Corporate updates dominated the morning news flow, with travel retail, housebuilding and defence engineering all delivering trading statements that broadly matched expectations, while a hostile takeover battle for Harworth Group sharpened. The tone across statements was one of steady operational delivery against a still-challenging consumer and market backdrop, with cost discipline and portfolio rationalisation recurring themes.
WH Smith confirms full-year profit guidance at £75m
WH Smith (LSE:SMWH) confirmed that full-year headline group profit before tax and non-underlying items is expected to come in around £75m for the year ended 31 August, matching consensus expectations. The travel retailer's guidance caps a period in which management has worked to stabilise the business following an earlier profit warning and a June equity placing, with the update signalling that the turnaround narrative is holding rather than deteriorating further.
The detail shows a business of two speeds. UK revenue rose 7% in the fourth quarter with like-for-like sales up 4%, driven by an 8% like-for-like uplift in the Hospital channel and 2% growth in Air on higher passenger numbers and spend. North America told a different story: total revenue grew 5% in the quarter but like-for-like sales fell 3%, with both Air Travel Essentials and InMotion softer on weaker consumer demand and passenger volumes. Resorts revenue fell 26% amid continued rationalisation of the fashion store estate, while Rest of World revenue declined 4% as the group exits Norway, prepares to leave Denmark and Sweden in early 2027, and will quit the Netherlands on lease expiry that year. Net debt is expected to be around £325m at year-end, with leverage of around 2.0 times following the £103m raised through June's placing, and the group has completed the disposal of Cult Pens.
The profit figure reflects lower trading margins from increased promotional activity, reduced brand marketing spend and inflation, offset by central cost cuts and lower interest costs, a mix that points to a business managing margin pressure rather than escaping it. Hitting guidance restores a measure of credibility after the earlier downgrade and equity raise, but the continuing weakness in North America and the ongoing retreat from parts of Rest of World show the turnaround is still a work of subtraction as much as growth. Preliminary results, due 12 November, will be the next test of whether UK travel hubs can keep offsetting a laggard North American arm.
Babcock confirms strong trading for defence and nuclear
Babcock International Group (LSE:BAB) said trading in the first five months of its 2027 financial year is in line with expectations, with full-year outlook and medium-term guidance left unchanged. The defence and nuclear engineering group pointed to continued strong performance across its Nuclear and Aviation divisions, with demand across core defence markets described as robust, and the update lands as new chief executive Harry Holt settles into the role, having succeeded David Lockwood on 31 July.
Lockwood remains with the group until his retirement in January 2027 to support the leadership transition. Babcock also disclosed it issued a £250m six-year sterling bond during the period to extend its debt maturity profile, and launched a further £200m share buyback in July, expected to complete by the end of the financial year.
"We have started FY27 with good momentum and operational delivery, supported by strong demand across our core defence and nuclear markets," said Holt, chief executive of Babcock.
The reaffirmed guidance, alongside continued capital returns and refinancing, suggests the leadership handover is proceeding without disruption to underlying trading. With the UK Government still working through implementation details of its Defence Investment Plan, Babcock's confirmation of unchanged medium-term guidance signals confidence that policy tailwinds will continue to support order flow rather than introduce near-term uncertainty.
Barratt Redrow profit dips as it trims FY27 completions guidance
Barratt Redrow (BTRW) completed 17,667 homes in the 52 weeks to 28 June, up 5% on the prior year's 16,826 aggregated completions and near the top of its guidance range, even as adjusted profit before tax fell 7.1% to £572.8m from £616.5m. Adjusted operating profit rose 0.6% to £598.1m, though margin slipped to 9.9% from 10.5%, underlining the pricing pressure housebuilders continue to navigate.
Statutory profit before tax rose to £363.5m from £245.3m, reflecting a reduced hit from Redrow transaction and integration costs, with the integration itself now complete: £73m of a targeted £100m in annual cost synergies has been delivered, alongside 12 new synergy sales outlets opened during the year. Net cash stood at £772.8m at year-end after £242.2m in dividends and £100m of share buybacks. "In a tough market, we have driven a strong operational and financial performance," said chief executive David Thomas, noting adjusted profit before tax came in line with market expectations.
The completed integration and delivered synergies give the enlarged group a cleaner cost base heading into a new financial year, even as margin compression shows the housing market remains far from benign. With Thomas's tenure marking a decade at the helm before this transition period, the emphasis on operational delivery in a "tough market" frames the read-through for FY27 guidance as one of resilience management rather than a return to expansionary conditions.
Moonpig says trading matches expectations into AGM
Moonpig Group (MOON) told shareholders ahead of its Annual General Meeting that trading has matched expectations since the financial year began on 1 May. At its core Moonpig brand, revenue growth is being driven by both higher order volumes and rising average order value, the latter aided by product upsell and modest growth in gift attach rates, while Greetz, the group's Dutch operation, continues to post modest year-on-year growth on both a reported and constant-currency basis.
Experiences, the group's gifting and events arm, is seeing online gross transaction value grow even as reported revenue remains lower year-on-year, following a managed exit from certain third-party retail partnerships and reinvestment of commission income into the recipient proposition. Moonpig expects Experiences revenue to return to year-on-year growth during the second half of the financial year, and reiterated its financial guidance. "I am pleased with the progress we have made in the year to date and the disciplined execution of our strategy across the Group. Customers continue to choose us to help them recognise life's important moments, reflecting the ongoing relevance of Moonpig's proposition," said Catherine Faiers, chief executive.
The steady core-brand momentum, paired with a deliberate near-term drag in Experiences from exiting weaker partnerships, points to a business trading off short-term revenue for a cleaner, higher-margin base in that division. Reiterated guidance suggests management is confident the second-half recovery in Experiences will arrive as planned, keeping the group's full-year targets intact.
Peel Pepper lifts Harworth cash offer to 177.5p
The suitor behind the hostile approach for Harworth Group (HWG) raised its cash offer to 177.5p per share, escalating a takeover battle for the regeneration and property developer. The increased bid marks the latest move in a contest that has already seen Harworth's board rebuff earlier terms.
The higher offer puts renewed pressure on Harworth's board to respond, with shareholders now weighing whether the improved cash terms reflect fair value for the group's land and regeneration portfolio against the case for remaining independent.
