1st Sep 2025 07:55
(Alliance News) - London's FTSE 100 was set to open slightly higher on Monday, following a soft UK house price reading and ahead of mortgage approvals data later in the day.
In early corporate news, Intertek, Genuit and Supreme announce acquisitions, while Rolls-Royce is reportedly mulling a potential initial public offering for its small nuclear reactor arm.
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 9,193.74
GBP: up at USD1.3539 (USD1.3510 at previous London equities close)
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ECONOMICS
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UK annual house price growth softened in August as affordability concerns continue to weigh on buyers, data from Nationwide showed on Monday. The Nationwide house price index showed a 0.1% monthly decline in seasonally adjusted UK house prices in August, weakening from 0.5% growth a month earlier. This underperformed against an FXStreet-cited consensus of 0.2% growth. In August, the average non-seasonally adjusted UK house price stood at GBP271,079, falling from GBP272,664 in July. Annually, the house price index rose by 2.1%, slowing from 2.4% growth a month earlier. Nationwide added that 53% of owner-occupied properties in England are classified as "underoccupied", meaning they have two or more spare bedrooms. "Borrowing costs are likely to moderate a little further if bank rate is lowered again in the coming quarters," notes Robert Gardner, Nationwide's chief economist. "This should support buyer demand, especially since household balance sheets are strong and labour market conditions are expected to remain solid."
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BROKER RATINGS
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BofA raises Fresnillo price target to 1,770 (1,500) pence - 'neutral'
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RBC cuts WH Smith price target to 850 (1,200) pence - 'outperform'
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Goldman Sachs cuts boohoo price target to 16 (23) pence - 'sell'
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COMPANIES - FTSE 100
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Rolls-Royce is speaking with advisers about funding options for its small nuclear reactor business, which could include an initial public offer of shares, the Financial Times reported on Saturday. The London-based manufacturer of jet engines and power turbines is in exploratory talks with investment houses and banks about the funding requirements of the nuclear business, the newspaper said citing "two people familiar with the situation". The fund needs follow Rolls-Royce's selection in June by the UK government to build Britain’s first fleet of small modular reactors. Rolls-Royce SMR said the company is "not planning for, or in the process of launching an initial public offering", the FT reported.
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Intertek agrees to buy Australian provider of environmental testing and analysis, Envirolab, though does not on Monday disclose the financial terms of the deal. The business reported revenue of GBP28 million for its most recent financial year ended in June. "We look forward to working with the Envirolab team to seize the truly exciting growth opportunities in the environmental testing industry and meet the heightened demand for comprehensive risk-based quality assurance solutions," says Intertek Chief Executive Officer Andre Lacroix.
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AstraZeneca on Saturday celebrated phase 3 trial results on baxdrostat, an aldosterone synthase inhibitor that targets one of the hormones driving elevated blood pressure and increased cardiovascular and renal risk. The Cambridge, England-based pharmaceutical company says baxdrostat showed a significant and clinically meaningful reduction in systolic blood pressure in patients with hard-to-control hypertension at 12 weeks when compared to a placebo. AstraZeneca adds that the safety profile of baxdrostat was consistent with its mechanism of action with most adverse events being mild.
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COMPANIES - FTSE 250
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Genuit acquires commercial ventilation solutions provider Monodraught Topco for a debt-free total consideration of GBP55.6 million. Monodraught generated 13% organic compound annual revenue growth between 2021 and 2024, and is expected to produce a 2025 outturn of around GBP19 million. The business is projected to be earnings per share accretive to Genuit in the first full year of ownership, and will form part of the company's Climate Management Solutions business unit. Return on invested capital is forecast to be greater than Genuit's weighted average cost of capital by the second full-year of ownership, pre-synergies, the company adds. "The acquisition significantly strengthens our position in the attractive UK ventilation market, which is benefiting from environmental and regulatory tailwinds," says Genuit Chief Executive Officer Joe Vorih. "This is evident both in the strong growth of Monodraught in recent years alongside the demand for our existing portfolio of ventilation and low carbon heating and cooling products. We expect this to continue and are excited about the opportunities ahead."
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OTHER COMPANIES
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Supreme purchases carpet care brand 1001 for a total of GBP1.7 million from US-based WD-40. The deal includes GBP350,000 in deferred consideration, and provides for up to GBP3 million for the purchase of inventory at book value associated with future sales growth. "1001 is a heritage British brand with decades of trust and consumer recognition and we are thrilled to welcome it into the Supreme family," says Supreme Chief Executive Officer Sandy Chadha. "This acquisition highlights our ability to identify and reinvigorate brands with strong equity while leveraging our shared back-office capabilities. We see substantial potential to expand the 1001 range, invest in its growth, and build another successful vertical alongside our existing portfolio." Supreme notes the brand's potential to develop into a "broader household cleaning brand", which it dubs a "high-growth category, particularly within the discount retail channel".
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Smarter Web names Albert Soleiman as its new chief financial officer with immediate effect. Soleiman most recently held the CFO role at FTSE 250-listed trading platform CMC Markets, prior to which he held a senior finance position at blockchain technology solutions and Bitcoin mining firm Bitfury Group. Smarter Web's current CFO Mario Visconti will step down from the board with immediate effect to move to a "newly created role within the company to help support it on its ongoing and future strategic project", the company says.
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By Emily Parsons, Alliance News reporter
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Related Shares:
FresnilloWh SmithBoohooRolls-RoyceGenuit GroupSWC.LIntertek GroupSupreme PlcAstrazeneca