15th May 2026 07:58
(Alliance News) - Centrica will pay GBP20 million into Ofgem's redress fund and write off up to GBP70 million after the regulator closed its British Gas prepayment meter probe, while Unite Group says reservations for the next academic year remain in line with guidance. Building materials distributor Grafton sees revenue rise despite weaker trading in Great Britain.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.7% at 10,302.83
GBP: lower at USD1.3337 (USD1.3480 at previous London equities close)
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BROKER RATINGS
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JPMorgan raises Standard Life to 'overweight' (underweight) - price target 950 (620) pence
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Deutsche Bank Research raises Tate & Lyle price target to 595 (460) pence - 'buy'
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COMPANIES - FTSE 100
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Centrica says its British Gas unit has agreed to pay GBP20 million into Ofgem's Voluntary Redress Fund after the regulator closed its investigation into the supplier's historic involuntary prepayment meter installations. Ofgem, the UK regulator for the electricity and downstream natural gas markets, says British Gas failed to meet standards required for the treatment of vulnerable customers between 2018 and 2023, including cases where prepayment meters were installed under warrant when it was inappropriate to do so. British Gas will also compensate affected customers from the 2018-21 period, in addition to payments already made for 2022-23, and write off up to GBP70 million of energy debt for vulnerable customers. The company says it has not restarted warrant-based prepayment meter installations since suspending the practice in February 2023 and adds the settlement will not affect its 2026 financial guidance.
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COMPANIES - FTSE 250
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Unite Group says reservations for the 2026/27 academic year remain in line with expectations, with 79% of beds reserved compared with 80% a year before. The student accommodation provider says sales progress remains consistent with guidance for occupancy at the lower end of 93% to 96% and rental growth of 2% to 3%. Unite also says it is increasing disposal plans and exploring ways to accelerate its portfolio transition, which would release surplus capital for share buybacks or university partnerships. The company reiterates guidance for adjusted earnings per share of 41.5p to 43.0p for financial 2026. CEO Joe Lister says: "We are increasing our disposal plans and working with advisors to explore options to further accelerate our transition to a more focused, higher-quality portfolio. This will release surplus capital for reinvestment into share buybacks or university partnerships consistent with our capital allocation framework."
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Grafton says revenue in the first four months of 2026 rises 3.2% to GBP830.1 million from GBP804.4 million, while average daily like-for-like sales are broadly flat as growth in Iberia, Ireland and Northern Europe offsets weaker markets in Great Britain. The Dublin-based building materials distributor says it continues to manage supply chain risks linked to conflict in the Middle East, with no material disruption so far although inflationary pressures are evident. Grafton says disciplined cost control and margin management remain a focus, and now expects 2026 adjusted operating profit in the range of GBP190 million to GBP200 million, supported by the acquisitions of Ireland's Cygnum and Spain's Mercaluz.
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OTHER COMPANIES
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Glenveagh Properties reiterates 2026 earnings per share guidance of up to 21 euro cents as the Irish housebuilder says trading remains in line with expectations. The Kildare, Ireland-based housebuilder says its closed and forward order book stands at EUR1.5 billion, up from EUR1.3 billion in March, while the Homebuilding segment and Partnerships division are both performing as expected. The company says it is well positioned to deliver around 2,750 units in 2026 and remains on track to complete around EUR45 million in land sales this year. Glenveagh also reiterates its second-half weighted delivery profile for 2026 and announces a further EUR25 million expansion to its share buyback programme, bringing the total to EUR50 million. CEO Stephen Garvey says: "Matching delivery costs with affordability has been the central challenge for Irish homebuilders. This has driven every strategic decision we have made as a business, from our early investment in standardisation and vertical integration, to our ongoing innovation programme and the efficiency gains we are now realising through AI and data. The result is a business that can deliver high-quality homes at prices that work for customers, while ensuring the business remains on a sound financial footing in an uncertain cost environment."
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FRP Advisory Group expects annual revenue of at least GBP176 million for the financial year ended April 30, up 16% from GBP152.2 million a year earlier, while adjusted underlying Ebitda is expected to rise 9% to at least GBP45 million from GBP41.3 million. The London-based business advisor, including insolvency and corporate finance, says results are at least in line with market consensus and cites strong performances across restructuring, corporate finance, financial advisory and forensic services. FRP says ongoing Middle East conflict is expected to increase inflationary pressures and complicate central bank interest rate-cut paths, adding that it already has seen increased demand for debt advisory and restructuring advisory services. The company says its balance sheet remains strong with around GBP26 million in net cash at April 30 and that it intends to propose a final dividend in line with its policy. CEO Geoff Rowley says: "This year, we further strengthened our model through a combination of targeted acquisition activity and investment in talent, geographic reach and service capabilities...The short and medium-term outlook for our markets remains positive and we have sufficient resource flexibility to respond to an increase in demand and a strong balance sheet to capitalise on investment opportunities when they arise."
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Gresham House Energy Storage Fund says it has signed export credit agency-backed financing agreements for battery energy storage system equipment at its Cockenzie and Monet's Garden projects, totalling 297 megawatts with a two-hour duration. The company says the credit facilities, provided by Banco Santander SA, will fund up to 50% of battery, inverter and transformer equipment costs and allow payments to be spread over 10 years at a fixed interest rate. Gresham House Energy Storage Fund also says it has completed the acquisition of the 240MW Cockenzie project, which is expected to become the largest asset in its portfolio. The fund adds it is progressing wider project financing, including senior debt facilities covering up to 70% of project costs, with construction expected to begin once funding is finalised ahead of 2027 connection dates.
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The UK's Civil Aviation Authority says an alternative developer model has been shortlisted as part of options for expanding Heathrow Airport, opening the possibility for a rival company to deliver a third runway. The proposal is consistent with plans from Arora Group, owned by hotel entrepreneur Surinder Arora, to build and operate a new runway and terminal. Heathrow Airport Ltd, whose investors include Ardian and the sovereign wealth funds of Qatar and Saudi Arabia, wants to oversee the expansion itself. The CAA says four regulatory models have been shortlisted ahead of a consultation running until June 15, while the UK government is expected to consult on amendments to its Airports National Policy Statement by July.
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By Eva Castanedo, Alliance News reporter
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Frp Advisory GroupGlenveaghGrafton GroupUniteCentricaGresham HouseStandard LifeTate & Lyle