Companies See Mixed Results as Weather Impacts Sales
Summary
Several major companies have released their first-quarter results, showcasing both positive and negative trends. Next (NXT) upgraded its guidance for the second time this year due to a stronger-than-expected first quarter, while Centrica (CNA) has warned of lower profits in its household supply and energy trading businesses. Intercontinental Hotels (IHG) reported good first-quarter trading with revenue per available room up 3.3%, but Flutter Entertainment (FLTR) saw its shares dip despite a slight lift in guidance. Mondi (MNDI) shares rose by 3.4% after the FTSE 100 packaging company posted higher underlying Ebitda and said tariffs would have a limited direct impact on the business.
Company Updates
Next plc (NXT)
Next plc has upgraded its guidance for the second time this year, following a stronger-than-expected first quarter. The retailer’s sales were up 11.4% in the first quarter, which was £55mn higher than anticipated. This increase was largely due to warmer weather, which led to increased sales of summer clothing that may have been pulled forward from the second quarter. As a result, Next has not increased its full-year sales guidance but expects group profit before tax to be 6.8% higher at £1.08bn.
After buying back shares, pre-tax earnings per share are expected to rise by 10% to 930p. Despite this positive update, the company’s shares only ticked up by 1% in early trading.
Centrica plc (CNA)
Centrica has warned that profits will be at the lower end of guidance in its household supply and energy trading businesses. The former is due to "warmer than normal weather in Q2" that led people to turn off their heaters earlier than usual, while Centrica Energy was also impacted by "challenging market conditions in the gas and power trading segment".
The company’s shares fell 7%, taking it back from an almost two-year high. Centrica also warned of an energy storage operating loss at the high end of the £50mn-£100mn guidance range.
Intercontinental Hotels Group (IHG)
Intercontinental Hotels reported good first-quarter trading, with revenue per available room (RevPAR) up 3.3% year-on-year. Although "some forward economic indicators have softened", second-quarter bookings were similar to last year, and IHG is on track to meet full-year profit expectations.
Shares in the company rose by 3%. Despite some concerns about the impact of tariffs on its business, IHG remains optimistic about its future prospects.
Flutter Entertainment plc (FLTR)
Flutter Entertainment’s shares dipped 2% despite a slight lift in guidance due to foreign currency movements and contributions from acquisitions. Although revenue and adjusted cash profit in the US are expected to be almost $200mn lower due to unfavourable sports results and unprofitable pushes into new markets, group revenue should be almost $1.2bn higher and adjusted cash profit in line once FX gains and contributions are added.
Adjusted cash profit guidance was lifted by $20mn to just below $3.2bn. Despite this increase, the company’s shares fell due to concerns about its future prospects.
Mondi plc (MNDI)
Mondi’s shares rose by 3.4% in early trading after the FTSE 100 packaging company posted higher underlying Ebitda in the first quarter and said tariffs would have a limited direct impact on the business. Underlying Ebitda for the first quarter was €290mn (£247mn), including a forestry fair value gain of €2mn.
This compares to €261mn in the final quarter of 2024, with a fair value loss of €27mn. Higher sales volumes, particularly in its corrugated packaging and flexible packaging businesses, a tight rein on costs, and fewer planned maintenance cuts offset lower average selling prices.
However, paper price hikes in the last few months have largely offset the declines and will come through from the second quarter.
FRP Advisory Group plc (FRP)
FRP Advisory’s shares fell 4% this morning after the restructuring specialist said several corporate finance projects had been delayed into the 2026 fiscal year following Donald Trump’s tariff announcements. The Aim-traded group expects revenues in the 2025 financial year to be around £152mn, up 19% year on year, and adjusted underlying Ebitda to rise by 11% to around £41mn.
FactSet consensus estimates indicate sales of £155mn and Ebitda of £42mn. On top of tariffs, FRP said many UK companies will face additional financial difficulties as hikes to the minimum wage and employers’ National Insurance contributions take effect, especially those in hospitality and retail.
S4 Capital plc (SFOR)
S4 Capital stuck to its full-year guidance despite warning that clients are likely to remain "cautious" due to tariffs and reporting lower revenues in the first quarter of the year. Shares fell by 7% to 24p. The company said like-for-like net revenues in the first quarter fell by 11.4% to £164mn.
Executive chair Martin Sorrell said technology clients, which account for more than half of sales, were still prioritising AI spending over marketing. Net revenue in technology services slumped by 37% as a large client cut ties, with marketing services net sales down 7.5%.
The biggest decline was in the EMEA region, down 16%, followed by 11% in Asia Pacific and 10.5% in the Americas.
Harbour Energy plc (HBR)
Harbour Energy’s cutting of 250 jobs in Aberdeen made it to parliament during Prime Minister’s questions on Wednesday, with local MP Stephen Flynn of the Scottish National Party saying Labour’s policies were to blame. It echoes Harbour’s statement, although the company started reducing North Sea spending well before the Labour government.
"The [staffing review] is unfortunately necessary to align staffing levels with lower levels of investment, due to the government’s ongoing punitive fiscal position and a challenging regulatory environment."
Opposition leader Kemi Badenoch joined in: "Why is [Starmer] shutting down the North Sea rather than getting our oil and gas out of the ground and making energy cheaper?"
This morning, Harbour reported production at the top end of guidance for Q1, at 500,000 barrels of oil equivalent per day, and dropped free cash flow guidance from $1bn to $900mn on lower energy prices. The company noted its actions to "reduce costs and high-grade" capital spending would increase 2025 free cash flow by $200mn, almost offsetting the lower prices.
Morgan Advanced Materials plc (MGAM)
Morgan Advanced Materials said it only expects a small direct impact from US tariffs as the manufacturer confirmed it is on track to deliver £16mn of cost savings this year. In an update ahead of its AGM, management said the company’s "predominantly localised manufacturing footprint" would protect it from the levies.
After mitigation, the board "do not expect a material net impact for the full year". The company confirmed that organic sales for the three months to 31 March were down 3.5% against the same period last year, which was as expected.
The shares rose 3% in early trading. Despite some concerns about its future prospects, Morgan Advanced Materials remains optimistic about its performance.
Conclusion
Several major companies have released their first-quarter results, showcasing both positive and negative trends. While Next plc has upgraded its guidance due to a stronger-than-expected first quarter, Centrica plc has warned of lower profits in its household supply and energy trading businesses.
Intercontinental Hotels Group reported good first-quarter trading with revenue per available room up 3.3%, but Flutter Entertainment’s shares dipped despite a slight lift in guidance. Mondi plc’s shares rose by 3.4% after the FTSE 100 packaging company posted higher underlying Ebitda and said tariffs would have a limited direct impact on the business.
FRP Advisory Group’s shares fell 4% this morning after the restructuring specialist said several corporate finance projects had been delayed into the 2026 fiscal year following Donald Trump’s tariff announcements. S4 Capital stuck to its full-year guidance despite warning that clients are likely to remain "cautious" due to tariffs and reporting lower revenues in the first quarter of the year.
Harbour Energy’s cutting of 250 jobs in Aberdeen made it to parliament during Prime Minister’s questions on Wednesday, with local MP Stephen Flynn of the Scottish National Party saying Labour’s policies were to blame. Morgan Advanced Materials said it only expects a small direct impact from US tariffs as the manufacturer confirmed it is on track to deliver £16mn of cost savings this year.
Overall, these results demonstrate both positive and negative trends across various industries. While some companies are performing well, others are facing challenges due to factors such as tariffs, lower energy prices, and changes in consumer demand.