4th Nov 2025 07:57
(Alliance News) - BP profit surges in the third quarter, Associated British Foods considers separating its Primark and Food businesses while Domino's Pizza reports higher sales.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.4% at 9,658.27
GBP: lower at USD1.3125 (USD1.3146 at previous London equities close)
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BROKER RATINGS
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Shore Capital Markets cuts Next to 'hold' from 'buy'
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Berenberg starts SigmaRoc with 'hold' - price target 120 pence
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Peel Hunt raises Ryanair to 'buy' (hold) - price target 30.75 (26.00) EUR
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COMPANIES - FTSE 100
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BP reports a surge in profit in the third quarter. The London-based oil major says pretax profit jumps to USD3.24 billion in the third quarter from USD1.40 billion a year ago. Total revenue and other income advances to USD49.25 billion from USD48.33 billion. The company declares a dividend per share of 8.32 US cents, up from 8.00 cents a year prior. For the quarter, adjusted earnings before interest, tax, depreciation and amortisation rise to USD9.98 billion from USD9.65 billion. BP says it expects total shareholder distributions of between 30% and 40% of operating cash flow over time. It intends to execute a USD750 million share buyback programme prior to reporting the fourth quarter results. Looking ahead, BP expects fourth quarter reported upstream production to be broadly flat compared with the third quarter. Within this, it expects reported production from oil production & operations to be "slightly higher" and production from gas & low carbon energy to be lower. "We've delivered another quarter of good performance across the business with operations continuing to run well. All six of the major oil and gas projects planned for 2025 are online, including four ahead of schedule," says Chief Executive Officer Murray Auchincloss. "We continue to make good progress to cut costs, strengthen our balance sheet and increase cash flow and returns. We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency. There is much more to do but we are moving at pace, and demonstrating that BP can and will do better for our investors."
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Associated British Foods says an ongoing review into its structure may lead to the separation of the Primark and Food businesses. The firm says the review is being conducted with its largest shareholder, Wittington Investments, which remains committed to maintaining majority ownership of both businesses. The London-based food processing firm and clothing retailer reports pretax profit of GBP1.41 billion for the twelve months to September 13, down from GBP1.92 billion a year prior. Revenue falls to GBP19.46 billion from GBP20.07 billion, while operating costs before exceptional items are down to GBP17.88 billion from GBP18.24 billion. The firm proposes a final dividend of 42.3 pence per share, giving a total dividend of 63.0p per share. In the previous financial year, AB Foods paid a full year dividend of 63.0p per share, along with a special dividend of 27.0p. AB Foods says growth in Retail revenue was offset by a decline in Sugar, while adjusted operating profit fell 12% due to a hit in Sugar. In 2026, the company expects to deliver growth in adjusted operating profit and adjusted earnings per share. Adjusted earnings per share fell 11% to 174.9p in financial 2025 from 196.9p. Adjusted operating profit was down 13% at GBP1.73 billion from GBP2.00 billion. In Primark, it expects the consumer environment to "remain subdued", while it expects international brands in the Grocery arm to deliver "good growth in sales and profit". It expects to improve profitability in Sugar and deliver a small adjusted operating profit for the division in 2026. "This was a year of intense strategic and operational activity within ABF. Most of our businesses delivered robust financial results, while navigating a challenging external backdrop," says Chief Executive George Weston. "I fully support the Board's review of the Group structure and will be closely involved in the process and any outcome. Within ABF we have two great businesses but one strong culture of long-term value creation driven by the dedication and excellence of our people. Our unique and exceptional Food business has historically been less well understood by the financial markets than Primark, yet it has a highly attractive portfolio, deep global expertise and much potential. Primark has an incredibly strong international brand, a powerful customer proposition, and substantial growth opportunities."
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COMPANIES - FTSE 250
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Domino's Pizza Group says system sales were up 2.1% in the third quarter to GBP382.7 million from GBP374.8 million a year prior. The company, which is the master franchise holder in the UK and Ireland for pizza delivery firm Domino's Pizza, says like-for-like system sales were up 1.0% in the quarter, while total orders were down 1.5%. The firm leaves its financial 2025 guidance unchanged. It expects underlying earnings before interest, tax, depreciation and amortisation between GBP130 million and GBP140 million. Domino's Pizza reports a "positive initial customer reaction" to the introduction of Chick 'N' Dip and the new Ultimate Indian Feast. "We have delivered a solid Q3 performance with positive sales and operational momentum despite the continued challenging consumer backdrop. In particular I am really pleased with the initial results from the introduction of our exciting Chick'N'Dip brand," says CEO Andrew Rennie. "Our franchisees continue to lead the industry with fast delivery times and we continue to work with them to mitigate the impact of increasing costs and any potential impact of the UK budget on November 26."
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OTHER COMPANIES
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Next 15 Group confirms it is in discussions to explore the terms of a potential disposal of a "selected number of its brands" in response to press reports. The London-based digital marketing firm says its "primary focus" is on maximising shareholder value. "At this time, there can be no certainty that any agreement will be reached, nor as to the terms of any such agreement. The board will only consider the sale of any of its brands if that transaction meets its minimum value thresholds and which adequately reflects the strengths and prospects of those brands," the firm adds. On Monday, Sky News reported that private equity firm Epiris has approached Next 15 about a deal for some brands, which includes public relations firm MHP Communications.
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The UK Competition & Markets Authority clears the proposed merger of oilfield services provider Saipem with Subsea7. The regulator says it has decided not to refer the merger to a phase two investigation. Subsea7 shareholders stand to receive 6.688 new Saipem shares for each Subsea7 share held. The new firm will be named Saipem7. Shareholders in Saipem and Subsea7 will each hold 50% of the enlarged firm, assuming all Subsea7 shareholders partake in the merger. Saipem7 will be listed in Milan, where Saipem shares trade, and in Oslo, where Subsea7 is listed. The deal is expected to be completed by the second half of 2026.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
NextSigmaroc.RYA.LBPAB FoodsDominosNext 15 Group