Next has raised its profits guidance after reporting a stronger-than-expected sales performance in the second quarter to 26 July.
Full price sales rose 10.5% on the corresponding period last year which coinciced with trading disruption at rival Marks & Spencer.
International sales grew faster than expected, mainly because digital marketing proved more effective than anticipated.
The company increased its guidance for full price sales in the second half from 3.5% to 4.5%. This adds a further £27 million to its forecast.
Full year guidance for pre-tax profit is raised by £25 million to £1.105 billion.
Rolls-Royce
Shares in Rolls-Royce, already on the best performers this year, surged by a further 10% in early trade after it shrugged off supply chain and tariff pressures to post strong first half figures.
Underlying operating profit rose by 50% to £1.7bn with a margin of 19.1%, enabling it to raise full-year guidance to between £3.1bn and £3.2bn.
It has declared an interim dividend of 4.5p per share to be paid in September and has completed £0.4bn of its planned £1bn share buyback programme for 2025.
During the period Rolls-Royce SMR was selected as the sole provider of the UK’s first small modular reactor programme. It expects the division to be profitable and free cash flow positive by 2030.
Tufan Erginbilgic, CEO said: “Our multi-year transformation continues to deliver. Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs. We are continuing to expand the earnings and cash potential of Rolls-Royce.”
Shares in the company have been among the best performers in the FTSE 100.
Weir Group
Mining technology group Weir said it has made significant strategic progress with FY revenue guidance reiterated and the operating margin upgraded to c.20%.
Jon Stanton, chief executive of the Glasgow-based company, said: “Our strong performance in the first half of this year demonstrates our leadership in mining technology and the unique capabilities of our business model.
“We have made significant strategic progress, strengthening our position in digital solutions with the purchase of Micromine, and enhancing our presence in North America with our agreement to acquire Townley.
“Mining markets are strong, particularly copper and gold, and customers are choosing Weir to provide the novel, mission critical solutions they need to scale up and clean up their operations. Our businesses are focused, and with a continuous improvement mindset, driving excellent operational execution and mitigating any impacts of US tariffs.
“As we look to the full year, I am excited by the opportunities that lie ahead to support the urgent need for the minerals essential for a sustainable future. “
The company no longer has engineering facilities in Scotland.
St James’s Place
Wealth manager St James’s Place saw a 23% rise gross inflows in the first half over the corresponding period with funds under management at a record £198.5 billion.
Mark FitzPatrick, chief executive, said the company was confident of achieving its target of taking out £100m of costs by 2027.
IFRS profit after tax came in at £279.5m (2024: £165.1m). The company declared an unchanged Interim dividend of 6p pence per share.
Shell
Oil and gas giant Shell reported second quarter results showing a smaller-than-expected 24% quarter-on-quarter fall in adjusted earnings to $4.3 billion (£3.8 billion).
It announced another $3.5 billion of share buybacks for the next three months.
Chief executive Wael Sawan said: “Shell generated robust cash flows reflecting strong operational performance in a less favourable macro environment.
“We continued to deliver on our strategy by enhancing our deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada.”
Equity markets
London’s benchmark index finished largely flat on Wednesday and is slightly down for the week. The FTSE 100 closed the session at 9,136.94.
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