14th Aug 2025 07:56
(Alliance News) - Aviva reported a profit rise for the first half and lifted its dividend, while Unite Group and Empiric agreed to a student property tie-up worth over GBP600 million.
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 0.1% at 9,173.23
GBP: higher at USD1.3585 (USD1.3566 at previous London equities close)
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ECONOMICS
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The UK economy expanded at a faster pace than expected in the second quarter, numbers on Thursday showed, but growth slowed from the start of the year as some activity had been "brought forward" in fear of US tariffs. The Office for National Statistics said UK gross domestic product rose 0.3% in the second quarter from the first, slowing from a 0.7% expansion in the first three months of the year. "Some activity was brought forward to February and March ahead of changes to stamp duty in April and announced US tariff changes," the ONS explained. According to market consensus cited by FXStreet, growth of 0.1% on-quarter had been expected for the three months to June.
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BROKER RATINGS
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Citigroup raises Kingspan Group to 'buy' (neutral) - price target 89 (83) EUR
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COMPANIES - FTSE 100
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Insurer Aviva hailed an "outstanding" first half, and it said the integration of Direct Line is underway. Aviva said pretax profit in the first six months of the year surged 30% to GBP1.27 billion from GBP978 million 12 months earlier. Gross written premiums were 4.7% higher at GBP6.29 billion from GBP6.01 billion. It said operating profit was 22% higher on-year at GBP1.07 billion. "Aviva's performance in the first half of 2025 was outstanding, growing operating profit by 22% and extending our track record of
delivery. Another set of high-quality results, combined with excellent strategic progress, are further evidence of how we are pushing Aviva forward," Chief Executive Officer Amanda Blanc. The insurer lifted its interim dividend by 10% to 13.1 pence per share from 11.9p. Blanc added: "Trading has been very good right across Aviva. We are the number one UK wealth player, with more than GBP200 billion of assets, and net flows are up 16%. In general insurance we remained disciplined, growing sales by 7%, and operating profit by 29%. Our general insurance operations now represent half of business unit operating profit. Our health business grew in-force premiums by 14% as more people and employers are attracted to the benefits of private medical insurance." Aviva said it is confident about meeting targets outlined in its 2023 results, which include achieving annual operating profit of GBP2 billion by 2026. Aviva sealed the buy of car and home insurer Direct Line Insurance Group for about GBP4 billion last month. The integration is underway and Aviva expects to "give further colour on Direct Line" at an analyst and investor event in November.
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Unite Group announced a GBP634 million deal to acquire Empiric Student Property in a cash and shares agreement. Empiric shareholders stand to receive 0.085 of a new Unite share, as well as 32 pence in cash. The deal values each Empiric share at roughly 94.2p. Including dividends, the deal puts at 107.5p valuation on Empiric's shares, or GBP723 million for its entire issued and to be issued share capital. Empiric shareholders would own 10% of the combined firm. "Over the last few years, the Board and management of Empiric has implemented a successful transformation strategy, aligning the company's portfolio to the best locations in the UK's strongest university cities. Unite has identified Empiric's differentiated proposition through its Hello Student brand, as well as its focus on returner and post graduate students, as clear strategic pillars through which to grow its business," said Mark Pain, chair of FTSE 250-listed Empiric. Unite Chair Richard Huntingford said Empiric has a "high-quality and complementary portfolio". Separately, Empiric announced a 5.7% interim dividend hike to 1.85p as it reported half-year results, with revenue up 3.3% on-year to GBP43.8 million. The company noted continued growth in domestic and international student applications in its outlook.
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Technical products and services provider Diploma said Chris Davies as stepped down as finance chief with immediate effect, after his "behaviour did not meet the high standards required" at a company event. Diploma said his resignation is not related to the firm's financial performance. Wilson Ng, its financial controller, will be acting chief financial officer and a process to appoint a permanent successor is being kicked off.
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COMPANIES - FTSE 250
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Real estate agent Savills reported improved half-year earnings, but noted a strong start to the year was tempered by a "subdued transactional market" in the second quarter. Pretax profit in the six months to June 30 surged 78% to GBP15.8 million from GBP8.9 million a year prior. Revenue rose 6.1% on-year to GBP1.13 billion from GBP1.06 billion. "The year started well with Q1 performance comfortably ahead of the prior year, reflecting progressive recovery in most markets. Q2 saw a slowing of transactional activity as occupiers and investors digested the implications of tariffs and geopolitical events," Savills CEO Mark Ridley said. "On the basis of ever stronger transactional pipelines, we believe the slow-down in our core markets will prove to be temporary and I am delighted with the performance of our teams worldwide in helping clients navigate these changing dynamics." Savills lifted its interim dividend by 4.2% to 7.4p per share from 7.1p.
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OTHER COMPANIES
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boohoo Group shareholder Frasers called for the suspension of the fast fashion firm's vice chair, as the Sports Direct owner has "some very serious concerns" following a Telegraph report earlier in August. The Telegraph had reported that Mahmud Kamani eyed collecting a personal debt of GBP100,000 by taking a cut of sums paid to one of the company's suppliers. "I want my GBP100k... please deduct 20p per garment from all his son's orders... with immediate effect all deliveries from today," the Telegraph quoted Kamani as saying, citing Whatsapp messages the newspaper said it has seen. The Telegraph said Kamani told middlemen in the firm's supply chain to deduct the 20p sum per garment from payments to textile company PDQ Textiles. The Telegraph said boohoo did not comment on whether deductions from payments it made to PDQ were paid to Kamani. In a letter to boohoo Chair Tim Morris, Frasers requested "urgent reassurance" that the matter will be "properly and independently investigated". "This letter has been sent to you directly due to the seriousness of the issues raised with regards to the conduct of Kamani." Frasers, which owns just under a 30% stake in the AIM listing, said it has been "dissatisfied and concerned with how boohoo has been run" for a lengthy period of time.
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By Eric Cunha, Alliance News news editor
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Related Shares:
BoohooFrasers GroupSavillsEmpiricUniteDiplomaAviva