23rd Jul 2025 07:52
(Alliance News) - London equities are set to open higher on Wednesday, as investors weigh the news of a US-Japan trade deal and new data shows a rise in UK mortgage lending.
In early corporate news, Informa swings to a first-half loss after impairments in its marketing business, and Breedon expects full-year earnings at the lower end of market consensus after interim profit declined.
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 0.4% at 9,062.01
GBP: up at USD1.3525 (USD1.3508 at previous London equities close)
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ECONOMICS
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Nearly four-fifths of UK mortgage brokers are noticing a rise in the amount of lending agreed for their clients, according to a survey. HSBC UK's mortgage broker barometer, which gathered sentiment from more than 1,100 mortgage brokers in July 2025, found 78% had seen an increase in the amount of lending agreed. Many lenders have recently made changes allowing some homeowners to borrow more, following clarification from the Financial Conduct Authority. Following changes to its own stress rates, HSBC UK estimated the average mortgage offer for first-time buyers will be GBP39,000 higher than would previously be offered. Nine in 10, or 93% of, brokers surveyed said that it is important for their clients to increase their borrowing power. Around 63% expect mortgage applications to increase over the next six months.
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BROKER RATINGS
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Berenberg raises Admiral Group price target to 3,850 (3,550) pence - 'buy'
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Barclays raises Safestore to 'overweight' - price target 740 pence
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JPMorgan cuts THG price target to 28 (30) pence - 'underweight'
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COMPANIES - FTSE 100
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Informa swings to pretax loss of GBP254.2 million in the six months that ended June 30, from profit of GBP237.4 million the year before. This is primarily driven by a one-off GBP484.2 million non-cash impairment of goodwill in its marketing services business Informa TechTarget, based on the business's current US public market valuation and trading performance, the business information publisher and events organiser explains. Revenue grows 20% to GBP2.04 billion from GBP1.70 billion a year earlier, while net operating expenses increase 17% to GBP1.70 billion from GBP1.45 billion. Informa declares an interim dividend of 7.0 pence per share, up 9.4% on-year from 6.4p. The company upgrades its full-year guidance for underlying revenue growth to around 6%, from 5%, which includes 8% growth in Live Business-to-Business Events. Statutory revenue guidance is maintained at around GBP4 billion and its adjusted earnings growth forecast is lifted to around 10% "despite further weakening" of the US dollar.
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Fresnillo says total silver production in the second quarter that ended June 30 rose 1.0% to 12.5 million ounces from 12.4 million ounces in the first quarter, but declined 15% on-year from 14.7 million ounces. Gold production edges up 1.0% on-quarter to 157,735 ounces from 156,105 ounces, and increases 21% from 130,025 ounces the year before. Lead production sinks 10% on-year to 15,152 tonnes from 16,906 tonnes, while zinc production also falls against the prior year, down 2.9% to 28,403 tonnes from 29,240. The miner's outlook for 2025 remains in line with its previous guidance, with attributable silver production expected between 49.0 and 56.0 million ounces, gold between 525,000 and 580,000 ounces, lead between 56,000 to 62,000 tonnes and zinc between 93,000 to 103,000 tonnes. Total production is anticipated at 91 to 102 million ounces of silver equivalent. 2026 and 2027 expected production is also unchanged, it adds. "Gold production is trending towards the upper end of our full-year guidance, driven by a strong performance at Herradura, while silver production remains in line with guidance albeit impacted by the weaker Silverstream contribution and lower grades at the Fresnillo mine. Our rigorous focus on operational optimisation and cost reduction initiatives continues to yield positive results, combined with favourable precious metals price," says Chief Executive Officer Octavio Alvidrez.
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COMPANIES - FTSE 250
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Breedon delivers pretax profit of GBP34.9 million for the six months to June 30, down 25% from GBP46.5 million the year before, as operating costs increase 8.5% to GBP769.3 million from GBP709.2 million. Revenue, on the other hand, rises 6.7% to GBP815.9 million from GBP764.6 million. The construction materials firm lifts its interim dividend to 4.75 pence per share from 4.50p a year prior. "We are confident in the medium-term prospects for the group and the very nature of our business, supplying local products within local markets, provides a degree of protection in the current uncertain economic climate," says Chief Executive Officer Rob Wood. "We have a strong and committed team, three leading platforms in geographies that have structural long-term growth drivers, significant reserves and resources and a well invested production capability. We remain optimally positioned to benefit when construction market activity improves." As a result of a "difficult first half" and "macroeconomic headwinds", Breedon now expects full-year results at the low end of a company-compiled consensus range for GBP291.4 million to GBP311.5 million in earnings before interest, tax, depreciation and amortisation. It recorded GBP245.8 million in Ebitda in 2024.
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JD Wetherspoon reports like for like sales rose 5.1% on-year in its fourth quarter that ended July 20 as a result of "favourable weather", with year to date sales also up 5.1%. It notes that this was despite "the high tax and labour increases for the hospitality industry". Looking ahead, the pub operator plans to invest in areas such as staff rooms, glass racks and gardens, and intends to open around 15 new managed pubs plus a further 15 franchised pubs. "Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels. Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels," comments Chair Tim Martin. "Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead. Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels." JD Wetherspoon will release its full-year results on October 3.
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OTHER COMPANIES
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Caledonia Mining expects to post profit "materially ahead" of market consensus for 2025, based on the current production profile at the Blanket mine and assuming the continuation of "favourable" gold prices. The firm anticipates reporting a profitable second quarter, "building upon a strong performance" in its first quarter. "We were pleased with the excellent production results announced on July 16, 2025. Combined with a robust and sustained gold price, we are enjoying strong profitability. This reflects the hard work and dedication of the team at Blanket Mine and at group level, which we have strengthened significantly in recent times," says Chief Executive Officer Mark Learmonth. Interim results will be released on August 11.
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By Emily Parsons, Alliance News reporter
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