Rolls-Royce was one of the standout performers on the FTSE 100 on Thursday after the jet engine manufacturer raised its full-year guidance following a strong first-half performance, while Rentokil Initial suffered a sharp fall after stepping back from a key margin target.
Rolls-Royce shares climbed as high as 6.0% to 1,463.3p, moving closer to their 12-month high of 1,532.6p, after the company reported revenue growth of 21% to £11.45 billion for the first six months of 2026.
The company said underlying operating profit increased 46% to £2.53 billion, helping it raise its full-year forecast for underlying operating profit to between £4.7 billion and £4.9 billion, up from the previous estimate of £4.0 billion to £4.2 billion.
Free cash flow guidance was also upgraded, with Rolls-Royce now expecting between £3.8 billion and £4.0 billion for the year. The company increased its interim dividend to 6.0p per share from 4.5p, adding further support for the share price.
Lloyds Banking Group also moved higher, gaining 2.9% to 114.60p after reporting stronger quarterly results. The lender posted second-quarter pretax profit of £2.27 billion, up 14% year on year, while net income rose 9.7% to £4.96 billion.
Lloyds raised its interim dividend by 30% and announced a new share buyback programme worth up to £1 billion, alongside its existing £1.75 billion programme announced earlier this year. The bank also repeated its target of delivering annual net income above £14.9 billion.
Helios Towers was another strong performer among London-listed companies, rising as high as 5.2% to 212.8p after increasing its full-year outlook. The mobile tower operator reported a 13% increase in first-half tenancy numbers to 34,455 and raised its forecast for tenancy additions and adjusted EBITDA.
At the other end of the FTSE 100, Rentokil Initial was the biggest faller, dropping 18% to 363.40p after the pest control group abandoned its previous North America margin target.
The company said it would retire its goal of achieving a 20% margin in North America by 2027 as it increases investment in the region. Chief Executive Mike Duffy said the additional spending would be funded through cost savings, but investors reacted negatively to the change in expectations.
Elsewhere on the FTSE 250, Mondi jumped 14% to 903.3p, while Ocado gained 6.0% to 206.6p. Alfa Financial Software fell 4.8% to 165.4p after warning that project delays had weakened revenue from its Delivery unit, despite first-half revenue increasing 4% year on year.