25th Nov 2025 07:51
(Alliance News) - Compass reports annual profit growth, easyJet says its holidays business has grown faster than expected, while retailers Kingfisher and AO World have upped guidance. Elsewhere, the CEOs of Domino's Pizza Group and Hilton Food Group have left immediately.
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 0.1% at 9,522.61
GBP: higher at USD1.3119 (USD1.3104 at previous London equities close)
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ECONOMICS
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UK Chancellor Rachel Reeves has urged Labour MPs to back her forthcoming budget, as the final day before the major government financial statement dawns. The chancellor is due to deliver her second budget in the House of Commons on Wednesday, in which she is widely expected to pull the lever on tax hikes in order to fill a black hole in the public finances. Reeves called for unity within the Labour Party as she spoke to restive backbenchers on Monday night, urging them to support her efforts to steer the national economy. Many Labour MPs are understood to have become increasingly frustrated about the prospect of tax rises on the horizon, amid their party's opinion poll slump less than two years into a term of government.
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BROKER RATINGS
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RBC cuts Morgan Advanced Materials to 'sector perform' (outperform)
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COMPANIES - FTSE 100
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Contract caterer Compass reports it saw "another strong year", and it lifted its annual payout. Pretax profit in the year ended September 30 rose 26% to USD2.58 billion from USD2.06 billion, on revenue that increased 9.7% to USD46.07 billion from USD42.00 billion. Operating profit increased 15% to USD2.96 billion, increasing 11% on an underlying basis to USD3.34 billion. "2025 was another strong year for Compass, delivering underlying operating profit growth of nearly 12% on a constant-currency basis, with both regions performing well. Net new business, the cornerstone of our growth, remained firmly within our 4-5% target range for the fourth consecutive year, underpinned by strong new business wins and client retention," Chief Executive Dominic Blakemore says. Compass has upped its final dividend by 11% to 43.3 cents per share from 39.1 cents. Its annual dividend totals 65.9 cents, up 10% from 59.8 cents. For 2026, it expects constant currency underlying operating growth of around 10%. "Longer term, we remain confident in sustaining mid-to-high single-digit organic revenue growth, ongoing margin progression and profit growth ahead of revenue growth," it adds.
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easyJet says its annual earnings improved, and it achieved its medium-term profit goal at the holidays arm ahead of schedule. The budget carrier reports pretax profit of GBP658 million in the year to September 30, rising 9.3% from GBP602 million. Headline pretax profit increased to GBP665 million from GBP610 million, easyJet says. Revenue rose 8.6% to GBP10.11 billion from GBP9.31 billion. CEO Kenton Jarvis says: "Since setting our medium-term targets in 2023 we have made significant progress, delivering a 46% improvement in profit before tax, adding 9% this year through the continued, successful execution of our strategy. easyJet holidays is today launching an even more ambitious goal having achieved its target early." easyJet holidays achieved pretax profit of GBP250 million, "achieving its medium-term target ahead of plan", the firm says. It now targets GBP450 million in pretax profit by financial 2030. The CEO adds: "Having recently celebrated our 30th birthday, I am proud of what easyJet has achieved. Very few companies remain as close to their roots as easyJet - making travel easy and affordable while contributing significantly to economic growth through increased connectivity, consumer choice and jobs. We are well placed to seize the significant opportunities ahead, and we are confident in achieving our medium-term goal of delivering over GBP1 billion in profit before tax." easyJet upped its dividend to 13.2 pence per share from 12.1p.
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Kingfisher says it has lifted its annual guidance after "another quarter of high quality, volume-led growth". The B&Q and Screwfix owner says total sales in the third quarter ended October 31 climbed 1.0% on-year to GBP3.25 billion, but fell 0.8% on a constant currency basis. Like-for-like sales rose 0.9% at constant currency, Kingfisher reports. Year-to-date sales are up 0.9% to GBP10.06 billion, improving 0.4% at constant currency and 1.2% like-for-like, also at constant currency. When excluding calendar impacts, year-to-date sales are up 0.8% at constant currency and 1.6% like-for-like. "We delivered another quarter of high quality, volume-led growth, driven by our group strategic initiatives in e-commerce and trade and by our performance in core and 'big-ticket' categories. B&Q, Screwfix and Iberia continue to strongly outperform their markets. Our performance to date and progress in our strategic initiatives give us the confidence to upgrade our full year profit guidance," CEO Thierry Garnier says. Kingfisher now expects adjusted pretax profit in the range of GBP540 million to GBP570 million, lifting its view from the previous expectation, which was the upper end of a GBP480 million to GBP540 million range.
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COMPANIES - FTSE 250
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AO World has improved its profit forecast, as the electricals retailer has enjoyed "continued positive trading". In the half-year ended September 30, pretax profit improved 10% to GBP18 million from GBP16 million, with revenue up 14% to GBP586 million from GBP512 million, AO World says. "These numbers speak for themselves, and it's been another positive six months of operational and financial progress," CEO John Roberts says. "Our strategy is working and we're as confident as ever about AO's upwards trajectory." AO World in September upped its profit view to a GBP45 million to GBP50 million range. Since then, it has seen "continued positive trading" and it now expects pretax profit "around the top" of the outlook range.
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Domino's Pizza Group's CEO Andrew Rennie has stepped down with immediate effect, and the firm rules out the acquisition of a second brand until a new boss is in place. The master franchise holder in the UK and Ireland for pizza delivery firm Domino's Pizza says it has commenced a search process to identify a successor. Chief Operations Officer Nicola Frampton will serve as interim CEO for now. "I would like to thank Andrew for his contribution to the business, including overseeing continued operational excellence and significant market share gains. We wish him well for the future." Chair Ian Bull says. Andy Andrea is to join as chief financial officer in March, as previously announced. The company says it plans to review "its capital allocation priorities" after Andrea's arrival. "The company does not envisage pursuing a second brand acquisition until the new CEO is in place," it adds. In addition, a December 9 capital markets day has been rescheduled.
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Hilton Food Group CEO Steve Murrells has stepped down from the role with immediate effect. Murrells will be available for a "period of transitional support until the end of December 2025". Non-Executive Chair Mark Allen, who has "significant food industry, consumer goods and public company experience", becomes executive chair. Allen provides "strong executive leadership of the business while the board considers CEO succession". Allen comments: "On behalf of the board, I would like to thank Steve for his important contribution to the group and we wish him well for the future."
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OTHER COMPANIES
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Marston's reports annual profit growth, despite revenue edging fractionally lower, and the pub firm says "Christmas bookings are strong". Pretax profit in the year ended September 27 jumped to GBP88.3 million from GBP14.4 million, though revenue fell 0.1% to GBP897.9 million from GBP898.6 million. On a like-for-like basis, sales rose 1.6%. "We've delivered another strong year ahead of plan, executing on our strategy to be a high-margin, highly cash-generative local pub company. For the second consecutive year, we've delivered significant growth in profit, margin and free cash flow, underlining the strength of our market-leading pub operating model and the outstanding work of our teams," CEO Justin Platt says. Marston's says like-for-like sales in the eight weeks to November 22 are tracking in line with the prior year. Christmas bookings are "strong", 11% higher than the prior year. "The group is well positioned for a strong festive period and FY2026, supported by ongoing format conversions and a robust calendar of demand-driving events, including the 2026 World Cup," it says.
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By Eric Cunha, Alliance News news editor
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Morgan Advanced MaterialsCompass GroupeasyJetKingfisherAo WorldDominosHilton FoodsMarstons