1st Oct 2025 07:57
(Alliance News) - Diversified Energy plans to move its primary listing to New York, Greggs reports slower sales while James Halstead's earnings fall.
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 0.1% at 9,341.63
GBP: up at USD1.3473 (USD1.3443 at previous London equities close)
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ECONOMICS
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UK house price growth rebounded in September, a tracker from mortgage lender Nationwide showed on Wednesday. Property values increased by 0.5% month-on-month in September, following a 0.1% fall in August, taking the average UK house price to GBP271,995, Nationwide Building Society said. September's rise was sharper than an increase of 0.2% that had been expected by the FXStreet-cited consensus. The typical UK house price increased 2.2% annually in September, compared with 2.1% in August. Robert Gardner, Nationwide's chief economist, said: "The broad stability in the annual rate of house price growth over the past three months mirrors that of activity. The number of mortgages approved for house purchase have been hovering at around 65,000 cases per month, close to the pre-pandemic average (despite the higher interest rate environment). Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive."
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BROKER RATINGS
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Morgan Stanley raises InterContinental Hotels to 'equal-weight' (underweight) - price target 9,000 (8,800) pence
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JPMorgan places Croda on 'positive catalyst watch'
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Stifel raises Primary Health Properties to 'buy' (hold) - price target 105 (92) pence
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JPMorgan places AIB on 'positive catalyst watch'
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COMPANIES - FTSE 100
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Centrica says Spirit Energy has completed the sale of a 46% interest in the Cygnus gas field to Ithaca Energy for GBP116 million. The energy provider and owner of British Gas says the deal also includes the transfer of associated decommissioning liabilities. Cygnus is the largest UK continental shelf gas field and a key contributor to the UK's energy security. Centrica owns 69% of Spirit Energy. Spirit Energy retains a 15% interest in the site.
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COMPANIES - FTSE 250
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Diversified Energy plans to move its primary listing to the New York Stock Exchange while retaining a secondary listing on the London Stock Exchange. "Today, the company is substantially a US business, reporting in US dollars, with all the company’s operating profit derived from its US operations, which is also the sole growth market for the business," the oil and gas production company says. It adds that its executive management team and operational headquarters are based in the US, all of its employees live in the US and all assets are located in the US. The company says at the end of June over 65% of its shares were held by US resident investors. "The board has been evaluating the optimal primary listing venue for the company in the context of its business strategy for the benefit of all its stakeholders," it says. The change will require a formal vote by shareholders at a general meeting, to be approved by 75% of the voting shares. Subject to the vote, the company expects the change to take effect during the fourth quarter of 2025.
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Greggs says total sales were up 6.1% for the 13 weeks to September 27 and 6.7% in the year so far. The sausage roll sell says company-managed shop like-for-like sales rise 1.5% in the period and 2.2% in the year-to-date. It says trading improved in August and September following a weak July due to the effect of warm weather. The baker reports 130 new shop openings in the year so far, with 83 closures resulting in 57 net new shops. It expects around 120 net shop openings in 2025 with a "strong pipeline" for the fourth quarter and into 2026. The company says it has a "marginally improved" outlook for cost inflation in 2025. Overall, its expectations for the full year are unchanged. "Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion," Greggs says.
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OTHER COMPANIES
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Tirlan Co-operative Society sells up to 17.0 million Glanbia shares, a 7% stake, to finance the repurchase of EUR250 million in Tirlan bonds. The shares were sold at EUR13.55 per share, raising gross proceeds of around EUR230.4 million. The share sale was conducted as an accelerated bookbuild led by Goodbody Stockbrokers and J&E Davy. As part of the share sale, Glanbia buys back 7.4 million shares, or a 2.9% stake, at EUR13.55 each for a total of EUR100.0 million, as part of its share buyback programme. Tirlan retains 43.5 million Glanbia shares following the sale and remains the largest equity investor in Glanbia. Tirlan says it "continues to be a strong supporter" of Glanbia's strategy.
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James Halstead reports fall in pretax profit and revenue but raises its dividend. The commercial flooring manufacturer and distributor says pretax profit in the 12 months to the end of June declines 1.9% to GBP55.1 million from GBP56.2 million, while revenue drops 4.7% to GBP262.0 million from GBP274.9 million. The firm ups its final dividend by 0.8% to 6.05 pence per share from 6.00p, bringing the total dividend for the year to 8.80p, up 3.5% from 8.50p last year. It says short term headwinds in Europe are affecting repair, renewal and roll-out budgets. It reports "continued growth" in North America and "forward momentum" in Malaysia. "Despite headwinds in the commercial flooring sector it was a solid performance with a cash conversion rate of 1.23. Looking ahead, we have continuing product and process improvements and I, and the board, remain confident that the future offers many opportunities and on-going profitable growth," says Executive Chair Mark Halstead.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
InterContinental HotelsCroda InternationalPrimary HealthAib GroupCentricaIthaca EnergyDiversified EnergyGreggsGlanbiaJames Halstead