A series of company updates released on 29 July presents a more resilient picture of business activity than the subdued wider economic backdrop might suggest. Software revenue is expanding, financial services groups continue to attract assets, and some consumer and manufacturing businesses are reporting stronger sales or operational improvements.
The qualification is that revenue growth is not translating evenly into cash generation or underlying profit. Higher financing costs, geopolitical uncertainty, commodity inflation and cautious consumers remain significant constraints. The results also show how performance is increasingly diverging according to sector, balance-sheet strength and the ability to use technology, pricing or premium products to protect margins.
Sage revenue growth accelerates as cloud adoption continues
Sage reported total revenue of £2.06 billion for the nine months ended 30 June 2026, an increase of 11 per cent on a constant-currency underlying basis and 10 per cent organically. Third-quarter revenue rose 12 per cent to £699 million, indicating that momentum strengthened as the period progressed.
The Newcastle-based accounting and payroll software group continued to benefit from the migration of smaller and medium-sized businesses towards cloud services. Sage Business Cloud revenue increased 15 per cent to £1.76 billion, while cloud-native revenue advanced 25 per cent to £794 million. Recurring revenue grew 11 per cent to £2 billion and software subscriptions accounted for 84 per cent of revenue, compared with 83 per cent a year earlier.
Growth was geographically broad. North American revenue increased 14 per cent to £932 million, supported by Sage Intacct, while revenue across the UK, Ireland, Africa and Asia-Pacific region rose 10 per cent to £602 million. European revenue increased by a more moderate 7 per cent to £528 million.
Sage maintained its expectation that organic revenue will grow by more than 9 per cent over the full financial year, with operating margins expected to trend upwards. The figures offer further evidence that business software remains a comparatively defensive area of corporate spending. Companies may postpone recruitment, property investment or discretionary consultancy work during uncertain periods, but finance, payroll and regulatory systems are harder to defer. Sage is also seeking to embed artificial intelligence within those essential workflows, although the long-term commercial return from that investment will depend on whether new functions produce measurable savings for customers rather than simply higher software costs.
Reckitt reports stronger second-quarter momentum
Reckitt said like-for-like revenue growth across its core business accelerated to 4.2 per cent in the second quarter. Core Reckitt like-for-like revenue increased 2.7 per cent over the first half, or 3.4 per cent when the Russian hygiene business is excluded. Second-quarter growth was divided relatively evenly between a 2 per cent increase in volumes and a 2.2 per cent contribution from pricing and product mix.
Performance improved across the consumer health and hygiene group’s principal regions. Emerging-market like-for-like revenue increased 9.4 per cent in the second quarter, North America returned to growth with a 2.8 per cent rise, and the decline in Europe narrowed to 1.5 per cent. Mead Johnson Nutrition, which remains outside Reckitt’s core portfolio, recorded first-half growth of 2 per cent after a 7.2 per cent second-quarter increase.
Reported group revenue nevertheless declined by 8.1 per cent because the comparative period included the Essential Home operation that Reckitt has since sold. Adjusted diluted earnings per share fell 9.7 per cent to 152.1p, while free cash flow declined 32.7 per cent to £419 million. These figures illustrate the distinction between improving trading momentum and the short-term accounting effects of a major portfolio restructuring.
Reckitt maintained its forecast for core like-for-like revenue growth of between 4 and 5 per cent in 2026 and an adjusted operating margin of between 24.9 and 25.6 per cent across Core Reckitt and Mead Johnson Nutrition. It also announced a share buyback of up to £500 million and increased its interim dividend by 5 per cent to 88.6p a share. Management said lower oil prices had reduced the potential input-cost effect previously modelled under a scenario in which crude remained at $110 a barrel, although commodity markets remain volatile and seasonal demand for medicines is inherently difficult to predict.
Standard Chartered benefits from wealth and markets activity
Standard Chartered reported a 9 per cent increase in first-half pre-tax profit to $4.78 billion, according to figures reported following the bank’s results announcement. This compared with $4.38 billion in the first half of 2025 and was above the $4.52 billion average of analyst estimates compiled by the bank.
The increase was attributed to revenue growth in wealth management, financial markets and global banking. Unlike the major domestically focused UK lenders, Standard Chartered earns most of its income in Asia, Africa and the Middle East. Its results therefore provide a broader indication of cross-border trade, investment and affluent-client activity rather than a direct measure of household or small-business conditions in Britain.
The bank’s performance suggests that fee-generating wealth and markets operations remain capable of offsetting some of the uncertainty facing conventional lending. However, its international footprint also creates exposure to geopolitical disruption, currency movements and changing trade relationships. For UK investors, the figures reinforce the value of geographic diversification within the London market, while also demonstrating that strong headline earnings can be linked to economic conditions that differ substantially from those facing British companies and consumers.
St James’s Place assets rise despite slower net inflows
St James’s Place reported record funds under management of £240.8 billion at 30 June, up from £220 billion at the end of 2025. Supportive investment markets played an important role, with investment returns equivalent to 16.4 per cent of opening funds under management on an annualised basis.
Client activity was more mixed. Gross inflows were unchanged at £10.5 billion, while net inflows fell to £2.7 billion from £3.8 billion a year earlier. Retention improved slightly to 95.4 per cent. The number of clients increased from 1.037 million at the end of 2025 to 1.064 million, while the adviser population rose modestly to 4,951.
Adjusted pre-tax profit declined from £307 million to £278.4 million and adjusted profit after tax fell to £224.4 million. Statutory profit after tax, however, increased to £310.8 million. The wealth manager held its interim dividend at 6p a share and announced an ordinary share buyback of £45.3 million, alongside an additional £82.8 million buyback following the release of part of its provision relating to evidence of ongoing customer service.
The update shows why asset growth alone should not be treated as proof of stronger underlying demand. Rising markets can lift funds under management even when net inflows slow. For the broader advice industry, the continued expansion of SJP’s client and adviser numbers points to demand for financial planning as households respond to pension reform, tax complexity and economic uncertainty. At the same time, the sector remains under pressure to demonstrate that charges, advice and ongoing services represent clear value for customers.
Aston Martin improves operations but remains burdened by debt
Aston Martin reported a marked improvement in sales and gross profit during the first half, supported by deliveries of its high-value Valhalla model. Revenue increased 38 per cent to £628.6 million, wholesale volumes rose 21 per cent to 2,331 vehicles and gross profit advanced 68 per cent to £212.5 million. Gross margin improved from 27.9 per cent to 33.8 per cent.
Adjusted earnings before interest, tax, depreciation and amortisation reached £62.7 million, compared with a £3 million loss in the equivalent period of 2025. The reported operating loss narrowed from £134.7 million to £56.5 million. However, higher financing costs meant the pre-tax loss widened from £140.8 million to £154.2 million. Net debt stood at £1.54 billion at the end of June.
Cash performance improved but remained negative. First-half free cash outflow fell from £321 million to £197.6 million, while the second-quarter outflow declined from £200.7 million to £80.8 million. Aston Martin said free cash flow approached break-even in the second quarter when the effect of its half-yearly interest payment was excluded.
The luxury carmaker completed £550 million of new debt financing in July, increasing pro-forma liquidity at the half-year point to approximately £340 million. The financing provides operational headroom but is priced at 6.75 percentage points above the prevailing Sonia interest rate, underlining the cost of Aston Martin’s dependence on borrowed capital.
Management left its 2026 operating guidance broadly unchanged and expects annual wholesale volumes to remain close to the 5,448 vehicles delivered in 2025. Its recovery remains dependent on a richer product mix, manufacturing efficiencies and disciplined supply to dealers. US tariffs, changes to Chinese luxury-car taxation and the stability of international supply chains remain material uncertainties. The results therefore represent genuine operating progress, but not yet a resolution of the group’s financial risks.
Greggs provides a further test of value-conscious consumer demand
Greggs issued its interim update for the 26 weeks ended 27 June, reporting continued strategic and operational progress. The company has been expanding its estate and investing in production and distribution capacity while attempting to maintain its position as a relatively affordable food-to-go operator.
The wider significance lies in what Greggs can reveal about discretionary consumer spending. Its products are low-cost compared with restaurant meals, but purchases remain optional and are affected by footfall, commuting patterns, weather and household confidence. The company must also manage wage, food, energy and property costs without weakening the value proposition that supports its market position.
Revenue expansion should therefore be considered alongside margins, returns from new shops and the cost of additional supply-chain capacity. Greggs’ trading progress indicates that value-oriented formats can continue to attract customers in a restrained consumer environment, although the company is not insulated from the same cost pressures affecting hospitality and retail more broadly.
The wider business outlook
The morning’s results support a picture of selective corporate resilience rather than a broad-based acceleration. Sage’s recurring software income and Reckitt’s established consumer brands provide pricing power and relatively dependable demand. Standard Chartered and St James’s Place are benefiting from financial-market activity and the continued need for wealth management. Aston Martin, by contrast, demonstrates how operational improvement can be offset by high leverage and expensive financing.
Three themes merit close attention. The first is cash conversion. Rising revenue is economically valuable only if businesses can turn it into sustainable cash after investment, interest and restructuring costs. The second is the growing divide between companies able to finance technology and efficiency programmes internally and those dependent on expensive external capital. The third is consumer sensitivity to price, which remains important even for businesses positioned around everyday essentials or affordable convenience.
Businesses and investors should next watch the Bank of England’s assessment of inflation and borrowing costs, developments in energy and commodity markets, and whether corporate confidence translates into stronger hiring and investment. The available company evidence is encouraging in places, but it does not remove the wider constraints created by weak domestic demand, geopolitical risk and elevated financing costs.
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