31st Jul 2026 07:58
(Alliance News) - BP has put its North Sea unit up for sale, Sainsbury's has agreed to dispose of Argos, while NatWest has upped its guidance and says it will review a buyback resumption earlier than planned.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.2% at 10,917.17
GBP: higher at USD1.3455 (USD1.3439 at previous London equities close)
----------
BROKER RATINGS
----------
Morgan Stanley raises Mondi to 'equal weight' (underweight) - price target 810 (700) pence
----------
COMPANIES - FTSE 100
----------
BP says it is putting its North Sea business up for a "potential sale". The decision forms part of the oil major's "ongoing portfolio review", it adds. Chief Executive Officer Meg O'Neill says: "The UK has been our home for more than 100 years and will continue to play an important role in our future. We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day. The North Sea remains integral to the UK's energy system. However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company. It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognises that value."
----------
NatWest has upped its guidance for 2026 and says it will consider a new buyback in its annual results, six months earlier than planned. Pretax profit in the second quarter of 2026 climbs 29% to GBP2.29 billion from GBP1.77 billion a year prior, as total income improve 13% to GBP4.50 billion from GBP4.01 billion. Total income beats company-compiled consensus of GBP4.40 billion, while pretax profit tops a GBP2.04 billion forecast. "The consistency of our performance, coupled with the completion of our Evelyn Partners acquisition, has given us the confidence to strengthen our guidance for 2026," Chief Executive Paul Thwaite says. It now expects annual total income excluding notable items to be around GBP17.9 billion, including around GBP275 million relating to Evelyn Partners. It previously expected total income at the top end of a GBP17.2 billion to GBP17.6 billion range. NatWest has lifted its interim dividend to 12.0p from 9.5p a year prior. In addition, it "will consider share-buybacks from full year 2026, six months earlier than previously planned". It previously expected its next share buyback announcement to be at its half-year results in 2027.
----------
IAG reports better than expected second quarter profit, "despite the impact of the crisis in the Middle East and wider geopolitical events". "We are well-positioned to deal with these near-term headwinds with a diverse portfolio of world-class brands in large and attractive markets; industry-leading margins; significant free cash flow and a strong balance sheet; and attractive shareholder returns," CEO Luis Gallego says. Pretax profit in the second quarter to June 30 falls 34% on-year to EUR995 million from EUR1.51 billion, though revenue edges up 0.2% to EUR8.88 billion from EUR8.86 billion. Total expenditure on operations is 6.2% higher at EUR7.63 billion, hitting its bottom line. IAG reports operating profit before exceptional items of EUR1.41 billion, down 16% from EUR1.68 billion a year prior, but beating the median of company-compiled consensus which was EUR1.37 billion. IAG says: "We expect to deliver full year operating margin within our 12% to 15% target range; generate significant free cash flow; and maintain a strong and efficient balance sheet." It is 57% booked for the second half, with booked revenue in line with last year. "We expect our long-haul markets to remain positive and short-haul markets to be competitive," it adds. "We continue to expect to recover around 60% of the higher fuel cost, through both revenue and cost initiatives, in line with previous guidance. Our hedging policy remains unchanged."
----------
J Sainsbury has struck a deal to sell its Argos arm, leaving the grocer free to "fully focus on its core food business". Argos is being sold to Swift Partners, a new entity established by Richard Pennycook, Trevor Strain and Matt Truman alongside True Capital. Pennycook and Strain have had "35 years' combined experience in senior retail roles including at Tesco, The Co-op, Morrisons, Howdens and the RAC" while Truman is the executive chair of retail specialist investment and advisory firm True Capital. Sainsbury's expects cash proceeds of at least GBP120 million from the deal. It includes upfront and deferred payments and proceeds from an Argos distribution centre sale. "Final cash proceeds subject to working capital adjustments and expected to be offset by separation costs," it adds. "Long-term commercial agreements with Argos, including rental income for Argos stores inside Sainsbury's and income relating to Nectar360 and Nectar, will create additional ongoing value." The deal is expected to complete in February 2027, with a full separation expected two years later. Sainsbury's still expects annual underlying operating profit of between GBP975 million and GBP1.08 billion. "For Sainsbury's, this is a further step forward in our strategy. Having rebuilt the core strengths of our food business, this agreement allows us to focus all our resources and investment on the significant opportunities ahead," CEO Simon Roberts says.
----------
COMPANIES - FTSE 250
----------
Property portal Rightmove says it plans to return some GBP400 million to shareholders over the next year, but it cuts its revenue outlook on "lower development volumes in the new homes market". Pretax profit in the first half of 2026 rises 1.8% on-year to GBP149.1 million from GBP146.5 million a year earlier, with revenue up 6.7% to GBP225.8 million from GBP211.7 million. "Our platform continues to deliver increased value to partners and consumers. H1 2026 has seen strong business and product results: we delivered our highest H1 retention in more than a decade, agency membership grew 1% and our investment in agentic-powered solutions is showing results and coming on the back of strong foundations laid over the last few years," CEO Johan Svanstrom says. Looking ahead, Rightmove now expects revenue growth between 6% and 8%, its outlook cut from 8% and 10%. The cut is "due entirely to lower development volumes in the new homes market". "The lower end of the guidance range would require a further deterioration in market conditions compared to current expectations," it adds. It still expects 3% to 5% growth in full-year underlying operating profit. Rightmove has upped its interim dividend to 4.17p per share from 4.05p. It plans over GBP400 million capital returns over the next 12 months, roughly GBP330 million through increased share buybacks, "which will recommence from today".
----------
Television broadcaster and content producer ITV says it is on track to meet annual guidance, with advertising revenue getting a boost "reflecting a very successful Men's Football World Cup and continued strong demand from advertisers". Pretax profit in the first half of 2026 rises 16% to GBP78 million from GBP67 million a year prior, with total revenue up 2.1% to GBP1.89 billion from GBP1.85 billion. "ITV delivered a solid H1 performance and we remain on track to deliver our full-year guidance, including good revenue growth in ITV Studios and strong, profitable digital revenue growth within Media & Entertainment," CEO Carolyn McCall says. "Macro-economic headwinds remain, but we are focused on the performance of both businesses, with continued momentum, disciplined execution of our strategic priorities and a strong second half delivery schedule in ITV Studios." ITV has left its interim dividend unchanged at 1.7p per share, and it announces a GBP100 million buyback. "This represents an early return of part of the previously announced GBP950 million net cash return expected on completion of the sale of M&E," the CEO adds. ITV announced in early July that it had agreed to sell its Media & Entertainment business to Sky, a wholly owned subsidiary of Comcast, for up to GBP1.6 billion.
----------
OTHER COMPANIES
----------
Picton Property Income has agreed to be taken over by LondonMetric Property and Schroder Real Estate Investment Trust in an all-share deal. Shareholders in the real estate investment trust stand to receive 0.190 of a LondonMetric share and 0.894 of a Schroder Real Estate Investment Trust share. Based on the closing prices of the duo on Thursday, the deal values each Picton share at 78.7p, and the entire issued and to be issued ordinary share capital at GBP404 million. The duo had made an indicative bid in May, which would have seen Picton investors receiving 0.190 LondonMetric shares and 0.881 SREIT shares for every Picton share held. The SREIT component has been increased following an SREIT net asset value decline.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
MondiBPNatwestInternational AirlinesSainsbury'sRightmoveITVPicton PropLondonMetricSchroder Real Estate Investment Trust