ADVFN UK Market News

Category: Market News

  • Aviva Wealth Inflows Jump in Q1 While Insurance Premiums Miss Expectations (AV.)

    Aviva Wealth Inflows Jump in Q1 While Insurance Premiums Miss Expectations (AV.)

    Aviva Plc (LSE:AV.) reported a strong rise in wealth inflows during the first quarter of 2026, although weaker-than-expected general insurance premiums weighed on the overall performance. Goldman Sachs described the update as “a bit of a mixed bag.”

    Wealth net flows for the three months to 31 March reached £3.35 billion, representing a 49% increase year on year and exceeding Goldman Sachs forecasts of £2.67 billion by around 25%.

    According to Goldman Sachs data, workplace pension flows climbed 71% year on year to £1.99 billion, while platform net flows increased 24% to £1.59 billion.

    In contrast, total general insurance gross written premiums came in at £3.43 billion, approximately 8% below the Goldman Sachs estimate of £3.72 billion.

    UK commercial lines premiums fell 8% year on year to £834 million and were 6% below Goldman Sachs expectations of £887 million. Aviva said the decline reflected “deliberate underwriting actions to manage profitability in softer market conditions.”

    UK personal lines gross written premiums totalled £1.53 billion, falling 14% short of Goldman Sachs estimates of £1.78 billion. However, Goldman Sachs noted that part of the variance related to its own assumptions regarding the quarterly split of Direct Line figures.

    In Canada, gross written premiums of £907 million came in slightly ahead of expectations, exceeding the Goldman Sachs forecast of £897 million by 1%.

    The UK undiscounted combined operating ratio was reported at 94.8%, which was 80 basis points weaker than Goldman Sachs projections. By comparison, Canada’s COR of 91.8% outperformed forecasts by 2.5 percentage points against Goldman Sachs expectations of 94.3%.

    Aviva reiterated its full-year guidance, continuing to target a UK and Ireland combined operating ratio below 94% and a Canada COR approaching 94%.

    Within retirement operations, bulk purchase annuity flows totalled £619 million, comfortably ahead of the Goldman Sachs estimate of £260 million. However, the value of new business margin in retirement came in at 1.2%, below Goldman Sachs expectations of 3.5% by 2.3 percentage points.

    Aviva stated that internal rates of return of at least low teens had been achieved, while Citi noted the annuity and equity release margin was “reflecting volume pressure.”

    Protection and health annual premium equivalent sales reached £113 million, 6% below the Goldman Sachs estimate of £120 million. Value of new business in protection and health declined 16% to £54 million, compared with Citi forecasts of £62 million.

    The company’s Solvency II ratio stood at 171%, broadly matching expectations from both Goldman Sachs and Citi. Aviva said it expects the ratio to exceed 180% by the end of 2026.

    Following the update, Goldman Sachs reduced its earnings per share forecasts for 2026 to 2030 by an average of approximately 0.7% and lowered its 12-month price target by around 1% to 756 pence.

  • Grainger plc Delivers Strong First-Half Performance as Rental Demand Continues to Rise

    Grainger plc Delivers Strong First-Half Performance as Rental Demand Continues to Rise

    With housing affordability remaining under pressure across the UK and rental demand continuing to strengthen, the build-to-rent sector is attracting growing investor attention. Against this backdrop, Grainger plc has reported a robust first-half performance, highlighting the resilience of its business model and the long-term growth potential of the UK rental housing market.

    Speaking on with Ricki Lee on The Watchlist, Kurt Mueller, Director of Corporate Affairs at Grainger plc (LSE:GRI), outlined the company’s strong operational momentum and optimistic outlook despite ongoing global economic uncertainty.

    Strong Financial and Operational Growth

    Grainger delivered an impressive set of first-half results across its national portfolio of more than 11,000 homes. Net rental income increased by nearly 8%, while earnings rose by 4% on an EPRA basis. Occupancy across the portfolio remained exceptionally high at around 96%, reflecting continued strong demand for professionally managed rental housing.

    The company also reported like-for-like rental growth of 3.1%, underpinned by a structurally undersupplied UK housing market and growing demand for quality rental accommodation.

    Importantly, Grainger reaffirmed its ambitious earnings guidance, expecting earnings growth of 12% this year and a projected 35% increase by 2029.

    Structural Demand Supporting Long-Term Growth

    According to Mueller, several long-term trends are continuing to support the rental sector. The UK housing market remains significantly undersupplied, while population growth and reduced availability of rental homes are placing further pressure on supply.

    Smaller landlords exiting the market due to regulatory and taxation changes have also contributed to tightening rental availability. This environment continues to support rental growth and high occupancy levels for large-scale operators like Grainger.

    The company’s expanding development pipeline is another major growth driver. Newly completed developments contributed an additional £5.7 million in net rental income during the first half, demonstrating the value of Grainger’s ongoing investment strategy.

    At the same time, tenant affordability remains healthy. Grainger customers spend an average of 27% of their gross income on rent, comfortably below broader market averages, helping support tenant retention and sustainable rental increases.

    A Fully Integrated Rental Platform

    One of Grainger’s key competitive strengths lies in its fully integrated operating model. Unlike many property investors, the company originates, develops, owns, and manages its own rental communities.

    This vertically integrated approach enables Grainger to maintain direct relationships with residents while gathering valuable customer insights that help improve service quality and operational efficiency.

    Technology and data analytics are increasingly central to this strategy. Grainger’s platform is highly tech-enabled, with artificial intelligence and customer data helping to optimise operations, enhance customer experiences, and improve portfolio performance.

    Mueller noted that housing remains a fundamentally resilient asset class because demand for homes is constant regardless of economic cycles or technological disruption.

    High-Quality Assets in Prime Locations

    Grainger’s portfolio is focused on major UK cities and consists primarily of modern, energy-efficient buildings. The average age of its properties is just four and a half years, with 99.9% of buildings holding EPC ratings of A, B, or C.

    This focus on sustainability and energy efficiency could become increasingly important as energy prices remain volatile. Efficient buildings help protect both customers and the company from rising utility costs, further strengthening the resilience of the business model.

    The company also benefits from a highly diversified customer base across different industries and age groups, with limited exposure to the student rental market, which has shown signs of softness in some UK regions.

    Positioned for the Future

    Grainger continues to focus on disciplined capital allocation and balance sheet strength, with plans to further reduce debt and lower the overall risk profile of the business.

    As the UK’s only listed, scaled pure-play build-to-rent platform, the company appears well positioned to benefit from long-term structural trends supporting rental housing demand.

    With inflation-linked income streams, a growing development pipeline, high occupancy rates, and a strong operational platform, Grainger’s latest results reinforce its position as a leading player in the evolving UK rental housing market.

    For investors seeking exposure to defensive, income-generating real estate assets, Grainger plc’s outlook remains increasingly compelling.

    For more information visit – https://www.graingerplc.co.uk/

  • ITV Sees Digital and Studios Growth Balance Softer Linear Advertising in Q1 (ITV)

    ITV Sees Digital and Studios Growth Balance Softer Linear Advertising in Q1 (ITV)

    ITV (LSE:ITV) reported broadly stable trading for the first quarter of 2026, with flat group revenue and a 1% increase in external revenue as growth in ITV Studios and digital operations helped offset continued weakness in traditional linear advertising.

    Revenue at ITV Studios increased 4% during the quarter, supported by an 8% rise in external sales to global streaming platforms. Internal studio revenue declined, however, reflecting previously planned reductions in soap and daytime programming following earlier scheduling and production adjustments.

    Within the Media & Entertainment division, revenue fell 2%, although digital advertising revenue increased 14% as streaming platform ITVX delivered record viewing figures. Total digital revenue rose 12%, while streaming hours increased 13% year on year.

    The broadcaster also confirmed it remains in active discussions with Sky regarding a potential transaction involving the Media & Entertainment business. ITV said it continues to expect full-year performance to remain in line with guidance, supported by anticipated advertising demand linked to the men’s football World Cup and ongoing expansion across digital platforms.

    The company’s broader outlook reflects a mixed financial profile, with improving revenue trends offset by weaker margins and softer cash flow performance, although leverage metrics have improved. Technical indicators remain relatively balanced, with the shares showing a modest upward trend but neutral momentum overall.

    Valuation continues to provide support through a mid-range price-to-earnings ratio and an attractive dividend yield. Management commentary around ITV Studios, digital growth initiatives and cost discipline was generally constructive, though investors remain cautious regarding ongoing pressure in linear advertising markets, profitability mix challenges, weaker cash conversion and uncertainty surrounding the strategic discussions over the Media & Entertainment division.

    More about ITV plc

    ITV plc is a UK-based broadcasting and entertainment group operating free-to-air television channels, the ITV Studios production business and digital platforms including ITVX and advertising technology platform Planet V. The company generates revenue from television and digital advertising, content production and international licensing, maintaining a strong presence in both UK broadcasting and global media distribution.

  • Spire Healthcare Maintains 2026 Earnings Guidance Following Stable Early-Year Trading (SPI)

    Spire Healthcare Maintains 2026 Earnings Guidance Following Stable Early-Year Trading (SPI)

    Spire Healthcare (LSE:SPI) said trading during the first four months of 2026 has remained in line with management expectations, supported by continued growth in private patient activity and stable NHS demand.

    The healthcare provider reported particularly strong momentum in self-pay treatments within its private patient division, while NHS-related revenue performed broadly as anticipated. Spire also said its primary care operations continue to trade well during the period.

    Management confirmed that ongoing efficiency initiatives linked to its £30 million cost-saving programme are progressing as planned. The company continues to expect 2026 adjusted EBITDA to remain broadly consistent with 2025 levels, supported by solid visibility on NHS commissioning activity and anticipated increases in patient volumes extending into 2027.

    Separately, the Panel on Takeovers and Mergers confirmed that Spire’s reaffirmed guidance for 2026 adjusted EBITDA qualifies as a formal profit forecast under UK takeover regulations.

    Spire’s board stated that the forecast remains valid and has been prepared using consistent accounting standards and assumptions, which management said reflects confidence in the group’s operational performance despite wider sector pressures and macroeconomic uncertainty.

    The company’s broader outlook continues to benefit from relatively stable operating performance and dependable cash generation. However, investor sentiment remains constrained by elevated leverage levels and weaker bottom-line profitability. Technical indicators also remain soft, with the shares trading below key moving averages and MACD trends remaining negative.

    Valuation metrics further temper the outlook, as the stock trades on a relatively high price-to-earnings ratio while offering only a modest dividend yield.

    More about Spire Healthcare Group

    Spire Healthcare Group is one of the UK’s largest independent healthcare providers, operating 38 hospitals and more than 60 clinics across England, Wales and Scotland. The FTSE 250-listed company delivers private, NHS and employer-funded healthcare services, including surgery, diagnostics, mental health treatments and NHS talking therapies, and is a major provider of orthopaedic procedures such as knee and hip operations.

  • Future Maintains Full-Year Guidance Despite Weaker First-Half Profitability (FUTR)

    Future Maintains Full-Year Guidance Despite Weaker First-Half Profitability (FUTR)

    Future plc (LSE:FUTR) reported lower first-half earnings after continued weakness in high-margin programmatic advertising and ecommerce activity weighed on profitability, although the company said it remains strongly cash generative and continues to see improving trading trends.

    Revenue for the six months fell 8% to £349.1 million, while adjusted EBITDA declined 24%, reflecting previously identified pressures across digital advertising and affiliate income streams. Despite the softer performance, management maintained full-year guidance, continuing to forecast a mid- to low-single-digit organic revenue decline alongside an EBITDA margin of between 25% and 27%.

    The company said trading conditions improved during the second quarter, particularly within its B2B operations and the Go.Compare platform. Future also continued reshaping its portfolio through acquisitions such as SheerLuxe while returning capital to shareholders and placing greater emphasis on reducing net debt and extracting value from non-core assets.

    Within the group’s largest B2C segment, organic revenue declined 6% due to weaker programmatic advertising and ecommerce affiliate revenues, although this was partly offset by growth in direct advertising and alternative revenue streams. Go.Compare revenue also fell 6% amid softer market conditions in car and home insurance, while B2B revenue declined 7% overall but showed improvement during the second quarter.

    Future said it is increasingly focused on AI-related opportunities, aiming to monetise its strong visibility in artificial intelligence-driven search and discovery through products including Future Optic and the ecommerce solution Signal. Management also stressed the value of its trusted, human-created content, continued brand expansion across multiple channels and ongoing operational efficiency measures as key drivers in restoring sustainable long-term growth.

    The company’s broader outlook reflects mixed fundamentals, with declining revenue and weaker cash flow offset by improved leverage metrics and relatively stable operating margins. Technical indicators remain negative, with the share price trading well below major moving averages and bearish momentum trends continuing to weigh on sentiment.

    However, valuation metrics and income generation provide some support through a comparatively low price-to-earnings ratio and an attractive dividend yield. Management commentary around FY2026 growth expectations, margin targets, cash conversion and shareholder returns also contributed to a more constructive longer-term outlook despite continued audience and ecommerce headwinds.

    More about Future plc

    Future plc is a global media platform operating around 170 specialist brands across sectors including technology, consumer lifestyle and finance. The company generates revenue through advertising, ecommerce affiliate commissions, subscriptions and magazine sales, distributing content through websites, newsletters, video, print publications and live events.

  • OptiBiotix to Present Upgraded SweetBiotix Sugar Alternative at London Shareholder Event (OPTI)

    OptiBiotix to Present Upgraded SweetBiotix Sugar Alternative at London Shareholder Event (OPTI)

    OptiBiotix Health (LSE:OPTI) is set to showcase its SweetBiotix sugar-substitute fibre technology at a shareholder sampling event scheduled to take place in London in June 2026.

    The company said the presentation follows a manufacturing breakthrough that has improved production yields while also delivering a purer and better-tasting product with reduced ingredient and manufacturing costs. Existing shareholders and prospective investors have been invited to register online to attend the event.

    Alongside product demonstrations, management plans to provide updates on the commercial development and market strategy for both its first- and second-generation microbiome-based product portfolio. The event forms part of OptiBiotix’s broader effort to accelerate commercialisation of its technologies while increasing engagement with investors and industry stakeholders.

    By organising a dedicated SweetBiotix sampling session, the company aims to highlight the practical improvements made to its next-generation prebiotic sweetener platform and strengthen confidence in its commercial potential. OptiBiotix believes the SweetBiotix range could offer a health-focused alternative to traditional sugar products within the growing functional foods and nutrition market.

    The company’s broader outlook remains pressured by ongoing losses and continued cash burn despite reporting strong revenue growth during 2024. Technical indicators also remain weak, reflecting a prolonged downward trend in the share price and negative market momentum.

    However, OptiBiotix continues to benefit from a debt-free balance sheet, which provides some financial stability, although valuation remains difficult to support given the absence of profitability and dividend income.

    More about OptiBiotix Health

    OptiBiotix Health is a life sciences company focused on developing microbiome-based ingredients and products aimed at preventing and managing health conditions. Its portfolio includes brands such as SlimBiome, WellBiome, SweetBiotix and Microbiome Modulators, alongside interests in skincare through SkinBioTherapeutics and probiotics via ProBiotix Health, targeting global consumer health and functional food markets.

  • National Grid Reports Higher Operating Profit and Unveils £70bn Investment Programme (NG.)

    National Grid Reports Higher Operating Profit and Unveils £70bn Investment Programme (NG.)

    National Grid (LSE:NG.) reported a 4% decline in annual revenue to £17.6 billion, while operating profit increased 10% to £5.4 billion as the company outlined plans to invest at least £70 billion across its energy networks over the next five years.

    During the year, the utility group completed a series of asset disposals aimed at streamlining operations and lowering costs. This included the sale of National Grid Renewables and the divestment of the Grain LNG terminal.

    Earlier in the year, National Grid agreed to sell its US onshore renewables business to Brookfield Asset Management for $1.74 billion, including debt. The company also finalised the sale of the Grain LNG facility in November to a consortium formed by Centrica plc and Energy Capital Partners.

    Chief executive Zoë Yujnovich said the company delivered strong financial performance during the year, including underlying earnings per share growth of 8% at constant currency and record capital investment of £11.6 billion.

    Capital expenditure increased from £9.8 billion in the previous year and contributed to asset growth of 10.9%. Management said the company’s updated Five-Year Financial Framework through to 2030/31 now targets at least £70 billion of capital investment, reflecting increased visibility across its operations and developments linked to the RIIO-T3 regulatory framework.

    More than £30 billion of the planned investment has been allocated to UK electricity transmission infrastructure as the group seeks to strengthen energy security, support decarbonisation targets and accommodate rising electricity demand linked to artificial intelligence and broader electrification trends.

    The RIIO-T3 price control framework governs revenue and regulation for Britain’s electricity and gas transmission networks, with final determinations from Ofgem expected later in 2025.

    Zoë Yujnovich said the company is embarking on the largest investment programme in its history, focused on modernising and expanding energy infrastructure across both the UK and the northeastern United States. She added that the initiative is also expected to support large-scale job creation as National Grid expands the skilled workforce required to deliver the programme.

    More about National Grid

    National Grid is a multinational energy infrastructure company operating electricity and gas transmission networks across the UK and the northeastern United States. The group plays a central role in energy distribution, grid modernisation and decarbonisation efforts, with major ongoing investment focused on strengthening energy security and supporting the transition toward cleaner energy systems.

  • Costain Says 2026 Trading Remains on Course as Order Book Supports Future Growth (COST)

    Costain Says 2026 Trading Remains on Course as Order Book Supports Future Growth (COST)

    Costain (LSE:COST) said trading during 2026 has continued in line with expectations, with both revenue and adjusted operating profit anticipated to increase over the year. The company expects adjusted operating margins of around 4%, with performance weighted more heavily toward the second half as recently awarded contracts move into mobilisation and delivery phases.

    The infrastructure and engineering group also highlighted its strong cash generation profile, forecasting a year-end net cash position of approximately £175 million. Costain additionally retains access to an undrawn £100 million revolving credit facility, which has now been extended through to 2030.

    Shareholder returns remain a priority for the company, with management continuing a £20 million share buyback programme alongside increased dividend distributions.

    Costain said momentum across its target markets remains positive, supported by rising infrastructure investment commitments including United Utilities’ enlarged AMP8 spending programme and the UK government’s £27 billion roads investment initiative.

    The group’s £7 billion forward work position has also become increasingly diversified, with more than half of future revenue now linked to private sector and regulated customers. Recent framework agreements and project wins across airports, water, energy and road infrastructure have further strengthened the company’s pipeline and are expected to support what management described as a significant step-up in performance from 2027 onward.

    The company’s broader outlook is supported by improving financial stability, stronger earnings quality, expanding margins, low leverage levels and healthy cash conversion. Technical indicators also remain favourable, reflecting a positive share price trend.

    However, management acknowledged that a multi-year decline in revenue remains a risk factor that could constrain future growth if the trend continues over the longer term.

    More about Costain Group

    Costain Group is a UK-based infrastructure and engineering group delivering complex projects across transport, water, energy and defence markets. The company provides consultancy, design and construction services focused on improving connectivity, sustainability and resilience within the UK’s infrastructure network while supporting long-term decarbonisation goals.

  • Tharisa Forecasts More Than Fivefold Rise in Interim Earnings (THS)

    Tharisa Forecasts More Than Fivefold Rise in Interim Earnings (THS)

    Tharisa (LSE:THS) has indicated that profitability for the six months ended 31 March 2026 is expected to rebound strongly, supported by improved commodity pricing and solid operational performance across its platinum group metals and chrome businesses.

    The mining group said it expects basic earnings per share to range between 15.3 U.S. cents and 15.8 U.S. cents, representing an increase of more than five times compared with the same period last year.

    Headline earnings per share are forecast at between 16.1 U.S. cents and 16.6 U.S. cents, marking year-on-year growth of more than 450% and pointing to a substantial improvement in underlying profitability.

    The company is scheduled to publish its interim financial results later in May, with the expected earnings recovery signalling a significantly stronger financial position for the group. Management believes the improved performance could reinforce Tharisa’s competitive standing within both the platinum group metals and chrome concentrate markets while supporting its ongoing expansion plans and investments linked to the global energy transition.

    More about Tharisa

    Tharisa is an integrated mining and resource company focused on platinum group metals and chrome concentrates. The group operates across exploration, mining, processing, beneficiation, marketing and logistics activities, with its flagship Tharisa Mine in South Africa and the Karo Platinum Project in Zimbabwe forming the core of its long-term growth strategy. The company is also pursuing initiatives tied to decarbonisation, downstream beneficiation and battery-related technologies.

  • Ariana Resources Extends Gold Mineralisation at Dokwe Ahead of Updated Resource Estimate (AAU)

    Ariana Resources Extends Gold Mineralisation at Dokwe Ahead of Updated Resource Estimate (AAU)

    Ariana Resources (LSE:AAU) has received all assay results from its 2025–2026 reverse circulation drilling programme at the Dokwe Gold Project in Zimbabwe, with results confirming that gold mineralisation extends at least 150 metres beyond the current resource boundary at Dokwe North and remains open along strike.

    The drilling campaign identified shallow oxide-hosted gold intercepts at Dokwe North, while additional extensions at Dokwe Central may potentially fall within the limits of the proposed pit shell. The nearby Sinkwe prospect also returned encouraging shallow mineralisation results, adding further support to the broader development potential of the project.

    The company said the latest findings will contribute to an updated JORC-compliant mineral resource estimate expected during the second half of 2026. Ongoing diamond drilling and feasibility study activities are also continuing as Ariana works to improve project reserves and optimise future mine planning.

    Dokwe currently hosts a gold resource exceeding 1.1 million ounces, and management believes the latest drilling results strengthen the long-term development case for the asset.

    Despite operational progress at Dokwe, the company’s broader outlook remains constrained by weak underlying financial fundamentals, including the absence of revenue generation, recurring losses and continued negative operating and free cash flow trends, all of which contribute to elevated sustainability risk.

    However, Ariana maintains a relatively low-leverage balance sheet, which provides some financial support. Market technical indicators remain broadly neutral, while valuation metrics appear stretched due to a high price-to-earnings ratio and the lack of dividend income.

    More about Ariana Resources

    Ariana Resources is a mineral exploration and development group focused on gold assets across Africa and Europe. Listed on both AIM and the ASX, the company currently holds a 100% interest in the Dokwe Gold Project in Zimbabwe, where it is advancing resource expansion, drilling and feasibility work on a deposit containing more than one million ounces of gold.