase, which targets up to 100 megawatts (MW) of capacity and commercial operations beginning in the first quarter of 2028.

    The agreement brings together Drax’s existing electricity generation and grid infrastructure with Radiant’s data centre development capabilities and investment resources from a Brookfield-Qai joint venture established in 2025.

    Three-Phase Development Targets More Than 1GW of Capacity

    The partners intend to develop the data centre in three stages, beginning with a facility capable of delivering up to 100MW of computing capacity.

    The first phase is planned for the period between 2026 and 2028, with electricity supplied directly from the national grid through existing infrastructure at Drax Power Station.

    A second phase, targeted between 2028 and 2031, could add approximately 500MW of capacity using electricity generated at the power station.

    Further expansion is envisaged after 2031, potentially increasing the overall development beyond 1GW.

    The later phases would use a behind-the-meter electricity supply arrangement, allowing the data centre to receive power directly from Drax’s generation facilities.

    However, the expansion plans remain ambitions rather than committed developments and will depend on regulatory approvals, commercial agreements and investment decisions.

    Initial £2.5 Billion Phase Targets Operations in Early 2028

    Phase 1 is expected to be developed on land within the existing Drax Power Station estate, using established infrastructure to import electricity from the grid.

    Radiant will lead the design, customer engagement and commercial development of the facility, including securing commitments from prospective anchor customers.

    Drax will be responsible for land arrangements, electricity integration and planning activities.

    The partners are preparing a planning application, with public consultation expected to begin in November 2026.

    Construction will depend on obtaining the necessary planning, regulatory and network approvals, securing an acceptable tenant, completing commercial agreements and receiving final investment approval from the participating companies.

    The partners also intend to establish a voluntary community benefits fund in consultation with communities surrounding the power station.

    This would be separate from existing Drax community initiatives and any obligations imposed through the planning process.

    Existing Power Infrastructure Supports Expansion Plans

    The proposed data centre would use infrastructure already available at Drax Power Station, including approximately 4GW of grid access and 2.6GW of active dispatchable electricity generation capacity.

    The power station occupies more than 1,000 acres and is located near one of the UK’s largest electricity substations.

    Its proximity to national fibre networks and existing cooling infrastructure also forms part of the rationale for locating the development at the site.

    Drax said these characteristics could support the development of a major AI computing facility while maintaining the power station’s existing role in the UK electricity system.

    The company expects the proposed development to support the long-term use of the site and help preserve employment associated with its operations.

    Second Phase Could Use 500MW of Drax Generation Capacity

    The second phase envisages the development of approximately 500MW of additional data centre capacity between 2028 and 2031.

    Unlike the initial phase, this expansion would be supplied through a behind-the-meter arrangement using electricity generated directly at Drax Power Station.

    The proposed structure would involve a long-term power purchase agreement, subject to the necessary approvals.

    In November 2025, Drax entered into a Contract for Difference agreement with the UK Government covering approximately 6 terawatt-hours of annual biomass electricity generation between April 2027 and March 2031.

    This represents approximately 30% of the annual baseload output available from the station’s 2.6GW of active generation capacity.

    The agreement includes a mechanism allowing Drax to request permission to allocate up to 500MW of generation capacity to a data centre during that period.

    Any such arrangement would require agreement from the UK Government and the Low Carbon Contracts Company.

    The approval process would consider factors including consumer value for money, energy security and sustainability.

    Drax confirmed that the power station’s existing responsibilities for electricity security of supply, dispatchable generation and system services would remain unchanged.

    Further Data Centre Expansion Considered Beyond 2031

    The third phase would involve evaluating additional computing capacity after 2031, using a similar direct electricity supply arrangement to the second phase.

    The partners believe the combined developments could establish one of the UK’s largest AI data centre facilities if all stages proceed.

    Brookfield’s estimate of potential investment exceeding £20 billion includes the cost of semiconductor chips and other computing equipment, rather than solely the construction of physical infrastructure.

    The scale and timing of expenditure will depend on the final design, customer requirements, commercial arrangements and progression of the individual development phases.

    No final investment decision has yet been announced for the project.

    Partnership Brings Together Energy and AI Infrastructure Expertise

    The agreement combines Drax’s electricity generation assets and site infrastructure with Radiant’s experience in developing and operating AI computing facilities.

    Brookfield and Qatar-based technology company Qai will provide investment and operating capabilities through their existing AI infrastructure joint venture.

    Radiant, which is headquartered in the UK, specialises in developing computing infrastructure for hyperscalers, enterprises, telecommunications companies and sovereign institutions.

    Drax Group Chief Executive Officer Will Gardiner said the partnership could support the long-term future of the power station while attracting investment to northern England.

    “If constructed in full, this project could become one of the largest data centres in the UK, with the potential to attract billions in inward investment,” Gardiner said.

    He added that the existing power station infrastructure offered an opportunity to provide reliable electricity supplies to data centre operators without requiring an entirely new generation site.

    Brookfield’s Head of AI Infrastructure, Sikander Rashid, said the project would form part of the group’s wider AI infrastructure investment strategy.

    Radiant Chief Executive Officer Mahdi Yahya also highlighted the potential to provide UK-based computing capacity for researchers, businesses and other users of artificial intelligence.

    Outlook

    Drax’s proposed partnership with Brookfield and Radiant represents a potential diversification of the power station estate into large-scale AI computing infrastructure.

    The immediate priorities are progressing the Phase 1 planning application, consulting local communities, securing an anchor customer and obtaining the necessary regulatory and network approvals.

    The partners are targeting commercial operations for the initial 100MW facility from the first quarter of 2028, although construction and investment remain conditional on several outstanding requirements.

    Subsequent phases could expand capacity by more than 500MW and ultimately take the development beyond 1GW, subject to further commercial, regulatory and investment decisions.

    The project could provide an additional long-term use for Drax’s existing electricity infrastructure, while the company’s current generation and energy security commitments are expected to continue.

  • Dotdigital Reports 18% Growth in Annual Recurring Revenue to £85.4 Million as Acquisitions Support Expansion

    Dotdigital Reports 18% Growth in Annual Recurring Revenue to £85.4 Million as Acquisitions Support Expansion

    Dotdigital Group plc (LSE:DOTD) reported an 18% increase in forward-looking contracted annual recurring revenue (ARR) to £85.4 million for the financial year ended 30 June 2026, supported by growth across its marketing technology platform and contributions from recent acquisitions.

    Organic ARR growth reached 8%, accelerating from 6% at the half-year stage, while group revenue increased 8% to £90.9 million from £83.9 million in FY2025.

    Adjusted EBITDA rose 10% to £29.4 million, maintaining a margin of 32%, while adjusted profit before tax increased 2% to £19.4 million.

    The AI-powered marketing platform provider said trading during the first four months of FY2027 had been in line with expectations and reaffirmed its confidence in achieving full-year market forecasts.

    Recurring Revenue Growth Strengthens Financial Performance

    Dotdigital’s recognised recurring revenue increased 14% to £76.8 million, representing 84% of total group revenue, compared with 80% in the previous financial year.

    On an organic basis, recognised recurring revenue grew 3%.

    Group revenue increased 9% at constant currency, although revenue excluding acquisitions was unchanged year on year.

    The company attributed the flat organic revenue performance to its previously announced exit from a low-margin communications platform as a service (CPaaS) contract and a reduction in one-off revenue.

    Gross margin improved to 80% from 79%, reflecting the increasing contribution from recurring platform revenue.

    Adjusted EBITDA increased from £26.8 million to £29.4 million, while adjusted diluted earnings per share rose 3% to 4.94p from 4.80p.

    The company also reported continued growth in average monthly recurring revenue per customer across its principal platforms.

    For the Dotdigital Marketing platform, the figure increased 6% to £1,943, compared with a restated £1,829 in FY2025.

    Alia and Social Snowball Deliver Strong ARR Growth

    Dotdigital’s acquisitions of Alia and Social Snowball contributed to the expansion of its recurring revenue base and product offering.

    Alia, which was acquired during FY2026, recorded a 45% increase in ARR during the group’s four months of ownership, reaching £10.0 million.

    Social Snowball generated ARR growth of 33% during its first full year under Dotdigital ownership, reaching £5.4 million.

    Average monthly recurring revenue per customer at Social Snowball increased 35% to US$327 from US$243.

    At Alia, the equivalent figure rose 5% to US$261 from US$248 at acquisition, representing annualised growth of approximately 16%.

    Both businesses have been integrated with the Dotdigital Marketing platform at product and data levels.

    Following the financial year-end, Alia expanded beyond the Shopify ecosystem, while Dotdigital’s commercial teams began introducing its capabilities to the wider group customer base.

    The company expects these integrations to create additional cross-selling opportunities as it develops a broader customer acquisition and retention offering.

    AI Product Development and Loyalty Platform Expansion

    Dotdigital continued investing in artificial intelligence and automation capabilities during FY2026.

    The company launched a Model Context Protocol (MCP) server, enabling customers to connect the Dotdigital platform with their preferred AI tools.

    AI-powered content creation and customer segmentation agents were also introduced in preview to approximately 250 customers.

    These tools are designed to simplify marketing workflows and support more effective use of customer data.

    Following the year-end, Dotdigital launched Dotdigital Loyalty, extending its platform capabilities into customer retention and loyalty management.

    The company said its expanded product portfolio now covers more stages of the customer journey, including acquisition, engagement, retention and advocacy.

    Chief Executive Officer Milan Patel said the broader offering was intended to help customers improve marketing performance while creating opportunities for Dotdigital to expand relationships with existing users.

    North American Revenue Rises 37%

    Dotdigital reported continued growth in international markets, with revenue generated outside its domestic market increasing to 37% of group recognised revenue from 33% in FY2025.

    International operations also accounted for more than 40% of forward-looking contracted ARR.

    North American revenue increased 37% to US$25.0 million, driven primarily by contributions from Alia and Social Snowball.

    The company also reported growth among customers using technology integrations with its core marketing platform.

    Excluding the impact of Alia and Social Snowball, revenue from Dotdigital Marketing platform customers using named technology connectors increased 5% to £38.7 million.

    Within this category, revenue associated with Shopify-connected customers rose 37% to £11.4 million.

    Dotdigital said these developments reflected the importance of platform integrations in supporting customer acquisition and account expansion.

    Customer Retention Improves as Commercial Operations Strengthen

    Gross customer retention within the Dotdigital Marketing platform improved to 85%, compared with 84% in the previous year.

    The company also strengthened its global sales operations under a new Chief Revenue Officer and introduced a new customer relationship management system.

    These changes are intended to improve sales execution, customer retention and cross-selling across the enlarged product portfolio.

    Management said its commercial priorities include increasing adoption of recently acquired products among existing customers and improving the consistency of its global sales processes.

    The company expects these initiatives to support faster organic growth over the medium term.

    Cash Balance Reflects Acquisition and Shareholder Returns

    Dotdigital ended FY2026 with cash of £17.1 million, compared with £36.2 million at the end of FY2025.

    The reduction followed the US$30.0 million acquisition of Alia, alongside shareholder distributions during the year.

    The group paid £3.7 million in dividends and completed £3.0 million of share repurchases.

    Despite the lower closing cash balance, Dotdigital continued investing in product development, platform integration and international expansion.

    The board proposed a final dividend of 1.33p per share, representing a 10% increase from the 1.21p declared for FY2025.

    The proposed dividend remains subject to shareholder approval.

    FY2027 Revenue Expected to Reach £104.7 Million

    Dotdigital reported that trading during the first four months of FY2027 had been consistent with the board’s expectations.

    Management expects revenue growth to accelerate as the financial year progresses, supported by the expanded product portfolio, cross-selling initiatives and improvements in commercial execution.

    The company reaffirmed its confidence in achieving current market expectations for the year ending 30 June 2027.

    Consensus forecasts at the date of the announcement indicated revenue of £104.7 million, adjusted EBITDA of £32.8 million and adjusted profit before tax of £22.3 million.

    Compared with FY2026, these forecasts imply revenue growth of approximately 15%, adjusted EBITDA growth of around 12% and an increase in adjusted pretax profit of approximately 15%.

    Patel said the company’s larger recurring revenue base was providing greater visibility over future performance, although market conditions remained mixed.

    He also highlighted the opportunity to introduce Alia, Social Snowball and other platform capabilities to existing Dotdigital customers.

    Outlook

    Dotdigital enters FY2027 with a larger contracted recurring revenue base, improved organic ARR momentum and an expanded range of marketing technology products.

    The integration of Alia and Social Snowball, together with new AI capabilities and the launch of Dotdigital Loyalty, provides additional opportunities for cross-selling and customer expansion.

    Management expects organic growth to accelerate over the medium term as these initiatives develop and the group’s commercial improvements take effect.

    Although wider market conditions remain mixed, the board continues to expect FY2027 results to meet current market forecasts.

  • TP ICAP Reports 9% Revenue Growth to £1.91 Billion as Global Broking Drives Performance

    TP ICAP Reports 9% Revenue Growth to £1.91 Billion as Global Broking Drives Performance

    TP ICAP Group plc (LSE:TCAP) reported a 9% increase in group revenue at constant currency to £1.91 billion for the nine months ended 30 September 2026, supported by strong trading across its Global Broking division and improved activity in Energy & Commodities.

    Third-quarter revenue increased 11% at constant exchange rates to £620 million, with Global Broking delivering particularly strong growth across its major asset classes.

    At actual exchange rates, group revenue rose 7% over the nine-month period and 11% in the third quarter.

    The interdealer broker and financial markets infrastructure provider maintained its full-year outlook, with the board remaining comfortable with market expectations for adjusted earnings before interest and tax (EBIT), subject to currency movements.

    Global Broking Revenue Rises 12% Year to Date

    TP ICAP’s Global Broking division delivered 12% revenue growth during the first nine months of 2026, with the increase consistent across both constant and actual exchange rates.

    Third-quarter revenue growth accelerated to 16%, reflecting continued momentum across the division.

    The company reported growth across all asset classes during the nine-month period, with equities making a particularly strong contribution.

    Rates trading also continued to perform well, supported by market conditions and the division’s established client relationships.

    Management attributed the performance to the execution of its commercial strategy, improvements in competitive positioning and supportive trading conditions.

    Global Broking remained the group’s principal growth driver during the period, contributing to the acceleration in overall third-quarter revenue.

    Energy & Commodities Growth Accelerates in Third Quarter

    The Energy & Commodities division recorded revenue growth of 3% at constant currency during the nine months to September, equivalent to 1% at actual exchange rates.

    Third-quarter performance improved, with revenue increasing 7% at constant currency and 9% at actual rates.

    The division achieved growth despite continued weakness in global oil futures trading, which accounts for more than half of its revenue.

    TP ICAP said depressed activity levels in oil futures markets had continued to affect the business, although performance in other segments helped offset the pressure.

    Power trading delivered strong growth, while investment in new trading desks and brands contributed to the division’s performance.

    The company believes Energy & Commodities remains positioned to benefit from a recovery in market activity, although the timing and extent of any improvement remain uncertain.

    Liquidnet Revenue Broadly Stable Amid Subdued Equity Trading

    Liquidnet reported a 1% increase in revenue at constant currency for the nine-month period, while revenue was unchanged at actual exchange rates.

    In the third quarter, revenue declined 1% under both measures.

    The business continued to expand its multi-asset activities, but conditions in the equities block trading market remained challenging.

    TP ICAP said the ongoing Middle East conflict had affected market risk appetite and client trading behaviour, contributing to reduced activity in block trading.

    Despite these conditions, Liquidnet maintained its market position and continued developing its trading technology and execution capabilities.

    During the quarter, the division launched Meridian, a platform combining algorithmic trading, liquidity access, analytics, execution services and artificial intelligence tools.

    Liquidnet also introduced SuperBlock TI, designed to improve access to natural block liquidity.

    The company said these developments formed part of its efforts to strengthen Liquidnet’s product offering and support future growth.

    Parameta Solutions Revenue Increases 4%

    Parameta Solutions, TP ICAP’s data and analytics division, recorded revenue growth of 4% at constant currency during the first nine months of 2026.

    At actual exchange rates, revenue increased 1%.

    Third-quarter revenue was unchanged at constant currency and declined 2% at actual rates.

    The division’s annual recurring revenue increased 5% year on year, supported by subscription growth, improved customer retention and contract renewals.

    TP ICAP reported continued demand for Parameta’s products and services, alongside a growing commercial pipeline across new customer acquisition, distribution channels and existing accounts.

    However, third-quarter performance was affected by lower inter-division revenue, reflecting a one-off benefit included in the prior-year comparative period.

    The company said this partly offset growth in the underlying business.

    Following the end of the reporting period, Parameta secured its largest new US buy-side customer contract to date.

    The agreement represents a further development in the division’s efforts to expand its institutional client base.

    Product Development Supports Long-Term Strategy

    Across its divisions, TP ICAP continued investing in new products, technology and commercial capabilities during the period.

    Global Broking benefited from its established market presence and broad asset-class coverage, while Energy & Commodities expanded its trading capabilities through investment in additional desks and brands.

    At Liquidnet, the introduction of Meridian and SuperBlock TI was intended to improve execution services and strengthen its multi-asset proposition.

    Parameta Solutions continued focusing on recurring subscription revenue, customer retention and new product development.

    The company said these initiatives were supporting its commercial pipeline and contributing to the diversification of revenue across the group.

    Full-Year Adjusted EBIT Expectations Maintained

    TP ICAP confirmed that its board remains comfortable with current market expectations for adjusted EBIT for the full year ending December 2026.

    The outlook remains subject to foreign exchange movements, which could affect reported results.

    The company did not provide a specific adjusted EBIT forecast in the trading statement.

    The nine-month performance reflected stronger revenue growth in Global Broking, an improvement in Energy & Commodities and continued subscription development at Parameta Solutions.

    These contributions helped offset subdued equities block trading conditions at Liquidnet.

    TP ICAP also confirmed that it will publish its preliminary results for the 2026 financial year on 11 March 2027.

    Outlook

    TP ICAP enters the final quarter of 2026 following 9% constant currency revenue growth over the first nine months, with third-quarter growth accelerating to 11%.

    Global Broking continues to benefit from activity across equities and rates, while Energy & Commodities has shown improving momentum despite weakness in oil futures markets.

    Liquidnet remains exposed to subdued institutional block trading activity, although recent product launches are intended to strengthen its competitive offering.

    Parameta Solutions continues to develop its recurring revenue base and expand its institutional customer relationships.

    The board has maintained its confidence in full-year adjusted EBIT market expectations, with currency movements remaining an important factor in the eventual reported outcome.

  • Associated British Foods Reports 13% Fall in Adjusted Operating Profit to £1.51 Billion as Primark and Sugar Weigh on Results

    Associated British Foods Reports 13% Fall in Adjusted Operating Profit to £1.51 Billion as Primark and Sugar Weigh on Results

    Associated British Foods plc (LSE:ABF) reported a 13% decline in adjusted operating profit to £1.51 billion for the 52 weeks ended 12 September 2026, as weaker profitability at Primark and difficult conditions in its food businesses affected annual performance.

    Group revenue increased 1% to £19.58 billion from £19.46 billion a year earlier, although sales declined 1% on a constant currency basis. Adjusted operating profit fell 14% at constant exchange rates.

    Adjusted profit before tax decreased 14% to £1.46 billion, while statutory pretax profit declined 10% to £1.28 billion.

    The company maintained its annual dividend at 63.0p per share and confirmed that the planned separation of Primark from its food operations remains on schedule for December 2027.

    Group Profitability Declines Despite Stable Revenue

    Associated British Foods recorded statutory operating profit of £1.33 billion, down 11% from £1.48 billion in the previous financial year.

    Adjusted earnings per share declined 11% to 156.0p from 174.9p, while basic earnings per share fell 7% to 131.9p.

    The group’s results included £113 million of exceptional charges, comprising £91 million of primarily non-cash impairments and £22 million relating to restructuring activities.

    Return on average capital employed decreased to 12.7% from 15.5%, reflecting the reduction in profitability.

    Free cash flow remained broadly stable at £652 million, compared with £648 million in FY2025, supported partly by lower inventory levels at Primark.

    Gross investment increased 15% to £1.43 billion as the company continued spending on manufacturing capacity, technology and other growth initiatives.

    Primark Revenue Rises 2% but Operating Profit Falls 12%

    Primark generated revenue of approximately £9.8 billion, representing growth of 2% at constant currency.

    New company-operated and franchise store openings contributed approximately five percentage points to sales growth, offsetting weaker like-for-like trading in several markets.

    In the UK, like-for-like sales increased 0.5%, with Primark reporting market share gains following improvements to its product offering and customer value proposition.

    However, European like-for-like sales declined 4.7%, reflecting difficult trading conditions and the earlier stage of growth initiatives in those markets.

    Primark’s adjusted operating profit decreased 12% to approximately £1.0 billion, with its operating margin reaching 10.2%.

    The decline reflected increased investment in pricing, marketing and digital capabilities intended to strengthen customer engagement and support longer-term sales growth.

    The retailer continued developing its franchise model and announced plans to introduce home delivery in Great Britain in the future.

    Grocery and Ingredients Face Weaker US Demand

    Associated British Foods’ Grocery division reported an 11% decline in adjusted operating profit.

    The reduction was primarily attributable to lower earnings from its US oils operations, including the Stratas joint venture.

    The Ingredients division recorded an 8% fall in adjusted operating profit, reflecting subdued demand for bakery ingredients in the United States.

    Despite these pressures, the group continued investing in product development, marketing and manufacturing capabilities.

    The company also progressed the integration of Hovis, with management targeting cost savings that can be reinvested in innovation and brand development.

    New production capacity and other capital projects completed during the year are expected to support future growth across Grocery and Ingredients.

    Sugar Division Records £47 Million Operating Loss

    The Sugar business reported an adjusted operating loss of £47 million, primarily reflecting lower average selling prices in Europe.

    Management said the European sugar market remained under pressure from excess supply and inventory levels carried over from previous periods.

    The division is undergoing restructuring intended to align production more closely with demand and improve operational efficiency.

    Conditions are expected to remain difficult in FY2027, with the company forecasting a further deterioration in the division’s financial performance.

    Associated British Foods expects Sugar to record an adjusted operating loss of between £70 million and £170 million in the coming financial year.

    The wide forecast range reflects uncertainty surrounding energy costs, production volumes in Africa and currency movements, particularly the Malawian kwacha.

    Management indicated that recent improvements in global sugar prices could provide support in subsequent years, although the near-term European market is expected to remain challenging.

    Meanwhile, the Agriculture division delivered adjusted operating profit of £19 million, broadly unchanged from FY2025.

    Dividend Maintained and £253 Million Returned Through Buybacks

    Associated British Foods proposed a final dividend of 42.3p per share, bringing the total annual distribution to 63.0p.

    The dividend was unchanged from the previous financial year and includes an interim payment of 20.7p per share.

    The group also completed £253 million of share repurchases during FY2026.

    Net cash before lease liabilities stood at £305 million at the year-end, compared with £390 million a year earlier.

    Total net debt increased to £2.85 billion from £2.63 billion, while the company’s leverage ratio was 1.1 times.

    Management described the balance sheet as providing capacity to support continued investment and shareholder distributions.

    Primark Demerger Remains Scheduled for December 2027

    Associated British Foods confirmed that preparations for the separation of Primark from its food operations are progressing according to plan.

    The decision to demerge the businesses followed a review of the group’s structure completed in April 2026.

    The transaction is expected to be finalised in December 2027, creating two separately focused businesses.

    Following the separation, the food operations will operate under the AB Foods name, encompassing Grocery, Ingredients and Sugar & Agribusiness.

    The company plans to hold separate Capital Markets Days for Primark and AB Foods ahead of the demerger.

    A series of investor education events covering the food businesses is also scheduled between April and July 2027.

    Chief Executive Officer George Weston said the company had made operational and strategic progress despite difficult market conditions.

    “Our results this year reflect a challenging operating environment and macroeconomic headwinds,” Weston said.

    He added that the group would continue focusing on financial performance while investing in opportunities intended to support longer-term growth.

    FY2027 Profit Expected to Decline Further

    Associated British Foods expects adjusted operating profit and adjusted earnings per share to be below FY2026 levels in the financial year ending in 2027.

    The anticipated decline is primarily attributable to the Sugar division, where losses are expected to increase.

    In Primark, the company expects store expansion across Europe, the United States and franchise markets to contribute approximately 4% to sales growth.

    Primark’s adjusted operating margin is forecast at around 10%, reflecting continued investment in marketing, pricing and digital initiatives. This excludes expected separation-related dis-synergy costs.

    The company continues to target annual sales growth contributions of approximately 4% to 5% from store expansion over the foreseeable future.

    Within Grocery, adjusted operating profit is expected to remain broadly in line with FY2026, as sales growth across several businesses is offset by higher input costs and the initial consolidation of Hovis losses.

    Ingredients profitability is also expected to remain broadly stable, with growth in speciality ingredients balanced by start-up costs associated with a new yeast production facility in India.

    Agriculture adjusted operating profit is expected to increase.

    Outlook

    Associated British Foods enters FY2027 facing continued pressure from European sugar markets, cautious consumer spending and elevated energy and input costs.

    Management expects adjusted operating profit and earnings per share to decline further, although ongoing investment in Primark, Grocery and Ingredients is intended to support medium-term growth.

    The integration of Hovis, restructuring of UK Sugar operations and commissioning of the new Indian yeast facility remain important operational priorities.

    The planned December 2027 demerger of Primark represents a major structural change for the group, with preparations continuing alongside its existing business operations.