Greencore, a Dublin-based convenience food manufacturer, has raised its full-year adjusted operating profit guidance for continuing operations to between £234 million and £242 million for financial year 2026. This revised outlook surpasses current market expectations, which had a consensus of £224 million. The positive performance is attributed to accelerated volume growth, with revenues reaching £1.02 billion in the third quarter, a 3.2% increase on a pro forma basis. The company also highlighted significant progress in the integration of its acquisition, Bakkavor, with in-year cost synergies expected to reach approximately £15 million in FY26, and at least £80 million in annual cost synergies planned.
Dalton Philips, Greencore CEO, noted that the enlarged group had "never been stronger" and expressed encouragement regarding the achievements of the combined business. He emphasized that the upgrade was primarily driven by the underlying trading performance of the enlarged business and strong underlying profit momentum from both the legacy Greencore and acquired Bakkavor businesses. Shares in Greencore jumped by 10% to 244p immediately following the announcement.
Separately, Kier Group, a UK construction and infrastructure company, announced that its full-year results for the financial year ending June 30, 2026, are expected to be at the top end of market expectations. The company reported an 8% increase in its order book to £12.9 billion, providing strong revenue visibility, and transitioned from a net debt position of £49 million to a net cash position of approximately £232 million. Adam Vettese, an analyst at eToro, commented that Kier's performance since the start of the new financial year is in line with board expectations, and the record order book continues to provide strong revenue visibility, underpinning confidence in the FY26 outcomes.
