25th Feb 2026 07:53
(Alliance News) - Diageo, fresh from appointing a new boss, says it has cut its dividend and it lowered its full-year view. Haleon says organic growth was weaker than its medium-term view, and it has set aside GBP500 million for buybacks in 2026.
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 0.3% at 10,714.19
GBP: lower at USD1.3518 (USD1.3536 at previous London equities close)
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ECONOMICS
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The price most households in Great Britain pay for energy will fall by 6.7% from April 1, driven by the UK government's promised GBP150 cut to the average bill, Ofgem said. The regulator's price cap will drop from the current GBP1,758 to GBP1,641 – a reduction of around GBP10 a month for the average household using both electricity and gas. Tim Jarvis, director general of markets at Ofgem, said: "Today's announcement will be welcome news for many households. Wholesale energy prices have fallen in recent months, and we're investing in our network to safeguard the future energy system."
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This month is on track to see the highest number of homes being freshly listed for sale in the UK in February for a decade, according to a property website. Zoopla has recorded 6% more homes for sale in the four weeks to February 15 compared with the same period in 2025. Combined with falling mortgage rates, the market is currently looking particularly good for first-time buyers, the website said. It said the surge in homes for sale will increase choice for buyers and help keep price increases in check this year. Many lenders have also made changes to their criteria, allowing some people to borrow more. The number of sales being agreed has increased sharply, but remains below the "very strong start" to 2025, the report said. Sales are currently running at the fourth strongest February level in the past decade, even though there are fewer buyers in the market than a year ago.
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BROKER RATINGS
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DZ raises Anglo American to 'buy' (hold) - target price 4,300 (2,900) - pence
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COMPANIES - FTSE 100
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Brewer and distiller Diageo says its half-year profit increased, despite sales shrinking amid "North America and China". The Guinness stout and Johnnie Walker whisky maker says pretax profit in the six months to December 31 says pretax profit edged up 0.7% to USD2.79 billion from USD2.77 billion a year prior. Net sales fell 4.0% on-year to USD10.46 billion, from USD10.90 billion, declining 2.8% on an organic basis, Diageo says. Exceptional operating items fell to USD140 million from USD217 million, aiding its bottom line. "Our performance in the first half of fiscal 26 was mixed. Strong performance in Europe, [Latin America & Caribbean] and Africa, was offset by a weakening performance in North America and continued weakness in Chinese white spirits in Asia Pacific. US Spirits performance reflected pressure on disposable income, and competitive pressure from more affordable alternatives addressing a more stretched consumer wallet," Chief Executive Officer Dave Lewis says. Lewis, formerly of Tesco, joined Diageo at the start of 2026. The CEO continues: "Only several weeks in I can already see significant opportunities for Diageo to act more decisively to enhance its competitiveness and broaden the portfolio offering leading to higher growth. As we refine our new strategy to deliver stronger shareholder value, the immediate priorities for the team are clear." In order to deliver on "opportunities", the firm says, it has cut its dividend to "a more appropriate level". It says it has halved its first-half payout to 20 cents per share from 40.50 cents a year prior. Diageo says it now expects a full-year organic net sales decline of 2% to 3%, "given further weakness in the US". It had previously predicted an outcome between " flat to slightly down". Organic operating profit outcome is now expected to be between flat to growth low-single digits, lowered from the prior view of growth in the "low to mid-single-digit" range. Diageo says it has noted the recent US Supreme Court ruling on tariffs, as well as announcements since by President Donald Trump's administration since. Diageo has not updates its tariff guidance at this time. "Assuming that a 10% tariff remains on UK and 15% on European imports into the US, that Mexican and Canadian spirits imports into the US remain exempt under the US - Mexico - Canada agreement, and that there are no other changes to tariffs, the unmitigated impact of these tariffs is estimated to remain [around] USD200 million on an annualised basis," it adds. "Given the actions to date to mitigate the impact and before any pricing, we continue to expect to mitigate around half of this impact on operating profit on an ongoing basis. Looking ahead, we will continue to work on measures to mitigate this impact further. Our long track record of managing international tariffs gives us confidence in our ability to navigate this successfully."
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Consumer healthcare firm Haleon says annual growth was below its medium-term expectations, amid a "weak cold & flu season and low consumer confidence in North America". Pretax profit in 2025 improved 13% to GBP2.15 billion from GBP1.91 billion, though revenue fell 1.8% to GBP11.03 billion rom GBP11.23 billion. Organic revenue growth was 3.0%, below its medium-term guidance of 4% to 6% annual organic revenue growth. "2025 was an important year for Haleon. We introduced our Win as One strategy and are already making good progress. Our brands again proved their resilience, and we continued to outperform the market, with 60% of the business gaining or maintaining share this year," Chief Executive Officer Brian McNamara says. "Organic revenue growth of 3% was below our medium-term expectations, primarily reflecting a weak cold & flu season and low consumer confidence in North America. We delivered strong gross margin improvement and double-digit organic profit growth, combined with strong cash generation." It says it is "confident" in its medium-term guidance. For 2026, it expects 3% to 5% organic revenue growth. It predicts "high-single digit adjusted operating profit growth at constant currency". It expects a foreign exchange translation headwind, hitting net revenue and adjusted operating profit by around 1%. In addition, it announces it has allocated GBP500 million into buybacks in 2026. Haleon upped its final dividend by 6.5% to 4.9 pence per share from 4.6p. It meant for a total dividend of 7.1p per share, up 7.6% from 6.6p.
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HSBC says its annual profit declined, performance weighed down by rising costs and an impairment charge as management manoeuvres to simplify the business. The bank, says pretax profit fell 7.4% to USD29.91 billion in full-year 2025 from USD32.31 billion in the previous year. Revenue grew 3.7% to USD68.27 billion from USD65.85 billion. It says it lifted its final dividend by 25% to USD0.45 per share from USD0.36, although the total dividend for the year declined 14% to USD0.75 per share from USD0.87 per share. "We are raising our ambition and targeting a 17% RoTE or better, excluding notable items, in each year from 2026 to 2028. We are also targeting year-on-year revenue growth over the same period on the same basis, rising to 5% in 2028," Chief Executive Officer Georges Elhedery says.
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COMPANIES - FTSE 250
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Aston Martin Lagonda says its annual widened as it grapples with a "highly challenging trading environment". The luxury carmaker says its pretax loss in 2025 widened to GBP363.9 million from GBP289.1 million in 2024. Revenue declined 21% to GBP1.26 billion from GBP1.58 billion. "In 2025, we navigated a highly challenging trading environment whilst delivering on critical operational milestones. An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the US and China, weighed on our performance and ability to execute our plans effectively," Chief Executive Officer Adrian Hallmark says. "Despite these external factors and, as guided, fewer high margin Special deliveries impacting our financial performance, we made progress on our business transformation journey. Whilst maintaining a disciplined approach to balancing production with demand, we also took the necessary, pro-active actions to invest in quality, lower operational costs and seek ongoing Capex efficiencies, which benefited 2025 and will support delivery in the coming years." Its free cash outflow worsened to GBP409.9 million in 2025 from GBP391.6 million the year prior, though it notes it was free cash flow positive in the fourth quarter. It expects a "material improvement" in 2026, but does note tariffs toughen its outlook. "The global macroeconomic and geopolitical environment facing the wider automotive industry remains challenging. This dynamic landscape includes uncertainties over the economic impact from the unpredictable threat or introduction of additional US tariffs, changes to China's ultra-luxury car taxes and the continued reliance on a stable network of global suppliers," Aston Martin says. "The group continues to engage with both the US and UK governments to secure greater clarity and certainty on the specific automotive tariff. Whilst positive dialogue on this matter has been achieved directly with the US government, the Company continues to seek more proactive support from the UK government to protect the interests of small volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain."
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OTHER COMPANIES
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Valterra Platinum says its annual profit surged in a "defining" 2025 for the miner. Pretax profit doubled to ZAR22.29 billion, GBP1.04 billion in 2025, from ZAR9.68 billion in 2024. Gross revenue improved 6.8% to ZAR116.40 billion from ZAR109.01 billion. "2025 was a defining year for our company, with the successful demerger from Anglo American PLC, our launch as Valterra Platinum, and our secondary listing on the London Stock Exchange. We have established an independent and diverse board and made excellent progress in building our standalone operating model, including simplifying our management structure and successfully recruiting critical skills, previously provided by Anglo American, to support long-term capability and value creation," Chief Executive Officer Craig Miller says.
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Jet2 says it expects to report profit in line with expectations as the airline and package holiday provider says work towards its launch at London Gatwick airport has "progressed well". "Following the launch, over 90% of the UK population will live within a 90-minute drive of one of our 14 UK bases, bringing our ATOL-protected holidays and award-winning flights within easy reach of even more UK households," it says. Winter 2025/26 on sale seat capacity has remained at 5.5 million seats, 7.4% higher than a year prior. "Average pricing for both our leisure travel products has followed a similar trend to summer 2025, with marketing spend being reinvested into pricing to continue to deliver value to our customers," Jet2 adds. It expects operating profit in line with consensus of GBP439 million for the year ending March 31. For the next financial year, it says it is investing in its load factor and is "committed to pricing that is attractive and represents real value to our customer". "These actions will ensure that Jet2 has the right foundations to thrive in an increasingly competitive market. Our booked to date passengers are up by 7.9% which includes positive growth at our established bases and over [260,000] passengers at London Gatwick, with healthy demand for both our leisure travel products. The package holidays mix of total bookings is broadly in line with last year," Jet2 adds.
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By Eric Cunha, Alliance News news editor
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Related Shares:
Anglo AmericanDiageoHSBC HoldingsHaleonAston Martin LagondaValterra PlatinumJet2