10th Sep 2025 07:50
(Alliance News) - AB Foods reports its Primark unit has grappled with "consumer caution", housebuilder Vistry maintains its profit growth forecast for the full-year and Gym Group expects an annual outturn at the "top end of market expectations".
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.2% at 9,258.13
GBP: flat at USD1.3530 (USD1.3531 at previous London equities close)
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BROKER RATINGS
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Berenberg raises Anglo American to 'hold' (sell) - price target 2,300 (1,900) pence
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COMPANIES - FTSE 100
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Associated British Foods says it has performed well in the second half of its financial year, amid "consumer caution, geopolitical uncertainty and inflation". The firm's Primark retail arm sees "improved trading in the UK and strong sales growth in the US" though it notes a weaker consumer environment in Europe. It still expects a retail arm adjusted operating profit margin for the full year to be broadly in line with last year. In the Food businesses, second half trading is in line with expectations. The firm's financial year concludes on Saturday. For the second half, it expects to report 1% sales growth at Primark, though like-for-like sales in the period are to be down 2% on-year. "For the full year in 2025, we expect Primark's sales growth to be around 1%, with our store rollout programme continuing to drive sales growth of around 4%," AB Foods adds. Second half Grocery sales are to be in line with the prior year, but adjusted operating profit is to be "slightly below our previous expectations". AB Foods says this is due to one-off restructuring costs. Second half adjusted operating profit in Ingredients is to be "slightly ahead of our previous expectations", meanwhile. "Ingredients sales are expected to be broadly in line with last year. Our yeast and bakery ingredients business, AB Mauri, continued to have good underlying growth in most markets and benefited from consolidating the speciality yeast and technology business we acquired last year," it adds. At Sugar, it still expects an adjusted operating loss for the full year. "As expected in H2, sales and profitability in our Sugar businesses in the UK and Spain declined significantly as a result of persistent low European sugar prices and a high cost of beet," AB Foods says. Agriculture sales are expected to have increased around 1% in the second half. AB Foods reports annual results on November 4.
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COMPANIES - FTSE 250
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Housebuilder Vistry says it has left its annual outlook unchanged as it reported a decline in half-year profit. Pretax profit in the first half of 2025 decreases 55% to GBP40.9 million from GBP91.2 million. Revenue falls 6.5% to GBP1.85 billion from GBP1.97 billion. "The group's first half performance was in line with expectations and we are well positioned to deliver for the full year. Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits," Chief Executive Greg Fitzgerald says. "The new social affordable homes programme provides an unprecedented level of funding for affordable housing over the next 10 years. Through our Partnership model and commitment to mixed tenure development, Vistry is uniquely placed to maximise this opportunity and play a key role in delivering high-quality affordable homes across the country." Total completions in the half-year fall 12% to 6,889 units, Vistry says. Looking ahead, the firm says: "Guidance for the full year remains unchanged with the group expecting to deliver a year-on-year increase in profits in FY 25."
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Wickes says trading in its third quarter has been in line with expectations so far, and it hailed a "strong first half". Pretax profit in the half-year to June 28 increases 5.7% to GBP24.2 million from GBP22.9 million. Revenue improves 5.6% to GBP847.9 million from GBP803.2 million. Adjusted pretax profit improves 17% to GBP27.3 million from GBP23.4 million. "Wickes has delivered a strong first half, with volume growth across the group. I would like to thank all of my colleagues for their continued hard work and dedication, providing outstanding customer service and helping the nation feel house proud," CEO David Wood says. "In Retail, we have achieved record market share growth and have prioritised convenience, choice and speed, helping grow TradePro sales by a further 10%. With DIY, our focus on broadening appeal and innovating in strategic categories has seen more customers choose Wickes to bring their home improvement projects to life. In Design & Installation, the actions we undertook to enhance the customer experience have seen us return to like-for like sales growth, ahead of the wider market for big ticket items." Wickes remains "comfortable with market expectations for the full year", the CEO adds. It puts consensus for annual adjusted pretax profit at GBP48.2 million, which would represent a rise from GBP43.6 million in financial 2024. Wickes adds: "Trading in Q3 so far has been in line with expectations. The phasing of increased people costs and new stores will impact more fully in H2."
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OTHER COMPANIES
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Gym Group says its half-year profit jumped as a "growth plan continues to deliver progress". The low-cost gym operator says pretax profit in the half-year to June 30 surges to GBP3.3 million from GBP200,000 a year earlier, while revenue increases 7.9% to GBP121.0 million from GBP112.1 million. Adjusted earnings before interest, tax, depreciation, and amortisation, less normalised rent, climbs 24% to GBP27.4 million from GBP22.1 million. The number of members as at June 30 rose on-year to 949,000 from 905,000. "This strong set of half year results reflects continued progress against the strategic objectives set out in our next chapter growth plan 18 months ago. Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever," CEO Will Orr says. "Encouragingly, the sites opened this year, which reflect new design features, are performing ahead of expectations, and we are on track to deliver our target of opening 14-16 new gyms this year, all funded from free cash flow, taking us beyond 250 sites. In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations." Gym Group says consensus expects an adjusted Ebitda, excluding normalised rent, between GBP50.6 million and GBP52.8 million. It adds that "trading momentum continued in July and August", cementing its confidence that it can deliver around 3% like-for-like revenue growth for the full year.
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By Eric Cunha, Alliance News news editor
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Gym GrpWickes Group P.Vistry GrpAB FoodsAnglo American