19th Nov 2025 07:50
(Alliance News) - Smiths Group, Sage and Jet2 have announced new buybacks, while WH Smith reports its boss will leave after a probe revealed North America unit "shortcomings".
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 9,568.30
GBP: higher at USD1.3148 (USD1.3141 at previous London equities close)
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ECONOMICS
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UK consumer price inflation cooled last month, to the tamest level since June, numbers on Wednesday showed. According to the Office for National Statistics, the pace of annual consumer price inflation abated to 3.6% in October, from 3.8% in September. The reading landed in line with consensus cited by FXStreet and backs the Bank of England's notion that rate of inflation has peaked. The reading for October snaps a three-month streak of the rate coming in at 3.8%. In June, it was at 3.6%. In October 2024, the pace of yearly consumer price growth was 2.3%. On a monthly basis, consumer prices rose 0.4% in October of this year. In September, they had been flat from August. Annual service price inflation, a gauge closely-watched by policymakers, cooled to 4.5% last month from 4.7% in September.
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BROKER RATINGS
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Citigroup raises Next price target to 13,900 (12,300) pence - 'neutral'
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COMPANIES - FTSE 100
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Engineer Smiths Group says it will launch a GBP1 billion share buyback and it reports first quarter trading in line with expectations. Smiths says organic revenue from continuing operations was 3.5% higher in the three months to October 31. The reading excludes Smiths Interconnect, which it last month announced it would sell to Molex Electronic Technologies for GBP1.3 billion. Smiths has backed its annual outlook, predicting organic revenue growth between 4% and 6%. "Following the announcement of the sale of Smiths Interconnect to Molex Electronic Technologies Holdings LLC for GBP1.3 billion, and in line with our commitment to return a large portion of disposal proceeds, the board has approved a new GBP1 billion share buyback programme. This new buyback will commence once the current GBP500 million buyback concludes in December 2025 and is targeted to be substantially completed by the end of calendar year 2026," Smiths adds. So far, it has completed GBP464 million of the current buyback.
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Sage says it enjoyed "another good performance" in its recently-ended financial year, with artificial intelligence "creating a significant opportunity". The enterprise software firm also announces a new GBP300 million share buyback. Revenue in the year ended September 30 improved 7.8% to GBP2.51 billion from GBP2.33 billion, Sage reports, pushing pretax profit 14% higher to GBP484 million from GBP426 million. On an organic basis, revenue grew 9%. "Sage delivered another good performance in FY25. Strong, broad-based revenue growth and significant margin expansion reflect our focus on strategic execution, our resilient business model, and continuing investment in our products, our platform and our people," Chief Executive Officer Steve Hare says. "We are excited by the pace of technological change. AI is opening up new possibilities for businesses and creating a significant opportunity for Sage, enabling us to enhance and accelerate the benefits our software provides. Sage Copilot is already creating value, helping customers make smarter decisions and be more productive, while our launch of AI agents is delivering the next wave of intelligent solutions." Sage has lifted its final dividend by 6.7% to 14.4 pence per share, giving a total dividend of 21.85p, up 6.8% from 20.45p. Sage says its GBP300 million buyback announced on Wednesday reflects its "strong cash generation, robust financial position, and the board's confidence" in its prospects. Looking to financial 2026, it expects organic revenue growth of 9% or above.
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COMPANIES - FTSE 250
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Retailer WH Smith says Carl Cowling has resigned as chief executive officer, after a probe found accounting "shortcomings". Cowling steps down as CEO with immediate effect, though will remain employed by WH Smith until the end of February "to ensure an orderly handover of his duties". It has begun the search for a new CEO. The firm in August called on Deloitte to undertake an "independent and comprehensive review" after an investigation found profit had been overstated at the North America division. According to findings published on Wednesday, the accounting treatment for supplier income at the division "was not consistent" with WH Smith's wider accounting policy. Supplier income recognition at the unit was "overstated". "The North America supplier income issue has arisen against a backdrop of a target-driven performance culture and decentralised divisional structure combined with a limited level of group oversight of the finance processes in North America," WH Smith says. The North America unit also suffered from "weaknesses in the composition of the finance team" and "insufficient systems, controls and review procedures", WH Smith says. Chair Annette Court adds: "This is an extremely serious matter that has had the board's full attention, and we sincerely apologise for the shortcomings identified. While the issues identified arose in our North America division, we recognise the importance of strengthening controls, governance and reporting procedures across the group." WH Smith expects trading profit for the year ended August 31 between GBP100 million and GBP110 million. In North America alone, it is expected to land in a GBP5 million to GBP15 million range, down from a prior expectation of GBP25 million. WH Smith says it has moved to "strengthen its group finance and audit and risk teams". It will also develop a "robust remediation plan". The chair adds: "Our priority now is to rebuild trust and credibility and to improve the performance and profitability of our North America division. We are confident that the actions we have taken and will continue to implement over the months ahead will ensure a strong foundation for the business going forward."
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OTHER COMPANIES
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Airline and package holiday provider Jet2 says half-year earnings improved and it will launch a GBP100 million buyback. Jet2's pretax profit in the six months to September 30 rose 1.1% to GBP800.3 million from GBP791.4 million a year prior, with revenue up 5.0% to GBP5.34 billion from GBP5.09 billion. Operating profit rose 2.0% to GBP715.2 million, it adds. Jet2 says it was "another record performance in terms of passenger numbers, revenue and profitability". "We experienced robust demand for our flight-only product with flown passengers rising by 16% to 4.77 million," it adds. Jet2 reports it is on track to deliver annual results in line with market expectations, which it says is for operating profit of GBP453 million, when excluding start-up costs connected to London Gatwick Airport, where it recently announced a new base. Jet2 adds: "The closer to departure booking profile experienced during summer 2025 has continued, with average pricing to date for both our leisure travel products following a similar trend to summer 2025 and marketing spend being reinvested into pricing where appropriate, as previously announced. In addition, to fully capitalise on the strategic opportunity at London Gatwick airport, the group will incur promotional and resourcing start-up costs to firmly establish Jet2's operations and market leading customer service ahead of operational launch in late March 2026." A second half loss is expected, "as is typical for the group". Jet2 says a GBP100 million is to begin at the start of next month, concluded on or before the end of June.
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Recently-floated Beauty Tech Group says it is trading "ahead of expectations". The at-home beauty products firm now expects revenue and adjusted earnings before interest, tax, depreciation and amortisation for 2025 ahead of current market expectations of GBP117.0 million and GBP29.7 million. Beauty Tech predicts revenue of at least GBP128.0 million and an adjusted Ebitda of no less than GBP32.0 million. "I am pleased to report that the strong trading momentum the Group experienced in Q3 has continued into Q4. There is no doubt that the successful IPO has added to the growing awareness of both the Beauty Tech Group and the at-home beauty device sector in which we operate. We are excited to enter the important Black Friday and Christmas trading period in a strong financial and operational position, and I look forward to updating shareholders on our full year performance in January," CEO Laurence Newman says.
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By Eric Cunha, Alliance News news editor
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NextSage GroupSmiths GroupWh SmithJet2Beauty Tech Grp