Aviva delivers another strong set of results

Aviva’s (AV.) first-half performance in 2025 showed clear momentum, with operating profit up 22% to £1.07bn and Solvency II capital generation climbing 33% to £957m.

Growth was broad-based across the business. Wealth net flows rose 16% to £5.8bn, taking total assets under management above £200bn, while health premiums advanced 14% to reach the £1bn mark. General insurance also performed strongly, with premiums up 7% and operating profit climbing 29%, aided by disciplined underwriting and a combined operating ratio of 94.6%. Meanwhile, retirement sales were slightly softer, though individual annuities saw a 29% increase, demonstrating the benefits of Aviva’s diversified model.

A key strategic milestone was the completion of the Direct Line acquisition in July. The deal has created a UK market leader with over 21 million customers – around four in ten adults – and is expected to add roughly 10% to run-rate EPS once synergies are delivered. With integration progressing at pace, Aviva is now better positioned to accelerate its capital-light growth strategy across wealth, health and general insurance, while remaining firmly on track to hit its 2026 targets of £2bn in operating profit and £1.8bn in Solvency II own funds generation.

Balfour Beatty builds momentum with strong UK performance

Balfour Beatty’s (BBY) first-half results for 2025 showed resilient progress, with earnings-based businesses driving profit growth despite challenges in US Civils…

The order book grew 6% to £19.5bn, offering strong visibility and positioning Balfour Beatty well for 2026 and beyond. UK Construction continues to benefit from its role in major national projects, from HS2 to Hinkley Point C, while the government’s pipeline of infrastructure investment is expected to provide further opportunities in energy, defence and transport. In the US, the Buildings business delivered solid revenue growth with a rising order book across sectors such as data centres, hospitality and education, though this was offset by cost overruns on a single Civils project in Texas. Meanwhile, Gammon in Hong Kong delivered steady progress, maintaining margins despite reduced project volumes.

The outlook is underpinned by both a high-quality order book and a pipeline of opportunities closely aligned to the UK’s £725bn infrastructure strategy. Major contracts in energy transition, including Sizewell C and National Grid’s Great Grid Upgrade, reinforce Balfour Beatty’s leadership in delivering large, complex infrastructure. With net cash at historic highs, a disciplined bidding strategy and strong positions across growth markets, management is confident of further profit growth in 2026, while continuing to reward shareholders with sustainable dividends and ongoing buybacks.

Bytes Technology confirms £25m buyback to reassure investors

Bytes Technology (BYIT) has announced a £25 million share repurchase programme this week, just weeks after its July AGM update triggered a sharp fall in the share price. That update flagged a tougher first half, with customer buying decisions delayed by macro uncertainty and a slower than expected adjustment to a new specialised sales model. By stepping in with a buyback, management is sending a clear message that it views the market’s reaction as overdone and that it remains confident in the company’s long-term earnings potential.

The buyback gives investors both a near-term floor under the shares and an enhanced earnings per share profile, while underlining the Board’s conviction that the current valuation does not reflect Bytes’ underlying strength. With strong positions in cloud, security and AI-driven services, the company is still aligned to long-term structural growth drivers. The mix of improving operational execution, renewed growth prospects in the second half, and active capital returns should provide reassurance for holders prepared to look through the short-term noise.

Halma expands with €150m Brownline deal

Halma (HMLA) has strengthened its Environmental & Analysis division with the acquisition of Brownline, a Netherlands-based provider of advanced gyroscopic locating systems used in trenchless underground drilling.

Founded in 1994, Brownline has built a reputation for technology that allows underground infrastructure to be installed with pinpoint accuracy and minimal surface disruption. Its solutions are used globally by Horizontal Directional Drilling contractors, with operations across Europe, North America, the UK and Australia. The acquisition gives Halma greater reach into high-growth areas linked to the energy transition, urban expansion and digital connectivity, all of which require efficient and non-invasive underground installation techniques.

Halma’s Chief Executive Marc Ronchetti described Brownline’s technology as “a game-changer” for infrastructure development, aligning with the group’s purpose of delivering safer, cleaner and healthier solutions. For Brownline, joining Halma brings the backing of a global group while retaining operational autonomy under Halma’s decentralised model. The combination positions Brownline to accelerate its international growth while enhancing Halma’s portfolio of life-saving and safety-focused technologies.

Premier Foods serves up £48m Merchant Gourmet deal

Premier Foods (PFD) has agreed to acquire Merchant Gourmet for £48m, adding a fast-growing premium brand to its expanding portfolio. The move strengthens Premier’s presence in the healthy convenience space, with Merchant Gourmet’s range of ready-to-eat pulses, grains and microwaveable meals aligning neatly with consumer demand for nutritious, quick-to-prepare food. With revenues of around £28m and double-digit growth in recent years, the brand brings both scale and momentum, while the deal is expected to be earnings accretive in its first full year.

For Merchant Gourmet, the tie-up marks the next stage of its growth journey. The company has built market-leading positions in pulses and grains with strong consumer loyalty and repeat purchase rates, while also proving adept at entering new categories. Under Premier’s ownership, the brand retains its premium identity but gains the backing of a larger, well-resourced partner capable of amplifying its reach. Together, the combination enhances Premier’s offering in health-conscious meal solutions and reinforces its strategy of targeted acquisitions that complement its core portfolio.