20th Feb 2026 08:05
(Alliance News) - London stocks opened higher on Friday, following news from the UK of an expected public sector surplus and faster-than-expected growth in retail sales for January.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: opened up 31.41 points, 0.3% at 10,658.45
GBP: higher at USD1.3457 (USD1.3455 at previous London equities close)
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ECONOMICS
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The UK public sector reported a record surplus for January, while automotive fuel helped push retail sales higher for the latest three months, according to the Office for National Statistics. Initial estimates show that the public sector recorded a GBP30.37 billion surplus in January, "the highest surplus in any month since records began in 1993," multiplying from GBP13.36 billion in December and above the GBP23.1 billion surplus projected by FXStreet-cited consensus. The ONS noted that "tax receipts are always higher than in other months" in January, with current receipts rising by GBP16.2 billion or 13.8% on an annual basis to GBP133.3 billion last month. Borrowing in the financial year ended January decreased 12% on-year to GBP112.1 billion or 3.7% of GDP. Also, the ONS reported that retail sales increased 1.8% on-month in January, compared with a 0.4% rise in December and far outstripping the consensus forecast for a 0.2% rise. On an annual basis, sales rose 4.5% in the year ended January compared with 1.9%, revised down from 2.5%, in the year to December. January's figure also beat consensus, in this case for a 2.8% rise.
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EDF has revealed that a fall in prices and a prolonged outage at one of its nuclear power stations dragged on UK profits last year, while the Paris-based energy company plans to plug GBP15 billion of investment into the country over the next three years. The company said nuclear output from its five active power stations decreased by 12% last year, compared with 2024. Its Sizewell B facility in Suffolk and Torness in Scotland had a strong performance, but it was hit by an extended outage at the Hartlepool power station, according to the business. The station, which is in Teesside, started generating power 43 years ago, and provides enough electricity to power around two million homes. It was given a further one-year extension to generate electricity until March 2028, one year later than previously expected. But outages affecting one of its two reactor systems was the main driver of the overall drop in nuclear output for EDF last year.
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BROKER RATINGS
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UBS raises St James's Place to 'buy' - price target 1,465 pence
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JPMorgan cuts Bank of Ireland price target to 16.40 (16.60) EUR - 'underweight'
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COMPANIES - FTSE 100
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Segro increases its 2025 dividend by 6.1% on-year to 31.1 pence from 29.3p, and the final payout by 5.9% to 21.4p. Pretax profit decreases to GBP560 million from GBP636 million, with earnings per share down to 40.7p from 44.7p, but adjusted pretax profit rises 8.3% to GBP509 million from GBP470 million. Adjusted EPS rise 6.1% to 36.6p from 34.5p, a notch higher than the average analyst consensus of 36.3p for 2025. Revenue climbs 7.6% to GBP726 million, beating the Financial Times-cited analyst consensus average of 698.5 million, from GBP675 million in 2024. Reports estimated rental value growth of 3.1% in the UK, and 6.0% like-for-like net rental income growth. Looking ahead, the company has "strong conviction in the structural trends driving demand for industrial, logistics and data centre space."
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Anglo American reported a deep cut to its final dividend as the mining giant signalled progress on its plan to merge with Teck Resources, while the ongoing sale of coals and nickel assets pressed on. The London-based diversified miner delivered a pretax profit from continuing operations of USD883 million in 2025, swung from a loss of USD1.36 billion in 2024. Revenue from continuing operations was USD18.55 billion, up 5% from USD17.75 billion. From continuing operations, underlying earnings before interest, taxes, depreciation and amortisation were up 2% to USD6.42 billion from USD6.32 billion. Anglo American lowered final dividend by 27% to USD0.16 from USD0.22. It had been expected to cut final payout to USD0.22 from originally stated USD0.25, according to Hargreaves Lansdown. Total dividend for 2025 declined 64% to USD0.23 from USD0.64. Anglo American expects copper production to rise to between 700,000 tonnes and 760,000 in 2026, up to between 750,000 tonnes and 810,000 in 2027, and up to between 790,000 tonnes and 850,000 in 2028. It projects iron ore production at between 55 million tonnes and 59 million in 2026, revised up from 54 million to 58 million tonnes predicted previously. Output is seen rising to between 59 million tonnes and 63 million in 2027 and to between 58 million tonnes and 62 million in 2028.
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COMPANIES - FTSE 250
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Blackrock Throgmorton Trust and Blackrock Smaller Cos Trust have agreed to a proposed merger. Throgmorton says this will bring together two similar investment companies with significant portfolio overlap and create a company with net assets of approximately GBP780 million, which will deliver greater scale, liquidity and cost efficiencies and be the largest growth-focused trust in the AIC's UK smaller companies sector. Shareholders are being offered a cash exit opportunity for up to 38% of Throgmorton's issued share capital, and up to 28% of Blackrock Smaller Cos' shares. Activist investor Saba Capital intends to vote in favour of the proposals.
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Aston Martin Lagonda says it navigated a highly challenging trading environment in 2025, delivering decreased total wholesale volumes of 5,448 against 6,030 the year before. It expects to report a roughly 29.5% gross margin and adjusted earnings before interest and tax "slightly below the lower end of the analyst consensus range". Total liquidity is "broadly flat" at GBP250 million as of December 31, but Aston Martin expects to enhance its liquidity position through the GBP50 million consideration it expects from its proposed sale of naming rights and certain related branding rights to the 'Aston Martin F1 Team'.
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Chrysalis Investments proposes to sell its entire portfolio and return proceeds to shareholders. It says that the share price discount to net asset value "has not improved significantly" despite over GBP100 million in buybacks over the last two years, and that its historic performance suggests that returning capital to shareholders on realisations is more appropriate than reinvesting in new investments. Its new investment policy "is to effect an orderly realisation of its assets in a manner that is consistent with the company's investment objective and the principles of good investment management," Chrysalis says.
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OTHER COMPANIES
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SkinBioTherapeutics appoints new Non-Executive Director Alyson Levett to oversee its continuing investigation process on behalf of the board. Says it has also appointed FRP Advisory to undertake an independent, forensic review into its now-former chief executive's alleged misconduct, which related to misrepresentations of accrued royalty income for financial 2025.
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By Emma Curzon, Alliance News reporter
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Related Shares:
St James's PlaceBank Of IrelandSegroAnglo AmericanAston Martin LagondaThrogmorton TrustBlackRock Smaller Companies Trust PLCChrysalis InvesSkinbiotherap.