A profit warning from payments network Boku leads the morning's small-cap news, after regulatory disruption to carrier billing and slower merchant connections forced a material downgrade to full-year expectations. Elsewhere, housebuilder Vistry flagged a first-half loss while holding its full-year target, and Jet2 delivered record passenger numbers despite absorbing significant cost headwinds.
Boku cuts full-year guidance after carrier billing suspensions
Boku (AIM:BOKU) warned that full-year revenue and profit will fall materially short of market expectations following a difficult first half. The AIM-listed payments network cited regulatory-driven suspensions in carrier billing and slower-than-anticipated merchant onboarding as the primary drags on performance.
The disruptions weighed on first-half results and, given the time required to restore connections and bring new merchants live, the shortfall is expected to carry through to the full year. The warning marks a significant reset for a business that had previously been tracking ahead of consensus.
Vistry swings to H1 loss while holding full-year profit target
Vistry Group (LSE:VTY) guided for a first-half pre-tax loss of around £30m, attributing the swing to pricing cuts and asset disposals undertaken to reduce debt. Despite the first-half shortfall, the housebuilder maintained its full-year adjusted profit target of £200m, in line with market consensus.
The strategy of accepting near-term margin pressure to accelerate deleveraging reflects Vistry's broader effort to strengthen its balance sheet following the challenges of recent years. Management's confidence in the second-half recovery will be closely watched as build-out activity progresses.
Unite Group flags occupancy shift as reservations reach 86%
Unite Group (LSE:UTG), the UK's largest student accommodation owner, reiterated its full-year earnings guidance after reporting that 86% of beds are already reserved for the coming academic year. The group noted a shift in the mix toward higher occupancy at the expense of rental growth, though overall income guidance remains unchanged.
The update suggests demand for student beds remains robust heading into the new academic cycle, even as the pricing dynamic moderates. Unite's ability to sustain income growth within a tighter rental environment will be a key theme for investors through the remainder of the year.
Norman Broadbent Q2 momentum points to record second half
Norman Broadbent (AIM:NBB) reported a strong second-quarter rebound in net fee income, though cumulative first-half NFI still trails the prior year's record high. The executive search firm indicated that the Q2 trajectory positions it for a record second half, provided momentum is sustained.
The update frames the first-half shortfall as a timing issue rather than a structural one, with deal flow and assignment activity picking up meaningfully through the quarter. Whether the pipeline converts at the pace implied by management's second-half confidence will determine whether the full year recovers to prior-year levels.
Jet2 absorbs £61m in cost headwinds to deliver record revenue
Jet2 (AIM:JET2) posted record full-year revenue and passenger numbers, with the package holiday group reporting full-year operating profit of £440m, in line with expectations despite absorbing £61m in costs related to its Gatwick startup and broader industry cost pressures. Passenger volumes reached a new high, underscoring the continued strength of demand for its package holiday offering.
The Gatwick expansion represented a deliberate investment in future capacity, and management framed the associated costs as a one-off drag rather than a recurring headwind. With the new base now operational, the focus shifts to whether the incremental revenue from Gatwick can offset the startup burden in the year ahead.
Capita's Smart DCC settles Ofgem procurement breach for £200,000
Capita (LSE:CPI) subsidiary Smart DCC, which operates the UK's smart meter communications network, agreed to pay £200,000 into a voluntary redress fund after Ofgem determined it had breached its licence conditions. The regulator found that Smart DCC had awarded a contract to its own parent company, Capita, without following required procurement rules.
The settlement closes the investigation without further regulatory action. For Capita, which has been managing a multi-year restructuring, the resolution removes a live regulatory overhang from one of its key infrastructure contracts, though the reputational dimension of a self-dealing finding will draw scrutiny.
Hammerson buys out Ilac joint venture partner with recycled Dublin proceeds
Hammerson (LSE:HMSO) completed the sale of central Dublin land and a further non-core investment, both at a premium to book value, redeploying the combined £69m in proceeds to acquire its joint venture partner's stake in the Ilac shopping centre. The transaction gives Hammerson full control of the Dublin city-centre retail destination.
The move is consistent with Hammerson's capital recycling strategy, concentrating ownership in assets where it holds operational control while disposing of land and peripheral holdings. Full ownership of Ilac simplifies the management structure and positions the group to capture the full benefit of any future performance improvement at the centre.
