20th Oct 2025 07:58
(Alliance News) - B&M European Value Retail cuts its profit guidance following an accounting error and says Chief Financial Officer Mike Schmidt will step down, while Bank of Ireland and Secure Trust Bank may increase provisions linked to the UK motor finance redress scheme. AstraZeneca announces a drug approval in the US.
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 0.4% at 9,393.27
GBP: higher at USD1.3426 (USD1.3398 at previous London equities close)
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ECONOMICS
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The average asking price of UK homes rose by 0.3% in October to GBP371,422, property website Rightmove says, but the increase was below the typical 10-year October average of 1.1%. The weaker-than-usual rise reflects the high number of homes for sale, which has limited sellers' pricing power. Rightmove said market activity remains "resilient, albeit cautious," with demand insufficient to fuel the usual post-summer bounce in prices. Colleen Babcock, a property expert at Rightmove, says: "Despite the overall resilience of the 2025 housing market, we've not got enough pent-up momentum or recent positive sentiment to spur the usual autumn bounce in property prices."
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BROKER RATINGS
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Berenberg raises Rolls-Royce to 'hold' (sell) - price target 1,080 (240) pence
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RBC cuts Marks & Spencer to 'sector perform' (outperform) - price target 400 (375) pence
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COMPANIES - FTSE 100
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AstraZeneca says its lupus drug Saphnelo has received a positive opinion from the European Medicines Agency's committee for medicinal products for human use for a new subcutaneous formulation. The once-weekly self-administered injection is intended for adults with autoimmune disease systemic lupus erythematosus on top of standard therapy. The recommendation is based on phase III trial data showing significant reductions in disease activity versus placebo, with a safety profile consistent with the intravenous version. Executive Vice President Ruud Dobber of the BioPharmaceuticals unit says the decision brings AstraZeneca "one step closer to offering the clinically meaningful benefits of Saphnelo to more people in a convenient, once-weekly self-administration option". Separately, AstraZeneca says the US Food & Drug Administration has approved Tezspire, developed in partnership with Amgen, for the add-on maintenance treatment of adults and adolescents aged 12 and over with inadequately controlled chronic rhinosinusitis with nasal polyps. Dobber says the approval "expands the reach of this innovative treatment option" and reinforces Tezspire's potential to address multiple epithelial-driven inflammatory diseases.
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COMPANIES - FTSE 250
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B&M European Value Retail cuts its annual adjusted Ebitda guidance to between GBP470 million and GBP520 million from a previous range of GBP510 million to GBP560 million, after identifying around GBP7 million in unrecognised overseas freight costs following an operating system update earlier this year. Its financial year ends on March 28. The variety goods value retailer in UK and France expects first-half adjusted Ebitda of GBP191 million, down from prior guidance of GBP198 million, and confirms UK like-for-like sales are tracking between low-single-digit negative and low-single-digit positive levels. The company says the system issue has been resolved and will commission a third-party review. B&M reports Chief Financial Officer Mike Schmidt intends to step down from the position. Schmidt is to remain with the company until a successor is appointed. B&M says its half-year results are due on November 13.
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Plus500 reports third-quarter revenue of USD182.7 million, down slightly from USD187.3 million a year earlier, and customer income of USD165.2 million, little changed from USD166.3 million. The online trading platform operator says its financial position remains "extremely strong," with cash balances exceeding USD815 million at the end of September. It expects full-year 2025 revenue and Ebitda to be in line with market expectations of USD749.5 million and USD343.0 million, respectively. Plus500 highlights a milestone in its US futures business, where customer segregated funds surpassed USD1 billion for the first time, and says it remains strategically positioned to drive "sustained value creation and compound returns".
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OTHER COMPANIES
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Bank of Ireland says it may increase its provision for UK motor finance commissions to around GBP350 million from GBP143 million previously, following the Financial Conduct Authority's proposed redress scheme published earlier this month. The bank says the higher estimate reflects a greater likelihood of more eligible cases and the structure of the proposed redress methodology. If the provision were raised to GBP350 million, it would reduce the group's June-end common equity tier 1 ratio of 16% by around 35 basis points. Bank of Ireland says it does not believe the FCA's proposed methodology "reflects the actual loss to customers or achieves a proportionate outcome" and will engage with the regulator.
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Secure Trust Bank says it expects to up its provision for motor finance commission redress by around GBP16 million to a total of GBP21 million, following the FCA's proposed industry-wide compensation scheme. The lender says the FCA consultation paper, published earlier this month, is "towards the extreme end" of expected outcomes from the Supreme Court judgement on motor finance commissions. The additional provision is expected to reduce the bank's common equity tier 1 ratio by around 50 basis points to roughly 13%, which remains above regulatory requirements.
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Winvia Entertainment, a technology-led entertainment company focused on the UK prize draw and Romanian online gaming markets, confirms plans to float on AIM in early November. The company intends to raise around GBP40 million through a placing of new shares to fund acquisitions in the UK prize draw sector, where it sees strong consolidation potential. Winvia reported pro forma revenue of GBP153.2 million and pretax profit of GBP7.0 million for 2024, with first-half 2025 revenue of GBP93.0 million. Owned 83% by billionaire investor Teddy Sagi, Winvia says preparations for its IPO are at an advanced stage.
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Various Eateries expects revenue for the year to September 28 to rise 6% to GBP52.4 million from GBP49.5 million, ahead of market expectations. It forecasts adjusted Ebitda of at least GBP1.1 million, up from GBP300,000 a year earlier and beating the market view of GBP400,000. The operator of UK restaurants under Coppa Club, Tavolino and Noci brands says like-for-like sales grew 4% in the second half and 2% across the full year, supported by favourable summer weather and menu enhancements. The company says operational improvements and tighter cost control have driven record profitability and that momentum has continued into the new financial year. Chief Executive Officer Mark Loughborough says: "We are becoming a more efficient and resilient business while continuing to enhance the guest experience, which in turn is driving stronger conversion and more repeat visits. Against a backdrop that remains challenging, I am proud of the progress we are making."
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By Eva Castanedo, Alliance News reporter
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Rolls-RoyceMarks & SpencerAstrazenecaB&MBank Of IrelandSecure TrustPlus500Various Eat.