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  • TotalEnergies posts strongest quarterly earnings in nearly three years as debt falls

    TotalEnergies posts strongest quarterly earnings in nearly three years as debt falls

    TotalEnergies (LSE:TTE) delivered its highest quarterly profit in almost three years after stronger oil prices and refining margins boosted second-quarter performance. The energy group also reduced its debt burden, while maintaining shareholder returns through a new share buyback programme and an interim dividend.

    Higher energy prices lift second-quarter earnings

    Adjusted net income reached $6 billion during the second quarter, matching analyst expectations compiled by LSEG. The result represented a 67% increase from $3.6 billion a year earlier and improved from $5.4 billion recorded in the first quarter of 2026.

    Adjusted EBITDA rose 5% from the previous quarter to $13.2 billion.

    The company benefited from elevated crude oil and natural gas prices following the conflict involving Iran, which disrupted global energy markets and tightened supply after traffic through the Strait of Hormuz was severely affected.

    Shares in TotalEnergies gained 1.4% in early Paris trading following the earnings release.

    Upstream and refining businesses drive growth

    Exploration and production generated earnings of $3.2 billion, representing a 64% increase from the same period last year and a 25% improvement over the previous quarter as production in the Middle East gradually recovered.

    Refining and chemicals delivered one of the strongest performances of the quarter, with earnings jumping 362% year-on-year to $1.8 billion. The division benefited from stronger refining margins and continued profitable trading during the supply disruptions linked to the Strait of Hormuz.

    By contrast, the liquefied natural gas (LNG) business reported weaker results. Earnings declined 22% to $807 million as softer European LNG demand weighed on performance.

    Company cuts debt and maintains shareholder distributions

    TotalEnergies continued to strengthen its balance sheet by reducing net debt by $3.3 billion to $19.71 billion, outperforming analyst expectations by around 2%. Cash flow from operations, excluding working capital, reached $9.8 billion, approximately 3% ahead of consensus estimates.

    Jefferies analyst Mark Wilson described the results as a “small positive,” adding that TotalEnergies “managed expectations well” into the second quarter.

    Alongside its results, the company confirmed a $1.5 billion share buyback programme for the third quarter, unchanged from the previous quarter, and announced a second interim dividend of €0.90 per share.

  • FTSE 100 slips as Middle East tensions intensify ahead of ECB decision

    FTSE 100 slips as Middle East tensions intensify ahead of ECB decision

    The FTSE 100 traded lower on Thursday as investors reacted to renewed military action between the United States and Iran while awaiting the European Central Bank’s latest interest rate decision. Escalating geopolitical tensions pushed oil prices sharply higher and prompted a cautious tone across European equity markets.

    As of 03:38 ET (07:38 GMT), the FTSE 100 was down 0.17%, while Germany’s DAX declined 0.82% and France’s CAC 40 fell 0.92%. Sterling edged 0.03% lower against the U.S. dollar to 1.3377.

    U.S.-Iran conflict fuels market uncertainty

    The latest bout of market volatility followed fresh U.S. military strikes against Iranian targets.

    U.S. Central Command said on social media platform X that American forces “began launching more strikes against Iranian military targets” on Wednesday “at the Commander in Chief’s direction,” with the objective of further reducing Tehran’s ability to “threaten civilian mariners and commercial vessels.”

    CENTCOM also rejected Iranian claims that its Revolutionary Guard navy controls the Strait of Hormuz, describing those assertions as “FALSE” and stating that U.S. forces have escorted more than 900 vessels through the strategic waterway since early May.

    Speaking in Marietta, Georgia, U.S. President Donald Trump described the conflict as a “skirmish,” adding that Iran is “getting hit so hard” and “they want to make a deal,” although he said Tehran was “not ready” because “every time they make a deal they want to change it.”

    Trump also warned on Truth Social that the United States would “bomb and destroy ONE BRIDGE OR POWER PLANT” for every Iranian attack on shipping in the Strait of Hormuz, “including those located next to, or in, the Capital City of Tehran.”

    Iran rejected the U.S. accusations. Foreign Ministry spokesman Esmail Baghaei described allegations concerning a site known as “Kolang Kouh” as “a fabricated pretext for aggression,” while colleague Esmaeil Baqaei separately accused Washington of committing war crimes in “Minab and Lamard.”

    Iranian news agency Tasnim also reported that Larak Island near the Strait of Hormuz had been targeted in a U.S. missile strike, with assessments of the damage still underway.

    Separately, the United States and Saudi Arabia signed a “123” civil nuclear cooperation agreement aimed at expanding strategic and commercial cooperation. The agreement will now be submitted to the U.S. Congress for review.

    Rising geopolitical tensions lifted energy markets, with Brent crude climbing 3.94% to $97.77 per barrel and WTI crude rising 3.1% to $89.52. Gold futures fell 1.1% to $4,106.95 an ounce, while spot gold eased 0.62% to $4,103.10.

    UK stocks in focus

    EasyJet (LSE:EZJ) reported a sharp fall in third-quarter profit as higher fuel prices and weaker travel demand linked to the conflict in the Middle East weighed on earnings. However, the airline said bookings continue to improve ahead of the peak summer travel season.

    Heathrow Airport posted lower first-half core profit as higher tax-related costs and uncertainty surrounding travel demand offset resilient passenger traffic.

    Anglo American (LSE:AAL) reaffirmed its full-year copper production guidance and lowered its 2026 copper cost forecast, although it warned that its diamond and steelmaking coal businesses are expected to report first-half underlying losses. The miner also said its proposed merger with Teck Resources remains on schedule.

    Centrica (LSE:CAN) announced plans to reduce its workforce by around 1,300 positions as part of its restructuring programme while continuing to invest in nuclear energy. The British Gas owner also reported an 18% decline in adjusted first-half core profit following asset disposals, production outages and weaker market conditions.

    Mitchells & Butlers (LSE:MAB) said unusually hot weather weighed on sales at its food-led pubs during the third quarter, although like-for-like sales for the financial year to date remained 2.2% higher.

    3i Group (LSE:III) reported continued growth at discount retailer Action, with like-for-like sales increasing 3.6% during the second quarter, while net asset value per share rose despite foreign exchange headwinds.

    AJ Bell (LSE:AJB) announced that assets under administration reached a record £121.5 billion, supported by strong customer growth and net inflows. The investment platform also confirmed it will reduce charges on its managed portfolio service from October.

  • 3i Group reports higher NAV as Action continues sales growth in second quarter

    3i Group reports higher NAV as Action continues sales growth in second quarter

    3i Group (LSE:III) delivered a solid second-quarter performance, with its majority-owned discount retailer Action maintaining positive like-for-like sales growth and helping lift the investment group’s net asset value despite adverse foreign exchange movements.

    Action delivers double-digit revenue growth

    Action recorded like-for-like sales growth of 3.6% during the second quarter, matching the growth achieved across the six months to 28 June. While this was below the 6.8% reported in the same period last year, the result came against a particularly strong comparative period and reflected improving trading in key markets including France and Germany.

    Over the first half of the year, Action generated net sales of €8.35 billion, an increase of 13.8% year-on-year, while operating EBITDA rose 12.3% to €1.11 billion.

    “Action continues its impressive growth trajectory with a very good result in its second quarter,” said Simon Borrows, CEO of 3i Group. “Since the announcement of our full year results, Action has seen good performance with strong growth in transactions driven by seasonal products and continued good sales in FMCG categories.”

    Net asset value rises despite currency headwinds

    3i Group’s net asset value per share increased to 3,131 pence as of 30 June, delivering a total return of 3% over the three-month period.

    The company said performance was achieved despite a negative foreign exchange translation impact of £276 million, equivalent to 27 pence per share, demonstrating the resilience of its investment portfolio in a challenging currency environment.

  • Segro shares rally after board backs improved £14 billion Prologis takeover proposal

    Segro shares rally after board backs improved £14 billion Prologis takeover proposal

    Shares in Segro (LSE:SGRO) rose 7% after the UK logistics property specialist announced its support for an enhanced takeover proposal from U.S. industrial real estate group Prologis (NYSE:PLD). The revised bid values Segro at approximately £14 billion ($18.72 billion), reflecting renewed confidence that the transaction could move forward.

    Prologis increases offer to £10.32 per share

    Under the revised terms, Prologis is offering 0.092 newly issued Prologis shares for each Segro share, valuing the UK company at £10.32 per share. The latest proposal represents a 3.9% increase on the previous bid and a 9.5% improvement over the initial offer.

    Prologis said the revised terms represent its final proposal unless circumstances change. In addition to the share-based offer, the company is providing a partial cash alternative worth up to £3.5 billion, equivalent to approximately one-quarter of the overall transaction value.

    Shareholder pressure helps drive negotiations

    The improved bid follows calls from shareholders of both companies for their respective boards to engage in discussions over a potential combination. Segro’s backing of the revised proposal signals increased momentum towards a possible agreement.

    If completed, the acquisition would combine two of the world’s leading industrial and logistics real estate companies. The transaction would significantly expand Prologis’ presence across Europe through Segro’s portfolio of logistics and industrial assets, while also adding the company’s growing data centre development pipeline.

    About Segro

    Segro plc is a UK-based real estate investment trust specialising in modern warehouses, logistics facilities and industrial properties across the UK and continental Europe. The company also has an expanding portfolio of data centre developments, serving customers in logistics, manufacturing, e-commerce and digital infrastructure markets.

  • Volution Group upgrades earnings outlook as margins reach record levels

    Volution Group upgrades earnings outlook as margins reach record levels

    Volution Group plc (LSE:FAN) has upgraded its earnings expectations for fiscal 2026, with the ventilation products manufacturer forecasting earnings per share around 4% ahead of current market consensus. The improved outlook is being driven by stronger operating margins, despite mixed trading conditions across its regional markets.

    Record margins support higher profit expectations

    The company expects earnings per share of approximately 38.0 pence for the financial year ending in July 2026, representing annual growth of around 15%. Operating performance has continued to improve, with EBITA margins forecast to reach a record 22.8%, reflecting continued operational efficiency and disciplined cost management.

    Volution also expects organic revenue growth of around 3% for the full year. Europe remains the strongest-performing region, with organic growth projected at between 5.5% and 6.0%, accelerating to approximately 6.5% during the second half. The Nordic business, ClimaRad and ERI delivered particularly strong performances, while France traded below expectations and Germany recorded modest growth.

    Regional performance remains mixed

    The Australasia division is expected to deliver organic revenue growth of between 3% and 3.5%, broadly matching the pace achieved during the first half of the financial year. The business also benefited from the successful integration of AC Industries and Fantech, which made a positive contribution to margins.

    In contrast, the UK market is expected to remain broadly flat for the full year, with revenue forecast to decline by around 3% in the second half. This would represent the division’s first year-on-year contraction since 2020.

    Balance sheet supports future acquisitions

    Volution ended the period with a net debt-to-EBITDA ratio of 1.6 times, leaving the company with financial flexibility to pursue acquisition opportunities over the coming year while continuing to invest in organic growth.

  • CVS Group delivers revenue growth in FY2026 as Australian business expands

    CVS Group delivers revenue growth in FY2026 as Australian business expands

    CVS Group (LSE:CVSG) reported higher revenue for the year ended fiscal 2026, with total group revenue increasing 5.9% to £712.8 million. Like-for-like revenue grew 2.1%, remaining below the company’s medium-term target range of 4% to 8%, although the result reflected an improvement in trading across its core markets.

    Australia drives growth while UK performance improves

    Revenue from the group’s UK operations rose to £633.7 million, representing growth of approximately 2% and marking an acceleration from the 0.7% increase recorded in fiscal 2025.

    The Australian business continued to deliver strong momentum, with revenue climbing 51.8% to £79.1 million. Australia now contributes around 11% of total group revenue, highlighting the increasing importance of the region to CVS Group’s long-term growth strategy.

    Margins remain resilient as share buyback continues

    Adjusted EBITDA for the year reached £141.5 million, broadly matching market expectations of £141.6 million. The adjusted EBITDA margin was 19.9%, comfortably within the company’s medium-term target range of 19% to 23%.

    Net debt, excluding lease liabilities, increased to £199.6 million from £158.3 million at the halfway stage of the financial year. Despite the increase, leverage remained at a conservative 1.63 times net debt to EBITDA, below the company’s stated ceiling of 2.0 times.

    CVS Group also continued returning capital to shareholders, completing £11.7 million of share repurchases by the end of fiscal 2026 under the buyback programme launched in May 2026. Approximately £38.3 million remains available for further share buybacks through November.

    Capital investment outlook

    Looking ahead, CVS Group expects annual capital expenditure to be approximately £30 million, at the lower end of its previously indicated £30 million to £40 million range. The company also reported a strong liquidity position, with £132 million of undrawn borrowing facilities and available liquidity of £18.4 million.

  • EasyJet profits fall as higher fuel costs and Middle East disruption weigh on third quarter

    EasyJet profits fall as higher fuel costs and Middle East disruption weigh on third quarter

    EasyJet (LSE:EZJ) reported a sharp decline in third-quarter headline profit before tax as higher fuel prices and softer demand following the conflict in the Middle East offset continued strength in leisure travel. Headline profit before tax fell to £85 million from £286 million a year earlier, while the airline carried 25.8 million passengers during the quarter with a load factor of 88.9%. Although unit revenue eased slightly and higher fuel costs reduced margins, non-fuel unit costs remained broadly in line with management guidance.

    Holidays business and operational improvements support strategy

    The airline said operational performance continued to improve, with higher on-time performance and stronger customer satisfaction scores helping reinforce its brand ahead of the peak summer season.

    EasyJet holidays remained a key contributor to earnings, delivering £84 million of profit before tax while continuing to grow its customer base. The group also announced new commercial partnerships with Expedia, expanded its retail distribution network in Germany and continued implementing management changes alongside digital initiatives and aircraft upgauging to improve efficiency, generate additional revenue and support its medium-term profitability targets.

    Capacity growth planned despite cost headwinds

    Looking ahead, EasyJet plans to increase seat capacity by around 3% during FY26 and expects low double-digit growth in EasyJet holidays customers as it continues to gain market share across the European travel market.

    Management acknowledged that profitability remains sensitive to fuel price movements and late booking patterns. However, the company said early indicators for first-quarter 2027 yields are encouraging, while ongoing cost-saving measures, including the introduction of larger aircraft and increased automation, are expected to support stronger earnings as market conditions stabilise.

    Outlook balanced by strong momentum and external risks

    EasyJet’s outlook is supported by improving underlying profitability, a stable balance sheet and positive management commentary highlighting strong liquidity and continued efficiency initiatives. However, weaker free cash flow trends, elevated fuel costs and softer forward demand remain important risks.

    Technical indicators remain supportive, with the shares trading above key moving averages and maintaining positive momentum, although an elevated RSI suggests the stock may be approaching overbought territory. Valuation remains broadly reasonable, with the shares trading on a price-to-earnings ratio of around 12 and offering a dividend yield of approximately 2%.

    About EasyJet

    EasyJet is a low-cost airline group operating short-haul routes across Europe and the Mediterranean. Alongside its point-to-point airline, the company has developed an integrated holidays business offering package holidays through a capital-light model supported by a growing network of hotel and travel partners. EasyJet focuses on serving both leisure and business travellers while expanding ancillary revenue and improving operational efficiency.

  • SRT Marine Systems delivers strong FY26 growth as maritime security demand expands

    SRT Marine Systems delivers strong FY26 growth as maritime security demand expands

    SRT Marine Systems (LSE:SRT) reported strong growth for the year ended 30 June 2026, driven by continued execution of major contracts and increasing demand for maritime surveillance and navigation technologies. The company, which supplies intelligent maritime monitoring systems to government and commercial customers, continued to benefit from growing investment in maritime security and digital navigation infrastructure.

    Revenue and profits surge as order pipeline strengthens

    For FY26, SRT generated estimated unaudited revenue of £116 million, representing a 49% increase year-on-year. Profit before tax and exceptional items more than doubled to approximately £10 million, while gross cash rose sharply to £57 million as contract delivery accelerated and the group’s revenue mix broadened.

    Management noted that margins were affected by higher costs on one major project, reflecting supply chain disruption linked to tensions in the Middle East and a strategic decision to expand the project’s scope. However, the company described the additional investment as an opportunity to secure larger future contracts and reiterated confidence in meeting current market expectations. SRT also highlighted a £1.8 billion sales pipeline, providing significant long-term growth opportunities as governments continue to prioritise maritime security.

    Long-term opportunity balanced by valuation concerns

    SRT’s outlook remains supported by strong revenue growth, improving operational performance and an expanding pipeline of international opportunities. Nevertheless, weaker cash flow generation continues to present a challenge despite improving profitability.

    Technical indicators also remain relatively weak, with negative momentum suggesting the shares may continue to face near-term pressure, although oversold conditions could provide support. Valuation remains demanding, with a high price-to-earnings ratio and no dividend currently available to underpin investor returns.

    About SRT Marine Systems

    SRT Marine Systems is a global developer of maritime intelligence, surveillance and navigation safety solutions for both government and commercial customers. Its technology is used by coast guards, fisheries authorities, port operators and vessel owners to improve maritime domain awareness, enhance security and support safer, more efficient navigation through integrated software, hardware and data services.

  • hVIVO orderbook more than doubles as second-half recovery remains on track

    hVIVO orderbook more than doubles as second-half recovery remains on track

    hVIVO (LSE:HVO) reported first-half revenue of £16.3 million for 2026, compared with £24.2 million in the same period last year, while reaffirming expectations that both revenue and profitability will be weighted towards the second half of the year. The company said adjusted EBITDA is expected to recover from a negative mid-single-digit margin in the first half to a positive outcome in the second half, supported by stronger project delivery. hVIVO also ended June with £13 million in cash and maintained guidance for high single-digit revenue growth for the full year, attributing the weaker first-half performance to project timing delays rather than contract cancellations.

    Growing orderbook strengthens long-term visibility

    Despite lower first-half revenue, the company’s orderbook has expanded significantly, more than doubling since the beginning of 2026 to £65 million. Management said proposal volumes have increased by around 45%, reflecting strong demand across infectious disease, respiratory and cardiometabolic research programmes.

    The business also highlighted the benefits of operating under a single hVIVO brand, bringing together its consulting, clinical trials, human challenge trials and laboratory services. Management believes the integrated structure is improving cross-selling opportunities, attracting new clients and strengthening the company’s long-term growth prospects.

    Demand momentum offsets weaker recent financial performance

    hVIVO’s outlook continues to reflect a mixed financial picture. Recent results have been affected by lower revenue, operating losses, negative gross profit and weaker cash flow, creating near-term challenges for investors.

    However, these concerns are partly balanced by improving technical momentum in the shares and management’s positive commentary regarding the strength of the sales pipeline and future demand. The expanding orderbook provides greater visibility over future revenue, although liquidity and the timing of contract bookings remain important factors to monitor over the coming quarters.

    About hVIVO

    hVIVO plc is a UK-based clinical development specialist and the global leader in human challenge trials. The company provides integrated services spanning consulting, clinical trials, human challenge studies and laboratory testing, supporting pharmaceutical and biotechnology companies from preclinical development through to Phase II clinical trials. hVIVO works with seven of the world’s ten largest biopharmaceutical companies and operates specialist research facilities in the UK and Germany.

  • BT Group maintains guidance as fibre and 5G expansion drive early-year performance

    BT Group maintains guidance as fibre and 5G expansion drive early-year performance

    BT Group (LSE:BT.A) delivered a solid start to its financial year, with continued growth in full-fibre broadband and 5G services helping offset ongoing declines in legacy voice revenues. The company reported record demand for its full-fibre products, while its 5G+ network now covers 77% of the UK population. Fibre connections across the Openreach and Consumer divisions generated more than half of broadband revenue for the first time, and EE maintained its position as the UK’s leading mobile network. Customer churn also remained low across both broadband and postpaid mobile despite a competitive market environment.

    Fibre rollout and Verizon venture support long-term strategy

    BT remains on course to expand its fibre-to-the-premises (FTTP) network to 25 million premises by December 2026, reinforcing its long-term investment in the UK’s digital infrastructure.

    The company also announced a joint venture with Verizon to establish a larger global connectivity business, enabling BT to sharpen its strategic focus on its core UK operations. First-quarter revenue and adjusted EBITDA were broadly unchanged from the previous year, as growth in fibre and business connectivity services was offset by continuing declines in traditional voice services. However, ongoing cost-saving initiatives, lower energy consumption and reduced labour costs helped protect margins.

    Management reaffirmed its financial guidance, including expectations for normalised free cash flow of approximately £2.0 billion this financial year and around £3.0 billion by the end of the decade.

    Transformation strategy underpins outlook

    BT’s outlook continues to be supported by resilient operating cash flow, stable EBITDA and continued progress on its transformation programme. While revenue growth remains modest and leverage continues to be monitored, management’s confidence in delivering its long-term financial targets provides a positive backdrop.

    Valuation remains relatively demanding, with a higher price-to-earnings multiple limiting some upside potential, while technical indicators currently point to a broadly neutral-to-slightly negative trend in the shares.

    About BT Group

    BT Group plc is one of the UK’s largest telecommunications providers, operating through its Consumer, Business and Openreach divisions. The company supplies broadband, mobile, full-fibre and enterprise connectivity services while continuing to invest heavily in fibre-to-the-premises and 5G infrastructure. BT also serves corporate and public sector customers with critical communications services and is reshaping its international operations through a planned joint venture with Verizon as it focuses on long-term growth in the UK market.