Category: Top Story

Banco Santander (LSE:BNC) reported a 3% increase in second-quarter net profit as strong performances in Spain and the UK helped offset higher loan-loss provisions in Brazil and Argentina, while underlying earnings exceeded market expectations.

The eurozone’s largest bank by market value posted attributable net profit of €3.52 billion for the three months to June, up from €3.43 billion in the same period last year. Results included €250 million of restructuring costs linked to the integration of TSB, which Santander completed at the end of April.

Excluding those one-off charges, underlying net profit rose 17% year on year to €3.77 billion, slightly ahead of analyst expectations of €3.75 billion.

Spain and UK deliver strongest earnings growth

Santander’s domestic business remained a key contributor, with net profit in Spain increasing 12% compared with the previous year as lending volumes expanded. In the UK, quarterly profit surged 47%, reflecting stronger operating performance and the initial contribution from the recently acquired TSB business.

Group revenue increased 9% during the quarter, comfortably outpacing a 2% rise in operating expenses. As a result, the bank maintained its efficiency ratio at 42.8%, unchanged from the previous quarter.

Higher provisions weigh on Latin American operations

Overall loan-loss provisions rose 13% to €3.35 billion, broadly in line with market forecasts. The increase was driven by higher provisioning in Brazil, where slower interest rate cuts have placed pressure on asset quality, and by a sharp rise in impairments in Argentina.

Executive Chair Ana Botín said the group’s diversified business model continued to provide resilience despite a more uncertain global backdrop.

“Our business, geographic and balance sheet diversification… remain key strengths amid heightened geopolitical uncertainty,” Botín said.

Growth strategy remains on track

Santander reaffirmed its financial targets for the 2026–2028 period, including expectations for mid-single-digit revenue growth in 2026, lower costs in constant euros, higher profits and a common equity tier one (CET1) capital ratio of between 12.8% and 13%.

The bank ended June with a CET1 ratio of 14%, even after completing the acquisition of TSB, highlighting the strength of its capital position.

Management continues to pursue expansion in developed markets through acquisitions, including TSB in the UK and Webster Financial in the United States, as part of a strategy to increase annual profit to more than €20 billion over the next three years.

Key highlights

• Attributable net profit increased 3% year on year to €3.52 billion.
• Underlying net profit rose 17% to €3.77 billion, exceeding market forecasts.
• Revenue grew 9%, while operating costs increased just 2%.
• Profit in Spain rose 12%, with UK profit jumping 47%.
• CET1 capital ratio stood at 14% following the TSB acquisition.
• Santander reaffirmed its medium-term financial targets.

MedPal AI plc (LSE:MPAL) has taken another significant step towards transforming digital healthcare with its acquisition of eMARx, completing what the company describes as its Health OS for the UK care home sector. The acquisition brings together prescribing, pharmacy fulfilment, medication administration and patient data into a single integrated platform, positioning MedPal AI to capitalise on one of the fastest-growing opportunities in healthcare technology.

Speaking on The Watchlist, Chief Executive Officer Jason Drummond explained that the acquisition represents far more than adding another software business. Instead, it completes a fully connected healthcare ecosystem designed to improve patient outcomes while creating a scalable, recurring revenue model.

“eMARx was the missing piece,” Drummond said. “We can now see the entire patient journey from the moment a GP issues a prescription, through robotic dispensing and delivery, right to the point where medication is administered to the resident.”

Addressing a Major Healthcare Challenge

The UK care home market represents a substantial opportunity, with approximately 16,500 care homes and more than 500,000 registered residents. According to Drummond, NHS England spent around £21 billion on medicines during 2025, with over £10 billion allocated to primary care, highlighting the scale of the market MedPal AI is targeting.

The company’s strategy aims to modernise a process that has historically relied on local community pharmacies by replacing fragmented systems with a centralised, technology-driven model.

MedPal AI’s pharmacy infrastructure combines advanced robotics with AI-powered software, creating an end-to-end solution capable of tracking medication throughout the entire supply chain. The addition of eMARx, which manages electronic medication administration within care homes, enables complete visibility from prescription through to patient administration.

Improving Care Through Connected Technology

For Drummond, the project also has a personal dimension.

He explained that his own experience supporting his mother, who lives with dementia in a care home, highlighted how difficult it can be for families to understand and monitor a loved one’s medication. That experience helped shape MedPal AI’s vision of making healthcare information more transparent and accessible for both care providers and families.

The integrated platform has the potential to significantly reduce medication errors, while providing greater confidence for carers, clinicians and relatives alike.

A Powerful Commercial Model

Alongside its clinical benefits, the acquisition strengthens MedPal AI’s commercial proposition.

Drummond confirmed that eMARx is already a profitable and growing business, bringing an established customer base and recurring software revenues to the group.

By combining the software platform with MedPal AI’s pharmacy services, the company can offer a more compelling proposition to care homes while increasing customer lifetime value.

The integrated offering also creates opportunities to bundle pharmacy supply with the eMARx platform, allowing MedPal AI to offer attractive commercial incentives while expanding recurring revenues across both software subscriptions and pharmacy fulfilment.

Technology Designed to Reduce Medication Errors

Medication errors remain a significant challenge across the care sector.

Drummond highlighted NHS estimates suggesting that around 250,000 hospital admissions each year involve care home residents, with 35–40% considered avoidable due to medication errors or inappropriate medicines management.

MedPal AI believes its combination of highly accurate robotic dispensing and the eMARx medication administration platform can play a meaningful role in reducing those avoidable incidents by improving accuracy, visibility and accountability throughout the medication journey.

Building the Healthcare Operating System

With the acquisition of eMARx, MedPal AI has moved closer to delivering its vision of a fully integrated Health OS for care homes.

Rather than operating as a traditional pharmacy provider, the company is building a technology-led platform that combines AI, pharmacy infrastructure, robotics and software into a single connected ecosystem.

As demand grows for more efficient, data-driven healthcare solutions, MedPal AI’s integrated approach positions the company to benefit from both expanding digital healthcare adoption and the increasing need for scalable care home services. By unifying software, pharmacy operations and patient data, the business is creating a platform designed to improve outcomes for residents while establishing multiple recurring revenue streams that could support long-term growth.

For more information visit – https://medpal.co/

Fresnillo (LSE:FRES) delivered a solid operational performance during the second quarter of 2026, with attributable silver production reaching 10.9 million ounces. Silver output declined 1.7% from the previous quarter and was 12.6% lower than a year earlier, reflecting reduced ore grades at several key operations and the planned conclusion of the Silverstream agreement. Gold production increased 13.8% quarter on quarter to 154,812 ounces, although it remained 1.9% below the level recorded in the same period last year.

Production of by-product metals, including lead and zinc, improved during the quarter, and the company reaffirmed its full-year 2026 production guidance across all of its principal commodities.

Operational focus remains on safety and efficiency

Fresnillo said it continues to prioritise workplace safety through initiatives aimed at achieving zero fatalities across its operations. The company also confirmed a leadership change within its Central Region, with long-serving executive Gabriel Durán assuming responsibilities on an interim basis following the departure of the regional chief operating officer.

Management continues to address operational challenges, including ore grade variability, ground stability issues and equipment constraints, through enhanced mine planning and additional ground support measures designed to improve productivity and operational reliability.

Strong financial position supports long-term outlook

The miner remains focused on balancing production volumes with cost discipline and operational efficiency as it prepares to report its interim financial results on 4 August 2026.

Management believes its diversified production profile, project pipeline and ongoing operational improvements position the company to continue generating value for shareholders despite mine-specific challenges.

Investment outlook

Fresnillo’s investment case is supported by a significant recovery in profitability and cash flow during 2025, together with low leverage and a pipeline of development projects that supports future production.

However, near-term technical indicators remain relatively subdued, with the shares trading below their 20-day and 50-day moving averages. Valuation also appears less compelling, with the stock trading on a price-to-earnings ratio of around 23.4, while higher capital expenditure and tax-related cash outflows are expected to weigh on performance during 2026.

About Fresnillo

Fresnillo plc is a London-listed precious metals mining company with large-scale underground and open-pit operations across Mexico. The group is one of the world’s largest primary silver producers and a major gold producer, while also generating revenue from lead and zinc by-products.

Its strategy focuses on maintaining efficient, low-cost operations, advancing a portfolio of development projects and investing in operational excellence to support long-term production growth and shareholder returns.

Bloomsbury Publishing (LSE:BMY) is set to benefit from a US$1.5 billion class-action settlement involving artificial intelligence company Anthropic over allegations that copyrighted works were used without permission to train AI models. A US District Court has approved the settlement, which covers 14,087 Bloomsbury titles. After fees, approximately US$3,000 per title will be distributed, with the proceeds split equally between authors and the publisher through a series of payments beginning in the second half of the current financial year.

Settlement provides additional financial flexibility

The payment represents a significant one-off cash benefit that will strengthen Bloomsbury’s already solid financial position. The publisher intends to continue allocating capital towards strategic investment, debt reduction where appropriate, dividend payments and selective acquisitions, with the settlement providing additional flexibility to support these priorities.

The agreement also highlights the increasing legal and financial consequences surrounding the use of copyrighted material in generative AI systems, marking another important development in the relationship between technology companies and content owners.

AI ruling reinforces value of publishing rights

The settlement reflects the growing importance of intellectual property rights as artificial intelligence becomes more widely adopted. For publishers such as Bloomsbury, it demonstrates the commercial value of extensive publishing catalogues and may influence future licensing arrangements between rights holders and AI developers.

Management is expected to continue investing in organic growth and strategic acquisitions while strengthening the company’s position in an industry increasingly shaped by advances in artificial intelligence.

Investment outlook

Bloomsbury continues to benefit from strong cash generation, improving free cash flow and a low-leverage balance sheet. Its valuation also remains attractive, supported by a relatively low price-to-earnings ratio and a healthy dividend yield.

Technical indicators remain constructive, with the shares trading above key moving averages and showing positive momentum. However, softer revenue and earnings performance during 2026 continues to moderate the overall outlook.

About Bloomsbury Publishing

Bloomsbury Publishing PLC is a UK-based publishing company with operations across both consumer and academic markets. Its catalogue includes fiction, non-fiction and scholarly publications, serving readers, educational institutions and professional audiences around the world.

The company combines organic growth with selective acquisitions while maintaining a disciplined approach to capital allocation, supported by a strong net cash position. Its strategy focuses on expanding its publishing portfolio, investing in digital capabilities and delivering long-term value for shareholders.

J D Wetherspoon (LSE:JDW) said like-for-like sales increased by approximately 4% year to date, while its estate stood at 793 managed pubs after opening eight new locations and disposing of nine. The group has also expanded its franchised business to 23 pubs. During the period, the company continued returning capital to shareholders through the repurchase of more than 6.4 million shares and invested further in acquiring freehold interests, with net debt expected to finish the financial year at broadly similar levels.

Rising operating costs offset steady trading

Although trading remained resilient, chairman Tim Martin said the company’s full-year profit is now expected to fall short of current market forecasts. The warning reflects softer-than-anticipated trading during the final quarter, combined with higher operating expenses across food, wages, maintenance, energy and business rates.

The update suggests that inflationary pressures continue to squeeze margins despite healthy sales growth and ongoing investment across the estate. While Wetherspoon remains committed to strengthening its property portfolio and enhancing shareholder returns through share buybacks, the weaker profit outlook could weigh on investor confidence.

Financial strengths balanced by leverage concerns

The company’s investment case continues to benefit from positive technical indicators, with the share price trading above key moving averages and supported by a favourable MACD signal. Cash generation has also improved, providing additional financial flexibility.

However, these strengths are balanced by a relatively high debt-to-equity ratio, highlighting elevated leverage. Valuation metrics also remain only moderately attractive, with the shares trading on a price-to-earnings ratio of 14.09 and offering a dividend yield of 1.67%.

About J D Wetherspoon

J D Wetherspoon plc is a leading pub operator across the UK and Ireland, managing a large portfolio of company-owned and franchised venues. The business focuses on providing competitively priced food and drinks in individually designed pubs, supported by an emphasis on customer service and operational efficiency, making it one of the UK’s best-known value hospitality operators.