9th Jul 2026 07:58
(Alliance News) - Centrica secures a 20-year regulated contract to extend the life of the Sizewell B nuclear power station, Severn Trent says trading remains in line with expectations, while Computacenter upgrades its annual profit outlook after strong first-half trading.
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 0.1% at 10,498.84
GBP: higher at USD1.3424 (USD1.3358 at previous London equities close)
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ECONOMICS
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Andy Burnham is set to become UK prime minister after former armed forces minister Al Carns rules himself out of the Labour leadership race, leaving the former Greater Manchester mayor without a viable challenger. Carns says a three-month contest would not be the best use of Labour's time and praises Burnham's leadership during the Covid-19 pandemic, the response to the Manchester Arena attack and Greater Manchester's economic progress. Leadership nominations open on Thursday, but with no other candidates expected to secure the required backing of 81 Labour MPs, Burnham is expected to be declared Labour leader at a special conference on July 17 before becoming prime minister on July 20.
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The Financial Times reports that Burnham is discussing plans to base part of his government in Manchester, with his future deputy prime minister expected to oversee a "Number 10 North" office. The Manchester hub, which Burnham wants to serve as his national growth unit, would focus on redistributing power and resources across the UK, driving long-term economic strategy and accelerating devolution by granting greater powers to regional mayors and local authorities. The FT says Lucy Powell, Labour's elected deputy leader, is the frontrunner to become deputy prime minister. However, insiders have also suggested the role could go to Ed Miliband if Burnham decides not to appoint him chancellor.
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BROKER RATINGS
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Goldman Sachs raises Admiral Group to 'neutral' (sell) - price target 3,860 (3,150) pence
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Jefferies cuts Segro to 'hold' (buy) - price target 917 (855) pence
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Berenberg starts Saga with 'buy' - price target 1,025 pence
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COMPANIES - FTSE 100
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Centrica says the UK government has signed heads of terms for a 20-year regulated contract that will support the life extension of the Sizewell B nuclear power station from 2035 to 2055. The British Gas owner, which holds a 20% stake in the 1.2-gigawatt plant, says Sizewell B will receive an inflation-linked contract-for-difference strike price of GBP70.50 per megawatt hour, based on 2025 prices, providing predictable revenues. Centrica says the agreement underpins a fair return on around GBP800 million of life extension investment, which it expects to fund through existing operating cash flows from its nuclear partnership with EDF Energy, without requiring additional equity. The company says the final contract with the UK government is expected to be completed later this year.
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Severn Trent says trading in the early months of financial 2027, which runs until March 31, 2027, is in line with expectations and backs guidance for at least GBP50 million of total performance incentives this year. The water utility says it invested around GBP440 million in the first quarter, up 22% on-year, and remains on track to deliver between GBP2.2 billion and GBP2.5 billion of capital expenditure in financial 2027. It also notes it completed the refinancing of its core bank facilities in June, increasing committed facilities to GBP1.65 billion across the group to support liquidity. Severn Trent will report interim results on November 18.
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LondonMetric says its GBP7.6 billion triple-net lease property portfolio continues to perform well, with trading in line with expectations ahead of its annual general meeting. Since April 1, the property investor has completed GBP139 million of investment activity, selling 26 assets for GBP96.7 million and acquiring five assets for GBP42.5 million, while a further GBP71 million of disposals and acquisitions are progressing. The company says asset management initiatives have added GBP6.7 million in annual rental income from 72 rent reviews, lettings and lease renewals, helping lift occupancy to 98.3% from 97.7% at the start of the financial year. LondonMetric adds that due diligence on the consortium's proposed offer for Picton Property Income is progressing well, with transaction documentation being finalised ahead of a potential firm offer. Chief Executive Andrew Jones says: "Our time is increasingly focused on the wider investment opportunity set. Whilst the market remains tight for quality opportunities, we are seeing a greater number of attractive deals, particularly across development fundings and asset sales from pension funds."
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Informa appoints former Reuters chief executive Tom Glocer as chair-elect, succeeding John Rishton as non-executive chair in 2027 following a managed transition. Glocer will join the board as a non-executive director on October 1 after the conclusion of a succession process that began earlier this year. He is currently lead independent director at Morgan Stanley and Merck & Co, and audit committee chair at Publicis Groupe. Informa says Glocer will support its next phase of international growth across its business-to-business events, digital services and academic markets businesses.
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Computacenter upgrades its full-year outlook after stronger-than-expected second-quarter trading, driven by demand from US hyperscale customers and growth in AI-related projects in the UK. The technology services provider says it now expects adjusted pretax profit for the first half to be about double the GBP81.5 million reported a year earlier. North America delivered stronger-than-expected growth in technology sourcing and professional services, while the UK also posted strong growth, supported by further AI-related projects. Germany achieved good growth in technology sourcing, although professional services remained subdued. With its committed product order backlog above the GBP7.1 billion recorded at the end of 2025, Computacenter now expects full-year 2026 results to come in "comfortably" ahead of market expectations. Current analyst consensus is for adjusted pretax profit of GBP313.7 million.
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San Francisco, California-based real estate investment trust ProLogis says it has published a new investor presentation urging Segro shareholders to encourage the UK warehouse developer's board to engage over a potential combination. The company argues that Segro faces capital constraints as a standalone business, particularly in funding data centre developments, and says a merger would provide shareholders with access to its larger, better-capitalised platform and greater long-term value creation. Prologis also says Segro's projected earnings growth does not justify its premium valuation and maintains that constructive engagement offers the best outcome, while stressing there is no certainty that a formal offer will be made.
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COMPANIES - FTSE 250
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Playtech says first-half trading is significantly ahead of market expectations, driven by strong momentum in the Americas, and upgrades its full-year guidance. The Isle of Man-based gambling software firm expects adjusted Ebitda for the first half to exceed EUR155 million, reflecting particularly strong performance in the US through its partnership with Hard Rock Digital, alongside continued strength in Mexico, Colombia and certain European markets. While it expects second-half adjusted Ebitda to be lower as US revenue normalises, investment continues in Brazil and higher UK remote gaming duty takes effect, Playtech now forecasts full-year adjusted Ebitda of at least EUR270 million, above current analyst consensus of EUR219 million. The company will report interim results on September 10. CEO Mor Weizer says: "We achieved an excellent performance in the first half of 2026, reflecting continued momentum in regulated markets, notably the Americas and certain European markets...Playtech continues to further establish itself in regulated and regulating markets going into the second half of the year, and we are pleased with the progress towards our medium-term targets."
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Workspace Group rejects activist investor Saba Capital's proposals ahead of its July 23 annual general meeting, urging shareholders to vote against all six Saba-backed resolutions and support the board's own resolutions. Workspace argues Saba's proposals amount to an "accelerated wind-down" of the business, describing plans to increase asset disposals as unrealistic in the current property market and warning they could force sales at deeper discounts. It also says Saba's proposed outsourcing model lacks clarity and is unsuitable for its flexible workspace business. Workspace maintains its existing board and strategy offer greater certainty and long-term value, with voting closing on July 21.
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Software company Bytes Technology says it traded well in the four months to June 30, in line with its guidance. The company delivered double-digit year-on-year growth in both gross invoiced income and gross profit, while operating profit was broadly flat from a year earlier, it says ahead of its annual general meeting.
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OTHER COMPANIES
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Hostelworld reiterates its full-year guidance after reporting strong first-half trading, with net revenue rising 12% to EUR52.2 million and adjusted Ebitda increasing 11% to EUR8.2 million. Net transactions edged up 1% to 3.8 million, although the group estimates the conflict in the Middle East reduced volume growth by around 3 percentage points, particularly affecting travel to Asia and Oceania. The effective commission rate improved to 17.7% from 15.8% a year ago, while direct marketing costs fell to 49% of revenue from 51%. Hostelworld ended the period with EUR15.0 million in cash and EUR2.5 million of net cash, and said expansion of its budget accommodation offering and the integration of OccasionGenius remain on track.
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ITM Power says it has formally been awarded a GBP46.5 million grant from the UK Department for Energy Security & Net Zero, first announced in April, to support production of its next-generation Chronos electrolyser stack. Combined with a GBP40 million equity investment from Great British Energy, the funding will establish a manufacturing line at its Sheffield site with annual capacity of 1 gigawatt.
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By Eva Castanedo, Alliance News senior economics reporter
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