18th Aug 2026 07:54
(Alliance News) - Kainos says a strong start to the year continues, Frasers says it has strengthened its holding in Hugo Boss but is shy of a majority while Made Tech reports its largest ever deal win.
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 10,733.70
GBP: lower at USD1.3528 (USD1.3557 at previous London equities close)
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ECONOMICS
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The UK unemployment rate was steady at the end of the second quarter, underperforming expectations of a decrease, but a measure of pay growth was hotter than forecast. The Office for National Statistics said the UK unemployment rate was 4.9% in the three months to June, unchanged from the three months to May. However, it had been expected to ease to 4.8%, according to consensus cited by FXStreet. The jobless rate is up from 4.7% a year prior. "Estimates for payrolled employees in the UK fell by 78,000 between June 2025 and June 2026," the ONS said. "However, it was largely unchanged on the month, decreasing by 13,000 between May and June 2026." The ONS said an early estimate showed payrolled employees for July was 94,000 lower on-year and down 13,000 on-month to 30.3 million. Year-on-year growth in average earnings was 3.5% in April to June, when excluding bonuses. Including bonuses, it was 4.1% higher. The figure excluding bonuses topped the FXStreet cited consensus of 3.4%, while the total pay figure was in line with the market forecast. In the three months to May, total pay growth was 4.4%, while regular pay growth, which strips out bonuses, was 3.4%.
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BROKER RATINGS
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Berenberg cuts Segro to 'hold' (buy) - price target 991 (995) pence
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COMPANIES - FTSE 250
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Frasers Group says it has received valid acceptances for 12.2 million Hugo Boss shares as it pursues a voluntary public takeover offer to acquire the Frankfurt-listed fashion brand. The shares are worth just shy of 18% of Hugo Boss. It means the Sports Direct parent owns, or has received acceptances, for just under 48% of Hugo Boss shares, falling short of a majority of Hugo Boss. The offer is at EUR38.00 per share. Hugo Boss has in the past urged its shareholders to reject the Frasers offer, saying it is "inadequate from a financial point of view". Hugo Boss noted it was a 4% premium to its undisturbed closing price of EUR36.46 on June 10.
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IT services provider Kainos says a strong performance in the prior financial year has continued into this one. It now expects revenue and adjusted pretax profit for the year ending March 31 "comfortably ahead of current market expectations". It puts consensus for the year at GBP77.1 million for profit and GBP509.3 million for revenue. They would represent rises from GBP67.1 million and GBP431.1 million. Kainos adds: "Digital Services continues to grow very strongly, supported by several significant contracts secured in H2/FY26 and further contracts awarded since the start of this financial year. Trading in both Workday Services and Workday Products has continued to perform well, with both divisions recording double-digit revenue increases over the same period in the previous financial year. Looking forward, we remain confident in our outlook for the financial year and beyond. This confidence is underpinned by a robust pipeline and a significant multi-year contracted backlog. While the macroeconomic environment remains volatile, Kainos operates in markets driven by clear structural trends and remains well positioned to deliver on its strategy."
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OTHER COMPANIES
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Foresight Solar Fund says it is "investing in a programme of upgrades" to boost electricity generation and revenue. The fund, which invests in solar and battery storage assets, says the process will involve replacing some components such as solar panels and inverters with new equipment. "The planned works cover nine sites representing more than 150 MW of capacity, about 20% of the UK portfolio, and are scheduled to be finalised by summer 2027," it says. "Once fully implemented, the programme is expected to deliver up to GBP2.5 million of annual revenue." The revenue generated will contribute to dividend cover, Foresight Solar Fund says.
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Made Tech Group says it is part of a consortium that has landed a "significant new four-year contract with a UK government department". The deal is worth over GBP40 million to Made Tech across its four-year span, the provider of digital, data and technology services to the UK public sector says. It is the "largest contract award in the company's history". "Revenue from the award is expected to commence in FY27, with a more significant contribution expected in FY28," it adds. It now expects revenue between GBP63 million and GBP66 million and adjusted earnings before interest, tax, depreciation and amortisation between GBP6.3 million and GBP6.6 million for the year ending May 31, ahead of current market expectations. It puts consensus at GBP6.0 million for Ebitda and GBP60.3 million for revenue. Made Tech releases financial 2026 results next month, "and will provide further colour on the outlook at this stage". "As announced in its recent trading update, sales bookings accelerated significantly in H226. Together with the award, this has increased the current contracted backlog to approximately GBP115 million, providing increased revenue visibility into FY27 and beyond," Made Tech adds.
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BHP reports stronger annual earnings, lifted by higher prices and record output across key commodities. The Melbourne, Australia-based diversified miner says attributable profit rose 9.0% to USD9.83 billion in the financial year ended June 30 from USD9.02 billion a year prior. Basic earnings per share increased 8.9% to 193.6 US cents from 177.8 cents. Underlying attributable profit jumped 30% to USD13.20 billion from USD10.16 billion with underlying basic EPS growing to 260.0 US cents from 200.2 cents. Revenue climbed 15% to USD58.76 billion from USD51.26 billion. BHP lifts its total dividend by 56% to 172 US cents per share from 110 cents previously.
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By Eric Cunha, Alliance News news editor
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Related Shares:
SegroFrasers GroupKainos GroupForesight Solar FundMade TechBHP Group