27th Jul 2026 07:59
(Alliance News) - AstraZeneca affirmed annual guidance, while Vodafone lifted its outlook after the Safaricom deal. Elsewhere, DCC Energy has agreed to a takeover, Serica Energy will buy Pharos Energy but IP Group's suitor will not make an offer for the firm.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.7% at 10,815.53
GBP: higher at USD1.3358 (USD1.3342 at previous London equities close)
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ECONOMICS
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UK Prime Minister Andy Burnham will on Monday host Ukrainian President Volodymyr Zelensky as his first foreign leader since taking office a week ago, to underline London's "unwavering support" for Kyiv. The pair were set to visit a British naval base and hear from both countries' armed forces personnel involved in training Ukrainian service members for battle, Burnham's Downing Street office announced late Sunday. It said he would vow "to continue the unbreakable beyond between the two nations", echoing what the new UK leader told Zelensky in a call last Monday within hours of replacing Keir Starmer. "Britain stands with Ukraine, shoulder to shoulder, and our support remains unwavering," Burnham said in a statement.
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BROKER RATINGS
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Berenberg raises Hochschild Mining to 'buy' (hold) - price target 570 pence
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COMPANIES - FTSE 100
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AstraZeneca reports an increase in first half profit, despite a slight decline in the second quarter, and the drugmaker backs its annual outlook. Pretax profit in the first half of 2026 rises 2.8% on-year to USD6.71 billion from USD6.53 billion, as revenue increases 9.4% to USD30.67 billion from USD28.05 billion. In the second quarter alone, pretax profit decreases 11% to USD2.80 billion from USD3.13 billion a year prior, despite revenue rising 6.4% to USD15.38 billion from USD14.46 billion. Core operating profit per share in the second quarter rises 21% on-year to USD2.63, an 18% rise at constant currency, beating consensus of USD2.49. In the half-year, core EPS rises 12% to USD5.21. The company still expects total revenue for the full-year to rise by a mid-to-high single-digit percentage, with core EPS climbing by a low double-digit percentage. Total revenue in 2025 amounted to USD58.74 billion, while core EPS came in at USD9.16. Separately, AstraZeneca notes its sonesitatug vedotin treatment showed "statistically significant and highly clinically meaningful improvement in overall survival" in some sufferers of gastric cancer though Ultomiris did not achieve statistical significance in sufferers of thrombotic microangiopathy, a disease which can result in blood clots in the circulatory system.
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Vodafone says it has made a "good start" to its financial year, with revenue boosted by the consolidation of Three UK. Total revenue in the first quarter to June 30 rises 9.7% to EUR10.29 billion from EUR9.39 billion a year prior, with total service revenue alone shooting up 9.8% to EUR8.63 billion. Adjusted earnings before interest, tax, depreciation, amortisation and after leases rises 6.7% to EUR2.93 billion from EUR2.75 billion a year prior. The top line hike was down to "strong service revenue growth and the consolidation of Three UK, partially offset by foreign exchange movements", the firm says. It announced a deal in May to buyout CK Hutchison's stake in the VodafoneThree joint venture for GBP4.3 billion. In June, investee Vodacom sealed the acquisition of an effective 20% stake in Safaricom, taking its stake to 55%. Vodafone now expected an annual adjusted Ebitda after leases between EUR13.0 billion and EUR13.3 billion, its guidance lifted from EUR11.9 billion and EUR12.2 billion. In financial 2026, it amounted to EUR11.4 billion. CEO Margherita Della Valle says: "Following the completion of the Safaricom transaction, we are updating our guidance range to reflect the contribution from Kenya and Ethiopia. And after our good start to the year, we are expecting to deliver the upper end of the new group ranges."
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DCC Energy has agreed to a GBP5.75 billion takeover by a consortium led by Kohlberg Kravis Roberts and including Energy Capital Partners. The consortium will pay 6,525 pence per share in cash, with the deal also including a final dividend of 147.22p per share. At 6,797.22p per share each, the deal values DCC Energy's entire issued and to be issued share capital at GBP5.75 billion. The deal to acquire the Dublin-based provider of sales, marketing and distribution services to the energy sector also includes an additional payment of 125p per share in cash, linked to proceeds from the sale of Nexora, the rebranded DCC Technology business. DCC Energy earlier in July said it would be "minded to recommend" a revised proposal from the consortium, having previously rejected an offer that it said undervalued the firm. The odder is a 24% premium to DCC Energy's last "undisturbed" closing price of 24%. The offer says that should the technology business be sold, the premium would increase by around 2% to 3%. DCC Energy in April rebuffed an unsolicited advance for 5,800p per share in cash.
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COMPANIES - FTSE 250
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IP Group suitor Railways Pension Trustee Co says "it is not intending to make an offer" to acquire the investor in the science and technology sectors. "Railpen has engaged in discussions with the board of IP Group for several months but has been unable to reach agreement with the board on the terms of a mutually acceptable proposal," it says. Earlier in July, it made a sweetened proposal, following "a significant amount of time meeting with shareholders and the IP Group board" .Its newest bid was for 61p per share in cash for each IP Group share, a pro rata share of the firm's stake in Oxford Nanopore Technologies, valued at 10.6p per share, and a contingent value right of up to 11.3p per IP share. Overall, the offer valued IP shares at 82.9 pence each including the contingent right, around GBP752 million overall. IP in response said the offer "continues to significantly undervalue the company, its unique framework of origination capabilities and its future prospects". It adds on Monday: "Throughout the process, the board has sought to engage constructively with Railpen and its partners, recognising its fiduciary duty to maximise value for all shareholders. The board had granted an extension to the PUSU deadline in order to assess whether an acceptable proposal could be tabled on terms that the board would be minded to recommend. The board appreciates the engagement and effort from Railpen and its partners and is disappointed that a mutually acceptable outcome could not be reached. The board has strong conviction in IP Group's strategy and the opportunity to realise substantial value from its high-quality portfolio with a significant number of potentially value-accretive milestones anticipated over the next 18 months."
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OTHER COMPANIES
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Pharos Energy has agreed to an all-cash takeover offer from Serica Energy that values Pharos at GBP145.7 million. The Serica offer of 32.6683 pence per Pharos share is comprised of a cash payment of 28.6683 pence per share from Serica and a 4.0p special dividend paid from Pharos' cash resources. The new offer for Pharos Energy, which has assets in Vietnam and Egypt, trumps a 28.0p offer from Ratio Petroleum Energy LP, to which Pharos had already agreed last month. The Ratio offer was 23.0683p per share in cash, plus the same 4.0p special dividend.
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Big Technologies expects to report an increase in half-year earnings, with the electronic monitoring solutions provider "well positioned for further growth" in the second half. Adjusted earnings before interest, tax, depreciation and amortisation climb 14% on-year to GBP14.2 million from GBP12.5 million a year prior, with revenue up around 5.9% to GBP26.9 million from GBP25.4 million. "This set of results provides a robust platform for future growth, and I look forward with confidence and ambition at what the group can achieve in the years ahead," acting CEO Charles Lewinton says.
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By Eric Cunha, Alliance News news editor
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Related Shares:
HochschildBig TechnologiesPharos EnergySerica EnergyIp GroupVodafoneAstrazenecaDCC