3rd Sep 2025 07:55
(Alliance News) - London's FTSE 100 is set to open broadly flat on Wednesday, after gold prices hit a new record high in the early morning as investors flock to the safe haven metal amid economic uncertainty in the US.
In early corporate news, Ashtead Group reports a decline in first-quarter profit as it moves its primary listing to New York, and Vulcan Two begins trading on London's AIM.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called marginally down at 9,112.99
GBP: up slightly at USD1.3390 (USD1.3389 at previous London equities close)
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BROKER RATINGS
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Morgan Stanley raises BP to 'equal-weight' - price target 400 pence
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Deutsche Bank Research raises Watches of Switzerland to 'buy' - price target 450 pence
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Morgan Stanley raises Kingspan to 'overweight' (underweight) - price target 83 (76) EUR
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COMPANIES - FTSE 100
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Ashtead Group reports pretax profit of USD511.6 million for the first quarter that ended July 31, falling 6.0% from USD544.4 million the year before. Revenue grows 1.8% to USD2.80 billion from USD2.75 billion, while operating costs increase 4.8% to USD1.54 billion from USD1.47 billion. This includes a one-off USD13 million cost associated with Ashtead's move of its primary listing to the US. Earnings before interest, tax, depreciation and amortisation sink 2.3% to USD1.26 billion from USD1.29 billion. "The group delivered solid first quarter results with revenues, profits and free cash flow in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry. Rental revenue increased 2.4% as mega project activity gained momentum, and we are seeing positive leading indicators for local non-residential construction activity," says Chief Executive Officer Brendan Horgan, adding: "We are reaffirming our revenue and capex guidance for the year, while raising it for free cash flow. Lastly, we continue to progress our relisting on the NYSE that is currently scheduled for March 2026." Ashtead guides for up to 4% rental revenue growth for the year, and between USD1.8 billion and USD2.2 billion in capital expenditure. The firm now expects free cash flow between USD2.2 billion and USD2.5 billion, compared to its prior guidance for USD2.0 billion to USD2.3 billion. Its capital allocation framework remains committed to a progressive dividend.
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The UK government is in advanced discussions with Denmark and Sweden to build warships for the two Scandinavian countries, the Financial Times reported on Tuesday, citing "people familiar with the talks". An agreement would see defence contractor Babcock International build Type-31 frigates in Rosyth, Scotland. A deal for Denmark to buy three of the Type-31 'Arrowhead 140' frigates is expected to be announced this month, the newspaper said, while Sweden is looking to place orders for four of the ships, with a decision due by the end of the year. The talks with Denmark and Sweden follow the GBP10 billion agreement, announced at the weekend, for Norway to buy five Type-26 frigates to be built in Glasgow by BAE Systems, the FT notes.
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COMPANIES - FTSE 250
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Hilton Food posts pretax profit of GBP24.3 million for the 26 weeks that ended June 29, falling 4.7% from GBP25.5 million in the 26 weeks to June 30, 2024. Revenue grows 7.6% to GBP2.09 billion from GBP1.94 billion, while administrative expenses increase 5.0% to GBP157.8 million from GBP150.3 million. Hilton Foods declares an interim dividend of 10.1 pence, up 5.2% on-year from 9.6p. "The first half of 2025 has been shaped by a strong performance in our retail meat and convenience businesses. We remain committed on delivering our full-year results within the range of expectations," says Chief Executive Officer Steve Murrells. "Whilst we have faced market-driven pressures and some specific operational challenges in seafood, we have responded with agility and continue to have a strong platform in place for future growth." Looking ahead, Hilton Foods expects full-year results in line with a company-compiled consensus for GBP76.8 million to GBP81 million in adjusted pretax profit. This would be up from GBP76.1 million in 2024 and GBP66.0 million in 2023.
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The UK Competition & Markets Authority is considering an investigation into the completed acquisition of Assura by Primary Health Properties. It will investigate whether the deal "may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services". The CMA has until October 29 to make a phase 1 decision.
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OTHER COMPANIES
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Vulcan Two begins trading on London's AIM under the ticker VUL. Vulcan Two is an investment company that has been formed to acquire businesses in the e-pharmacy market, initially in the UK. The company wants to "lead the consolidation of the private prescription sector - one of the fastest growing and most profitable sectors of the UK pharmacy market". Vulcan Two raises GBP12.0 million via issuing shares at GBP2.00 each through a placing and subscription, giving it a market capitalisation of around GBP13.6 million. About 6.0 million shares have been admitted to trading. "With a clear strategy and a strong pipeline, we believe we are well positioned for the future, and we look forward with great excitement to the opportunities ahead," says Chief Executive Officer Michael Kraftman.
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Cairn Homes reports pretax profit of EUR37.0 million for the six months that ended June 30, slipping 32% from EUR54.4 million the year before. Revenue falls 22% to EUR284.5 million from EUR366.1 million, and administrative expenses are up 7.9% to EUR20.5 million from EUR19.0 million. The firm declares an interim dividend of 4.1 pence per share, up 7.9% on-year from 3.8p. "Our strategy is working, and we have doubled down on investment in our construction activities. As this unwinds, it will lead to a strong second half which is why we are raising our guidance today for 2025 and also introducing new guidance as a result of increased housing output for 2026," says Chief Executive Officer Michael Stanley. Cairn Homes sets its full-year revenue guidance at around EUR945 million, up 9.9% from EUR859.9 million in 2024, and compared to its prior forecast for growth in excess of 10%. Operating profit is estimated between around EUR160 million and EUR165 million, upgraded from its initial EUR160 million guidance. Return on equity for 2025 is expected around 15.5%. For 2026, revenue is estimated between around EUR1.02 billion and EUR1.05 billion, operating profit is put between roughly EUR175 million and EUR180 million, while return on equity is estimated at around 16.0%.
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By Emily Parsons, Alliance News reporter
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BPWatches SwitzAshtead GroupVulcan TwoBabcockBAE SystemsPrimary HealthAssuraCairn Homes