20th Aug 2026 07:59
(Alliance News) - JD Sports Fashion lowers its annual profit guidance after weak second-quarter trading. Standard Life unveils a GBP2 billion-backed partnership to expand its UK pension risk transfer business, while Hays swings to an annual loss.
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 10,761.35
GBP: slightly higher at USD1.3609 (USD1.3608 at previous London equities close)
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BROKER RATINGS
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Goldman Sachs raises AstraZeneca price target to 16,300 (16,070) pence - 'buy'
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JPMorgan cuts Trainline price target to 185 (220) pence - 'underweight'
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COMPANIES - FTSE 100
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JD Sports Fashion reports weaker trading in the second quarter and cuts its financial 2027 profit outlook, citing a promotional retail environment, softer consumer demand and ongoing weakness in footwear. The retailer's group organic sales fall 1.3% in the 13 weeks to August 1, while like-for-like sales decline 3.1%. North America remains the weakest region, with organic sales down 4.5% and like-for-like sales down 6.8%, while UK like-for-like sales rise 0.8% despite organic sales edging 0.2% lower. For the first half, organic sales fall 0.7% and like-for-like sales decline 2.8%. The company says: "H1 trading also reflected incremental cost-of-living pressures on our core consumer from continued inflation (including higher fuel prices), as well as ongoing product cycle evolution in footwear at some of our major brand partners...both of which proved more acute than expected in North America." JD now expects financial 2027 pretax profit before adjusting items of GBP700 million to GBP800 million, lowered from previous guidance of GBP750 million to GBP850 million, but maintains free cash flow guidance of GBP460 million to GBP520 million. CEO Regis Schultz says: "Trading in the second quarter remained tough...North America saw the most acute impact, also reflecting a slower quarter for high-heat footwear product and the timing of 'back-to-school' demand."
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Standard Life launches a strategic partnership with CVC Capital Partners, Prudential Financial, Goldman Sachs, MS&AD and other institutional investors to expand its UK pension risk transfer business, backed by an initial capital commitment of up to GBP2 billion over five years. Standard Life will contribute GBP500 million, with the consortium providing the remainder, while retaining full operational control of the partnership, subject to regulatory approval. The insurer says the venture will enable it to compete for larger and more complex defined benefit pension schemes by combining its pension risk transfer expertise with the consortium's private markets origination capabilities and long-term capital. Standard Life expects the partnership to generate attractive returns, new fee-based income and support mid-single-digit annual operating cash generation growth, with only a minor near-term impact on its capital and solvency ratios.
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COMPANIES - FTSE 250
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Hays swings to a statutory pretax loss in financial 2026 as exceptional costs nearly triple, outweighing an improvement in underlying profitability, while saying trading at the start of the new financial year is in line with expectations. The staffing provider reports a pretax loss of GBP54.5 million for the year ended June 30, compared with a GBP1.5 million profit a year earlier, while diluted loss per share widens to 3.64 pence from 0.49p. Net fees fall 7% to GBP905.5 million from GBP972.4 million and the total dividend is cut to 0.44p from 1.24p, with the final dividend unchanged at 0.29p. Exceptional costs rise to GBP89.6 million from GBP30.7 million, reflecting operational restructuring, property rationalisation, business disposals and impairments linked to the rollout of its new 'Momentum' strategy. Excluding exceptional items, pretax profit rises 9% to GBP35.1 million and operating profit increases 7% to GBP48.6 million. Hays says it expects further cost reductions in financial 2027 and that trading in July and August has been in line with expectations, with no significant change in activity levels from the fourth quarter.
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BioPharma Credit says it has completed the sale of its indirect stake in Lumira SAS (Colombia), marking the conclusion of its USD419 million investment in the LumiraDx group that began in March 2021. The specialist life sciences debt investor says the disposal, completed on August 14, together with proceeds from LumiraDx's 2024 sale of its point-of-care diagnostics business to Roche Diagnostics and interest received over the investment period, has enabled it to recover around 101% of its principal investment on both a gross and net basis. The former UK holding company for Lumira Colombia, in which BioPharma Credit held its indirect interest, will now be wound up.
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OTHER COMPANIES
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Ashtead Technology lowers its full-year outlook, citing continued disruption from the Middle East conflict and project delays in Europe and the Americas. The Aberdeen, Scotland-based provider of subsea technology to the offshore energy sector now expects 2026 revenue to be around 5% below current market consensus, while adjusted Ebita is forecast to be around 15% below consensus as deferred rental revenues weigh on margins. Ashtead says projects expected in the second half in the Middle East have been postponed until 2027, with broader economic uncertainty and vessel scheduling changes also delaying work elsewhere. Despite the weaker outlook, the company says its balance sheet remains strong, with year-end leverage expected at around 1.3x, and reiterates confidence in its long-term growth strategy supported by energy security demand and a strong customer backlog.
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AB Dynamics acquires US-based eMpulse Test Systems LLC for an initial cash consideration of USD11.0 million, plus around USD1.8 million in post-completion adjustments and potential contingent payments of up to USD15.0 million over three years. The automotive testing equipment maker says the acquisition will expand its laboratory testing capabilities and generate commercial synergies through cross-selling and international expansion, particularly in Japan. eMpulse generated USD5.5 million in revenue and USD400,000 in adjusted operating profit in 2025, with trading recovering strongly in 2026 after tariff-related disruption. AB Dynamics expects the deal to be earnings-enhancing in financial 2027, with benefits increasing as sales synergies are delivered.
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By Eva Castanedo, Alliance News senior economics reporter
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Related Shares:
JD SportsStandard LifeHaysBiopharma Cred.AstrazenecaTrainlineAB Dynamics