Davy Morning Equity Briefing
May 19, 2026
C&C
Results in line with revised expectations
C&C’s FY26 EBIT out-turn was in line with revised expectations following its January trading update. The result reflects a very challenging backdrop for the Distribution activities juxtaposed against positive operating progress for Branded activities. The business is moving towards two distinct operating models of C&C Brands and Matthew Clark Bibendum (MCB). Management will host a Capital Markets Day (CMD) in September 2026. On first look, we envisage no material change to FY27 forecasts.
Forterra plc
Update confirms challenging conditions
It could be argued that a year-to-date share price decline of almost 20% has anticipated a downbeat update from Forterra. Revenues in the first four months of the year fell 11% year-on-year (yoy) on a like-for-like basis as trading conditions unsurprisingly remain challenging. The update confirms that the risk to full year expectations is to downside, with much depending on the H2 performance.
Cranswick plc
Solid finish to FY26
Cranswick’s FY26 adjusted operating profit came in ahead of consensus at c.£237m (VA consensus: c.£232m, +c.2%), with adjusted operating margin improving sequentially to c.8.2% in H2-26, supporting confidence in FY27 delivery. UK food volume growth remained robust and broad based, accelerating to c.9.5% in H2-26 (H1: +7%). Trading in early FY27 has been in line with the Board’s expectations, although management remains mindful of the ongoing Middle East conflict. At first look, we envisage modest upside to numbers.
Diploma plc
Excellent H1 results; more upgrades
Diploma has reported very strong growth in its H1 2026 results with EPS up 36% versus the prior year, driven by strong organic revenue growth and margin expansion. This is supported by further acquisitions since the Q1 update. The company has raised guidance for FY2026 EBITA by 6%.
