21st Nov 2025 07:51
(Alliance News) - Babcock reports a rise in half-year earnings, Asos says lower markdown activity helped narrows its annual loss, while PPHE has kicked off a strategic review. Elsewhere, Inspecs has received bid interest.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 1.1% at 9,421.25
GBP: lower at USD1.3082 (USD1.3091 at previous London equities close)
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ECONOMICS
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UK public sector borrowing was higher than expected last month, numbers show, ahead of next week's government budget. The Office for National Statistics says net borrowing amounted to GBP17.43 billion in October, easing from GBP19.89 billion in September, but above an FXStreet cited forecast of GBP15.2 billion. On-year, it fell from GBP19.28 billion, however, the latest figure was the third-highest ever for an October since monthly records began in 1993. It was also topped by the October 2020 borrowing figure. "Borrowing in the financial year to October 2025 was GBP116.8 billion; this was GBP9.0 billion (or 8.4%) more than in the same seven-month period of 2024 and the second-highest April to October borrowing (not adjusted for inflation) on record, after that of 2020," the ONS says. "The current budget deficit – borrowing to fund day-to-day public sector activities – was GBP12.6 billion in October 2025; this brings the total current budget deficit in the financial year to October 2025 to GBP83.9 billion, which is GBP7.4 billion (or 9.7%) more than in the same seven-month period of 2024."
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Separate data shows UK retail was weaker than expected last month. Retail sales fell 1.1% in October from September, the ONS reports. They had been expected to tread water, according to consensus cited by FXStreet. They had risen 0.7% in September. "This was the first monthly fall since May 2025. Supermarkets, clothing, and mail order retailers fell in October 2025, which some retailers attributed to consumers delaying their spending in the lead up to Black Friday," the ONS adds. On-year, retail sales climbed 0.2% in October, though much loftier growth of 1.5% was forecast. Annual growth was 1.0% in September.
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UK household energy bills are set to rise by 0.2% from January 1 after Ofgem increased its next price cap. The regulator says energy bills will rise by about 28p a month for the average dual-fuel household in England, Scotland and Wales. This amounts to an average overall bill of GBP1,758 per year for those on a default tariff, up from the current GBP1,755. The unexpected increase comes after experts at Cornwall Insight said they expected prices to fall by 1% because of lower wholesale energy prices.
Ofgem said wholesale prices were currently stable and had fallen by 4% over the past three months, but that conditions remained "volatile".
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BROKER RATINGS
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Citigroup raises Experian to 'buy' (neutral) - price target 3,907 (4,102) - pence
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COMPANIES - FTSE 100
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Aerospace and defence engineering firm Babcock says it has lifted its first half dividend after a rise in earnings. The company has left its outlook unchanged, still expecting an underlying operating margin of 8%. Pretax profit in the six months to September 30 shot up 32% to GBP226.3 million from GBP172.0 million, while revenue improved 5.4% to GBP2.54 billion from GBP2.41 billion. "Thanks to the skills and dedication of our people, Babcock continued its track record of profitable growth with a strong performance in the first half. Good momentum was underpinned by consistent delivery for our customers against a background of supportive market dynamics," Chief Executive Officer David Lockwood says. "We are on track to achieve our expectations for the full year and are pursuing exciting opportunities for sustainable growth and margin expansion, both in the UK and internationally." The underlying operating margin for the first half improved to 7.9% from 7.0%, and Babcock has backed its full-year aim of 8%, which would be an improvement from 7.5%. Babcock says it has lifted its interim dividend to 2.5 pence per share from 2.0p.
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COMPANIES - FTSE 250
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PPHE Hotel says it has kicked off a strategic review which could lead to the sale of the company. The operator of Park Plaza and Art'otel hotels says Eli Papouchado and Boris Ivesha, who together own a 44% chunk of the firm, support the move. PPHE says it is not in active discussions with any possible suitors at the moment.
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OTHER COMPANIES
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Online retailer Asos says its annual loss narrowed amid a "higher full-price sales mix and lower markdown activity". Pretax loss in the year ended August 31 slimmed to GBP281.6 million from GBP379.3 million the year prior. Reported revenue, however, fell 15% to GBP2.48 billion from GBP2.91 billion. Distribution expenses were 20% lower on-year at GBP262.3 million, while cost of sales shrunk by a quarter to GBP1.31 billion. Adjusted earnings before interest, tax, depreciation and amortisation surged 52% to GBP131.6 million, landing within guidance, Asos says. "Despite overall lower customer volumes in FY25, retention rates improved, especially among profitable customers, with increased average spend and profitability. Year-to-date in FY26, seeing an encouraging improvement in customer engagement, including new customers up 10% YoY in the UK," the firm adds. For the new year, it targets a further rise in adjusted Ebitda to a range of GBP150 million to GBP180 million.
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Inspecs has received a takeover approach from Milan-listed eyewear firm Safilo Group. Safilo confirms it made an early approach to Inspecs over a possible buy of the Eschenbach Group and BoDe businesses. In addition, Safilo says it subsequently made two non-binding possible cash offers to acquire all of Inspecs. Eyewear manufacturer Inspecs rejected the approaches, Safilo says. "Safilo confirms that it is continuing to assess its options, including the possibility of making a revised offer to acquire the entire issued and to be issued share capital of Inspecs. This announcement is not an intention to make an offer and accordingly there can be no certainty that an offer will be made, nor as to the terms on which any such offer might be made, save that the consideration for any such offer would be in the form of cash," Safilo says.
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HC Slingsby on Thursday called a general meeting of shareholders for December 15 to approve a proposed delisting of the distributor of industrial and commercial equipment on AIM. The firm believes an AIM exit is in the "best interests of the company and its shareholders". HC Slingsby, which was founded in 1893, says the plan already has support from shareholders representing 73% of the total. The proposal needs 75% approval to pass at the GM. HC Slingsby also provided a trading update on Thursday. It suffered a pretax loss of GBP237,000 in the nine months that ended September 30, narrowed from GBP526,000 a year before, as revenue declined by 3% on year. Lower overhead costs meant the company recorded a GBP45,000 operating profit before exceptional expenses in the nine months, swung from a GBP131,000 loss a year before, but GBP42,000 in costs related to the company's formal sale process and GBP231,000 in interest relating to its defined benefit pension scheme resulted in the pretax loss. The company has GBP340,000 in net debt.
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By Eric Cunha, Alliance News news editor
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