ADVFN UK Market News

Category: Top Story

  • Wynnstay to Double Scottish Fertiliser Production Capacity with Montrose Investment

    Wynnstay to Double Scottish Fertiliser Production Capacity with Montrose Investment

    Wynnstay Group PLC (LSE:WYN) has announced plans to significantly expand its Glasson Fertilisers operations in Montrose, Scotland, by securing a long-term lease on a larger facility on Barrack Road. The investment will create one of Europe’s largest fertiliser blending plants, enabling the company to double its production capacity in Scotland while improving operational efficiency to meet growing customer demand. Part of the project will be financed through the sale of the existing Cobden Street site.

    Expansion Supports Long-Term Growth Strategy

    The new facility is expected to generate a return on net assets of at least 10%, in line with Wynnstay’s capital allocation objectives and its wider Strategy Genesis growth programme. Blending operations will continue at the current Montrose site throughout the construction and transition period, ensuring uninterrupted customer supply. Full commissioning of the new plant is targeted for the first half of the 2027 financial year, strengthening the group’s manufacturing network following the recent expansion of its Avonmouth facility and enhancing its presence in the Scottish agricultural market.

    Outlook Reflects Stable Finances Despite Earnings Pressure

    Wynnstay continues to benefit from a solid financial position, supported by low leverage and a stable balance sheet. However, this is balanced by weaker earnings and a decline in cash flow during 2025. Technical indicators remain moderately positive rather than strongly bullish, while the valuation presents a mixed picture, with an attractive dividend yield offset by a relatively high price-to-earnings ratio following softer profitability. Recent insider share purchases provide an additional, albeit secondary, signal of management confidence.

    About Wynnstay

    Wynnstay Group PLC is a leading UK supplier of agricultural products and services, providing farmers with a broad range of inputs, manufacturing capabilities and technical support. The company supplies products and expertise designed to improve farm productivity, sustainability and profitability, supporting the UK’s food production sector through its integrated manufacturing, distribution and on-farm service network.

  • Sanderson Design Group Delivers Revenue Growth Driven by U.S. Expansion and Digital Sales

    Sanderson Design Group Delivers Revenue Growth Driven by U.S. Expansion and Digital Sales

    Sanderson Design Group PLC (LSE:SDG) reported a 6% increase in first-half revenue to £51.4 million, supported by strong performances across its North American operations, manufacturing business and licensing activities. Brand sales in North America rose 19%, manufacturing revenue increased by 19% and licensing income advanced 13%. The group’s direct-to-consumer business also continued to gain momentum, with online sales through its brand websites surging 137% to £1.6 million. Net cash improved to £10.2 million despite ongoing share buybacks, and the board said it expects full-year results to meet current market expectations.

    North America and Manufacturing Continue to Drive Performance

    The company highlighted the United States as its strongest-performing and highest-margin market, benefiting from continued demand for its heritage British brands, high-profile collaborations including Morris & Co. x The Huntington and Highgrove by Sanderson, and stronger relationships with leading interior designers. Manufacturing also delivered a robust performance, helped by restructuring initiatives, the rollout of its Future Factory programme and sustained third-party demand. Continued investment in digital platforms for both retail and trade customers remains a key part of the group’s strategy to support long-term international growth.

    Diversified Business Offsets Softer UK Trading

    Although UK brand revenue declined by 8% during the period, growth in North America and manufacturing more than compensated for the weakness, demonstrating the benefits of the group’s increasingly diversified geographic and operational footprint. Supported by premium design brands, strategic partnerships and continued digital expansion, Sanderson Design Group remains focused on strengthening its international presence while delivering profitable growth.

    Outlook Supported by Balance Sheet Strength

    The company’s outlook reflects a mixed financial profile. A strong balance sheet and improved cash generation during 2026 provide solid support, although earnings have remained volatile and operating margins are relatively thin. Technical indicators remain positive, with the shares continuing to trade in an established uptrend supported by improving momentum. Valuation is somewhat constrained by a relatively high price-to-earnings ratio and a modest dividend yield.

    About Sanderson Design Group PLC

    Sanderson Design Group PLC is a UK-based designer, manufacturer and marketer of luxury wallpapers, fabrics, paints and interior furnishings. The company also licenses its designs for a broad range of home products, including bedding, rugs, blinds and tableware. Its manufacturing operations are based in Loughborough and Lancaster, while its showrooms are located in London, New York and Chicago.

    The group’s portfolio includes well-known brands such as Sanderson, Morris & Co., Zoffany, Harlequin, Clarke & Clarke and Scion. Employing around 500 people worldwide, Sanderson Design Group is listed on AIM under the ticker SDG and continues to expand its presence in the global premium home furnishings market.

  • Arrow Exploration Increases Colombian Production Following Strong Icaco Well Performance

    Arrow Exploration Increases Colombian Production Following Strong Icaco Well Performance

    Arrow Exploration Corp. (LSE:AXL) continues to expand production from its Colombian oil portfolio, targeting underdeveloped assets across the Llanos, Middle Magdalena Valley and Putumayo basins. The company benefits from high working interests and Brent-linked oil pricing, supporting attractive operating margins. Under a private commercial agreement, Arrow is entitled to 50% of production from the Tapir block, where it is pursuing production growth through a combination of vertical and horizontal drilling programmes led by its experienced management team.

    Icaco Wells Lift Production Above 5,000 boe/d

    The company has reported encouraging drilling and initial production results from the Icaco-3 vertical well and the Icaco-4 and Icaco-5 horizontal wells on the Tapir block in Colombia’s Llanos Basin. The successful campaign has increased gross corporate production to more than 5,000 barrels of oil equivalent per day while confirming the commercial potential of both the Gacheta and Ubaque reservoirs. All three wells were completed on schedule and within budget. Icaco-3 has been brought into production from the Gacheta formation, while Icaco-5 delivered strong early production from the Ubaque interval. Arrow is continuing to optimise completion techniques on Icaco-4 as it prepares for additional drilling at the Icaco field.

    Strong Financial Position Supports Growth Plans

    Arrow remains in a solid financial position, with approximately US$27.5 million in cash and no outstanding debt, providing flexibility to fund further development activity. The company is also awaiting a decision on an extension to the Tapir block while monitoring regulatory developments under Colombia’s new administration, which has indicated support for increased investment in the country’s oil and gas sector.

    About Arrow Exploration Corp.

    Arrow Exploration Corp. is an oil and gas producer focused on developing underexploited hydrocarbon assets across Colombia’s Llanos, Middle Magdalena Valley and Putumayo basins. Through its operating subsidiary, Carrao Energy S.A., the company holds significant working interests in light oil projects benefiting from Brent-linked pricing and relatively low royalty rates. Arrow is entitled to half of the production from the Tapir block, subject to Ecopetrol’s approval.

    Listed on both AIM in London and the TSX Venture Exchange under the ticker AXL, Arrow is focused on increasing production through operated assets in some of Colombia’s most prospective oil regions, with the aim of delivering sustainable production growth and long-term value for shareholders.

  • Wall Street futures steady as investors brace for key payrolls report: Dow Jones, S&P, Nasdaq

    Wall Street futures steady as investors brace for key payrolls report: Dow Jones, S&P, Nasdaq

    U.S. equity futures traded close to flat on Thursday as investors adopted a cautious stance ahead of Friday’s closely watched July employment report, which is expected to provide fresh guidance on the outlook for Federal Reserve interest rate policy.

    With one of the week’s most important economic releases still to come, traders appeared reluctant to place aggressive bets at the opening bell.

    Weekly jobless claims remain lower than expected

    Ahead of Friday’s payrolls release, the Labor Department reported that initial jobless claims rose modestly during the week ended August 1.

    New unemployment benefit claims increased to 199,000 from the prior week’s revised 198,000. The figure was below economists’ expectations of 202,000, indicating that layoffs remain subdued and the labour market continues to show resilience.

    Markets are forecasting that the U.S. economy added 88,000 jobs in July, following an increase of 57,000 in June.

    SanDisk slides despite earnings beat

    Technology stocks were set for a weaker start after SanDisk (NASDAQ:SNDK) dropped roughly 10% in pre-market trading.

    The memory chip manufacturer reported quarterly results ahead of expectations, but investors focused instead on guidance that fell short of the market’s elevated expectations.

    Wednesday’s rally loses momentum

    Wall Street initially extended its recent gains on Wednesday before sellers emerged later in the session.

    The Dow Jones Industrial Average closed up 263.24 points, or 0.5%, at 54,349.12. Meanwhile, the S&P 500 slipped 0.2% to 7,723.55 and the Nasdaq Composite lost 0.8% to finish at 26,363.44.

    The pullback followed four consecutive sessions of gains that had pushed both the Dow and S&P 500 to record highs.

    AI-related names remain under pressure

    Investor sentiment toward AI-related companies weakened after SpaceX (NASDAQ:SPCX) reported higher-than-expected revenue but disclosed a sharp rise in capital expenditure, sending its shares down 13.6%.

    Advanced Micro Devices (NASDAQ:AMD) also fell 7%, despite delivering stronger-than-expected quarterly earnings.

    Disney and healthcare stocks provide support

    Disney (NYSE:DIS) helped support the Dow after climbing 3.7% on stronger-than-expected quarterly results.

    Amgen (NASDAQ:AMGN) advanced 4.6%, while Nvidia (NASDAQ:NVDA) gained 3.4%.

    ADP points to softer hiring

    Private payroll processor ADP reported that private-sector employment increased by 44,000 jobs in July, below economists’ forecasts of 75,000.

    June’s figure was revised down to 95,000 from 98,000.

    Energy weak, gold miners rally

    Falling crude prices weighed on energy shares, with the NYSE Arca Oil Index declining 3% and the Philadelphia Oil Service Index falling 2.5%.

    Gold miners outperformed as bullion prices strengthened, lifting the NYSE Arca Gold Bugs Index 7.6% to its highest close in more than a month.

  • European shares climb to fresh all-time highs: DAX, CAC, FTSE100

    European shares climb to fresh all-time highs: DAX, CAC, FTSE100

    European equity markets reached new record levels on Thursday as investors drew support from robust corporate earnings, optimism surrounding negotiations linked to the Strait of Hormuz, and stronger-than-expected economic data from Germany.

    According to Destatis, German factory orders rose 3.1% month over month in June, significantly above the revised 0.3% increase recorded in May and well ahead of economists’ expectations for a 0.5% gain. On an annual basis, new orders accelerated to 6.5%, compared with 4.5% in the previous month.

    Meanwhile, Iran said it was finalising a shipping agreement with Oman covering commercial traffic through the Strait of Hormuz, while rejecting reports that the United States was participating in the negotiations.

    Major European indices advance

    France’s CAC 40 gained 0.7%, while Germany’s DAX and the UK’s FTSE 100 both traded around 0.2% higher.

    UK stocks in focus

    Tullow Oil (LSE:TLW) fell 5.3% after investors reacted to concerns over the company’s unchanged debt position.

    Wizz Air (LSE:WIZZ) slipped 1% after reporting a quarterly net loss that exceeded market expectations.

    WPP (LSE:WPP) surged 23% as the advertising giant exceeded forecasts with its first-half profit and margin performance.

    Persimmon (LSE:PSN) added 4% after stating that full-year home completions are expected to reach the upper end of previous guidance.

    Serco (LSE:SRP) climbed 6% after reporting stronger first-half underlying earnings and announcing an expansion of its share buyback programme.

    German stocks post mixed performance

    Fresenius (TG:FRE) advanced 1.6% after posting solid second-quarter earnings and raising its outlook for 2026.

    SGL Carbon (TG:SGL) gained 5% after returning to profitability in the second quarter.

    Commerzbank (TG:CBK) rose 1.2% following record first-half financial results.

    Nordex (TG:NDX1) added 2.5% after securing a contract from Turkerler Holding to supply approximately 525 MW of wind turbines.

    Henkel (TG:HEN) jumped 4.6% after delivering strong interim results and upgrading its organic growth forecast for 2026.

    Deutsche Telekom (TG:DTE) rallied almost 6% after increasing its 2026 share buyback programme by up to €3 billion.

    Siemens (TG:SIE) dropped 5% after issuing a profit outlook that disappointed investors.

    Merck (TG:MRK) gained 1.7% after improving its full-year sales and earnings guidance.

    Other European movers

    Swisscom (TG:SWJ) advanced 4.3% after reaffirming its 2026 revenue outlook alongside solid quarterly results.

    Adecco (TG:ADI1) declined 3% after weaker-than-expected gross margins and operating cash flow weighed on investor sentiment.

    Banco BPM (BIT:BAMI) climbed 5.3% after raising its profit guidance for 2026.

  • Diageo shares surge as $1 billion cost-saving plan outweighs weaker annual results

    Diageo shares surge as $1 billion cost-saving plan outweighs weaker annual results

    Diageo (LSE:DGE) shares climbed as much as 7.8% on Thursday after the spirits group unveiled a restructuring programme aimed at delivering $1 billion in cost savings, helping investors look beyond a sharp decline in annual profit and a reduced dividend.

    The owner of Johnnie Walker and Guinness reported operating profit of $3.16 billion for fiscal 2026, down 27.2% from the previous year. The decline was largely driven by $1.5 billion of impairment charges, mainly linked to hyperinflation in Türkiye and the write-down of the Don Papa brand.

    Excluding these exceptional items, organic operating profit increased 2%, while the group’s organic operating margin improved by 116 basis points.

    Sales and earnings pressured by North America and China

    Net sales declined 3% to $19.64 billion during the year, while organic net sales fell 2.0%. Volumes slipped 0.4% and price and product mix reduced sales by a further 1.6 percentage points, largely reflecting weaker performance in the U.S. spirits market and Chinese white spirits.

    Diageo said that excluding Chinese white spirits, organic net sales would have been approximately 1.5 percentage points higher.

    Growth across Europe, Africa, and Latin America and the Caribbean helped offset softer trading conditions in North America and China.

    Net profit fell 22.9% to $1.96 billion, while basic earnings per share declined 26.3% to 78.1 cents. Earnings per share before exceptional items edged up 0.7% to 165.3 cents.

    Free cash flow improved by $463 million to $3.2 billion, while net debt stood at $20.5 billion, equivalent to 3.1 times adjusted EBITDA.

    Dividend reduced under new capital allocation policy

    The company recommended a full-year dividend of 50 cents per share, compared with 103.48 cents in fiscal 2025, reflecting its revised dividend policy.

    The proposed final dividend was set at 30 cents per share, down from 62.98 cents a year earlier, subject to shareholder approval at the company’s annual general meeting in November 2026.

    Restructuring programme targets long-term growth

    Alongside its annual results, Diageo outlined a restructuring strategy designed to generate approximately $1 billion in cumulative savings over the next three years.

    The initiative will focus on redesigning the company’s operating model and improving supply chain efficiency, with total implementation costs estimated at around $1.2 billion.

    Management expects the operating framework changes alone to deliver approximately $850 million in savings over two years, with around 40% expected during fiscal 2027 and the remainder in fiscal 2028.

    For fiscal 2027, Diageo expects broadly flat organic net sales, with North American sales likely to decline in a market that management estimates is contracting by about 3%. Organic operating profit is forecast to grow at a low- to mid-single-digit rate.

    The company expects free cash flow of around $2 billion in fiscal 2027 after absorbing approximately $850 million in restructuring-related cash costs.

    Looking further ahead, Diageo is targeting low-single-digit annual organic net sales growth, mid-single-digit organic operating profit growth and cumulative free cash flow of around $8 billion between fiscal 2027 and fiscal 2029.

    Chief Executive Sir Dave Lewis said the company was “focused on recovering” North America and “working through the consequences of Government policy in Chinese white spirits,” adding that the revised operating framework “will allow us to invest in the turnaround without needing to reduce operating profit.”

  • US futures trade mixed as investors assess Iran talks and fresh earnings: Dow Jones, S&P, Nasdaq, Wall Street

    US futures trade mixed as investors assess Iran talks and fresh earnings: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures were little changed on Thursday as markets balanced optimism over diplomatic progress in the Middle East against a busy corporate earnings calendar and awaited key labour market data due later this week.

    At 01:17 ET (05:17 GMT), Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures also gained 0.2%. Nasdaq 100 futures slipped 0.1%, as weakness in large technology stocks continued to weigh on sentiment.

    Wall Street ended Wednesday’s trading on a mixed note. The Dow Jones Industrial Average added 0.5%, while the S&P 500 declined 0.2% and the Nasdaq Composite lost 0.8%.

    Technology stocks remained under pressure after investors reacted to reports that SpaceX (NASDAQ:SPCX) plans to significantly increase spending on artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) also moved lower after Elon Musk said SpaceX would no longer use the company’s latest AI chips, despite AMD posting broadly encouraging quarterly results.

    Economic releases also painted a mixed picture. ADP data showed that private-sector hiring slowed more than expected in July, although wage growth remained strong for workers changing jobs. Separate figures pointed to stronger activity across the U.S. services sector, supported by rising new orders and production, while employment weakened and inflationary pressures accelerated. Investors are now looking ahead to Friday’s closely watched U.S. non-farm payrolls report.

    Diplomatic developments remain in focus

    Attention also remained fixed on negotiations between Washington and Tehran.

    Although President Donald Trump has repeatedly said discussions with Iran are progressing positively, no formal agreement has yet been announced.

    Reuters reported that U.S. officials continue to insist any deal must prevent Iran from controlling access to the Strait of Hormuz, the strategic waterway that previously handled around 20% of global oil and liquefied natural gas exports.

    However, the news agency also reported that a proposed arrangement between Iran and Oman would give Tehran oversight of vessels entering the Gulf through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei said both countries have agreed on the geographic coordinates of a designated shipping corridor.

    A senior Iranian official also told Reuters that Tehran is seeking transit charges of up to 7% of the value of cargo carried by commercial vessels. Before the conflict, commercial shipping passed through the strait without paying such fees.

    Oil prices edged around 0.3% lower after a volatile session on Wednesday, with traders continuing to assess the implications for inflation and future central bank policy.

    Sandisk exceeds estimates but guidance prompts profit-taking

    Sandisk (NASDAQ:SNDK) reported quarterly results ahead of analysts’ forecasts, benefiting from stronger pricing and robust demand for memory products used in data centres.

    For the first quarter of fiscal 2027, the company forecast revenue of between $10.3 billion and $10.8 billion, broadly matching analysts’ expectations of $10.62 billion. Adjusted earnings per share are expected to range between $44.00 and $46.00, compared with a consensus estimate of $44.21.

    Despite expanding its share repurchase programme and delivering another quarter of exceptional growth, investors focused on guidance that largely met expectations rather than exceeding them. Shares fell about 2% in after-hours trading.

    Fourth-quarter revenue climbed to $8.97 billion, representing sequential growth of 51% and an increase of 372% from a year earlier. GAAP net income rose to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the same period last year.

    Block upgrades annual outlook

    Block (NYSE:XYZ) reported quarterly revenue and earnings above market expectations and increased its forecast for adjusted profit for the full year.

    The financial technology company also issued stronger-than-expected adjusted profit guidance for the current quarter, although its Class A shares slipped slightly in premarket trading.

    Block’s portfolio includes the Square payments platform, the Afterpay buy-now-pay-later business and Cash App, its largest revenue-generating platform, which enables digital payments, personal finance services and bitcoin trading.

    Originally founded as Square in 2009 by Twitter co-founder Jack Dorsey, the company rebranded as Block in 2021 to reflect its broader ambitions in blockchain and digital technologies.

    Moderna wins FDA approval for first mRNA flu vaccine

    Moderna (NASDAQ:MRNA) announced that the U.S. Food and Drug Administration has approved mFLUSIVA for adults aged 50 and over, making it the company’s first mRNA influenza vaccine and its fourth product authorised by the regulator.

    The biotechnology company expects to begin shipping the vaccine to selected U.S. retailers in the coming weeks ahead of the 2026-2027 respiratory virus season. Worldwide, the approval makes mFLUSIVA Moderna’s fifth authorised product.

    The decision follows a unanimous recommendation from the FDA’s advisory committee and is supported by Phase 3 clinical trial data involving more than 40,800 participants across 11 countries.

    For adults aged 65 and older, the vaccine received accelerated approval based on immune response data from a separate U.S. study involving 2,992 participants. Moderna said further post-marketing studies will be conducted to confirm long-term clinical benefits in older adults.

    The company’s shares moved higher in extended trading.

  • Market Open: Wizz Air Capacity Expansion, Persimmon First-Half Earnings

    Market Open: Wizz Air Capacity Expansion, Persimmon First-Half Earnings

    FTSE 100 edges higher as Wizz Air and Persimmon lead company news, while Brent crude declines and European markets remain near record highs.

    Market Overview

    The FTSE 100 opened marginally higher after gaining 0.01 per cent from the previous close, while the Euronext 100 added 0.04 per cent and Germany’s DAX rose 0.21 per cent at the open. Overnight, the Nasdaq closed lower at 26,363.44 and the S&P 500 finished lower at 7,723.55 as technology shares remained under pressure. European sentiment remained supported by corporate earnings and optimism surrounding progress on a Hormuz shipping agreement despite weaker US technology performance and continued focus on company results.

    Commodity markets reflected a softer risk backdrop, with copper and natural gas edging higher while gold and Brent crude moved lower. Bitcoin rose against sterling. Sterling strengthened modestly against the US dollar and euro, while remaining broadly unchanged against the Swiss franc and Japanese yen, as lower oil prices and easing geopolitical concerns continued to influence broader market sentiment.

    Market Numbers

    FTSE 100: Up (+0.01%), 10,888.45

    Euronext 100: Up (+0.04%), 1,958.56

    DAX: Up (+0.21%), 26,182.21

    NASDAQ: Down, 26,363.44

    S&P 500: Down, 7,723.55

    In the Headlines

    Capacity growth – Wizz Air (LSE:WIZZ)

    Wizz Air expanded passenger capacity and traffic during the first quarter despite reporting a wider loss as higher fuel costs and pricing pressure weighed on earnings. The results underline continued demand growth but highlight the profitability challenges facing European airlines.

    Housing demand – Persimmon (LSE:PSN)

    Persimmon reported higher first-half earnings as home completions increased and operational performance improved. The update reinforces signs of a stabilising UK housing market and supports expectations for continued growth in deliveries.

    Currencies (vs GBP)

    USD: Up (+0.10%), $1.3470

    CHF: Down (-0.01%), Fr.1.0866

    EUR: Up (+0.04%), €1.1655

    JPY: Up (+0.03%), ¥212.298

    AUD: Down (-0.01%), $1.9086

    Bitcoin (BTC/GBP): Up, £48,157.45

    Commodities

    Copper: Up

    Gold: Down

    Brent Crude: Down

    Natural Gas: Up

  • FTSE 100 edges higher as Hormuz developments and earnings dominate investor focus

    FTSE 100 edges higher as Hormuz developments and earnings dominate investor focus

    UK equities traded modestly higher on Thursday as investors monitored developments surrounding the Strait of Hormuz while digesting another busy day of corporate earnings releases.

    By 03:13 ET (07:13 GMT), the FTSE 100 had gained 0.19%. Germany’s DAX was up 0.06%, while France’s CAC 40 led major European markets with a 0.71% advance. Sterling slipped 0.06% against the US dollar to trade at $1.3460.

    Attention remained focused on geopolitical developments after U.S. President Donald Trump dismissed reports suggesting the conflict with Iran had significantly depleted American military stockpiles. In a Truth Social post, Trump said the United States had “massive amounts” of munitions and warned that anyone responsible for leaking military inventory information could face prosecution.

    His comments followed a CNN report citing sources who claimed the U.S. had consumed around 80% of its pre-conflict THAAD interceptor inventory and roughly half of its Patriot missile interceptors since fighting began. According to the report, the situation has also raised concerns among Gulf allies that depend on U.S. air defence systems.

    Separately, The Washington Post reported that Trump challenged Defense Secretary Pete Hegseth over the reported shortages during a meeting at Camp David last Friday. However, both the White House and the Pentagon rejected the report as “fake news,” with Press Secretary Karoline Leavitt and Pentagon spokesman Sean Parnell denying that any confrontation had occurred.

    Meanwhile, Vice President JD Vance told Fox News that negotiations with Tehran would be “messy” and unlikely to conclude quickly. He said Washington would rely on “military, economic and diplomatic” measures to secure a favourable outcome, adding that oil prices, which he said were at “$79 today,” were expected to “come down and stay down.”

    Brent crude rose 0.50% to $79.85 per barrel, while US West Texas Intermediate gained 0.25% to $75.41. Gold futures increased 0.35% to $4,320.50 an ounce, with spot gold also rising 0.35% to $4,261.92.

    UK company news

    Quilter (LSE:QLT) posted first-half earnings below market expectations after a higher policyholder tax charge offset record client inflows and stronger revenue growth.

    Wizz Air (LSE:WIZZ) reported a larger-than-anticipated quarterly loss as higher fuel prices and weaker unit revenues outweighed strong capacity growth, while also warning of a softer outlook for the current quarter.

    Persimmon (LSE:PSN) increased its forecast for 2026 home completions to the upper end of its previous guidance, although it cautioned that rising construction costs may not be fully recoverable in 2027.

    Harbour Energy (LSE:HBR) upgraded its full-year production and free cash flow guidance following record first-half output and stronger oil and gas prices, while also unveiling a $250 million share buyback programme.

    Michael Page (LSE:PAGE) reported higher first-half profit, with growth across Asia-Pacific and the Americas helping to offset continued macroeconomic uncertainty in global recruitment markets.

  • Wizz Air expands capacity despite higher costs weighing on first-quarter earnings

    Wizz Air expands capacity despite higher costs weighing on first-quarter earnings

    Wizz Air (LSE:WIZZ) delivered strong passenger growth during the first quarter, with traffic increasing 25% year on year as the airline continued to expand capacity through its predominantly Airbus A321neo fleet. Despite the increase in demand, higher fuel prices and pressure on ticket yields resulted in a net loss of €198.2 million. The airline nevertheless maintained one of the strongest liquidity positions in the European aviation sector, continued returning aircraft affected by Pratt & Whitney GTF engine inspections to service, expanded its network with new bases in Spain and Kosovo, and confirmed plans to introduce satellite-based in-flight internet to enhance the customer experience.

    Operational performance also improved during the period, with stronger on-time performance and a completion rate close to 100%. While higher fuel costs increased unit costs (CASK) and rapid capacity expansion weighed on unit revenues, management continued to focus on disciplined cost control and careful capacity allocation. Wizz Air remains committed to further double-digit capacity growth, supported by extensive fuel hedging, a substantial aircraft order book and a strategy designed to capture additional market share as European airline supply and demand continue to rebalance.

    The investment outlook remains mixed. Recent profitability has been affected by higher operating costs, while the company’s relatively high debt levels increase financial risk within the cyclical airline industry. However, improving cash generation, an attractive valuation based on earnings multiples and technical indicators pointing to a moderately positive share price trend provide support for the longer-term investment case.

    About Wizz Air Holdings

    Wizz Air Holdings is one of Europe’s leading ultra-low-cost airlines, operating short- and medium-haul routes across Central and Eastern Europe as well as major Western European markets. The company operates one of the youngest and most fuel-efficient fleets in the industry, centred on the Airbus A321neo aircraft.

    Its business model focuses on maintaining low operating costs through high aircraft utilisation, efficient point-to-point networks and disciplined capacity management, enabling the airline to offer competitive fares while pursuing long-term market share growth.