Rolls-Royce has raised its full-year outlook after posting strong half-year results despite experiencing supply chain challenges and US tariff issues. The FTSE 100-listed engineer increased the top end of its operating profit guidance by £300 million to £3.2 billion and raised its free cash flow estimate by £200 million to £3.1 billion. Chief Executive Tufan Erginbilgic, who has turned around the firm since joining at the start of 2023, said his multi-year transformation was continuing to deliver. The company reported first-half underlying operating profit of £1.7 billion, up from £1.1 billion a year earlier, with an operating margin of 19.1%, up from 14.0%. In early trading, Rolls-Royce shares gained 10.1%.
Just Group surged as it agreed to a £2.4 billion takeover offer from Canadian firm Brookfield Wealth Solutions. Under the terms of the deal, shareholders in the FTSE 250-listed firm will receive 220p in cash for each Just Group share owned, representing a 75% premium to Wednesday’s closing price. Brookfield Wealth said it intends for its UK insurance operations subsidiary, Blumont to operate as a single, consolidated insurance group with Just Group under the Just brand. The Just directors said they believe the takeover will benefit “existing and future customers, Just employees and the UK economy through investment in important productive assets." The acquisition is expected to complete in the first half of 2026. Just Group shares jumped 67.8% higher in early trading.
Pets at Home has cut its full-year profit guidance in a first-quarter trading update, citing subdued retail market growth rates. When posting its full-year 2025 results in May, the FTSE 250-listed company had based its 2026 guidance around an assumption of 2% growth in the pet retail market. The firm said it now expects market growth of around 1% and has adjusted its guidance to reflect this. As a result, Pets at Home has cut its full year underlying pre-tax profit range to between £110 million and £120 million, from previous guidance of £115 million to £125 million. In its first quarter to 17 July, group statutory revenue fell 1.9%, with group like-for-like (LFL) revenue down 1.9%, as LFL retail revenue declined by 3.0% year-on-year. In early trading, Pets at Home shares shed 3.1%.
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