28th Jan 2026 08:01
(Alliance News) - British Land agrees a GBP150 million cash-and-share takeover of Life Science REIT, while Fresnillo reports lower quarterly gold and silver output and trims its 2026 production guidance.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: opened marginally lower at 10,206.26
GBP: higher at USD1.3796 (USD1.3765 at previous London equities close)
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BROKER RATINGS
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Bernstein reinitiates Convatec with 'outperform' - price target 295 pence
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Deutsche Bank Research cuts Sage Group price target to 1,150 (1,200) pence - 'hold'
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ECONOMICS
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UK Prime Minister Keir Starmer says his visit to China will deliver tangible benefits for Britain, as he becomes the first UK premier to travel to Beijing in eight years. Starmer arrives on Wednesday accompanied by nearly 60 leaders from British businesses and cultural institutions, signalling a renewed push to rebuild ties. He says the size of the delegation itself shows "there are opportunities", adding that the trip will "bring benefits back to the UK". Relations between London and Beijing cooled in recent years, but the Labour government has sought to re-engage through a series of ministerial visits. Starmer says he aims for a "comprehensive and consistent approach to China", avoiding swings "from golden age to ice age" seen under previous governments.
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COMPANIES - FTSE 100
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Life Science REIT agrees to a GBP150 million cash-and-shares takeover by British Land, with investor Saba Capital backing the deal through its 14% share of Life Science. British Land will pay 14.1 pence in cash plus 0.07 new British Land shares for each Life Science REIT share, valuing the offer at 42.8p per share, a 21% premium to the target's closing price on Tuesday. Life Science REIT is a real estate investment trust for UK properties leased to tenants in the life science sector. The acquisition will be carried out via a court-sanctioned scheme of arrangement. If completed, Life Science REIT shareholders will own about 2.4% of the enlarged group. British Land says the transaction will deliver immediate earnings-per-share accretion through cost synergies and is neutral to EPRA net tangible assets per share. The deal adds five assets across London, Oxford and Cambridge to British Land's science and technology portfolio, and management sees scope to broaden the occupier mix beyond Life Science REIT's prior mandate. Saba Capital – holding cash-settled swaps tied to 14% of Life Science REIT shares – has committed to support the scheme if it acquires the underlying shares. Other shareholders representing roughly 31% of the register have also given irrevocable undertakings or letters of intent. Life Science REIT's board unanimously recommends the offer, saying it provides greater and more immediate value than the previously approved managed wind-down, while offering shareholders the choice to stay invested through a larger, more liquid vehicle. British Land says the acquisition strengthens its position as a leading landlord to fast-growing innovation sectors and enhances its Golden Triangle - Oxford, Cambridge and London - footprint. The scheme is expected to complete within three months, subject to shareholder and court approvals.
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Fresnillo reports lower fourth-quarter and full-year metal production, while gold output for 2025 exceeds guidance and silver lands in line with expectations. The miner says attributable gold production falls to 135,192 ounces in the three months ended December 31, down from 151,256 ounces in Q3 and 203,942 ounces year-on-year. Full-year gold output totals 600,287 ounces, a 5% decline from 631,573 in 2024 but above the upper end of its 2025 guidance range. Attributable silver production in Q4 comes in at 12.2 million ounces, compared with 13.7 million ounces a year earlier, reflecting lower grades and the end of contributions from the Silverstream. Full-year silver output is 48.7 million ounces, down 13% year-on-year from 56.3 million but in line with guidance. Fresnillo cuts its 2026 gold production outlook to 500,000–550,000 ounces, from the previous 515,000–565,000 ounces, and trims its silver guidance to 42–46.5 million ounces, down from 45–51 million ounces. Chief Executive Octavio Alvidrez says: "I am pleased to report another year of solid operational performance, with gold production exceeding the upper end of our full-year guidance range and silver production delivered in line with guidance. These results demonstrate the resilience of our asset base and the consistent execution of our operations throughout the year."
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COMPANIES - FTSE 250
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PPHE Hotel Group reports a "solid" finish to 2025 and says full-year revenue and Ebitda are expected to meet market expectations, while its strategic review remains ongoing. The hospitality real estate group says room revenue for the three months to December 31 rises 4.9%, with RevPAR up 5.0%, driven by a 7.8% increase in average room rate and favourable currency movements. For the full year, reported room revenue is expected to reach GBP330.4 million, up 4.2% from GBP317.2 million in 2024. Reported RevPAR improves 2.6% to GBP123.4 from GBP120.3, supported by average room rates of GBP164.3 and occupancy of 75.1%, up from 74.5%. Regional performance is mixed: UK hotels deliver growth, driven by higher occupancy, while trading in the Netherlands and Germany was "subdued". In Croatia, hotels, apartments and campsites perform "well" during peak summer months. PPHE reiterates that its strategic review launched in November continues. The company places analyst consensus for 2025 revenue between GBP458.4 million and GBP469.0 million and Ebitda between GBP133.2 million and GBP137.8 million.
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Pets at Home reports third-quarter trading in line with expectations and says it expects full-year underlying pretax profit to meet consensus of GBP93 million. The pet care retailer says consumer revenue for the 12 week period to January 1 rises 0.8% to GBP472 million, supported by 5.0% growth in its Vet Group. Retail consumer revenue falls 1.1%, where online remains the fastest-growing channel with low-teens growth. Statutory revenue declines 1.0% to GBP358 million, with like-for-like revenue down 0.7%. Transactions are broadly flat, which Pets at Home says is currently a better gauge of customer health than Pet Club membership, which drops 6.9% to 7.6 million following a methodology change. Subscription sales account for 15% of consumer revenue, with 5% of Pet Club members now on Easy Repeat and more than half of Vet clients on a Care Plan. The group's vet expansion remains on track, with 10 new practices and 15 extensions scheduled for financial 2026. Pets at Home reiterates that full-year underlying pretax profit will be in line with consensus and keeps all other guidance unchanged. Interim Executive Chair Ian Burke highlights "continued strong performance in Vet business and sequential improvement in Retail" as the company progresses its turnaround plan.
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Henderson Smaller Cos Investment Trust reports a higher net asset value in its first half and keeps its interim dividend unchanged. The trust says NAV per share rises to 951.6 pence at November 30 from 947.1p a year earlier, while NAV total return increases 5.0%, though this trails the 7.4% return of its benchmark, the Deutsche Numis Smaller Companies Index. The interim dividend is maintained at 7.5p per share. Henderson Smaller says the share price total return is 4.5% for the period, and that it repurchases 8.9 million shares, enhancing NAV by around 1%. Net assets stand at GBP566.9 million, down from GBP703.3 million a year prior.
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OTHER COMPANIES
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FitzWalter Capital Ltd says its possible offer for Auction Technology Group will not be increased after the bidder is denied access to due diligence. FitzWalter confirms its "final possible offer" stands at 400 pence per share, valuing ATG at a 48% premium to its undisturbed share price on 2 January. The bidder says it is unable to improve terms without access to due diligence, and stresses the financial terms will not be increased unless ATG's board indicates it would recommend a higher competing offer, a third party announces a possible bid, or the Takeover Panel grants consent in exceptional circumstances. FitzWalter notes the premium is in line with UK market medians for recent cash deals and argues that lack of diligence means "shareholders will ultimately miss out" if the board does not engage. Under the takeover code, FitzWalter must announce a firm intention to bid or walk away by February 2, unless the deadline is extended.
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boohoo says it is trading above expectations for the year to February 28 and now expects full-year adjusted Ebitda of GBP50 million, up from prior guidance of around GBP45 million. The company cites continued momentum at Debenhams and improving performance across Youth Brands, plus all brands remain profitable. boohoo says it is "particularly pleased" with the pace and scale of PrettyLittleThing's turnaround, noting a material improvement in profitability. The board now intends to retain the PLT brand, having previously held it for sale.
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Greatland Resources reports a "strong" December quarter, with gold production rising and full-year guidance tightening. The Western Australia-focused gold and copper miner says gold output for the 3-month period to December 31 rises to 86,273 ounces, up from 80,890 ounces in the previous quarter, while all-in sustaining cost falls to AUD2,196 per ounce, around USD1,538, against a realised gold price of AUD6,301. The miner reports operating cash flow of AUD406 million for the quarter, ending the period with AUD948 million in cash and no debt. Greatland says financial 2026 production is expected at the upper end of the 260,000–310,000 ounce range, with output weighted to the half-year ended December 31, It adds that financial 2026AISC is now expected at the lower end of AUD2,400–2,800 per ounce.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
Life ScienceBritish LandFresnilloPets at homeAuction Technology GroupHenderson Smaller Companies TrustBoohooGreatland ResourcesConvaTecSage Group