First-half revenue came in at £5.0bn, as expected, reflecting underlying growth of 8.3%. Performance reflected broad-based growth across all business units. Recurring revenue momentum improved, with annual subscription value growth accelerating to 6.1%.
Underlying operating profit rose 16.6% to £2.0bn, as expected, driven by top-line growth, good cost control and improving margins.
Free cash flow rose 29% to £1.2bn over the year, and net debt rose 23% to £9.3bn since year-end. A dividend of 55.0p was announced, up 17%. The group completed £2.1bn of share buybacks in the first half and plans to complete a further £1.4bn by February 2027.
Full-year revenue growth guidance was raised to 7.0-7.5% (7.8% expected), from 6.5-7.5%, while margins are expected to improve.
The shares fell 3.0% in early trading.
Our view
HL view to follow.
LSEG key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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