21st Aug 2026 07:53
(Alliance News) - Hunting lowers its annual earnings forecast, Spire says a possible bidder's due diligence has concluded and legal firm Knights Group announces an acquisition.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.1% at 10,756.16
GBP: higher at USD1.3645 (USD1.3634 at previous London equities close)
----------
ECONOMICS
----------
UK consumer confidence rose in August, spiking to the best level since 2024, a long-running tracker showed. GfK's consumer confidence index improved to negative 14 points in August from negative 17 in July. On-year, it was also up by three points. In addition, it was the best reading for two years, GfK said. "Does all this mean that people have greater faith in the new government to increase growth and job opportunities? Can consumers finally see an end to the cost-of-living crisis? It would be tempting to say yes, but frankly it's too soon to tell," Neil Bellamy, a consumer insights analyst at GfK said. Bellamy noted UK consumer price inflation accelerated last month. The Office for National Statistics said on Wednesday that the consumer prices index rose 2.9% in the 12 months to July, picking up from 2.6% in June. Bellamy added: "With inflation back on the rise – now at 2.9% and the highest in four months – and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers."
----------
UK retail sales were weaker than expected last month, numbers on Friday showed, while public sector borrowing was higher than forecast. The Office for National Statistics said UK retail sales volumes increased 1.6% on-year in July, slowing from a 3.8% improvement in June. The latest reading was shy of the FXStreet cited consensus, which had forecast a 2.2% increase. On-month, retail sales fell 0.5% in July, in line with expectations, after a 0.7% rise in June from May. June's reading was downwardly revised from a 1.0% rise.
----------
Separate ONS figures showed government borrowing rose in July, "as spending growth outpaced receipts despite strong self-assessed income tax revenue". Public sector net borrowing totalled GBP1.80 billion last month, rising from GBP1.07 billion a year prior. It faded from GBP12.78 billion in June. Borrowing in July is typically lower than other months due to the timing of additional receipts from self-assessed income tax. Nonetheless, the latest reading was above the FXStreet cited forecast which had predicted an on-year fall in borrowing to around GBP300 million. The ONS noted that borrowing in the financial year up to July was GBP56.7 billion, GBP6.0 billion below the same period 12 months prior, but above an Office for Budget Responsibility forecast by GBP2.3 billion. Public sector net debt was equivalent to 94.1% of gross domestic product last month, 0.8 percentage points lower than a year prior, but still around "levels last seen in the early 1960s".
----------
BROKER RATINGS
----------
JPMorgan cuts JD Sports Fashion price target to 86 (90) pence - 'neutral'
----------
RBC raises IAG price target to 500 (465) pence - 'outperform'
----------
COMPANIES - FTSE 250
----------
Hunting reports a decline in half-year revenue, as the Middle East conflict "caused some delays to tendering". It warns that annual earnings will be weaker than previously expected. The provider of equipment and engineering services to the oil and gas industry expects "activity in the region to rapidly recover once stability returns". Pretax profit in the half year to June 30 rose 12% to USD34.2 million from USD30.6 million a year prior. Revenue fell 6.0% to USD497.0 million from USD528.6 million. Administrative expenses fell 13% to USD72.0 million, while selling and distribution costs declined 10% to USD25.0 million. Earnings before interest, tax, depreciation and amortisation fell 12% to USD62.1 million from USD70.2 million. "Today's results demonstrate the benefits of the transformation of Hunting's portfolio and our ability to capitalise on the structural growth opportunities in the end-markets we serve. In particular, the strong margins delivered from our Subsea product group, following our strategic repositioning in this area over the past seven years, are strengthening the quality of our earnings into the long-term," Chief Executive Jim Johnson says. "AI-driven investment is driving power demand growth in North America, while activity is rising across South America and West Africa as governments around the world increasingly focus on energy security and sovereign capabilities." Hunting lifts its interim dividend to 7.0 cents per share from 6.2 cents. Hunting notes Kuwait Oil Co will re-run a tender process originally issued in April. "An accelerated tender process is now expected to be re-issued during Q3 2026, with the result announced within a month of issuance. Any new contracts awarded will not be recognised until 2027. Hunting has a strong relationship with KOC that is built on more than six years of technical collaboration and supply-chain qualification. Therefore, the directors continue to believe that Hunting remains well-placed to secure further orders from KOC and other tenders underway across the Middle East and Asia Pacific," it adds. Nonetheless the KOC tender process delay will hit its 2026 Ebitda by around USD10 million. As a result, it now expects a full-year outcome between USD138 million and USD141 million, "slightly below previous guidance".
----------
Private healthcare provider Spire Healthcare Group says a deadline for suitor Toscafund Asset Management to make a firm offer has been extended to September 3. The 'put up or shut up' deadline was due to expire at the close of play on Friday. "Toscafund has confirmed to the board that its due diligence has concluded and that it continues to work towards the announcement of a 250 pence per Spire Healthcare share recommended offer. Given that due diligence has concluded and the ongoing progress being made on transaction documentation, Toscafund has requested that the board grants a further extension to enable it to finalise its financing arrangements, which are near-final," Spire says. Spire back in May said that it "would be minded to recommend" a non-binding takeover proposal of 250 pence per share in cash, valuing it at GBP1.01 billion.
----------
OTHER COMPANIES
----------
Legal and professional services company Knights Group says it will buy the commercial and private wealth service lines of Moore Barlow, a regional law firm operating in England's South East and South Central areas. The other service lines of Moore Barlow, namely personal injury, clinical negligence and court of protection, will be sold separately following this deal. "The acquisition continues Knights' focus on building scale in these attractive regions, following its recent expansion in the Thames Valley, Essex, Kent and Sussex," Knights says. Knights will fork out GBP27 million. Draft figures show Moore Barlow achieved distributable profit of GBP13 million in the year to April 30, on revenue of GBP45 million. "The part of the business being acquired by Knights represents approximately 70%, or GBP30 million of revenue," Knights says.
----------
Metals Exploration, which has assets in the Philippines and Nicaragua, says it has made progress at La India, with first gold at the asset on track for December. However, the gold explorer and producer notes some delivery delays due to the Middle East conflict. Metals says structural, mechanical, piping and electrical installation is 50% complete, while bulk earthworks are 93% done. Mine office and heavy mobile equipment construction is complete, while a tailings storage facility is 60% done. On logistics, Metals says: "The company has experienced some delivery delays to certain imported equipment and materials as a result of wider disruption to international shipping linked to the conflict in Iran. The company is evaluating alternative logistics solutions to mitigate the impact on construction." First gold "remains on track for December 2026". "Gold production from Runruno is forecast to be at the upper end of the 2026 production guidance of 40,000 - 48,000 ounces, owing to the mining of higher-grade ore at stage 5 pit. The mining of higher-grade ore is expected for the remainder of 2026," it says.
----------
Trellus Health has called in administrators, with the AIM listing concluding it has "insufficient funds to continue trading as a going concern". The healthcare company has filed notice to appoint Paul Zalkin and Tom Parish of Quantuma Advisory Ltd as administrators. "The board is also continuing, in conjunction with its corporate restructuring advisers, with its previously notified efforts to seek a buyer for certain of the company's assets including the shares in Trellus Health Inc, the company's US operating subsidiary. The board expects, should any sale be successfully concluded, that there will be no returns to the company's shareholders," it adds.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Trellus Health.JD SportsInternational AirlinesHuntingSpire HealthcareKnights Group .Metals Exploration