5th Nov 2026 07:59
(Alliance News) - Autotrader reports a decline in half-year profit and revenue but maintains its full-year outlook, while Next keeps its annual profit guidance unchanged following stronger-than-expected third-quarter sales. Diageo reports a rise in first-quarter sales and reiterates its full-year guidance despite continued weakness in North America.
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 1.2% at 10,962.41
GBP: higher at USD1.3473 (USD1.3464 at previous London equities close)
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BROKER RATINGS
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Barclays cuts Weir Group price target to 3,500 (3,750) pence - 'overweight'
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Barclays cuts Coca-Cola HBC price target to 5,300 (5,500) pence - 'overweight'
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COMPANIES - FTSE 100
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Autotrader Group reports a decline in half-year pretax profit to GBP191.2 million from GBP199.3 million a year earlier, as revenue falls 1.0% to GBP313.4 million from GBP317.7 million. The UK automotive marketplace says operating profit edges down 1.0% to GBP198.5 million from GBP200.1 million, while its operating profit margin remains unchanged at 63%. Basic earnings per share rise 5.0% to 18.10 pence from 17.26p, supported by share buybacks. Revenue excluding vehicle and accessory sales remains broadly flat at GBP301.8 million, while vehicle and accessory sales revenue declines 30% to GBP11.6 million. Autotrader says retailer forecourt numbers increase to 13,900 at the end of September from 13,600 at the end of March. The company returns GBP330 million to shareholders through dividends and share buybacks during the half and declares an interim dividend of 4.2p per share, up 11% from 3.8p. Looking ahead, Autotrader maintains its financial 2027 operating profit guidance of GBP395 million to GBP415 million, expecting revenue growth to accelerate in the second half. Chief Executive Nathan Coe says first-half performance is in line with expectations, highlighting continued investment in its artificial intelligence-powered platform.
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Next reports an 8.1% increase in full-price sales in the 13 weeks to October 31, ahead of its guidance for 5.8% growth, driven by stronger-than-expected international trading. The retailer says international online sales rise 32%, well above its forecast of 21% growth, while UK full-price sales increase 2.0%, in line with expectations, despite unseasonably warm weather weighing on September trading. Total UK online sales grow 4.4%, while retail store sales decline 1.7%. Next maintains its full-year pretax profit guidance at GBP1.26 billion, up 8.4% year-on-year, as the additional GBP5 million profit generated by stronger international sales is offset by higher operating costs arising from new EU tariffs. The retailer raises its full-year full-price sales forecast to GBP6.03 billion, up 7.3%, from GBP6.00 billion previously, and its total group sales guidance to GBP7.54 billion from GBP7.49 billion. It maintains its fourth-quarter full-price sales growth forecast at 5.8%. Next expects to have GBP491 million available for shareholder distributions this year, having already returned GBP355 million through share buybacks, and says remaining surplus cash could be returned through further buybacks, a special dividend or a capital distribution.
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Diageo reports a 1.2% increase in first-quarter net sales to USD4.93 billion from USD4.88 billion a year earlier, as organic net sales grow 1.4%, supported by growth across most regions despite continued weakness in North America. Excluding East African Breweries Ltd, organic net sales rise 0.6%, with volumes declining 0.1% and price and mix contributing 0.7%. Organic net sales in North America fall 3.6%, reflecting continued softness in the US spirits market, while Latin America and the Caribbean grow 4.8%, Asia Pacific rises 4.1%, India increases 3.4% and Europe, Middle East and Africa grows 2.4%. The Guinness and Johnnie Walker maker says trading is in line with expectations and maintains its financial 2027 guidance for broadly flat organic net sales and low-to-mid-single-digit organic operating profit growth. It continues to expect free cash flow of around USD2.00 billion, including approximately USD850 million in exceptional costs related to restructuring and supply chain initiatives. Chief Executive Dave Lewis says North America remains the company's biggest challenge, while geopolitical uncertainty and the Middle East conflict continue to affect energy, supply and distribution.
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BP sells a 5.0% stake in Norwegian oil and gas producer Aker BP for gross proceeds of around USD1.06 billion, or NOK9.83 billion, as it seeks to strengthen its balance sheet. The oil major sells the shares at NOK311 each, reducing its holding in Aker BP to approximately 10.9% from 15.9%. Following the transaction, BP retains 68.7 million shares and agrees to a 90-day lock-up period on its remaining stake, subject to customary exemptions. Proceeds from the sale will be used to strengthen BP's balance sheet, with the company now expecting full-year 2026 divestment and other proceeds of around USD9.00 billion, approximately USD1.00 billion above its previous guidance. Chief Executive Meg O'Neill says Aker BP's strong performance and favourable market conditions make it the right time to realise part of the investment's value, as BP focuses on building a simpler and stronger business.
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COMPANIES - FTSE 250
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Asos swings to an annual pretax profit of GBP24.4 million in the financial year ended August 30, from a loss of GBP281.6 million a year earlier, despite revenue falling 9.0% to GBP2.25 billion from GBP2.48 billion, as the online fashion retailer makes progress with its turnaround strategy. Operating profit reaches GBP93.5 million, compared with a loss of GBP212.3 million, while its adjusted pretax loss narrows to GBP46.4 million from GBP98.2 million. Adjusted earnings before interest, tax, depreciation and amortisation rise 29% to GBP170.3 million from GBP131.6 million, supported by improved gross margins, supply chain efficiencies and cost savings, including reductions in headcount. Gross merchandise value falls 5.0% to GBP2.35 billion, although it returns to year-on-year growth in the fourth quarter for the first time since financial 2022. Net debt narrows to GBP109.3 million from GBP184.7 million. Looking ahead, Asos expects financial 2027 to mark its first full year of growth since its business transformation, forecasting low-single-digit growth in gross merchandise value, adjusted Ebitda of GBP180 million to GBP200 million and positive free cash flow. The company says trading in the opening weeks of the new financial year is encouraging, despite temporary disruption from an October 6 cyber incident, which it estimates has reduced group gross merchandise value by around 2.0% to 4.0% since the incident.
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Hikma Pharmaceuticals narrows its full-year 2026 operating profit guidance to USD740 million to USD760 million from USD720 million to USD770 million previously, as strong performance in its Branded business offsets weaker expectations for Injectables. The pharmaceutical company maintains its forecast for group revenue growth of 2.0% to 4.0%, saying year-to-date trading is in line with expectations. Hikma upgrades its Branded revenue growth forecast to around 10% from 6.0% to 8.0% previously, while raising its expected core operating margin to close to 27% from around 25%, reflecting strong demand and a favourable product mix. However, it now expects Injectables revenue to be broadly flat, compared with previous guidance for low-single-digit growth, while maintaining its core operating margin forecast of 27% to 28%. Hikma Rx revenue is also expected to remain broadly flat, with a core operating margin close to 20%, supported by strong demand for sodium oxybate and contract manufacturing activity. Chief Executive Said Darwazah says the group is delivering on its commitments, with improving profitability in Hikma Rx and stabilisation in Injectables. The company also confirms that incoming Chief Financial Officer Becky Hall will join on March 8, 2027.
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Unite Group announces organisational changes to reduce costs and strengthen its focus on partnerships with leading UK universities, following GBP241 million of property disposals completed so far this year. The student accommodation provider says changes across support functions and senior leadership responsibilities are expected to deliver annual cost savings from 2027, although it does not quantify the anticipated savings. As part of the restructuring, Unite appoints Paul Watson as managing director of operations, Will Atkinson as group property director and Moray Notman as group commercial and higher education director, all joining the executive committee. Chief Operating Officer Karan Khanna and Group Director of Communications and Corporate Affairs Rebecca Vicary will leave the company over the coming months following a transition period. Chief Executive Joe Lister says the changes will create a smaller, more focused business, aligning its cost base with strategic priorities while supporting continued investment in operational performance, property quality and university partnerships.
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OTHER COMPANIES
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DBAY Advisors confirms it is considering a revised takeover offer for Logistics Development Group, valuing the investment company at approximately GBP103.5 million, following the rejection of an earlier proposal by its independent directors. The revised indicative offer comprises 20 pence in cash and 5p in principal amount of non-convertible payment-in-kind loan notes per share. The cash component values Logistics Development at GBP82.8 million, while the combined consideration represents a 32% premium to its closing share price of 19p on October 7. The loan notes would carry annual interest of 10%, compounded quarterly, and mature within five years. Under certain conditions, shareholders accepting the offer could receive up to 25p per share entirely in cash through a loan note redemption mechanism. DBAY, which manages Logistics Development and holds a 27% stake, says the proposal seeks to address limited share liquidity and the persistent discount to net asset value. DBAY and parties acting in concert hold approximately 35% of the company. The revised proposal follows the rejection of a 20p-per-share indicative offer in October. DBAY must announce a firm intention to make an offer or withdraw by 1700 GMT on Thursday, unless the deadline is extended.
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By Eva Castanedo, Alliance News senior economics reporter
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