28th Jul 2026 07:57
(Alliance News) - FTSE 100 heavyweights Barclays and Unilever report better than expected quarterly results and up their annual guidance, while Inchcape has added GBP75 million to its buyback programme amid "confidence in the group's future prospects".
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 0.1% at 10,797.35
GBP: lower at USD1.3295 (USD1.3305 at previous London equities close)
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ECONOMICS
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UK Prime Minister Andy Burnham has ruled out scrapping stamp duty after reports suggested he planned to get rid of the tax. He told reporters that "won't be happening" during a visit to Portsmouth on Monday, but he did pledge to "make taxation fairer". It comes after Burnham criticised the unfairness of the current council tax system, telling the BBC there are "big decisions ahead". Downing Street dismissed suggestions the prime minister is actively considering removing council tax, saying they are "not true". Stamp duty is paid on property sales from GBP125,000 upwards. First-time buyers benefit from not having to pay any on purchases up to GBP300,000, however the relief ends at prices over GBP500,000.
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BROKER RATINGS
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Jefferies initiates Trainline with 'buy' - target 350 pence
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JPMorgan raises International Paper to 'overweight' (neutral)
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COMPANIES - FTSE 100
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Lender Barclays has raised its annual outlook, "another strong quarter", and it adds it is on track to meet its shareholder distribution targets. Second quarter pretax profit rises to GBP3.25 billion from GBP2.48 billion, with total income surging 16% to GBP8.34 billion from GBP7.19 billion. Total income beat company-compiled consensus of GBP8.12 billion, with pretax profit beating a forecast of GBP3.12 billion. For the whole of the half-year, total income is 11% higher at GBP16.50 billion, with pretax profit up 17% to GBP6.07 billion. "I am pleased with another strong quarter for Barclays," Chief Executive CS Venkatakrishnan says. Barclays has upped its dividend to 5.9 pence per share from 3.0p, and it announced a new GBP1.0 billion buyback. It still targets returning GBP10 billion to shareholders between 2024 and 2026, "through dividends and share buybacks, with a continued preference for buybacks". This year will see a "progressive increase in total capital returns versus 2025". Looking to this year, it now expects total income of around GBP31.5 billion, ahead of a prior forecast of around GBP31 billion. Total income in 2025 amounted to GBP29.14 billion.
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Unilever beat consensus in its second quarter, and the consumer goods firm, behind brands such as Dove, Vaseline and Sure, has lifted its annual outlook. Unilever's first half pretax profit increases 1.8% to EUR4.66 billion from EUR4.58 billion, with revenue up 0.5% to EUR25.62 billion from EUR25.51 billion. First half underlying sales growth is 4.8%, beating company-compiled consensus of 4.1%. For the second quarter alone, underlying sales growth is 5.8%, ahead of consensus of 4.3%. "We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter - the best volume quarter at Unilever in over a decade. Our Power Brands continued to outperform, with all business groups delivering volume-led growth. Emerging markets showed momentum - India, Indonesia and Latin America all delivered strong growth - while North America again outperformed its market," CEO Fernando Fernandez says. "These results show our ability to continue performing while transforming our portfolio. Our brands are stronger, our execution is sharper and we are driving Desire at Scale. Our combination of Foods with McCormick is progressing well and will unlock significant value, making Unilever a focused pureplay [home and personal care] company, while giving Foods the platform to thrive as part of a global powerhouse in flavour." Condiment firm McCormick last week said it will seek a secondary share listing in London after agreeing to merge with Unilever's food business. Unilever now expects underlying sales growth for 2026 within its 4% to 6% multi-year guidance range, "with around 3% underlying volume growth". It previously saw USG for the full year at the bottom end of the 4% to 6% range, with "at least 2% underlying volume growth".
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COMPANIES - FTSE 250
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Automotive distributor Inchcape has upped its buyback and says it expects double-digit profit growth for the full year. Pretax profit in the six months to June 30 falls 33% to GBP124 million from GBP186 million, though revenue rises 9.3% to GBP4.72 billion from GBP4.32 billion. "Inchcape continued to deliver on our Accelerate+ strategy during the first half of 2026, supported by our diversified and scaled market and brand portfolio, with our volume growth of 9% driven by distribution contracts won in recent years. We also made meaningful strategic progress, winning five new distribution contracts so far this year and completing a value-accretive acquisition in Bulgaria. We delivered positive momentum in the Americas, with supportive market conditions, and continued outperformance in Europe & Africa. In APAC, we saw a stabilising position in Asia, while our market share in Australia was weaker," Chief Executive Duncan Tait says. Basic adjusted earnings per share and diluted adjusted EPS are each steady on-year at 35.5p and 34.0p. It expects more than 10% growth in adjusted EPS for the full-year. "We continue to expect that our performance in FY 2026 will be H2-weighted, with an anticipated uplift in new vehicle volumes of 20,000 vehicles in H2, from 180,000 vehicles distributed by Inchcape in H1. This is a similar volume uplift, from H1 to H2, to what was achieved last year," the firm adds. Inchcape has upped its interim dividend by 14% to 10.8p per share from 9.5p. In addition, it has upped its buyback programme to GBP250 million from GBP175 million. It explains: "The increased share buyback programme is part of the group's disciplined capital allocation approach and is based on Inchcape's strong underlying free cash flow performance, as well as the group's strong balance sheet. The increased buyback also demonstrates the board's confidence in the group's future prospects and ability to deliver significant future shareholder returns."
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Thermal processing engineering firm Bodycote reports a rise in half-year earnings and ups its payout, but sees the pace of growth easing in the second half. Pretax profit climbs 13% to GBP41.2 million in the half year to June 30, from GBP36.6 million a year prior, with revenue up 3.3% to GBP381.2 million from GBP369.0 million. "We progressed well in the first half and have achieved results in line with our expectations. Organic growth was supported by strong demand across our target end markets, partly offset by the ongoing structural weakness in Western European Automotive," CEO Jim Fairbairn says. "Our full year expectations are unchanged, albeit we are mindful of the current geopolitical and macroeconomic environment. We expect to deliver Core organic revenue growth in 2026. The overall pace of revenue growth is likely to moderate in the second half, reflecting prior year comparators. We expect operating margins to improve in 2026, driven by revenue growth and optimise benefits, partly offset by a normalisation of variable remuneration and the operational ramp-up costs on our new growth initiatives. We remain confident in the delivery of our medium term targets." Bodycote lifts its interim dividend by 4.3% to 7.2p per share from 6.9p.
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OTHER COMPANIES
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Forterra reports weaker half-year revenue and affirms its view for the whole of 2026, though it cautions that "forecasting demand for our products" is challenging. The and concrete product manufacturer has also named a new finance chief. In the first half of 2026, pretax profit rises 37% to GBP11.5 million from GBP8.4 million, despite revenue shrinking 14% to GBP168.8 million from GBP195.1 million. Restructuring costs shrink to GBP3.0 million from GBP4.0 million and last year it booked a GBP4.8 million hit from the fair value movement on energy derivatives, not repeated this time around. Adjusted pretax profit falls 13% to GBP14.5 million from GBP16.6 million. "Our markets remained challenging in the first half and, in this environment, we took decisive management actions to put Forterra in a strong position for when the inevitable upturn arrives. We produced a resilient performance and, with demand continuing to favour extruded brick, we have again been able to outperform the wider brick market," CEO Neil Ash says. "Markets are certainly challenging at present but looking beyond the current year, the board remains confident that our recent investments in new production capacity leave the group well placed to benefit from the market's structural growth drivers and a sustained recovery when it occurs." Forterra lowers its interim dividend to 1.7p per share from 1.9p. Lisa Oxnard has been named chief financial officer, replacing Ben Guyatt who will step down as CFO and leave the company on October 31. Oxnard joins from Genuit Group, a provider of water, climate and ventilation systems, where she was financial controller.
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By Eric Cunha, Alliance News news editor
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