15th Sep 2025 07:51
(Alliance News) - BT announces representatives from Bharti have been added to its board amid a "relationship agreement", AO World will kick off its first buyback and S4 Capital reduced its outlook again.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called to open just 2.4 points higher at 9,285.69
GBP: up at USD1.3558 (USD1.3551 at previous London equities close)
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ECONOMICS
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The average price tag on a UK home jumped by just over GBP1,500 month-on-month in September as the autumn selling season got under way, according to Rightmove. Across Britain, the typical new seller asking price is GBP370,257 in September, marking a monthly rise of 0.4% or GBP1,517. Despite the September increase in prices, the first since May, the average asking price for a home in Britain is 0.1% or GBP502 lower than a year ago, Rightmove says. It adds that the first annual price drop since January 2024 is the culmination of several months of competitive pricing by new sellers over the summer, with the number of sales being agreed now 4% higher than a year earlier.
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BROKER RATINGS
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UBS starts Smurfit WestRock with 'neutral' - price target 60 USD
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COMPANIES - FTSE 100
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Sainsbury's says that it has ended talks to sell Argos to Chinese e-commerce firm JD.com. Talks have collapsed as JD.com's terms and commitments are "not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders". Sainsbury's says: "Following the media speculation on 13 September regarding discussions between J Sainsbury PLC (Sainsbury's) and JD.com Inc (JD.com) about a potential sale of Home Retail Group Limited (Argos), JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders. Accordingly, Sainsbury's confirms that it has now terminated discussions with JD.com."
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BT Group says it has entered a "relationship agreement" with existing shareholder Bharti Global, with two representative of the latter being added to the telecommunications firm's board. Sunil Bharti Mittal and Gopal Vittal are to join the BT board as non-independent non-executive directors with effect Monday. "We're delighted to welcome Sunil and Gopal to the Board of BT. They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the board and to the future success of BT Group," BT Chair Adam Crozier says. Under the terms of a relationship agreement, Bharti is allowed to nominate two people to the BT board for as long as it owns 20% or more of the London listing. If it owns at least 10%, it can nominate one. In August of last year, Bharti Global struck a deal to acquire just under 25% of BT from Altice.
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COMPANIES - FTSE 250
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AO World expects annual profit at the top half of its guidance range, as it "continues to perform strongly". The electricals retail reports that group revenue in the first half to September 30 is expected to rise 13% on-year. B2C Retail revenues expected to increase by 11%, it adds. AO World still expects annual double-digit B2C growth but now expects adjusted pretax profit between GBP45 million and GBP50 million, the bottom end of its range lifted from GBP40 million. In addition, it announces its first-ever buyback, "given the group's strong cash generation and the board's ongoing confidence in its future performance". AO World will buy back up to GBP10 million in shares. It reports half-year results on November 25.
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IG Group Chair Mike McTighe will step down before the end of the year, the online trading platform provider says. McTighe, who became chair in February 2020, will stand for re-election at IG's annual general meeting on Wednesday. "The process for appointing a successor is underway," IG adds.
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Self-storage company Big Yellow Group has exchanged contracts to acquire a freehold property in the Bethnal Green area of London for GBP10.8 million. Big Yellow will look to develop a 68,000 square foot self storage centre on the site. Chief Executive Officer Jim Gibson says: "This is a high-quality zone 2 London addition to the group's pipeline; opportunities to acquire sites in this location are rare, and there is very little existing self storage supply in the local area."
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OTHER COMPANIES
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Advertising company S4 Capital announces another cut to its annual forecast amid "continued wider market uncertainty". The firm, however, reports that it will consider "an enhanced final dividend for 2025" if trading improves in the second half. S4 Capital's pretax loss in the first half of 2025 widened to GBP25.1 million from GBP17.2 million, with revenue declining 15% to GBP360.4 million from GBP422.5 million. Net revenue was 13% lower on-year at GBP328.2 million from GBP376.1 million and was down 10% on a like-for-like basis. Operational earnings before interest, tax, depreciation and amortisation were down 31% to GBP20.8 million from GBP30.1 million. "Market conditions in the first half of 2025 reflect the continuing impact of, to say the least, volatile global macroeconomic conditions along with the unsettling effect of tariff negotiations. As a result, clients remain generally cautious given the uncertainty, with technology clients, which account for almost half our revenue, in particular, continuing to prioritise capital expenditure on expanding AI capacity. Our Technology Services Practice faced longer sales cycles and continued to be affected by a reduction in one of our larger relationships, although this will cycle out in the second half of the year," Executive Chair Martin Sorrell says. "We expect an improved net revenue performance in the second half of the year, aided by the phasing of revenue from new business, particularly from General Motors, Amazon, T-mobile and a leading US-based FMCG and seasonality." Looking ahead, it now expects a like-for-like net revenue decline of mid-single digits for 2025, its outlook cut from a low single digits fall. It still expects an operational Ebitda "broadly similar to 2024". Its target range for net debt at the year-end remains at GBP100 million to GBP140 million. S4 Capital adds: "The board will consider approving an enhanced final dividend for 2025, if the improved second half performance and liquidity targets are delivered."
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The owner of at-home beauty technology operator Beauty Tech Group confirms it plans to list on the Main Market in London. The initial public offering of Project Glow Topco is expected to occur in October. It will be eligible for inclusion in the FTSE UK indices. Berenberg will act as sponsor, bookrunner and joint financial adviser and NM Rothschild & Sons as joint financial adviser.
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By Eric Cunha, Alliance News news editor
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Related Shares:
Smurfit WestS4 Cap.Big YellowIGAo WorldBTSainsbury's