Aviva resumes buybacks, Rentokil surges on US recovery: Today's FTSE earnings updates

A busy session for UK equities saw a raft of earnings updates move individual names, with buybacks, commodity prices and geopolitical risks shaping the narrative across sectors.

Aviva returns cash

Aviva shares slipped despite delivering one of the stronger updates of the morning, announcing a £350mn share buyback alongside a 10% dividend increase after hitting key financial targets ahead of schedule. Operating profit rose 25% to £2.2bn, while capital generation and solvency metrics comfortably exceeded management goals. The insurer reiterated ambitions for double-digit EPS growth through 2028 and a return on equity above 20%, underscoring the improved capital discipline story.

Gold miners riding the rally

Gold strength continues to flow through to producers. Endeavour Mining posted adjusted profit up 75% to $2.3bn, helped by elevated gold prices and stronger output. Free cash flow surged to $1.2bn, nearly quadrupling year on year. The company outlined a $1bn dividend plan through 2028, highlighting the cash generation potential if bullion remains elevated amid geopolitical tensions. Shares slipped –2% as gold trades well below the peak earlier this week.

Rentokil rebounds

Shares in Rentokil Initial jumped +11% after signs the troubled North American business is stabilising. Organic growth improved through the year and free cash flow rose 25% to $615mn, with management confident of achieving 20% US operating margins and $100mn in cost savings by 2027. Net debt also edged lower, supporting the recovery narrative.

Consumer and publishing surprises

Bloomsbury Publishing surged +18%after confirmation that bestselling author Sarah J Maas will release two new novels within a year, prompting the company to say profits for FY2027 should come in materially ahead of expectations.

Reckitt, meanwhile, reported 5% like-for-like sales growth, driven largely by price increases rather than volume. Emerging markets remained the bright spot, offsetting weaker cold-and-flu demand in developed markets.

ITV rose +3% as results were better than expected with revenues remaining stable.

Gambling, airlines and housing

Entain shares rose +5% as its US BetMGM joint venture turned profitable for the first time, though the UK business continues to feel the squeeze from higher gambling taxes, which triggered a large impairment charge.

Wizz Air slipped after warning the Iran conflict could cut profits by around €50mn, citing cancelled flights and higher fuel costs. Shares in the airline declined –7% by lunch. IAG and easyJet shares fell in sympathy as the situation in Iran evolves.

Taylor Wimpey introduced buybacks into its shareholder distribution mix for the first time, while maintaining overall payout levels. Results were in line with January guidance, shares little moved. Serco also announced a £75mn buyback as it posted 3% revenue growth as immigration revenue decline was offset by 15% growth in defence.

Others

• Grafton beat profit forecasts thanks to strong trading in Spain and Ireland. Shares in the builders’ merchants business rose +4%.

• Elementis continued restructuring into a focused specialty chemicals group after selling non-core assets. Shares flat.

• Hunting benefited from renewed enthusiasm for oil services stocks, with the sector up sharply this year. Shares +4% as it stuck to guidance.

• Ibstock warned demand in the construction market remains weak and cut its dividend, shares fell –4%.

• CAB Payments pushed back against a takeover bid from its largest shareholder, arguing the offer undervalues the business. Shares were flat.