17th Jul 2025 07:52
(Alliance News) - easyJet reported growth in quarterly profit but hit out at French air traffic control strikes, Diploma raised its annual guidance in a short update, while SSE affirmed its forecast.
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 0.4% at 8,961.75
GBP: lower at USD1.3380 (USD1.3473 at previous London equities close)
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ECONOMICS
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The UK jobless rate increased in May, average weekly earnings eased and the number of job vacancies fell, in another sign that the labour market is cooling, data showed. According to the Office for National Statistics, the UK jobless rate picked up to 4.7% in the three months to May, from 4.6% in the period to April. It had been expected to remain at 4.6%, according to consensus cited by FXStreet. Average weekly earnings in the three months to May cooled to 5.0% on-year from 5.4% in the three months to April. Excluding bonuses, average regular pay growth cooled to 5.0% from 5.3%. Payrolled employees shrunk by 25,000 in May from April, and by 135,000 on year. The early estimate for June showed it decreased by 178,000 on-year and by 41,000 on-month. In addition, the ONS said: "The estimated number of vacancies in the UK fell by 56,000 on the quarter, to 727,000, in April to June 2025. This is the 36th consecutive period where vacancy numbers have dropped compared with the previous three months, with vacancies decreasing in 14 of the 18 industry sectors. Feedback from our vacancy survey suggests some firms may not be recruiting new workers, or replacing workers who have left."
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BROKER RATINGS
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Bernstein reinitiates WPP with 'market-perform' - price target 480 pence
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Bernstein reinitiates Informa with 'outperform' - price target 970 pence
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COMPANIES - FTSE 100
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easyJet said its third quarter profit was in line with expectations, benefitting from the timing of Easter. In the period to June 30, headline pretax profit advanced 21% on-year to GBP286 million from GBP236 million. Revenue rose 11% to GBP2.92 billion from GBP2.63 billion a year prior. The profit rise was "driven by strong demand for easyJet's primary airport network and benefits from the timing of Easter". "The outlook for FY25 remains positive, with good profit growth expected year on year, albeit impacted by recent higher fuel costs and the scale of industrial action by French air traffic control. With 67% of our Airline’s fourth-quarter capacity sold, the final outcome for FY25 will, as always, depend on late summer bookings and the associated yields," easyJet added. Chief Executive Officer Kenton Jarvis said: "We are extremely unhappy with the strike action by the French ATC in early July, which as well as presenting unacceptable challenges for customers and crew also created unexpected and significant costs for all airlines."
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Diploma upped its annual guidance as the technical products and services as seen double-digit growth so far in its financial year. Diploma said revenue rose 12% on-year in the nine months to June 30, or 10% on an organic basis. Diploma now expects full-year organic growth of 10%, its guidance lifted from 8%.
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SSE said it "continues to deliver" and the electricity generator left its outlook unchanged. SSE hailed a "strong" operational performance at its Networks arm in the first quarter ended June 30. In Renewables, it reported unfavourable weather conditions across April and May, resulting in a 4% on-year decrease in output. SSE left financial guidance unchanged and affirmed that it is eyeing adjusted earnings per share between 175 and 200 pence for financial 2027. For the current year, financial 2026, SSE in May predicted that within its SSEN Transmission arm, adjusted operating profit s expected 1.5 times higher than in financial 2025. Adjusted operating profit in its SSEN Distribution unit, however, is anticipated at less than half of its financial 2025 level, as SSE expects allowed revenue to fall around GBP400 million with the reversal of one-off inflationary cost recoveries, it said in May. SSE Renewables is expected to deliver higher adjusted operating profit on-year, and SSE Thermal & Gas Storage profit is forecast to be largely flat. Chief Financial Officer Barry O'Regan said: "SSE continues to deliver thanks to our resilient and balanced business, coupled with our disciplined approach to capital investment. At the same time, further clarity on growth opportunities for the group are emerging, with positive policy developments giving us even greater confidence in our ability to create value from our high-quality project pipeline."
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COMPANIES - FTSE 250
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Frasers Group reported weaker annual earnings, as the Sports Direct and Flannels owner reported "headwinds caused by last year's budget". In the year ended April 27, pretax profit weakened 24% to GBP379.4 million from GBP501.0 million. Revenue declined 7.4% to GBP4.93 billion from GBP5.32 billion. "I'm pleased with our performance this year, despite the headwinds caused by last year's budget," Chief Executive Michael Murray said. "Our relationships with the world's best global brands, including Nike, adidas and Hugo Boss, are the strongest they have ever been, and our ambitious growth plans are now strengthening and scaling these partnerships even further." Frasers said it is seeing "positive momentum" so far in the new financial year and is expecting adjusted pretax profit in the range of GBP550 million and GBP600 million. In the year just ended, adjusted pretax profit rose 2.8% to GBP560.2 million from GBP544.8 million. Frasers said it is "working diligently to mitigate the GBP50 million-plus extra costs incurred by last year's budget".
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Homewares retailer Dunelm said sales rose in its financial year, and it expects to report profit in line with consensus. Total sales in the year to June 28 were 3.8% higher at GBP1.77 billion, Dunelm said in a trading statement. In the final quarter alone, they rose 4.0% on-year to GBP415 million. It expects pretax profit in line with consensus of GBP210 million. Pretax profit in financial 2024 amounted to GBP205.4 million, so it expects growth of around 2.2%.
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OTHER COMPANIES
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Money transfer company Wise reported growth in cross-border volumes and active customers in a "strong start" to its financial year. In the quarter ended June 30, underlying income rose 11% on-year to GBP362.0 million. At constant currency, it advanced 14%. Wise still expects financial 2026 constant currency underlying income growth in line with its medium-term guidance range of 15% to 20%. Wise said quarterly cross-border volumes surged 24% on-year to GBP41.2 billion, and active customers climbed 17% on a year prior to 9.8 million. "We have had a strong start to our financial year, progressing on our journey to moving trillions with more people and businesses around the world using Wise," CEO Kristo Kaarmann said. "Last month we also announced our proposal to dual list our shares in the US and the UK, with the strategic and capital market benefits positively received by owners. We believe the addition of a primary US listing will help us accelerate our journey to becoming 'the' network for the world's money, and ensure our mission and the interests of our customers and owners remain deeply aligned over the long term."
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By Eric Cunha, Alliance News news editor
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Related Shares:
WPPInformaDiplomaSSEeasyJetFrasers GroupDunelmWise Plc