Corporate updates dominate this morning's briefing, with a cluster of housebuilders, industrials and hospitality names confirming or refining full-year guidance ahead of the open. Shoe Zone leads with reassurance on its loss trajectory, while Bellway and Atalaya Mining both point to record operational outperformance, and Genuit and Spirax Group navigate mixed first-half conditions while holding their outlooks steady.
Shoe Zone holds loss guidance as cash beats budget
Shoe Zone (AIM:SHOE) confirmed trading continued positively through July, with cash and equivalents standing at approximately £7m as of 25 July, running ahead of its original budget. The footwear retailer maintained its guidance for an adjusted pre-tax loss of no greater than £1m for the financial year ending 3 October, a figure that excludes foreign exchange gains and losses.
The update reiterates prior guidance rather than revising it in either direction, with the stronger-than-budgeted cash position offering a supportive backdrop to the outlook without altering the underlying loss expectation. Shoe Zone's financial year runs through to 3 October, leaving roughly two months of trading still to play out.
The restatement of loss guidance without revision suggests trading momentum has not yet translated into profitability, though management is prioritising liquidity and cost control while seeking to convert improved trading into a sustainable recovery. The ahead-of-budget cash position reduces near-term solvency risk but does not change the fundamental challenge of returning the business to profit.
Bellway completions beat guidance as cash generation surges
Bellway (LSE:BWY) grew total housing completions by 10.8% to 9,695 homes in the year to 31 July, beating its previously guided range of 9,300 to 9,500 homes. The housebuilder said the outperformance was driven primarily by strong conversion from its bulk sales pipeline, with housing revenue up over 13% to £3.14bn and underlying operating profit expected at roughly £320m, against £303.5m a year earlier.
Adjusted operating margin is expected to slip to roughly 10%, from 10.9%, reflecting a higher proportion of lower-margin bulk sales, while the private reservation rate excluding bulk sales fell to 0.49 per outlet per week from 0.52. The forward order book reduced to 4,206 homes worth £1,197.2m, down from 5,307 homes a year earlier, pointing to a tighter pipeline heading into the new financial year.
"Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry," said Jason Honeyman, Chief Executive.
Honeyman used the results to press the Government for a cut to Stamp Duty and backing for a deposit support scheme for first-time buyers, underlining that volume growth is being achieved despite, not because of, current policy conditions. The shrinking order book and margin dilution from bulk sales suggest the next leg of growth will depend more heavily on demand-side support than on further pipeline conversion.
Spirax Group holds full-year guidance after 5% first-half growth
Spirax Group (LSE:SPX) reported organic revenue growth of 5% for the six months to 30 June, comfortably outpacing global industrial production growth of 1.8% over the same period. The specialist manufacturer of steam, electric thermal and fluid technology systems posted adjusted operating profit up 6% organically, with the adjusted operating margin rising to 19.8% from 19.3% a year earlier, while adjusted earnings per share grew 9%.
Watson-Marlow Fluid Technology Solutions led divisional performance with 7% organic sales growth, as biopharmaceutical order intake stayed ahead of sales and reached its highest quarterly level since the 2021 pandemic peak, pushing that division's margin up 80 basis points to 27.5%. Electric Thermal Solutions grew sales 11% organically, with margin up 220 basis points to 17.2% on stronger Semicon and Heat Trace demand, while Steam Thermal Solutions grew a more modest 1%, with margin down 170 basis points to 22.0% on shipment phasing and first-half investment.
"Driving growth ahead of our markets, in spite of external conditions, is now becoming embedded in how we operate," said Nimesh Patel, Chief Executive Officer. The divergence between Watson-Marlow's pandemic-era order highs and Steam Thermal's margin compression shows the group's growth is increasingly concentrated in biopharma and electrification exposure, a mix shift that should reward investors if it persists through the second half.
Genuit holds full-year outlook despite H1 profit dip
Genuit Group (LSE:GEN), the UK's largest provider of sustainable water and climate products for the built environment, reported revenue of £307.8m for the six months to 30 June, up 3.4% on the same period last year. On a like-for-like basis stripping out 2025 acquisitions, revenue fell 4.8%, though trading improved through May and June as double-digit price increases took hold following a weaker first four months hit by the Middle East conflict and wet weather.
Underlying operating profit fell 1.6% to £43.9m, with like-for-like margin down 140 basis points to 13.7%, partly due to non-recurring operational issues at Adey, including a £1.5m slow-moving stock provision and a £0.8m supplier quality failure. Reported operating profit dropped 30.1% to £26.2m, reflecting the lower underlying profit alongside exceptional costs tied to business transformation.
"Genuit took decisive and responsible action in the first half of the year in the face of challenging market conditions," said Joe Vorih, Chief Executive. The Adey-specific stock and quality provisions look containable rather than structural, but the scale of the reported profit decline against a maintained outlook implies management is betting on a second-half recovery in pricing and volumes to close the gap.
IHG lifts earnings on record hotel openings
InterContinental Hotels Group (LSE:IHG) lifted earnings on the back of record hotel openings, with chief executive Elie Maalouf saying the company remains on track to meet full-year consensus profit and earnings expectations.
Maalouf flagged ongoing disruption from the Middle East conflict but said the group expects this to be offset by growth elsewhere in its portfolio, pointing to the geographic diversification of its pipeline as a buffer against regional shocks.
Atalaya Mining posts record first half earnings
Atalaya Mining (LSE:ATYM) generated record quarterly and half-year earnings as strong copper prices offset cost pressures linked to the Middle East conflict, the Spanish producer said.
The company maintained its interim dividend and left full-year guidance unchanged, signalling confidence that pricing strength will continue to absorb input cost inflation through the remainder of the year.
Breedon presses government on cement competitiveness
Breedon Group (LSE:BREE) said talks with ministers on its Back British Cement campaign are ongoing, as the building materials group continues to push for policy support for domestic cement producers.
The company said further clarity is still needed on carbon and energy costs, underscoring that the competitiveness of UK cement manufacturing remains contingent on government decisions yet to be made.
Seeing Machines swings to second-half profit on royalty surge
Seeing Machines (LSE:SEE) swung to a second-half profit, with chief executive Paul McGlone describing FY2026 as "a pivotal year for Seeing Machines, with record Automotive production volumes, strong revenue growth and a profitable second half that demonstrates the operating leverage in our business."
The record automotive production volumes and accompanying royalty growth point to the driver-monitoring technology finally scaling profitably after years of investment, with the operating leverage McGlone describes suggesting further margin gains as production volumes continue to build.
