14th Aug 2026 07:54
(Alliance News) - Aviva's half-year operating profit beat forecasts, while GB Group has trimmed growth guidance on tough trading at its Americas Identity arm. Elsewhere, Diversified Energy says it is in talks over a possible acquisition of an operator in the Permian Basin.
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 0.3% at 10,803.97
GBP: higher at USD1.3502 (USD1.3498 at previous London equities close)
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BROKER RATINGS
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Jefferies raises Rolls-Royce Holdings price target to 2,000 (1,870) pence - 'buy'
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COMPANIES - FTSE 100
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Aviva says it enjoyed a "strong" first half of 2026 and the insurer backed its longer-term outlook. Operating profit in the first half of the year increased 24% to GBP1.33 billion from GBP1.07 billion a year prior, the insurer says. Operating profit topped Visible Alpha consensus of GBP1.25 billion. Operating earnings per share were up 10% to 31.8 pence from 29.0p. Pretax profit declined 29% to GBP905 million from GBP1.27 billion a year prior, despite insurance revenue climbing 23% to GBP13.48 billion from GBP10.99 billion, and the investment return amounting to GBP20.77 billion from GBP8.51 billion. Hurting its bottom line, it recorded a GBP17.15 billion hit to profit from the movement in non-participating investment contract liabilities, compared to GBP5.32 billion a year prior. "Aviva's results in the first half of 2026 were very strong," Chief Executive Officer Amanda Blanc says. Blanc says the firm is making "very good progress" with the integration of Direct Line, an acquisition it sealed in July of last year. Blanc adds: "We are confident that we will meet our three-year financial targets in 2028 and expect 75% of our earnings to be capital-light by that point. Beyond this, Aviva is in a great position to sustain strong earnings growth over the longer term, particularly in the high growth areas of Wealth, UK and Canada General Insurance, Global Corporate and Specialty, and Health & Protection." For 2026, it expects operating EPS in line with an 11% growth aim. Its three-year target, which it is also "on track to deliver", is for compound annual growth in operating EPS of 11% between 2025 and 2028. Aviva says it has raised its interim dividend by 6.9% to 14.0 pence from 13.1p.
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COMPANIES - FTSE 250
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GB Group cut its revenue growth aim, as it grapples with tough trading conditions in the Americas Identity arm. The identity verification and fraud prevention company says revenue for the year ending March 2027 is to rise between 1% and 3%, the outlook cut from mid-single digit growth previously. "First quarter revenue in Americas Identity was only marginally below our plan, but growth has not improved in the second quarter as we have seen higher than expected volume attrition on a few material customers. While our sales pipeline remains strong, the time required to convert opportunities into recognised revenue given our normal sales cycle means the impact of this attrition is unlikely to be mitigated within the current financial year," the firm says. "We will continue with the one-off GBP6 million investment announced in June to accelerate GBG Go's innovation roadmap and we are focused on mitigating the attrition headwind with strong cost control," it adds. GB Group expects an adjusted operating profit margin of around 21% for the financial year. Its margin guidance was previously between 21% and 22%. Tom Schutz, its Americas revenue chief, has left the firm. Chief Operating Officer James Gothard takes interim charge of the Americas business. "James brings deep operational expertise and has worked closely with the Americas leadership team, positioning him well to focus on continued execution and drive momentum through this transition," GB Group adds.
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OTHER COMPANIES
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Diversified Energy says it has held "preliminary discussions" over a possible buyout of Birch Resources. The oil and gas production company, noting "recent media speculation", says talks are at an early stage and remain ongoing. Bloomberg on Thursday reported Diversified was in talks to acquire Birch, which operates in the Permian Basin, for over USD1.7 billion in cash. Diversified says Friday: "Diversified has an acquisition strategy driven by discipline, focus, skill, and precision. The company has made 35 acquisitions totaling over USD7 billion of value since its IPO in 2017. Acquisitions are a core aspect of the company's strategy, and the company regularly engages in preliminary discussions with potential counterparties in this regard. The company confirms that it has had preliminary discussions concerning a possible acquisition of Birch Resources. Discussions are ongoing and remain at an early stage. No agreement has been reached, and there is no certainty that any transaction will occur, nor as to the terms on which any transaction might proceed."
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Defence technology business Cohort says it has won a deal worth EUR140.7 million from defence contractor Saab. Cohort's German subsidiary ELAC will work with Saab to deliver integrated sonar systems for the Polish Orka submarine programme. "Work will commence immediately and deliveries will continue out to the mid-2030's. Alongside other recent wins across the group, the contract is expected to enhance the group's adjusted earnings per share in the following financial year and beyond," Cohort adds.
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Video game services firm Winking Studios reports a climb in half-year revenue, but it swings to a loss on a rise in costs. Winking's pretax loss in the first six months of 2026 amounts to USD2.6 million, swinging from profit of USD953,000. Revenue rises 21% to USD23.5 million from USD19.4 million a year prior. Distribution and marketing costs were 52% higher at USD1.6 million, it says, with administrative expenses up 40% to USD6.1 million. "We chose to accelerate investment in two areas where we see significant long-term potential: building a stronger North American presence through the acquisition of and further investment into Ampera and developing AI-enabled game development capabilities. We are encouraged by the larger opportunities entering the Ampera pipeline and the early commercial traction we are seeing from AI-enabled game development," Chief Executive Officer Johnny Jan says.
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By Eric Cunha, Alliance News news editor
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Related Shares:
Rolls-RoyceDiversified EnergyAvivaGb GroupCohortWinking Studios