Wall street firms Goldman Sachs (GS) and Morgan Stanley (MS) smashed expectations with their Q4 results this week. Both banks were big beneficiaries of increased deal volumes rather than stock trading. Goldman Sachs: $958.5 (+3%)Morgan Stanley: $189 (+4.5%)Market cap: $300bnMarket cap: $300bn TOP ADVISOR Goldman Sachs posted Q4 net profit of $4.4 billion, a record not just for the firm but for Wall Street itself. Quarterly EPS (earnings per share) hit $14.01 against a consensus of $11.69 and EPS of $11.95 a year earlier. There were $5 trillion of deals globally last year, driven by the AI dash-for-cash and lower…

Shares in asset manager Schroders (SDR) hit a 2-year high after the firm raised its 2025 profit outlook. Net operating income for the year to December 2025 is now seen at £2.58 billion or more against £2.44 billion in 2024. The company cited strong net new business, a higher-margin mix of assets, positive returns and higher performance fees. Operating expenses, meanwhile, are seen broadly flat on 2024 as a result of good cost discipline. Therefore, the firm now expects adjusted operating income of at least £745 million against £603 million the previous year. Share price: 450p +8%P/E: 18.4xMarket Cap: £7bnYield:…

Homewares retailer Dunelm (DNLM) lowered its full-year profit guidance citing ‘softer’ Q2 trading. The ‘Home of Homes’ said first-half sales rose 3.6% to £926 million, but Q2 sales growth was just 1.6%. Gross margins improved modestly (+60 basis points), but that was largely down to favourable FX. After a strong Q1, trading in Q2 was ‘more challenging’, particularly around Black Friday and into December. While it stayed disciplined in terms of promotions, the firm said it saw especially high levels of competition through discounting. ‘Whilst the UK retail environment remains variable, we have acted on some clear lessons from the…

Taylor Wimpey (TW.) forecast a fall in this year’s operating margin, adding to the gloom around UK housebuilders. The admission came as the firm posted in-line results for the year to December 2025. Completions excluding JVs were in line with forecasts at 10,614 units, while average prices for private sales were 5% higher. As a result, revenue for 2025 rose around 12% to £3.8 billion and operating profit increased slightly to £420 million. Net private reservations were flat at 0.75 per week, and the cancellation rate stayed at 15% as in 2024. The order book excluding JVs was down 6%…

AIM-listed games developer and publisher Frontier Developments (FDEV) has raised its profit guidance after ‘excellent’ 1H trading. The firm posted £59.6 million of revenue for the six months to 30 November, a 26% increase on the previous year. Adjusted operating profit increased an even more impressive 76% to £9.7 million in the half. Also, the firm had net cash of over £40 million at the end of November, up 47% on the previous year. Share price: 596p +5.6%P/E: 21xMarket Cap: £175mYield: n/a CMS STRATEGY DELIVERING The firm’s focus on CMS or creative management simulation games is clearly paying off. Revenue…

Shares in staffing firm Hays (HAS) hit a 20-year low after the company posted weak second-quarter results. Since early 2022, Hays shares have lost roughly two thirds of their value as the global job market stays stuck in the doldrums. Share price: 49.9p -2%P/E: n/aMarket Cap: £800mYield: 2.4% PERM TO TEMP Although the UK market only represents 20% of Hays’ overall business, what it says is instructive. UK net fee income for the second quarter to December 2025 was down 9% on a like-for-like basis. That follows a 9% fall in the quarter to September 2025 and a 15% fall…

Housebuilder Vistry (VTY) confirmed its full-year profit guidance despite flat revenue and housing completions. For the 12 months to the end of March 2026, the firm expects pre-tax profit of £270 million, slightly up on last year. Revenue is expected to be flat at £4 billion while completions are seen at 15,700, down around 9% on March 2025 However, the market took the update badly sending the shares down over 7% after their recent rally. Share price: 629.5p -7.7%P/E: 11.2xMarket Cap: £2bnYield: n/a TRUSTED PARTNER Vistry operates a different model to most homebuilders as around 75% of sales are ‘partner…

We are big fans of Terry Smith’s investment approach, but Fundsmith Equity (B41YBW7) has now underperformed for five years running. Despite ‘buying good companies, not overpaying and doing nothing’, the global equity fund returned just 0.8% in 2025. That is less than the 4.2% return on cash and considerably less than the 12.8% gain for MSCI World. As the table below shows, it also brings Fundsmith’s record of underperformance to five years in a row. Fundsmith performance 201-2025 FundsmithMSCI World2025+0.8%+12.8%2024+8.9%+20.8%2022+12.4%+16.8%2023-13.8%-7.8%2021+22.1%+22.9% Source: Fundsmith Equity WHY IS THE FUND BEHIND? Terry Smith explains the underperformance of the fund as being due to…

Shares in hotel group Whitbread (WTB) topped the FTSE 100 leader board after a positive Q3 trading update. Across the group, total accommodation sales were up 4% on a headline basis and 3% on a comparable basis. UK accommodation sales were up 2%, while sales in Germany were up 16% and the business is nearing profitability. Premier Inn is now the leading hotel group in Germany and RevPAR (revenue per available room) is climbing. Share price: £27.18 +4.9%P/E: 19.1xMarket Cap: £4.6bnYield: 3.8% IMPROVED OUTLOOK On a call with analysts, chief executive Dominic Paul said the group’s strong Q3 performance had…

Fantasy miniatures firm Games Workshop (GAW) announced record results for the 1H to November 2025. Revenue for the period was up 17% to £316 million driven by a 25% increase in international trade sales. Retail and online sales growth was more modest, and licensing revenue was just £16 million against £30 million previously. Cost of sales and operating costs rose by around 10%, so operating profit rose by 28% to a record £126 million. INTERNATIONAL SUCCESS The firm delivered profitable sales growth in its 23 core countries and all three channels. Regular weekly releases of new miniatures helped drive demand,…