29th Oct 2025 07:50
(Alliance News) - GSK raises its outlook for revenue and profit, Next ups its guidance as third quarter sales beat expectations, while Primary Health Properties' acquisition of Assura is cleared by the UK competition regulator.
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 0.1% at 9,709.34
GBP: lower at USD1.3227 (USD1.3279 at previous London equities close)
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BROKER RATINGS
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Berenberg starts Capita with 'hold' - price target 350 pence
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Berenberg starts Mears Group with 'buy' - price target 550 pence
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COMPANIES - FTSE 100
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GSK upgrades its guidance for 2025 as it reports increased sales and profit for the third quarter of the year. The London-based pharmaceutical company says sales were 6.7% higher at GBP8.55 billion in the three months to the end of September, from GBP8.01 billion a year ago. Pretax profit multiplies to GBP2.46 billion from GBP64 million a year ago. Cost of sales falls to GBP2.26 billion from GBP2.40 billion, while selling, general & administrative costs reduce to GBP2.24 billion from GBP3.80 billion. The firm declares a dividend of 16 pence per share for the third quarter and says it expects a total 2025 dividend of 64p. GSK now expects turnover growth of between 6% and 7% at a constant exchange rate, up from previous guidance of towards the top end of the range of between 3% and 5%. The company expects core operating profit constant exchange rate growth between 9% and 11%, up from towards the top end of between 6% and 8%. It sees core earnings per share growth between 10% and 12%. Previous guidance was towards the top end of between 6% and 8%. It notes that the full-year guidance is inclusive of tariffs enacted thus far and the indicated potential European tariffs impact of 15%. "GSK's momentum continues with another quarter of strong performance, supporting upgraded guidance for 2025, and positioning us well for 2026 and achieving our longer-term growth outlooks," says outgoing Chief Executive Officer Emma Walmsley. "Sales grew in all areas, with particularly strong performances in Specialty Medicines driven by double-digit growth in Respiratory Inflammation & Immunology, Oncology and HIV."
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Next raises its full year guidance for pretax profit by GBP30 million to GBP1.14 billion. The Leicester, England-based clothing retailer says in the thirteen weeks to October 25, full price sales were up 11% from last year. This is GBP76 million ahead of guidance for a 4.5% rise in sales in the third quarter. The firm says sales overperformed in both the UK and overseas. Sales in the UK were up 5.4% from last year, lower than the 7.6% growth in the first half but ahead of 1.9% guidance. Overseas sales were 39% higher than a year ago, beating 28% growth in the first half and guidance for a 19% rise. The firm raises its fourth quarter full price sales outlook to 7.0% from 4.5%, which adds GBP36 million of full price sales to its forecast. The company says it is assuming that it will make no further share buybacks in the current financial year, as the share price is currently higher than its buyback limit. In the absence of any acquisitions or further buybacks, Next says it intends to return remaining surplus cash with a special dividend at the end of January. Based on the latest guidance, it says this special dividend would be around GBP3.10 per share.
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COMPANIES - FTSE 250
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The UK Competition & Markets Authority clears the acquisition of Assura by Primary Health Properties and says there will be no phase two probe. Primary Health Properties says it is pleased to note that the CMA has concluded that the transaction "gives rise to no competition concerns". PHP adds that it will now focus on the integration of the two businesses and "realising the full benefits of the combination". It says this will include the delivery of the expected run-rate cost synergies of at least GBP9 million. "We are pleased with the decision announced by the CMA today that there are no competition concerns with this strategically important transaction and we appreciate the work done by the CMA team during their review," says PHP CEO Mark Davies. "This earnings-accretive transaction, which has compelling strategic and financial benefits, will give PHP a lower cost of capital and a strong platform to accelerate our future expansion."
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OTHER COMPANIES
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Bank of Ireland raises its 2025 financial year net interest income guidance to over EUR3.3 billion from EUR3.3 billion previously. The Dublin-based lender says net interest income was 7% lower compared to the same period in 2024 which was "modestly ahead" of its expectations. This is due to lower average interest rates and deleveraging within the portfolios it is exiting. The bank estimates a EUR230 million impact from the UK motor finance ruling, equivalent to 35 basis points of its CET1 ratio and around 2% return on tangible equity. Total business income is 5% higher on-year during the first nine months of 2025, in line with its financial 2025 guidance. "The group continues to see positive momentum, with loans, deposits and wealth [assets under management] in Ireland all growing strongly. These are translating into high levels of net organic capital generation, supporting further balance sheet growth, investment in our business model and attractive shareholder returns," says CEO Myles O'Grady. "We are approaching the end of our three-year strategic cycle and delivering well. Our strong strategic execution, differentiated business model, and the attractive markets in which we operate reinforces our positive outlook into 2026 and beyond, with return on tangible equity on track to exceed 17% by 2027."
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By Michael Hennessey, Alliance News reporter
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Related Shares:
CapitaMearsGlaxosmithklineNextPrimary HealthBank Of Ireland