10th Nov 2026 07:57
(Alliance News) - Vodafone upgrades its full-year guidance despite swinging to a half-year loss following a substantial impairment charge in Germany, while M&S outlines growth targets and plans to double its annual dividend. DCC Energy reports a widened half-year loss as it prepares to transition to private ownership.
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 0.7% at 10,857.07
GBP: higher at USD1.3455 (USD1.3415 at previous London equities close)
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BROKER RATINGS
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Santander cuts Shell to 'neutral' (outperform) - price target 4,100 (4,150) pence
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JPMorgan reinitiates British American Tobacco with 'overweight' - price target 5,300 pence
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COMPANIES - FTSE 100
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Vodafone Group upgrades its full-year 2027 profit and cash flow guidance following a strong first half as it hailed job cuts, despite swinging to a pretax loss due to a substantial impairment charge in Germany. The telecommunications company now expects adjusted earnings before interest, tax, depreciation and amortisation after leases of EUR13.2 billion to EUR13.4 billion, alongside adjusted free cash flow of EUR2.8 billion to EUR3.0 billion. For the six months to September 30, revenue rises 11% to EUR21.85 billion from EUR19.61 billion, while the company swings to a pretax loss of EUR373 million from a profit of EUR2.11 billion a year earlier, reflecting a EUR4.85 billion impairment charge in Germany. The net loss totals EUR3.60 billion, compared with a profit of EUR1.05 billion, while operating profit falls to EUR517 million from EUR2.16 billion. Organic service revenue grows 5.8%, while adjusted Ebitdaal increases 6.4%. Vodafone raises its interim dividend by 2.5% to 2.31 euro cents per share from 2.25 cents. Chief Executive Margherita Della Valle highlights says: "I am very happy about our overall group performance, but Germany is not yet where it needs to be. We have a clear action plan in progress, which is structurally simplifying our German operations and improving customer satisfaction across all of our services." Vodafone says it already cut 3,000 roles across Europe and shared operations during the first financial half.
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Marks & Spencer targets mid-to-high single-digit sales growth over the medium term, with profit growth outpacing sales, as it outlines the next phase of its transformation strategy at a capital markets day. The retailer aims to double Food sales over time and achieve an operating margin of around 5.0%, while increasing online sales towards 50% of its Fashion, Home & Beauty business and delivering operating margins above 10% across both online and stores. M&S also plans to expand its international presence through capital-light channels. The company says it remains on track to deliver GBP600 million in structural cost savings by financial 2028 and expects positive free cash flow in each of the next three years. It plans to double its dividend for financial 2027 to 8.4 pence per share from 4.2p, with subsequent dividends intended to grow at least in line with earnings.
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DCC Energy reports a widened half-year loss after tax of GBP262.7 million from GBP176.1 million a year earlier, despite higher revenue and profit from continuing operations. Revenue rises to GBP7.29 billion from GBP6.06 billion, while gross profit increases to GBP900.0 million from GBP806.3 million. Pretax profit climbs to GBP81.5 million from GBP37.8 million, while profit after tax from continuing operations rises to GBP61.0 million from GBP23.9 million. However, the loss after tax from discontinued operations widens to GBP323.7 million from GBP200.0 million. The company expects its takeover by private equity firm KKR to complete in the first quarter of 2027, when it will transition to private ownership, and anticipates continued strategic progress. Chief Executive Donal Murphy says: "DCC Energy delivered a good performance in the first half, despite a difficult demand environment. Strong trading in Energy Products and Mobility and continued acquisition activity demonstrate that, alongside transforming the group, we remain firmly focused on growing and strengthening the business. Energy Services continues to face challenging market conditions."
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Metlen Energy & Metals agrees to sell four UK solar parks with a combined capacity of around 119 megawatts to Nala Renewables for an undisclosed sum. The projects, located in Norfolk, Somerset and East Sussex, are scheduled for phased delivery between 2027 and 2028 and are expected to generate enough electricity to power more than 52,000 homes annually. The sale supports Metlen's asset rotation strategy and marks Nala Renewables' expansion into the UK market.
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COMPANIES - FTSE 250
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Playtech raises its 2026 earnings expectations following stronger-than-anticipated trading in the four months to October 31, driven by continued growth in the Americas. The gambling technology provider now expects adjusted earnings before interest, tax, depreciation and amortisation of more than EUR300 million for 2026, ahead of analyst consensus of EUR279 million. Playtech says its US partnership with Hard Rock Digital continues to perform strongly, particularly its Past Motor Racing product, while Mexico and Colombia benefit from increased activity following the men's Fifa World Cup. However, the company warns that growing competition from third-party Past Motor Racing suppliers is expected to have a greater impact on its market share in 2027. Playtech also expects a more significant earnings impact next year from the ongoing market shutdown in Brazil, alongside the full-year effect of increased UK remote gaming duty and higher taxes in other European markets. Chief Executive Mor Weizer says: "Looking to 2027, we expect performance to reflect growing competition from third-party PMR suppliers in the US, political and regulatory developments in Brazil and the first full-year impact of increased remote gaming duty in the UK."
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Watches of Switzerland narrows its full-year 2027 guidance towards the upper end of its previous range following strong first-half trading, with revenue up 15% to GBP974 million from GBP845 million a year earlier. The luxury watch retailer now expects full-year constant currency revenue growth of 7.0% to 10%, compared with previous guidance of 5.0% to 10%, and adjusted earnings before interest and tax margin expansion of 60 to 80 basis points, up from 40 to 80 basis points. For the 26 weeks ended November 1, US revenue rises 23% to GBP501 million from GBP409 million, or 22% at constant currency, while UK revenue grows 9.0% to GBP473 million from GBP436 million. Luxury jewellery revenue increases 19% at constant currency, outpacing 15% growth in luxury watches. The company expects first-half adjusted EBIT of GBP87 million to GBP89 million, representing growth of around 28%, with margin expansion of 80 to 100 basis points. Net debt falls to GBP24 million from GBP112 million a year earlier. Chief Executive Brian Duffy says: "We enter the second half well positioned for the full year, having finished the first half slightly ahead of our expectations. We remain mindful of ongoing macroeconomic uncertainty and continue to plan prudently as we head towards the holiday season. Nevertheless, this performance gives us confidence to narrow our FY27 guidance towards the upper end of our range."
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4imprint Group reiterates its full-year 2026 guidance for revenue slightly above the USD1.35 billion reported in 2025 and adjusted pretax profit of around USD130 million, following resilient trading in the first 10 months of the year. The promotional products marketer says revenue rises 2.0% year-on-year in the period to the end of October, while total orders fall 1.0% and average order value increases 3.0%. Orders from existing customers remain broadly unchanged, while new customer orders decline 5.0%, although the rate of decline improves to 3.0% in the third quarter from 9.0% in the first quarter. Gross profit margin is just above 31%, while operating margin stands at around 9.0%, both in line with expectations. The company reports a cash balance of USD152 million at the end of October, after paying USD68 million in dividends during the year and completing a roughly USD10 million capital project. The board remains confident in the group's strategy and long-term growth prospects.
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OTHER COMPANIES
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Jet2 expects to transfer its shares from London's AIM market to the London Stock Exchange's Main Market on December 8, with the final day of AIM trading scheduled for December 7. The airline and package holiday provider says the move remains subject to regulatory approvals, including approval of its prospectus by the Financial Conduct Authority. Jet2 anticipates potential inclusion in the FTSE 250 index at the next quarterly review following admission, subject to FTSE Russell's assessment. No new shares will be issued as part of the move, which does not require shareholder approval.
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Capita notes that UK energy regulator Ofgem has provisionally proposed disallowing up to GBP24 million in costs incurred by its Smart Data Communications Company [DCC] subsidiary for the 2025/26 regulatory year, compared with a draft disallowance of GBP31 million for 2024/25. Ofgem says the proposed disallowance forms part of its price control framework, which aims to ensure costs incurred by DCC, the operator of Britain's smart meter communications network, are economic and efficient. Capita says Smart DCC will engage with the regulator during the consultation period to seek a reduction in the proposed disallowance ahead of a final determination expected in the first quarter of 2027.
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By Eva Castanedo, Alliance News senior economics reporter
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Related Shares:
Metlen EnergyDCCMarks & SpencerVodafonePlaytechWatches Switz4ImprintJet2CapitaBritish American TobaccoShell