ADVFN UK Market News

Blog

  • Wall Street Futures Retreat as AI Borrowing Plans and Global Bond Market Risks Unsettle Investors: Dow Jones, S&P, Nasdaq

    Wall Street Futures Retreat as AI Borrowing Plans and Global Bond Market Risks Unsettle Investors: Dow Jones, S&P, Nasdaq

    US stock index futures moved lower on Thursday as investors weighed growing debt market pressures, higher energy prices and reports that major technology companies are seeking billions of dollars to finance artificial intelligence infrastructure.

    The latest developments came alongside earnings updates from Applied Digital (NASDAQ:APLD) and Samsung Electronics (USOTC:SSNHZ), while minutes from the Federal Reserve’s September meeting provided further indications about the outlook for US interest rates.

    At 02:54 ET (06:54 GMT), Dow Jones futures declined 262 points, or 0.5%. S&P 500 futures fell 23 points, equivalent to 0.3%, while Nasdaq 100 futures lost 154 points, or 0.5%.

    The weaker futures followed declines in the main US equity indices during the previous session, when rising bond yields and concerns about Middle Eastern oil supplies affected market sentiment.

    French Debt Market Turbulence Adds to Global Borrowing Cost Pressures

    Government bond markets remained under pressure as concerns about France’s public finances contributed to increased volatility across European sovereign debt.

    The yield spread between French and German 10-year government bonds was on course for its largest daily widening since the COVID-19 pandemic in 2020 before easing later in the session.

    Deutsche Bank analysts identified France as a major contributor to the latest global bond market sell-off, noting that sovereign yield spreads had widened across several European countries.

    The developments raised concerns about renewed financial market contagion after a period of relative improvement in European debt market conditions.

    In the UK, the benchmark 10-year gilt yield reached its highest level since 2007, while Italian government bond yields also increased.

    Rising oil prices added to the pressure as investors considered the inflationary implications of possible energy supply disruptions in the Middle East.

    US Treasury markets experienced similar volatility. Strong demand at an auction of 10-year government bonds provided some support, although the 30-year Treasury yield climbed to its highest level in more than two decades.

    The US 10-year Treasury yield subsequently stood at 5.327%.

    Higher yields have raised concerns about financing conditions for governments and businesses, while also influencing investor demand for equities and other risk-sensitive assets.

    Broadcom, Oracle and SpaceX Reportedly Pursue Major AI Financing Deals

    Reports of substantial debt financing plans among US technology companies added another source of uncertainty for global bond investors.

    According to The Wall Street Journal, Broadcom (NASDAQ:AVGO) has been working to secure more than $50 billion to support a custom artificial intelligence chip project being developed with OpenAI.

    The newspaper also reported that Oracle (NYSE:ORCL) was discussing financing arrangements with Apollo and Goldman Sachs for a large purchase of computing chips.

    Separately, the Financial Times reported that SpaceX was seeking approximately $40 billion from lenders to fund purchases of Nvidia processors.

    The proposed transactions underline the scale of investment required to expand AI computing capacity, with technology companies committing substantial resources to processors, data centres and supporting infrastructure.

    Analysts at Vital Knowledge suggested that the volume of borrowing associated with AI investment could maintain upward pressure on US Treasury yields.

    An increase in corporate debt supply could also create additional competition for investment capital at a time when government borrowing costs remain elevated.

    Applied Digital Revenue Surges While Equipment Spending Exceeds $2 Billion

    Applied Digital (NASDAQ:APLD) reported first-quarter fiscal revenue of $342 million, representing a 322% increase from the corresponding period a year earlier.

    The result exceeded Wall Street forecasts, reflecting continued demand for data centre infrastructure supporting AI computing.

    Adjusted core earnings reached $64.4 million, also ahead of analysts’ expectations.

    However, the company’s expenditure on property and equipment rose 730% year on year to $2.074 billion.

    That spending substantially exceeded Applied Digital’s reported cash flow of $64 million, highlighting the financial requirements associated with expanding AI data centre operations.

    The difference between revenue growth and infrastructure spending has drawn attention to the financing demands facing companies involved in the artificial intelligence investment cycle.

    Vital Knowledge analysts pointed to Applied Digital’s results as an example of the sector’s combination of rapid commercial expansion and substantial capital expenditure.

    Applied Digital shares advanced in after-hours trading following the announcement.

    Samsung Delivers Record Third-Quarter Earnings Estimate

    Samsung Electronics (USOTC:SSNHZ) forecast record operating profit for the third quarter, supported by strong demand for memory chips used in artificial intelligence applications.

    The company estimated operating profit of approximately 107.40 trillion won, or $80.1 billion, for the three months ended 30 September.

    This compared with 12.2 trillion won during the same period last year, representing an increase of almost tenfold.

    The preliminary figure was slightly below Bloomberg’s consensus estimate of 108.67 trillion won but exceeded LSEG’s forecast of 106.1 trillion won.

    Samsung also projected third-quarter sales of 195 trillion won, more than double the 86.06 trillion won recorded a year earlier.

    The result marked the company’s fourth consecutive quarter of record profits.

    Despite the strong performance, Samsung shares declined during volatile trading, contributing to weakness in South Korea’s KOSPI index.

    Shares in fellow memory chip producer SK Hynix also moved lower.

    Fed Minutes Point to Possible October Hold Before December Rate Increase

    Minutes from the Federal Reserve’s September policy meeting suggested that officials were prepared to wait for further economic evidence before implementing another interest rate increase.

    The central bank raised borrowing costs in September for the first time since 2023, responding to persistent inflationary pressures.

    The meeting record indicated that policymakers intended to assess incoming economic data and consider each policy decision independently.

    Although most officials believed another increase in the federal funds rate would probably be appropriate before the end of the year, the minutes suggested limited urgency to act at the next meeting.

    The Fed could therefore leave interest rates unchanged on 27–28 October while retaining the option of a further increase at its December gathering.

    CME FedWatch data indicated that investors were assigning approximately a 78% probability to unchanged rates in October and a 67% probability to a December increase.

    The outlook for US monetary policy remains closely linked to developments in global debt markets, particularly as rising energy costs and substantial AI-related borrowing plans create additional uncertainty for investors.

  • European Gas Prices Rise as Middle East Shipping Attacks Threaten LNG Supplies

    European Gas Prices Rise as Middle East Shipping Attacks Threaten LNG Supplies

    European wholesale natural gas prices rose on Thursday as escalating attacks on commercial shipping in the Middle East heightened concerns about liquefied natural gas (LNG) deliveries, outweighing the impact of increasing European gas storage levels ahead of winter.

    The benchmark Dutch front-month TTF natural gas contract gained 2.8% to €80.20 per megawatt-hour (MWh), while the equivalent UK wholesale gas contract advanced 3.0% to 199.40 pence per therm.

    The increases followed reports from maritime security agencies of intensified drone and missile attacks targeting commercial tankers and energy vessels travelling through the Strait of Hormuz and the Red Sea.

    The escalation renewed concerns about potential disruptions to international energy shipments, reversing the relative stability observed in European gas markets earlier in the week.

    Higher war-risk insurance premiums and the possibility of LNG carriers being diverted onto alternative shipping routes have added to uncertainty surrounding European gas import schedules.

    Changes to shipping routes could increase transportation costs and delay deliveries to European LNG terminals, particularly if security conditions deteriorate further.

    LNG transportation faces additional logistical challenges because shipments depend on specialised vessels and dedicated import infrastructure. While some crude oil shipments have been redirected through alternative routes, analysts have warned that disruptions to LNG deliveries can take longer to resolve.

    These concerns have contributed to renewed upward pressure on European wholesale gas prices as the region approaches its winter heating season.

    European Gas Storage Reaches 72.83% Ahead of Winter

    European underground gas storage facilities have continued to increase their inventories despite heightened uncertainty surrounding international energy supplies.

    According to the latest figures from Gas Infrastructure Europe, natural gas storage across the European Union reached 72.83% of capacity, compared with approximately 66% a month earlier.

    The increase reflects continued injections into storage facilities ahead of winter, providing an additional supply buffer during periods of higher demand.

    However, current inventories remain below the levels recorded at the corresponding point last year, leaving European markets more exposed to potential supply interruptions or unexpectedly strong consumption.

    Weather forecasts for northwestern Europe have also shifted towards lower temperatures, raising the possibility that demand for residential and commercial heating could increase earlier than previously expected.

    An earlier start to the heating season could accelerate withdrawals from underground storage facilities, particularly if colder weather coincides with delays to LNG imports.

    The combination of geopolitical supply risks, higher shipping costs and the prospect of increased winter demand continues to influence European gas prices, despite the improvement in storage levels over the past month.

  • European Stocks Fall to Four-Month Lows as Bond Market Pressure and Middle East Tensions Weigh on Sentiment: DAX, CAC, FTSE100

    European Stocks Fall to Four-Month Lows as Bond Market Pressure and Middle East Tensions Weigh on Sentiment: DAX, CAC, FTSE100

    European equities declined on Thursday, with the region’s main benchmark reaching its lowest level in almost four months as rising bond yields, concerns about substantial US corporate debt issuance and renewed Middle East energy supply risks weighed on investor sentiment.

    The pan-European Stoxx Europe 600 index fell 1%, reaching its lowest level since 11 June after ending a three-session winning streak on Wednesday.

    Germany’s DAX declined 1%, while France’s CAC 40 lost 0.9%. London’s FTSE 100 fell 0.7%, and Italy’s FTSE MIB recorded a larger decline of 1.3%.

    The losses followed a brief recovery in European equities earlier in the week, with investors continuing to assess developments in global fixed-income markets, monetary policy and government finances.

    US Corporate Bond Issuance Adds to Debt Market Concerns

    Reports that major US technology companies are preparing substantial bond offerings added to uncertainty in international debt markets.

    SpaceX (NASDAQ:SPCX) and Broadcom (NASDAQ:AVGO) were among the companies reportedly considering debt issuance, with the combined potential fundraising estimated at approximately US$80 billion.

    The prospect of additional corporate bond supply raised concerns about competition for institutional investment capital, particularly as government borrowing costs remain elevated.

    Large corporate debt offerings could influence demand for sovereign bonds and affect borrowing conditions across fixed-income markets.

    European technology shares declined amid the broader market weakness, reflecting the sector’s exposure to global technology investment and international supply chains.

    Infineon (TG:IFX) fell 2.7%, while ASML (EU:ASML) declined 2.3%. BE Semiconductor (EU:BESI) and STMicroelectronics (BIT:STMMI) each lost 2.6%.

    Although European equity markets have less direct exposure to some of the largest US technology companies, several European semiconductor and industrial businesses maintain commercial relationships with American technology groups.

    Middle East Conflict Pushes Energy Prices Higher

    Renewed military activity in the Middle East contributed to increases in crude oil prices and European wholesale natural gas futures.

    Reports of drone and missile attacks affecting commercial shipping and energy infrastructure in the Persian Gulf and Red Sea heightened concerns about potential disruptions to energy supplies.

    The increase in energy prices reversed part of their recent declines and added to uncertainty surrounding the cost of fuel and industrial production in Europe.

    Higher energy costs are particularly relevant for energy-intensive manufacturers and other businesses exposed to fluctuations in electricity, natural gas and petroleum prices.

    The developments also raised concerns about inflation at a time when government bond yields have already increased across major economies.

    European businesses face the prospect of higher energy expenditure as seasonal heating demand begins to increase in northwestern Europe.

    Federal Reserve Minutes Reinforce Interest Rate Concerns

    Investor sentiment was also affected by the publication of minutes from the US Federal Reserve’s September monetary policy meeting.

    The minutes indicated that a majority of Federal Open Market Committee policymakers continued to consider another interest rate increase likely before the end of 2026.

    The assessment reduced expectations of an imminent shift towards monetary easing and added to pressure on global bond markets.

    Higher US interest rates can influence borrowing costs internationally and affect valuations across equity and fixed-income markets.

    French Fiscal Concerns Add Pressure to Banks and Equities

    France remained a focus for investors amid concerns about its budget deficit, political uncertainty and the outlook for government borrowing.

    Bank of France Governor Emmanuel Moulin acknowledged on Wednesday that the country’s economic and fiscal position was serious, citing widening budget deficits and political instability.

    However, Moulin rejected suggestions that France required emergency assistance from the European Central Bank, indicating that the country’s fiscal challenges should be addressed through domestic budget measures.

    The CAC 40 remained near its lowest level since March and was heading towards a second consecutive weekly decline as investors assessed the potential consequences of prolonged budget negotiations.

    French banking shares were among the stocks affected by the selling pressure, reflecting concerns about their exposure to domestic government debt.

    Société Générale (EU:GLE) and BNP Paribas (EU:BNP) each declined by more than 2%.

    The broader decline in European equities reflected the combined impact of higher financing costs, uncertainty over monetary policy, renewed energy supply risks and concerns about fiscal conditions in France.

  • Market Open: Tesco Profit Rises, Imperial Brands Buyback

    Market Open: Tesco Profit Rises, Imperial Brands Buyback

    FTSE 100 slips as Tesco reports higher profit and Imperial Brands announces a £1.5bn buyback. Brent crude rises amid Middle East supply concerns.

    Market Overview

    The FTSE 100 opened 0.04 per cent lower at 10,396.56, with mining stocks weighing on UK equities amid renewed concerns over Middle Eastern oil supplies. European markets also weakened, with the Euronext 100 down 1.09 per cent at 1,836.10 and Germany’s DAX falling 0.82 per cent to 24,897.86, as French debt concerns and wider financial market uncertainty affected sentiment. On Wall Street, the Nasdaq closed lower at 27,538.69, while the S&P 500 declined to 7,801.77.

    Commodity markets showed mixed movements, with copper and gold declining while Brent crude and natural gas advanced. Oil supply concerns remained in focus following attacks on shipping in the Middle East, supporting energy prices. Against sterling, the US dollar, Swiss franc and Japanese yen strengthened, while the euro and Australian dollar weakened. Bitcoin also moved lower, reflecting a cautious tone across risk-sensitive assets.

    Market Numbers

    FTSE 100: Down (0.04%), 10,396.56
    Euronext 100: Down (1.09%), 1,836.10
    DAX: Down (0.82%), 24,897.86
    NASDAQ: Down, 27,538.69
    S&P 500: Down, 7,801.77

    In the Headlines

    Profit Growth and Buyback Increase – Tesco (LSE:TSCO)
    Tesco reported a 6.3 per cent increase in first-half adjusted operating profit to £1.78 billion and raised its share buyback target. The performance highlights continued profitability at the UK supermarket group, with increased capital returns providing an additional focus for shareholders.

    Full-Year Outlook Confirmed – Imperial Brands (LSE:IMB)
    Imperial Brands reaffirmed its financial outlook for 2026 and announced a £1.5 billion share buyback programme for 2027. The announcement provides investors with greater visibility over planned shareholder returns as the tobacco group maintains its existing financial expectations.

    Currencies (vs GBP)

    USD: Up (0.06%), $1.3199
    CHF: Up (0.05%), Fr.1.1001
    EUR: Down (0.05%), €1.1793
    JPY: Up (0.03%), ¥208.836
    AUD: Down (0.01%), $1.8986
    Bitcoin (BTC/GBP): Unchanged, £62,986.14

    Commodities

    Copper: Down
    Gold: Down
    Brent Crude: Up
    Natural Gas: Up

  • FTSE 100 Falls as Mining Stocks Decline and Oil Prices Rise on Strait of Hormuz Supply Concerns

    FTSE 100 Falls as Mining Stocks Decline and Oil Prices Rise on Strait of Hormuz Supply Concerns

    UK equities moved lower on Thursday as weakness among mining companies, rising government bond yields and renewed concerns over oil shipments through the Strait of Hormuz weighed on market sentiment.

    The FTSE 100 declined 0.60% by 08:21 BST, while European markets also traded lower. Germany’s DAX fell 0.82%, and France’s CAC 40 lost 0.90%. Sterling weakened 0.15% against the US dollar to $1.3203.

    Mining stocks were among the largest contributors to the decline in London, reflecting weakness across several industrial metals and continued pressure from higher borrowing costs.

    Antofagasta (LSE:ANTO) fell 2.1%, while Anglo American (LSE:AAL), Rio Tinto (LSE:RIO) and Fresnillo (LSE:FRES) recorded losses ranging from 1.4% to 1.8%.

    In commodities trading, silver declined 1.5%, aluminium on the London Metal Exchange fell 0.6%, and nickel slipped 0.63%. Copper prices were broadly unchanged.

    Oil prices, meanwhile, advanced sharply amid concerns about shipping activity and potential supply disruptions in the Strait of Hormuz.

    Brent crude futures rose 3.7% to $103.89 a barrel, while US West Texas Intermediate gained 3.2% to $91.25.

    Gold prices also increased, with futures advancing 0.22% to $4,159 an ounce and spot gold rising 0.37% to $4,126.52.

    Shipping data indicated a reduction in vessel movements through the Strait of Hormuz. According to Kpler, transits declined to a two-month low, with seven vessels recorded on Tuesday and 10 on Wednesday, compared with more than 20 on each of Sunday and Monday.

    Crude oil flows through the waterway were estimated at a minimum of 10.1 million barrels per day, equivalent to approximately 74% of levels recorded before the conflict.

    The UK Maritime Trade Operations organisation reported that a tanker had been struck by projectiles off the coast of Qatar on Wednesday, adding to concerns about maritime security in the region.

    Statements from Iranian and US officials presented differing assessments of the situation.

    Iranian Foreign Minister Abbas Araghchi claimed on social media platform X that US aircraft losses were substantially higher than publicly reported, alleging that 81 aircraft had been downed, compared with 42 cited by the Congressional Research Service in May. He did not provide evidence to substantiate the claim.

    Separately, Ali Mohammadi, deputy political commander of Iran’s Islamic Revolutionary Guard Corps Navy, challenged US statements about conditions in the waterway.

    A White House official told Al Jazeera that the Strait of Hormuz remained open and that substantial volumes of crude oil were being escorted through the passage daily. Those statements differed from the shipping activity figures reported by Kpler.

    US President Donald Trump also commented on the possibility of an agreement with Iran during a campaign rally in San Antonio, Texas, indicating limited interest in pursuing a deal under the circumstances described.

    NBC reported that indirect discussions had taken place in New York, with Washington rejecting an Iranian proposal linking the reopening of the strait to sanctions relief.

    Separately, The Atlantic reported that Trump had requested military strike options ahead of the US midterm elections scheduled for 3 November.

    Government bond markets remained another source of pressure on equities.

    The yield on the benchmark US 10-year Treasury note rose to 5.329%, approaching its 52-week high of 5.366%.

    In the UK, the 30-year gilt yield increased to 6.018%, close to its recent peak of 6.036%.

    Higher bond yields can increase financing costs for businesses and influence equity valuations, particularly when investors reassess the outlook for interest rates and economic growth.

    ING analyst Michiel Tukker linked increased volatility in European interest rate markets to movements in US Treasury yields, particularly after the benchmark yield moved above 5%.

    He indicated that elevated volatility could persist over the coming months.

    UK Corporate News: Tesco, Imperial Brands and Unite Group

    Tesco (LSE:TSCO) raised the lower end of its full-year profit guidance following an increase in first-half operating profit. The supermarket group reported operating profit growth of 6.5% and increased its share buyback target to £950 million.

    Imperial Brands (LSE:IMB) reaffirmed its financial outlook for the year and announced a further £1.5 billion share repurchase programme. The tobacco company said growth in next-generation products helped offset weaker conventional cigarette sales.

    Unite Group (LSE:UTG) reported a 4% quarterly decline in the valuation of its principal student accommodation fund. The company also reiterated plans to dispose of between £300 million and £400 million of assets during the year.

    The combination of falling mining shares, rising oil prices and elevated government bond yields contributed to the weaker performance of UK equities, while investors continued to monitor developments in the Middle East and their implications for energy supplies and financial markets.

  • Man Group Shares Rise as Citi Upgrades Rating to Buy and Raises Price Target to 390p

    Man Group Shares Rise as Citi Upgrades Rating to Buy and Raises Price Target to 390p

    Man Group (LSE:EMG) shares advanced on Thursday after Citigroup upgraded the investment manager to Buy from Neutral and increased its price target to 390 pence from 335 pence, citing improving investment performance and expectations of higher earnings.

    The shares gained 0.9% to 329.86 pence, outperforming the broader UK mid-cap market, with FTSE 250 futures declining approximately 0.8%.

    Citi said Man Group’s investment fundamentals had strengthened despite the company’s valuation multiple declining during the year. According to the broker, Man was the only traditional asset manager within its coverage to experience a valuation de-rating in 2026 while earnings estimates and underlying business indicators improved.

    The bank identified increasing demand for liquid alternative investment strategies as a potential source of growth for Man Group, particularly as market volatility creates opportunities for investment managers operating across different asset classes.

    Citi expects improved fund performance to support client inflows, management fee margins and profitability.

    The broker forecast adjusted profit before tax of £899 million for the 2026 financial year, approximately 33% above market consensus estimates.

    For 2027, Citi projected adjusted pre-tax profit of £742 million, representing an 8% premium to consensus expectations.

    Revenue for 2026 is forecast to reach £2.16 billion, around 15% above consensus, with performance-related fees expected to contribute significantly to the company’s financial results.

    Citi also projected continued growth in assets under management, forecasting €273.8 billion for 2026, approximately 3% ahead of consensus estimates.

    For 2027, the bank expects assets under management to increase to €305.2 billion, exceeding current market forecasts by approximately 5%.

    The broker anticipates that net client flows will remain stronger than consensus expectations, supported by investment performance and demand for alternative investment products.

    Citi highlighted Man Group’s comparative investment performance, noting that 96% of its assets measured over a three-year period were invested in funds ranking within the top two performance quartiles as of September 2026.

    According to the bank, this represented the strongest investment performance among the traditional asset managers included in its research coverage.

    The upgrade reflects Citi’s assessment that Man Group’s earnings potential is not fully reflected in its current valuation, particularly given the expected contribution from performance fees and continued growth in assets under management.

    Man Group is a London-listed global investment management company specialising in active investment strategies, including quantitative, discretionary and alternative investment approaches. The group manages assets for institutional and private investors across international markets.

  • Standard Life Shares Fall 5% as Aberdeen Plans Sale of 52 Million Shares

    Standard Life Shares Fall 5% as Aberdeen Plans Sale of 52 Million Shares

    Standard Life (LSE:SDLF) shares declined 5% on Thursday after Aberdeen Group (LSE:ABDN) announced plans to sell approximately half its holding in the UK insurer through an institutional share placing.

    The insurer’s shares initially fell as much as 7.7% before recovering part of their losses, as investors assessed the potential impact of the proposed disposal on the market.

    Aberdeen intends to sell approximately 52 million ordinary shares in Standard Life, representing around 5.2% of the insurer’s issued share capital.

    Before the transaction, Aberdeen held approximately 104.1 million Standard Life shares, equivalent to a 10.3% ownership interest. Following the proposed sale, the asset manager expects to retain approximately 52.1 million shares, representing a stake of around 5.2%.

    The disposal is being conducted through an accelerated bookbuild, allowing institutional investors to submit orders for the shares over a shortened marketing period.

    The bookbuilding process commenced immediately following Aberdeen’s announcement, with the results expected to be published on Thursday before the London Stock Exchange opened.

    Completion of the placing remains dependent on investor demand, the final sale price and prevailing market conditions.

    Aberdeen said the proceeds would be allocated in accordance with its existing capital management policy, which prioritises maintaining a strong balance sheet, selective investment in its operations, debt optimisation and shareholder distributions.

    The group has previously announced plans to redeem £210 million of Additional Tier 1 debt at its first available call date in December 2026.

    That planned redemption was disclosed alongside Aberdeen’s half-year results for 2026 and forms part of the company’s wider approach to managing its capital structure.

    Despite the reduction in its shareholding, Aberdeen intends to maintain its commercial relationship with Standard Life.

    The two companies have maintained a strategic partnership since 2018, with the arrangement subsequently simplified and extended in February 2021.

    Aberdeen will continue to act as an asset management partner to Standard Life following the proposed share disposal.

    Aberdeen Chief Executive Jason Windsor said the transaction represents further progress in simplifying the group’s structure as it pursues its objective of becoming a leading UK wealth and investments business.

    The planned sale reduces Aberdeen’s direct equity exposure to Standard Life while preserving the asset management relationship between the two companies.

    Standard Life is a UK insurance, pensions and retirement savings business, while Aberdeen Group provides investment management and wealth services. Both companies are listed on the London Stock Exchange.

  • Next 15 Shares Fall 10% as Half-Year Revenue Declines 6.9% and Group Reports £1.5 Million Loss

    Next 15 Shares Fall 10% as Half-Year Revenue Declines 6.9% and Group Reports £1.5 Million Loss

    Next 15 Group (LSE:NFG) shares declined approximately 10% on Thursday after the marketing and technology consultancy reported a reduction in first-half revenue and a pre-tax loss, compared with a profit in the corresponding period last year.

    The company recorded net revenue of £214.9 million for the six months ended 31 July 2026, down 6.9% from £230.8 million a year earlier. On a like-for-like basis at constant exchange rates, revenue declined 1.3%.

    Next 15 reported a pre-tax loss of £1.5 million, compared with a profit of £15.8 million in the prior-year period. The company attributed the change principally to ongoing litigation expenses and acquisition accounting-related costs.

    Diluted earnings per share moved to a loss of 3.4 pence from earnings of 10.4 pence a year earlier.

    Adjusted operating profit was £32.1 million, compared with £32.7 million in the previous year. Despite the reduction in profit, the adjusted operating margin increased to 14.9% from 14.2%, which the company attributed to cost management measures.

    Net debt increased to £57.3 million from £45.3 million, reflecting payments relating to acquisition earn-outs, taxation and capital expenditure.

    The board maintained the interim dividend at 4.75 pence per share, payable on 20 November 2026 to shareholders registered on 16 October.

    Next 15 also provided an update on the arbitration proceedings concerning its former Mach49 business. The arbitration hearing has concluded, and the company is awaiting a decision.

    The group continues to dispute payment of the remaining acquisition earn-out and has submitted a counterclaim seeking recovery of earn-out amounts previously paid.

    Chief Executive Officer Sam Knights said the company expects a ruling “within this financial year.”

    Looking ahead, Next 15 expects to deliver like-for-like revenue growth for the full financial year, with total revenue and adjusted operating profit anticipated to remain in line with market expectations.

    However, the company said the composition of its financial performance is expected to differ from earlier assumptions. Growth in digital transformation has exceeded expectations, while business disposals and a slower recovery in certain other segments have affected the overall revenue mix.

    The group reported three consecutive months of organic revenue growth between June and August, marking its first such period in three years.

    Within its portfolio, the six businesses classified as Track 1 generated like-for-like revenue growth of 1.8%, with an operating margin of 18.4%.

    Digital transformation was the principal contributor to growth in this category, recording a 26.8% increase in revenue.

    Next 15 has also continued restructuring its business portfolio, reducing the number of operating businesses from 22 to 10.

    Group headcount declined 5% to 3,198 employees as part of the changes to its operating structure.

    The company additionally stated that it had not experienced any material adverse impact from the conflict in the Middle East.

    Next 15 Group is a London-listed marketing and technology consultancy providing services across digital transformation, marketing, communications and business consulting. The company operates through a portfolio of specialist businesses serving corporate clients across international markets.

  • Wise Shares Fall 2.6% Following Report of Tax Statement Errors Affecting 4,000 UK Customers

    Wise Shares Fall 2.6% Following Report of Tax Statement Errors Affecting 4,000 UK Customers

    Wise (LSE:WISE) shares declined 2.6% on Thursday following a Financial Times report that the financial technology company plans to cover potential customer tax liabilities arising from incorrect statements issued through its Wise Asset investment service.

    According to the report, Wise contacted approximately 4,000 UK customers this week after identifying errors in tax statements covering the period from 2021 to 2025.

    The inaccuracies resulted from calculations produced by third-party software used to determine capital gains and investment income from stocks and funds. These figures are relevant to customers’ tax declarations to HM Revenue & Customs (HMRC).

    The Financial Times reported that Wise is negotiating a bulk settlement with HMRC to address any tax shortfalls resulting from the incorrect statements. The company also intends to compensate customers who paid more tax than required because of the errors.

    Wise indicated that receiving an incorrect statement did not necessarily mean a customer had submitted an inaccurate tax return, as individual tax liabilities depend on personal circumstances.

    The company said it has corrected the software issue and provided revised statements to affected customers.

    According to the report, Wise stated that it had resolved the problem and was taking steps to address potential customer liabilities. The company also said there was no continuing risk to customers from the identified issue.

    Wise Asset, which allows customers to invest in stocks and funds through the company’s platform, has attracted approximately US$9 billion in customer investments globally.

    The tax reporting issue follows separate regulatory developments involving Wise during 2026.

    In June, Belgian authorities opened an investigation into potential money laundering offences involving the company, including whether its accounts had been used by international criminal organisations. The investigation concerns possible offences, and the supplied report does not establish any finding of wrongdoing by Wise.

    In July, US regulators rejected Wise’s application for a banking licence, citing deficiencies in its anti-money laundering controls.

    The latest disclosure concerns the accuracy of historical customer tax statements rather than the underlying investment holdings within Wise Asset.

    Wise is a London-listed financial technology company providing international money transfers, multicurrency accounts and investment services. Its Wise Asset offering enables eligible customers to invest through the company’s digital platform.

  • Pennon Group Shares Recover 1.5% Following £550 Million Rights Issue and Dividend Reduction

    Pennon Group Shares Recover 1.5% Following £550 Million Rights Issue and Dividend Reduction

    Pennon Group (LSE:PNN) shares rose 1.5% in London trading on Thursday, recovering part of the previous session’s decline of more than 20%, after the UK water utility announced a fully underwritten rights issue of approximately £550 million and a reduction in its dividend.

    The fundraising forms part of a revised investment programme under the company’s new chief executive, with Pennon planning approximately £1 billion in additional capital expenditure across its regulated water businesses.

    Total investment during the AMP8 regulatory period is now expected to reach approximately £3.6 billion, around £1 billion above the company’s original spending plan.

    Pennon said it intends to identify operational efficiencies during the investment programme and reinvest the resulting savings into its regulated businesses. Full details of the rights issue are provided in a separate announcement and offering circular.

    Alongside the fundraising, the company announced plans to reduce its total dividend for the 2026/27 financial year to approximately £125 million, compared with £138 million previously.

    The reduction will apply to both interim and final dividend payments. After accounting for the lower total distribution and the additional shares issued through the rights issue, Pennon estimates an underlying reduction in dividend per share of approximately 30%.

    The company expects the revised dividend to amount to around 18 pence per share and intends to increase future payments in line with the Consumer Prices Index including owner occupiers’ housing costs (CPIH), using the reduced dividend as the starting point.

    Part of the additional capital expenditure could be reflected in an increase in Pennon’s regulatory capital value through Ofwat’s cost change assessment process.

    In its draft decision for the 2026 assessment round, the water regulator provisionally approved £230 million of additional expenditure, equivalent to 76% of the amount requested by Pennon.

    Ofwat is expected to publish its final decision by 15 December 2026.

    Pennon also anticipates seeking approval for approximately £170 million of further investment through the 2027 and 2028 regulatory assessment rounds. These amounts remain subject to regulatory approval.

    The company is targeting a total increase of £400 million in regulatory capital value through the cost change process.

    Separately, Pennon plans to dispose of its Pennon Power business as part of its capital management programme.

    The group intends to allocate approximately £25 million of the disposal proceeds towards renewable electricity generation at its operational sites, using behind-the-meter installations designed to supply power directly to those facilities.

    The remaining proceeds are expected to be used to reduce group debt.

    Pennon has also outlined its leverage objectives for the AMP8 period, targeting debt within its regulated water businesses at no more than 65% of regulatory capital value.

    This remains within the company’s long-term policy range of 55% to 65%.

    At group level, debt measured against regulatory capital value is expected to remain several percentage points higher than the regulated business measure, although Pennon considers it unlikely to exceed approximately 70%.

    The revised investment programme, dividend policy and asset disposal plans form part of Pennon’s operational and financial restructuring as it increases spending on its regulated water infrastructure.

    Pennon Group is a UK-listed water utility company operating regulated water businesses. Its activities include water supply, wastewater services and infrastructure investment, with capital expenditure and financial performance subject to regulatory oversight.