27th Aug 2025 07:51
(Alliance News) - Stocks are called to open in the green on Wednesday, while Ofgem has announced that its energy price cap is set to rise higher from October than experts predicted.
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 44.3 points, 0.5% at 9,310.10
GBP: lower at USD1.3453 (USD1.3483 at previous London equities close)
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ECONOMICS
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UK energy regulator Ofgem has announced the new energy price cap of GBP1,755 from October in Great Britain, up 2.0% from the previous cap of GBP1,720 in July through September. This exceeds last week's forecast from Cornwall Insight, whose experts had predicted that the typical household energy bill would rise by GBP17 to GBP1,737 per year. This was itself a turnaround from the previous forecast in July that bills would drop by 1% from the current GBP1,720 because of easing Middle East tensions. The increase will see bills increase by around GBP2.93 a month for the average household, leaving a home on a default tariff paying GBP102 for what currently costs GBP100 per month. Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
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BROKER RATINGS
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Morgan Stanley raises Balfour Beatty to 'equal-weight'
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Berenberg starts Zotefoams with 'buy' - price target 540 pence
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Berenberg starts Trifast with 'buy' - price target 130 pence
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COMPANIES - FTSE 100
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JD Sports Fashion announces a new GBP100 million share buyback, which it says reflects its "confidence in medium-term industry growth, our ongoing market share gains and focused execution". Furthermore, the company reported in its scheduled trading update that sales in its second quarter, the 13 weeks to August 2, decreased 3.0% on a like for like basis but rose 2.2% organically. For the first half, sales declined 2.5% LFL with organic sales growth of 2.6%. "For Q2, in North America we saw an improved performance following the deferral of several product launches from Q1, along with stronger sales trends in apparel and online," said Chief Executive Regis Schultz. "In both Europe and the UK, we were annualising tough comparators from the Euros football tournament last year, but still saw a good underlying performance in apparel and from newer footwear lines." Schultz says consumers have been "resilient" but "very selective", and that the company "therefore [remains] cautious on the trading environment going into H2." The firm expects its full-year pretax profit to be "in line with current market expectations," he added.
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National Grid said it has submitted its response to Ofgem's Draft Determinations for the RIIO-ET3 price control, saying it welcomes "the continued positive intent". "The commitment to an GBP80 billion investment plan in the electricity transmission sector, recognition of the need for urgency in delivery, and the changes Ofgem have made to the financial package since the Sector Specific Methodology Decision are all valuable steps forward," it says. The utility firm adds, however, that the Draft Determination contains insufficient recognition of "the practical realities of delivering the biggest expansion of the electricity system in more than a generation and the required two and a half times increase in investment in our transmission network". It has submitted evidence and solutions that it believes will make the Final Determination's framework "investable" and "workable".
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COMPANIES - FTSE 250
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Hochschild Mining reports that revenue climbed 33% to USD520.0 million for the six months ended June 30, from USD391.7 million the previous year. Pretax profit after exceptional items more than doubled to USD140.1 million from USD69.4 million. Hochschild also reports attributable production of 161,597 gold equivalent ounces, or 13.4 million silver equivalent ounces. These are up from 152,792 gold equivalent ounces or 12.7 million silver equivalent ounces. Further, the company declares an interim dividend of 1.0 US cents per share. Looking ahead, however, Hochschild has revised 2025 group production guidance to between 291,000 and 319,000 gold equivalent ounces, down from between 350,000 and 378,000 ounces. This is due to the firm lowering its production forecast for Mara Rosa in the Goias state in central Brazil to 35,000 to 45,000 ounces, against its prior guidance of 94,000 to 104,000 ounces. Further, Hochschild noted higher costs in Argentina amid inflation and lower production.
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Primary Health Properties' takeover offer for Assura has valid acceptances representing approximately 92.02% of the latter's shares. Consequently, it says, it will now exercise its rights to a compulsory acquisition of the remaining Assura stock. PHP's revised offer, of 0.3865 of a new PHP share and 12.5 pence in cash per Assura share, was set to will close for acceptances on September 10.
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OTHER COMPANIES
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Dalata Hotel Group's revenue increases 1.4% to EUR306.5 million in the half year ended June 30, from EUR302.3 million the prior year. Pretax profit, however, decreases to EUR23.3 million from EUR41.9 million. Revenue per available room decreases 1.9% to EUR108.61 from EUR110.77. The results follow Dalata's board "unanimously" recommending, in July, a cash offer of EUR6.45 per share from the Pandox Consortium. Dalata expects its takeover by Pandox to complete in November. Going forward, Dalata anticipates like for like RevPAR for July and August to be around 2.5% lower on-year. "We continue to monitor the economic backdrop and market uncertainty, demand levels are supported by strong levels of flight volumes and an event schedule that will drive international interest particularly in Dublin," Dalata said. "The second half of the year will also benefit from the acquisition of Radisson Blu Hotel Dublin Airport and the full year impact of the four UK openings in mid-2024."
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By Emma Curzon, Alliance News reporter
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Balfour BeattyZotefoamsTrifastJD SportsHochschildAssuraPrimary HealthDalata Hotel Gp