30th Jul 2025 07:52
(Alliance News) - GSK predicted an annual outturn at the top end of guidance, BAE Systems maintained its outlook, while Aston Martin softened its profit 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 down just 3.2 points at 9,133.12
GBP: up at USD1.3359 (USD1.3337 at previous London equities close)
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BROKER RATINGS
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Peel Hunt cuts Ferrexpo to 'hold' (buy) - price target 50 (75) pence
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COMPANIES - FTSE 100
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GSK said it expects annual growth at the top end of its outlook range, after "another quarter of excellent performance". The pharmaceutical firm said its portfolio of Specialty Medicines led the charge, and the group added that it is "positioned to respond to the potential financial impact of tariffs". Revenue in the second quarter of 2025 rose 1.3% to GBP7.99 billion from GBP7.88 billion, helping to push pretax profit up 26% to GBP1.89 billion from GBP1.50 billion. Core operating profit rose 12% at constant currency to GBP2.63 billion. "GSK's strong momentum in 2025 continues with another quarter of excellent performance driven mainly by Specialty Medicines, our largest business, with double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology and HIV. We also continue to make very good progress in research & development, with 3 major FDA approvals achieved so far this year, 16 assets now in late-stage development, and 4 more promising medicines to treat cancer, liver disease and HIV expected to enter Phase III and pivotal development by the end of the year," Chief Executive Officer Emma Walmsley said. GSK now expects constant currency revenue growth at the top end of 3% to 5% range, and core operating profit growth at the top end of a 6% to 8% range. GSK added: "GSK notes that the US Administration has initiated an investigation under Section 232 of the Trade Expansion Act to determine the effects on national security of imports of pharmaceutical products. Our guidance is inclusive of tariffs enacted thus far and the European tariffs indicated this week. We are positioned to respond to the potential financial impact of tariffs, with mitigation options identified. Given the uncertain external environment, we will continue to monitor developments." GSK lifted its second interim dividend to 16 pence per share from 15p a year prior.
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Defence contractor BAE Systems upped its annual guidance after a "strong operational performance in the first half". BAE said pretax profit in the six months to June 30 rose 2.2% to GBP1.19 billion from GBP1.16 billion a year prior. Revenue rose 8.8% to GBP13.57 billion from GBP12.48 billion. "Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance. In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services," CEO Charles Woodburn commented. BAE now expects an annual sales growth between 8% and 10%, its guidance lifted from the 7% to 9% range. Sales in 2024 amounted to GBP28.34 billion. That figure includes its share of revenue of equity accounted investments. On an IFRS basis, revenue in 2024 totalled GBP26.31 billion. Underlying earnings before interest and tax growth between 9% and 11% is now forecast, the outlook raised from the 8% to 10% range. The underlying Ebit in 2024 totalled GBP3.02 billion. BAE upped its dividend by 8.9% to 13.5p per share from 12.4p.
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COMPANIES - FTSE 250
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Rathbones reported a slight fall in funds under management and administration during the first six months of the year, but said "flows improved as the half progressed". The investment and wealth manager's funds under management and administration amounted to GBP108.97 billion at June 30, weakening from GBP109.16 billion at the end of last year. It reported a net outflow of GBP1.01 billion, which reflected "the peak impact of client migration activity during the period". "In the first half of 2025, Rathbones successfully completed the planned client and asset migration following its 2023 combination with Investec Wealth & Investment, establishing a strong foundation for optimising the business and realising the full benefits of the combined organisation in the second half of the year," Rathbones said. Rathbones said its funds under management and migration improved from GBP104.05 billion at the end of the first quarter. "Encouragingly, flows improved as the half progressed, with Q2 net outflows reducing significantly," it added. Net flows in the second quarter amounted to GBP226 million. FUMA got a boost from a market and investment performance in the second quarter, to the tune of GBP5.41 billion. Rathbones said half-year pretax profit slipped to GBP62.3 million from GBP65.3 million a year prior. Operating income rose to GBP449.1 million rom GBP447.4 million. It upped its dividend to 31.0p per share from 30.0p.
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Carmaker Aston Martin Lagonda reported weaker half-year revenue, a narrowed loss and bemoaned the "unhelpful" tariff situation which hurt its second quarter. The firm said it "adjusted production and limited imports through April and May" as it awaited a trade deal between the US and UK. "We resumed shipments to the US in June in anticipation of a finalised agreement which came into effect on 30 June 2025. We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis," CEO Adrian Hallmark said. Aston Martin's revenue in the six months to June 30 fell by a quarter to GBP454.4 million from GBP603.0 million. Its pretax loss narrowed to GBP140.8 million from GBP216.7 million. Hallmark added: "Whilst we continue to navigate a complex operating environment, we are excited about the potential of our recently launched Vantage S which joins the DBX S, Vantage Roadster and Vanquish Volante." The firm expects a "significantly stronger" second half compared to the first. "Whilst the impact of the recently announced US tariffs on the global economy remains uncertain, several factors have been reflected in a slight revision to some of the group's FY 2025 guidance. These include the impact from foreign exchange rates movements, increased investment in software and infotainment enhancements and the group's decisive action to support its dealers in China to reduce stock levels prior to future market improvements," Aston Martin added. It still expects "modest wholesale volume growth" for the whole of 2025, but it now predicts an adjusted Ebit "towards breakeven". It had previously forecast a "positive adjusted Ebit". The free cash outflow for 2025 is still expected to "materially improve" after a GBP392 million outflow last year.
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OTHER COMPANIES
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International Personal Finance PLC said it would be "minded to recommend" a roughly GBP490 million bid from asset-based financing provider BasePoint Capital. IPF, a provider of credit products and insurance services, confirmed it is in advanced discussions with BasePoint. A price per share of 223.8 pence has been mooted, a sum IPF would recommend to shareholders should an official bid materialise. "The board is confident in its strategy and in the company's standalone future, recognising the strong performance to date outlined in the 2025 half year results released today. However, it has carefully considered the possible offer with its advisers and has concluded that the possible offer is at a value that the board would be minded to recommend unanimously to IPF shareholders," the firm said. "Accordingly, the board is in advanced discussions with BasePoint in relation to these terms and other transaction documentation, following completion of due diligence satisfactory to BasePoint."
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By Eric Cunha, Alliance News news editor
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Related Shares:
FerrexpoInter. Pers.Aston Martin LagondaRathboneBAE SystemsGlaxosmithkline