12th Aug 2025 07:51
(Alliance News) - Gambling firm Entain lifted its forecast for the full-year but posted an interim loss, while Spirax's profit fell for the first half of 2025, though it backed its outlook.
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 0.2% at 9,143.31
GBP: higher at USD1.3439 (USD1.3402 at previous London equities close)
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ECONOMICS
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The UK unemployment rate was unmoved in June, numbers on Tuesday showed, while an early estimate showed a monthly decline in payrolled employees eased in July. The Office for National Statistics said the rate of unemployment in the three months to June remained at 4.7%, where it also had stood in the three months to May. Compared to the three months to March, however, the unemployment rate picked up from 4.5%. The latest figure was in line with the FXStreet-cited market forecast. Average weekly earnings, including bonuses in the three months to June eased to 4.6% from 5.0% in the period to May. Growth of 4.7% had been expected, according to FXStreet. Regular pay growth remained at 5.0%, in line with expectations. The ONS said an estimate showed payrolled employees fell by 149,000 on-year in June, and by 26,000 on-month. "The early estimate of payrolled employees for July 2025 decreased by 164,000 on the year, and by 8,000 on the month," the ONS added.
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BROKER RATINGS
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Shore Capital moves Domino's Pizza Group to 'hold', rating was previously under review
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COMPANIES - FTSE 100
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Gambling firm Entain raised its annual outlook and lifted its payout, but reported a swing to a half-year loss amid an Australian civil penalty. It also made its interim chair permanent. The Ladbrokes owner said its pretax loss in the first half of 2025 amounted to GBP96.0 million, swinging from profit of GBP13.7 million. Revenue, however, improved 3.0% to GBP2.60 billion from GBP2.52 billion. Net gaming revenue alone was 2.8% higher at GBP2.63 billion. The NGR figure is before charging for VAT and sales tax. Hurting Entain's bottom line were "separately disclosed items" totalling GBP322.4 million, rising from GBP234.8 million a year earlier. During the half-year, these including amortisation costs of GBP131.0 million from acquired assets, and a GBP47.7 million provision for a "civil penalty". This was related to proceedings with the Australian Transaction Reports & Analysis Centre, an anti-money laundering watchdog. The proceedings against Entain Group Pty Ltd, the group's subsidiary in Australia, relate to alleged contraventions of the Australian anti-money laundering & counter-terrorism financing act 2006. AUSTRAC kicked off the civil penalty proceedings back in December, saying at the time: "AUSTRAC's proceedings allege that Entain did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced. We are alleging this left the company at serious risk of criminal exploitation." Entain lifted its half-year payout by 5.4% to 9.8 pence from 9.3p. For the full year, Entain sees online net gaming revenue growth of 7% on a constant currency basis. It had previously forecast "mid-single-digit" growth. It is introducing earnings before interest, tax, depreciation and amortisation guidance in the range of GBP1.10 billion and GBP1.15 billion. In addition, Entain said that Pierre Bouchut has been made its permanent non-executive chair, effective immediately. Bouchut joined the board in September 2018, became senior independent director in December 2023 and then interim non-exec chair in February of this year.
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Thermal energy and fluid technology company Spirax Group backed its annual outlook but reported a decline in half-year earnings. Pretax profit in the first six months of 2025 declined 30% to GBP87.9 million from GBP124.8 million a year prior. Revenue fell 0.6% to GBP822.2 million from GBP827.0 million. On an organic basis, revenue rose 3% on-year. "We have delivered first half results in line with expectations despite the challenging macroeconomic environment, demonstrating the strength of the group's direct sales business model," Chief Executive Officer Nimesh Patel said. Spirax raised its interim dividend by 2.9% to 48.9p from 47.5p. "Our group guidance for the full year remains unchanged. We continue to anticipate organic growth in group revenues consistent with that achieved in 2024 and well ahead of [industrial production growth]," Spirax said. "Group adjusted operating profit margin is expected to be ahead of the currency adjusted 19.4% in 2024, driving mid-single digit organic growth in adjusted operating profit."
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COMPANIES - FTSE 250
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Housebuilder Bellway said home completions increased ahead of guidance in its recently ended financial year, despite "headwinds for our industry". Bellway said housing completions increased by 14% to 8,749 homes in the year to July 31, topping 7,654 in financial 2024. The average selling price was GBP316,000, up from GBP307,909. Both the completions and selling price were "slightly ahead of previous guidance". Housing revenue spiked 17% to top GBP2.76 billion, and the underlying operating margin is "expected to approach 11%", compared to 10% a year prior. "Bellway has delivered a solid performance despite ongoing headwinds for our industry. There was good growth in volume output and an improvement in underlying margin which are set to drive a strong increase in profits for FY25. We have entered the new financial year with a healthy forward order book and outlet opening programme and, if market conditions remain stable, we are well-positioned to deliver further growth in FY26," CEO Jason Honeyman said. Bellway said it is now "finalising details of a refined capital allocation framework". It will set this out in its annual results which will be released on October 14. Looking further ahead, it said: "For FY26, we expect to maintain broadly flat average outlet numbers and based on a private reservation rate per site per week similar to the 0.57 achieved in FY25, we are well-positioned to deliver further growth in volume output to around 9,200 homes and increase cash generation for shareholder returns."
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OTHER COMPANIES
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Publishing firm Wilmington announced it plans to acquire software business Professional Group Conversia for EUR121.6 million in cash from Spanish investment company Arraigo Midco. Wilmington, which provides information and training, specialising in compliance, legal and healthcare publications, said Conversia operates in governance, risk, and compliance and regulatory compliance market. It provides "proprietary regtech documentation generation software solutions, primarily in the data privacy sector". Wilmington added: "The acquisition is a further execution of the group's strategy to expand its positions in the GRC markets, and grow its quality of revenues and profits, both organically and through acquisitions, by investing in its business and actively managing its portfolio of brands. It also expands Wilmington's position in a new sector, data privacy."
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By Eric Cunha, Alliance News news editor
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DominosWilmingtonBellwaySpirax-SarcoEntain