11th Aug 2026 07:55
(Alliance News) - InterContinental Hotels reports a largely improved first half, despite progress slowing in most regions during the second quarter, Spirax backs its annual view and Bellway says volumes in its financial year were higher than expected.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.2% at 10,839.50
GBP: down at USD1.3506 (USD1.3522 at previous London equities close)
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ECONOMICS
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Andy Burnham has pledged to give councils more powers to block new bookmakers and vape shops in a bid to save Britain's "hollowed-out high streets". The UK prime minister intends to scrap the so-called "aim to permit" rule, which limits the ability of local authorities to prevent betting shops and 24-hour slot machine venues opening in their area. Planning permission will also be required for outlets selling e-cigarettes as part of efforts to give communities a greater say under the proposals. The formal definition of a vape shop will be tightened to stop businesses side-stepping the new rules by claiming to be a "convenience store or a retailer", officials said. Adult gaming centres offering up to 24 hours of access to slot and fruit machines will also require planning permission under the shake-up, expected to come into effect at the start of next year.
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Heathrow airport said "the case for expansion has never been clearer" after it lost its position as Europe's busiest airport to Istanbul. Figures published by the west London airport show 7.86 million passengers passed through its four terminals in July whereas its Turkish counterpart recorded 8.15 million passengers over the same period. Annual figures from trade body Airports Council International show Heathrow was Europe's busiest airport from 1996 to 2019. It lost that position in 2020 amid coronavirus travel restrictions before regaining it in 2023 and holding the title since then. Heathrow's July passenger total represented a 1.5% decrease compared with the same month last year, whereas Istanbul saw a 2.3% boost. The Iran-US conflict has had an impact on Heathrow's passenger traffic. Its passenger numbers on Middle East routes in July were down 20.2% year-on-year.
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BROKER RATINGS
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Goldman Sachs cuts Legal & General to 'sell' (neutral) - price target 257 pence
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COMPANIES - FTSE 100
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InterContinental Hotels has upped its first half payout and says it is on track to meet consensus expectations, and its aim to return USD1.2 billion to shareholders this year. The Holiday Inn and Crowne Plaza operator says pretax profit shrunk 8.7% on-year to USD578 million in the first half of 2026, from USD633 million a year earlier, though revenue increased 5.6% to USD2.67 billion from USD2.52 billion. In the prior year, it made a USD79 million foreign exchange gain, though this time round it reports a USD7 million hit. Adjusted earnings rose 8.7% to USD412 million from USD379 million. InterContinental Hotels has lifted its interim dividend by 10% to 64.5 cents per share from 58.6, and it is "on track to return" USD1.2 billion to shareholders in 2026. Revenue per available room, a key metric in the hotel sector, climbed 4.1% on-year in the first half, after growth of 4.4% in the first quarter and 3.5% in the second. While growth at group level eased in the second quarter, it picked up in the Americas alone, to 5.4% in the second quarter from 3.6% in the first quarter, supported by the World Cup, a "stronger US economy, as well as comparatives that became easier in Q2". RevPAR in the Americas was 4.8% higher year-on-year in the first half overall. In the Europe, the Middle East, Africa, and Australasia segment, RevPAR grew 3.0% in the first half, but growth slowed markedly to 0.6% in the second quarter from 5.6% in the first three months of the year, owing to the US-Iran conflict. The Middle East region, which accounts for 19% of EMEAA's system and 5% of the firm globally, saw a 2% RevPAR fall in the first quarter and 19% in the second. IHG adds: "The rest of the EMEAA region experienced RevPAR growth of 7% in Q1 and 4% growth in Q2. The growth in Q2 included 3.1% in the UK, 2.3% in Continental Europe and 6.0% in East Asia & Pacific." Finally, RevPAR rose 3.1% in the first half in Greater China, though like EMEAA, there was a second quarter slowdown. It rose 5.7% in the first quarter and then 0.8% in the second. Looking ahead, Chief Executive Officer Elie Maalouf adds: "We remain on track to meet full year consensus profit and earnings expectations. We are also confident in the successful delivery of our growth algorithm, which is driven by the strength of IHG's enterprise platform and our ability to further capitalise on our scale, leading positions and the attractive long-term demand drivers for our markets."
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Thermal energy and fluid technology company Spirax reports an increase in first half earnings and says it is on track to meet medium-term targets, and progress even further in the longer-term. Pretax profit in the first half of 2026 climbed 54% on-year to GBP135.4 million from GBP87.9 million, with revenue up 5.1% to GBP863.8 million from GBP822.2 million. "We have again delivered resilient mid-single-digit organic growth in revenue and profit, well ahead of [industrial production]. Driving growth ahead of our markets, in spite of external conditions, is now becoming embedded in how we operate and demonstrates the strengths of our business model and strategic positioning in diversified and attractive end markets," Chief Executive Officer Nimesh Patel says. "Continuing momentum in end markets such as Semicon and Biopharm as well as strong orderbooks, underpin our expectations for second half revenue and profit growth and we are reiterating our full year guidance." Spirax expects mid-single-digit organic growth in revenue for the year as a whole. Patel adds: "We remain on track to deliver the medium-term targets we set out for the group in October 2024; and above these targets in the longer term." Spirax has lifted its interim dividend by 3.1% to 50.4 pence per share from 48.9p.
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COMPANIES - FTSE 250
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Bellway says its house completions were higher than expected in its just-ended financial year, with revenue growth boosting profit, and the residential property developer called on the UK government "to act now" and boost the market. Growth in total housing completions for the financial year to July 31 was 11% to 9,695 homes, from 8,749 in financial 2025, topping its volume guidance of 9,300 to 9,500, Bellway says. Underlying operating profit is expected to have grown 5.4% to GBP320 million from GBP303.5 million a year prior, with revenue rising 13% to GBP3.14 billion from GBP2.77 billion. However, the adjusted operating margin is expected to have shrunk to around 10% from 10.9% "due to the increased proportion of lower margin bulk sales in the year". Bellway says it will launch a new GBP50 million buyback after its current GBP150 million programme is completed. "Similar to the prior financial year, customer demand throughout the autumn was impacted by uncertainty ahead of the government's budget. While we saw an improvement in trading in the early part of the spring selling season, there has been a moderation in customer demand since April in response to the rise in mortgage rates," Bellway adds. The autumn budget was delivered by former chancellor Rachel Reeves. Andy Burnham became UK prime minister last month, naming John Healey as chancellor and Angela Rayner as secretary of state for housing, communities & local government, a position she had previously held for around a year until September 2025. Bellway has called on the government to "ease affordability constraints and stimulate demand". "With the near-term outlook remaining uncertain, we call on the government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most," Chief Executive Jason Honeyman says. "An immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."
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OTHER COMPANIES
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Seeing Machines, a maker of vehicle operator monitoring systems, hails an "inflection to profitability", during a "pivotal year". Adjusted earnings before interest, tax, depreciation and amortisation amounted to between USD10.7 million and USD11.7 million in the second half to June 30, compared to a loss of USD13.7 million in the first. For the year as a whole, a loss between USD2.0 million and USD3.0 million is expected, narrowing from USD30.1 million in financial 2025. Adjusted revenue for the year surged 45% to USD76.3 million from USD52.8 million, in line with expectations, it adds. "FY2026 was a pivotal year for Seeing Machines, with record Automotive production volumes, strong revenue growth and a profitable second half that demonstrates the operating leverage in our business. More than 8.2 million vehicles are now on the road with our technology, with Q4 volumes indicative of a transition to a significantly higher quarterly run-rate," CEO Paul McGlone adds.
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Retailer Shoe Zone says it continued to trade "positively" through July. As a result, cash and equivalents as at July 25 stood at roughly GBP7.0 million "ahead of original budget". Shoe Zone still expects an adjusted pretax loss of no greater than GBP1.0 million for the year ending October 3. It plans a buyback of up to around GBP3.5 million.
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The managing director of John Lewis, Peter Ruis, is set to step down from the department store chain.
He will be replaced by Will Kernan, the former head of high street retailers River Island and White Co. Parent group the John Lewis Partnership said Ruis will step down as managing director of the John Lewis business in September. The company said he is stepping away from the retail chain "to pursue new projects". Ruis has led the brand through its major turnaround programme since January 2024, having rejoined the group where he had earlier been a buying director.
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By Eric Cunha, Alliance News news editor
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