LONDON BRIEFING: Experian buyback; M&S warns on retail "triple whammy"

Wed, 20th May 2026 07:56

(Alliance News) - Marks & Spencer says revenue increased in its financial year, but profit declined. Experian upped its payout and says it will launch a buyback, while RS Group also set out a repurchase programme. Harry Potter publisher Bloomsbury reports profit growth, as sales of the fantasy novels continue to be robust almost three decades later.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called down 0.4% at 10,290.25

GBP: lower at USD1.3388 (USD1.3392 at previous London equities close)

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ECONOMICS

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UK consumer price inflation was cooler than expected last month, data on Wednesday showed, despite a "large increase in motor fuel prices". The Office for National Statistics said consumer prices rose 2.8% in April, cooling from a 3.3% surge in March. A loftier rate of 3.0% had been expected for April, according to consensus cited by FXStreet. The Bank of England has a 2% inflation target. Consumer prices rose 0.7% in April from March, below expectations of a 0.9% rise. "Housing and household services made the largest downward contribution to the monthly change," the ONS said. "An upward contribution from a large increase in motor fuel prices was counteracted by downward effects from other categories in the transport division." Excluding food, energy, alcohol and tobacco, the annual core consumer price inflation rate cooled to 2.5% in April from 3.1% in March, below consensus of 2.6%. Annual service price inflation eased markedly to 3.2% in April from 4.5% in March. Meanwhile, producer price inflation picked up. Producer prices surged 7.7% on-year in April, picking up speed from 5.3% in March, topping consensus of 5.9%. On a monthly basis, producer prices rose by 2.4% in April, beating a 1.0% forecast.

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The UK government has relaxed sanctions on Russian crude oil, allowing for the import of jet fuel and diesel refined in third countries amid surging costs. A trade licence, which came into effect on Wednesday, permits the imports "indefinitely". According to the licence, the sanctions carve-out will be periodically reviewed as fuel prices rise due to the closure of the Strait of Hormuz and the ongoing crisis in the Middle East. The government had previously announced the UK would block Russian oil refined in other countries in a bid to "further restrict the flow of funds to the Kremlin".

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BROKER RATINGS

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Peel Hunt raises Babcock to 'buy' (add) - price target 1,409 (1,582) pence

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COMPANIES - FTSE 100

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Marks & Spencer recorded a rise in annual revenue, but profit declined on rising costs and a GBP131 million hit from a cyber attack. The clothing, homewares and food retailer says pretax profit in the year to March 28 declined 29% to GBP364.6 million from GBP511.8 million. "Profitability was impacted by the incident in the first half but showed good progress in the second half," M&S says. In addition, it says operating costs increased amid rising employee pay, national insurance contributions and new store openings. But revenue was on the up, surging 25% to GBP17.27 billion from GBP13.82 billion, M&S says. "That was an extraordinary year," Chief Executive Stuart Machin says. "Food was our standout performer as more customers than ever chose M&S Food for its quality, innovation, and value. Performance accelerated in the second half, returns were strong, and we continue to outperform the market with the prospect of more growth to come. In Fashion, Home & Beauty we delivered leading style credentials at the best possible value, and this resonated with customers. Recovery has taken longer, but there is strong growth potential. To support this, we have accelerated our supply chain improvements, acquiring a fully automated fashion distribution site in Lichfield to increase capacity and deliver new styles faster." Machin warns of a "triple whammy" to the retail sector, amid rising tax, a "greater regulatory burden" and global conflict. The company adds: "M&S enters 2026/27 with a clear plan and a strong balance sheet, focused on delivering further improvements to availability and service levels. Profit growth is expected to resume versus 2024/25. The outlook for the current year includes higher fuel, freight and input costs and continued government tax levies and regulatory headwinds for the sector. These are being mitigated through improved buying, reinvestment in value to drive volume, and savings from the structural cost reduction programme." M&S has kept dividends "conservative", proposing a 3.0 pence per share final payout, taking the total for the year to 4.2p, up 17% from 3.6p.

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Experian has announced a USD1 billion new share buyback as it reports annual earnings growth. The provider of consumer credit score checking, fraud detection and credit application processing says pretax profit in the year to March 31 increased 26% to USD1.95 billion from USD1.55 billion, with revenue up 12% to USD8.45 billion from USD7.52 billion. "FY26 was a record year for Experian, with performance at the upper end of our expectations and strong strategic momentum," CEO Brian Cassin says. Benchmark earnings per share were 15% higher at 179.8 cents, Experian says, and organic revenue growth was 8%, "at the top of our guidance range". Cassin says: "Given the strength of our performance, cash generation and balance sheet flexibility, we have today announced a further USD1 billion share repurchase programme, whilst retaining significant capacity to continue investing in growth opportunities. Looking ahead, we expect another year of strong growth in FY27, supported by continued expansion of our addressable markets, successful strategic progress, further productivity gains, and whilst taking a prudent approach to macroeconomic uncertainties linked to the Middle East. We expect to deliver another year of double-digit Benchmark EPS growth, underpinned by total revenue growth of 8-11%, organic growth of 6-8%, and margin expansion at the higher end of our medium-term framework." Experian says it has lifted its total dividend to 69.25 cents per share from 62.50.

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COMPANIES - FTSE 250

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Industrial and electronics products distributor RS Group says annual profit increased, despite "challenging markets". Pretax profit in the year to March 31 was up 6.8% to GBP220 million from GBP206 million, with revenue edging down 0.8% to GBP2.88 billion from GBP2.90 billion. "2025/26 was another year of strong execution of our multi-year plan to improve the business and deliver on the significant value creation opportunity at RS. Revenue was broadly flat in challenging markets, but we gained share with most major suppliers and saw stronger momentum in the second half, particularly in Asia Pacific and US & Canada, with EMEA also returning to growth," CEO Simon Pryce says. "Two years of positive underlying progress, combined with disciplined cost control and a clear plan, increases our confidence in delivering our medium-term financial targets and sustainable returns. Excellent cash generation and a very strong balance sheet gives us more than sufficient capacity to execute our organic investment programme enhanced by value creative acquisitions." RS says it is launching a GBP100 million share buyback. It raised its annual dividend to 22.9p per share from 22.4p.

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Geotechnical contractor Keller Group says it has traded in line with expectations so far in 2026. It says trading has been "strong" when compared to a year prior. "The group remains resilient to macro-driven increased energy and material costs by capturing price increases across new contracts and through existing contract mechanisms. Overall, management remains confident that the improved operational and financial performance experienced in recent years will be sustained, and that the group will deliver a full year result in line with the board's expectations," Keller says ahead of its annual general meeting on Wednesday.

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OTHER COMPANIES

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Bloomsbury Publishing says annual profit edged higher, despite a revenue decline, with Harry Potter sales remaining "robust" almost three decades after its first publication. The book publisher says pretax profit in the year to February 28 edged up 5.2% to GBP34.2 million from GBP32.5 million, despite revenue falling 9.7% to GBP325.9 million from GBP361.0 million. "Harry Potter sales remain robust in the 29th year after first publication, demonstrating the enduring appeal of this classic series," Bloomsbury says. It says its "Consumer division has a particularly strong pipeline" for the year ahead. CEO Nigel Newton says: "In Academic & Professional, we grew in print, digital and rights revenue in the second half and see encouraging signs of recovery with good growth in all territories in the current financial year. We announced our first participation in AI licensing for academic content in July 2025, and saw the outperformance of our Academic & Professional Division over the past year. Bloomsbury is benefitting from ongoing AI licensing revenue into the future in 2026/27. In addition, we have established Bloomsbury Singapore to spearhead growth in the expanding Asian markets." Bloomsbury lifts its final dividend to 12.12p per share from 11.54p, sending its total payout to 16.20p, up from 15.43p.

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By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com