28th Jul 2025 07:52
(Alliance News) - GSK announced a partnership with China's Hengrui, Cranswick said it expects results in line with market expectations, while STV warned of an annual outcome below consensus.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.5% at 9,168.91
GBP: lower at USD1.3412 (USD1.3437 at previous London equities close)
----------
BROKER RATINGS
----------
Exane BNP cuts RS Group to 'underperform' (neutral) - price target 480 (590) pence
----------
Citigroup raises Drax to 'neutral' (sell) - price target 682 (529) pence
----------
COMPANIES - FTSE 100
----------
GSK said it has teamed with Chinese pharmaceutical firm Hengrui Pharma in a deal worth up to USD12 billion to develop 12 medicines, "adding significant new growth opportunities to the company beyond 2031". The treatments will complement GSK's respiratory, immunology & inflammation and oncology pipeline, the London-based firm said. "The agreements include an exclusive worldwide license (excluding mainland China, Hong Kong, Macau and Taiwan) for a potential best-in-class, PDE3/4 inhibitor (HRS-9821) in clinical development for the treatment of chronic obstructive pulmonary disease as an add-on maintenance treatment, irrespective of background therapy. The addition of HRS-9821 supports GSK's ambition to treat patients across the widest spectrum of COPD by including those who face continued dyspnoea (shortness of breath) or who are unlikely to receive inhaled corticosteroids or biologics, based on their disease profile," GSK said. GSK will pay USD500 million in upfront fees, including for the PDE3/4 programme, and the total value of success-based development, regulatory and commercial milestone payments to Hengrui is around USD12 billion. "In addition, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong, Macau and Taiwan)," GSK added.
----------
COMPANIES - FTSE 250
----------
Food producer Cranswick said it has started its financial year strongly, and it expects annual results in line with market expectations. In the 13 weeks to June 28, revenue rose 9.7% on-year, or 7.9% on a like-for-like basis. "Export revenue was strong, reflecting both volume growth and higher pricing following the reinstatement of the Norfolk fresh pork site's China export license in December 2024. Poultry revenue grew strongly driven by the onboarding of new premium retail business at the Cooked and Prepared Poultry sites together with strong demand from the Eye fresh poultry site's anchor retail customer. Pet Products revenue was well ahead reflecting the successful ongoing roll out of the Pets at Home business," Cranswick said. The outlook for the year to March 28 remains in line with market expectations. The consensus range for adjusted pretax profit is GBP206.5 million and GBP213.6 million. In its prior financial year, it achieved adjusted pretax profit of GBP197.9 million.
----------
Computacenter said it still expects to deliver annual profit growth, after a mixed half-year. The technology services provider still expects adjusted operating profit for 2025 to be ahead of 2024's GBP246.7 million. For the first half alone, it now expects adjusted operating profit to be "slightly ahead" of the prior year's GBP81.1 million. "For the half we delivered strong revenue growth largely driven by growth in high-volume Technology Sourcing business, resulting in good growth in gross profit. This reflected an excellent performance in North America and further growth in the UK. However, we experienced softer trading in Germany and France during the second quarter driven by temporary lower levels of public sector activity following political changes, with the performance in France significantly weaker than last year," Computacenter said. "We have started July strongly with certain large orders in North America and the UK which were expected to complete during the first half, moving into Q3. While the broader geopolitical and macro uncertainty is expected to persist, we anticipate some recovery in public sector activity in Germany in the second half while France is expected to remain challenging."
----------
OTHER COMPANIES
----------
STV Group warned of annual earnings below expectations, as the television broadcaster and content producer grapples with a "deterioration in the commissioning and advertising markets". STV expects to report revenue for 2025 between GBP165 million and GBP180 million, down from GBP188.0 million in 2024. STV said the commissioning and advertising markets suffered further towards the end of the first half of the year and into the second. "Our expectations for full year revenue and adjusted operating profit are expected to be materially below consensus," it cautioned. Total advertising revenue fell 10% in the first half, STV said, including a 17% plunge in the second quarter alone. The second quarter's comparative period a year prior includes Euro 2024. STV added: "Expectations for Q3 2025 are lower than anticipated due to the recent further deterioration in the advertising market." On STV Studios, it added: "There has been significant commissioning market deterioration in late H1 and early H2 as the UK macroeconomic backdrop has worsened. This has impacted our unscripted labels with some projects in advanced development not being green-lit and some commissions being delayed to 2026."
----------
Cinema operator Everyman Media Group said its first half earnings improved, despite a "challenging economic environment". Everyman expects to report revenue of GBP56.5 million for the half-year to July 3, up 21% from GBP46.9 million a year earlier. Earnings before interest, tax, depreciation and amortisation of GBP8.2 million are expected, a rise of 33% from GBP6.2 million a year prior. "In what is a challenging economic environment, the group is currently trading in line with board expectations for the full financial year," Everyman said.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
DraxGlaxosmithklineCranswickComputacenterStvgEveryman Media