29th Jul 2026. 8.59am
Regency View:
Update
Regency View:
Update
It has been another busy fortnight for our FTSE portfolio, with several holdings reporting trading updates and interim results. Encouragingly, many management teams continue to demonstrate resilient operational execution despite an uncertain economic backdrop. Strong cash generation, disciplined capital allocation and healthy order books remain common themes, although the market continues to punish even slight disappointments where expectations have become elevated. As always, we focus on what has changed, what it means for the investment case and what we will be watching over the coming months.
Auction Technology Group: Guidance Moves Higher
Auction Technology Group delivered another encouraging trading update, with revenue growth accelerating to 7.8% during the third quarter. Strong performance across the Arts & Antiques division, particularly from LiveAuctioneers and Chairish, enabled management to raise full-year revenue guidance to 5.5-6.5%, modestly ahead of previous expectations. Cash generation also remained robust, allowing leverage to fall from 2.2x to 1.7x EBITDA in just nine months.
The update demonstrates that management’s acquisition strategy continues to deliver. Chairish is integrating well, with the business remaining on track to achieve its targeted US$8m annualised cost synergies by FY27. While the Industrial & Commercial division remains under pressure, the rate of decline has stabilised, allowing stronger growth businesses to increasingly drive overall performance.
Perhaps most encouraging is the continued strengthening of the balance sheet. Healthy free cash flow generation is steadily reducing debt while allowing management to invest in product development and platform improvements. Combined with the modest guidance upgrade, the latest update reinforces confidence that ATG is executing well against its long-term growth strategy.
What we are watching next: Chairish integration, continued Arts & Antiques growth and further deleveraging.
Themes: Trading Update | Guidance Upgrade | Marketplaces | Cash Generation
ATG Daily Candle Chart
Barclays: Strong Results Meet High Expectations
Barclays produced another strong set of first-half results, with profit before tax rising 17% to £6.1bn and return on tangible equity improving to 14.8%. Earnings per share increased 24%, management upgraded full-year income guidance and announced a further £1bn share buyback alongside a higher interim dividend. Operationally, the business continues to perform well across both its UK banking operations and investment bank.
Despite the strength of the results, the shares moved lower following the announcement. After an exceptional run over the past year, expectations had become increasingly demanding and investors appeared to focus on rising costs, higher impairment charges and continued uncertainty surrounding the FCA’s ongoing motor finance review. While none of these developments fundamentally alter the investment case, they were enough to prompt some profit-taking.
Looking beyond the initial share price reaction, Barclays remains in a strong position. Management continues to target more than £15bn of shareholder distributions between 2026 and 2028 through dividends and buybacks, while the upgraded income guidance reflects confidence in the underlying business. For long-term investors, the latest results reinforce the group’s improving profitability and capital strength.
What we are watching next: Credit quality, UK lending growth, the FCA motor finance review and future capital returns.
Themes: Interim Results | Banking | Share Buyback | Dividend Growth
BARC Daily Candle Chart
Centrica: Investment Today For Growth Tomorrow
Centrica reported a weaker first half, with adjusted EBITDA falling to £737m as lower profits from its infrastructure businesses, nuclear outages and reduced realised power prices weighed on earnings. Free cash flow also moved into an outflow as investment spending accelerated, while management reiterated rather than upgraded its guidance for the year. The shares weakened following the announcement.
Although the headline numbers disappointed, much of the weakness reflects factors that were already well understood by the market. The retail business continues to perform well despite lower energy price volatility, while the group remains focused on expanding its long-term infrastructure portfolio through investments in gas generation, energy storage and nuclear power. These projects require significant capital today but are intended to strengthen earnings resilience over the coming decade.
The investment case therefore remains centred on Centrica’s transformation into a broader energy infrastructure business rather than short-term earnings fluctuations. Management continues to highlight a strong balance sheet, disciplined capital allocation and attractive long-term growth opportunities, even if the increased investment programme temporarily suppresses cash generation.
What we are watching next: Cash generation, infrastructure investment, nuclear performance and capital allocation.
Themes: Interim Results | Energy | Infrastructure | Capital Investment
CNA Daily Candle Chart
DCC: A Solid Start To The Year
DCC reported a reassuring first-quarter trading update, with operating profit ahead of the prior year and fully in line with management expectations. Both the Energy and Technology divisions delivered positive performances despite a modest pull-forward in fuel demand during the previous quarter following disruption in the Middle East. Management also confirmed that the recently acquired Central European liquid gas business completed ahead of schedule.
The update offered further evidence that DCC’s diversified business model continues to provide resilience across varying market conditions. Energy remains the group’s primary growth engine, while Technology also produced an encouraging performance ahead of the planned disposal of Nexora. The proposed change of name to DCC Energy plc further reflects the company’s strategic focus on becoming a leading international energy business.
Importantly, management reiterated confidence in delivering strategic progress during the year ahead. Alongside continued acquisition opportunities and the planned Technology disposal, DCC appears well positioned to simplify the business while strengthening its focus on higher-quality long-term growth opportunities.
What we are watching next: Progress on the Nexora disposal, integration of the Central European acquisition and further M&A activity.
Themes: Trading Update | Energy | Portfolio Simplification | Acquisition
DCC Daily Candle Chart
Diploma: Another Upgrade
Diploma once again demonstrated why it remains one of the market’s highest-quality compounders. Organic revenue increased 15% during the third quarter, prompting management to raise full-year guidance for both revenue growth and operating margins. The company now expects organic growth of 14%, up from 12%, while operating margins are forecast to increase to around 26.5%, driving a further 7% upgrade to consensus operating profit expectations.
Growth continues to be broad based across the business. Controls delivered another outstanding performance, supported by sustained double-digit growth across several operating companies, while the recently completed acquisition of CDM establishes an attractive new platform within the US defence interconnect market. Even the more challenging Life Sciences division continued to demonstrate resilience.
One of Diploma’s greatest strengths remains its disciplined acquisition strategy. With a strong balance sheet, significant financial firepower and an active acquisition pipeline, management retains considerable flexibility to continue supplementing organic growth through carefully selected bolt-on acquisitions. The latest guidance upgrade simply reinforces an investment case that has remained remarkably consistent for many years.
What we are watching next: Further acquisitions, continued organic growth and integration of CDM.
Themes: Trading Update | Guidance Upgrade | Acquisitions | Industrial Distribution
DPLM Daily Candle Chart
Experian: Consistent Growth Continues
Experian delivered another dependable trading update, with first-quarter revenue increasing 10% at actual exchange rates and 7% organically, fully in line with management expectations. Growth was led once again by its Business-to-Business operations, where demand for fraud prevention, analytics and data solutions remained strong across North America, Latin America and the UK. Management left full-year guidance unchanged, reflecting continued confidence in the outlook.
The breadth of Experian’s business continues to underpin its resilience. Financial Services benefited from growing adoption of its Ascend analytics platform, while fraud prevention solutions remained in high demand as organisations continue investing in digital security. Latin America once again delivered standout growth, while the UK business accelerated despite a relatively subdued domestic economy. Although Consumer Services in North America declined slightly due to the planned wind-down of two data breach contracts, the underlying business continued to grow once these contracts are excluded.
Perhaps most encouraging is the growing role of artificial intelligence across the business. Management continues to integrate AI into both customer-facing products and internal operations, strengthening Experian’s competitive position while supporting future growth. Combined with its trusted data assets and recurring revenues, the latest update reinforces why Experian remains one of the highest-quality businesses in the FTSE 100.
What we are watching next: Growth in fraud prevention, further adoption of the Ascend platform and continued AI product development.
Themes: Trading Update | Data & Analytics | Artificial Intelligence | Financial Services
EXPN Daily Candle Chart
3i Group: Action Keeps Delivering
3i Group enjoyed another strong start to the financial year as its largest investment, Action, continued to outperform. Net asset value per share increased to 3,131p during the first quarter despite a negative foreign exchange impact, while Action delivered 14% growth in both sales and operating profit. The discount retailer also opened 121 new stores during the period and remains on track to exceed 400 new store openings this year.
Action remains the engine driving 3i’s long-term performance. Customer numbers continue to increase across Europe, helped by resilient demand for everyday essentials and seasonal products, while the business generated sufficient cash to pay a €450m dividend to shareholders. Elsewhere, the wider private equity portfolio traded broadly in line with expectations, demonstrating the benefits of diversification across multiple sectors.
Alongside operational performance, management continues to return capital to shareholders through its £750m share buyback programme while maintaining a conservatively geared balance sheet. Although currency movements reduced reported returns during the quarter, the underlying investment portfolio continues to perform strongly and reinforces confidence in 3i’s long-term compounding story.
What we are watching next: Action’s store rollout, private equity valuations and progress of the share buyback programme.
Themes: Trading Update | Private Equity | Retail | Share Buyback
III Daily Candle Chart
Kier: Infrastructure Tailwinds Continue
Kier delivered another impressive trading update, with management now expecting full-year revenue and profit to finish at the top end of market expectations. Strong momentum continued throughout the second half, supported by robust demand across its infrastructure businesses and an expanding order book, which increased 8% to approximately £11.9bn.
The quality of the order book remains particularly encouraging. More than 90% of expected FY27 revenue has already been secured, providing excellent visibility at a time when many construction companies continue to face uncertainty. Kier also announced over £2.5bn of new contract awards during the second half, including major projects across water, nuclear, transport, healthcare, education and defence. These sectors align closely with the Government’s long-term infrastructure spending plans, positioning the company to benefit from sustained public investment.
Cash generation also continued to improve, with the group expecting to finish the year with net cash of around £232m. Combined with its growing order book and exposure to structural infrastructure investment, Kier continues to strengthen both operationally and financially as it enters the new financial year.
What we are watching next: Order book growth, infrastructure contract wins and progress towards enhanced shareholder returns.
Themes: Trading Update | Infrastructure | Order Book | Construction
KIE Daily Candle Chart
MONY Group: Building A Broader Financial Platform
MONY Group delivered another solid set of interim results, with record first-half revenue increasing 6% on a like-for-like basis as the business continued expanding beyond its traditional comparison websites. Adjusted EBITDA also grew despite continued investment in new products, while management reaffirmed full-year expectations and announced a package of shareholder returns worth more than £90m during 2026.
Perhaps the biggest story is how the business continues to evolve. SuperSaveClub now exceeds 2.5 million members, the MoneySuperMarket app has been transformed into a broader financial management platform and new products including Investments and Business Banking are extending customer relationships well beyond simple price comparison. At the same time, artificial intelligence is helping improve customer journeys while reducing operating costs through greater automation.
Not every division enjoyed the same momentum, with Cashback remaining under pressure as weaker retail spending affected marketing budgets. However, Insurance returned to growth, Money performed strongly and Home Services continued to expand rapidly. Overall, the business continues to diversify its revenue streams while maintaining excellent cash generation and shareholder returns.
What we are watching next: Growth in SuperSaveClub, rollout of new financial products and recovery within Cashback.
Themes: Interim Results | FinTech | Artificial Intelligence | Shareholder Returns
MONY Daily Candle Chart
Mitie: Cashing In On Years Of Progress
Mitie surged after agreeing to a recommended cash acquisition by OCS, valuing the business at up to 221.6p per share including the final dividend. The offer represents a premium of almost 47% to the previous closing price and values the facilities management group at approximately £3.1bn. Unsurprisingly, the shares quickly moved close to the agreed offer price as investors began pricing in completion of the transaction.
The offer reflects the significant transformation Mitie has delivered over recent years. Through operational improvements, technology investment and carefully targeted acquisitions, the company has established itself as one of the UK’s leading facilities management providers. OCS believes combining the two businesses will create a larger, more diversified group with enhanced scale across government, defence, healthcare and critical infrastructure.
From this point, the investment case becomes centred on deal completion rather than operational performance. While the acquisition still requires shareholder, court and regulatory approvals, the unanimous board recommendation and substantial takeover premium suggest both parties are committed to completing the transaction.
What we are watching next: Publication of the scheme document, shareholder approvals and regulatory clearances.
Themes: Recommended Acquisition | Takeover | Facilities Management | M&A
MTO Daily Candle Chart
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