30th Sep 2025 07:58
(Alliance News) - Legal & General names its new chief financial officer, Close Brothers swings to a loss while Falcon Oil & Gas accepts a takeover offer.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.2% at 9,282.84
GBP: up at USD1.3449 (USD1.3432 at previous London equities close)
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ECONOMICS
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UK gross domestic product grew as expected during the second quarter of 2025, according to data from the Office for National Statistics on Tuesday. Real GDP is estimated to have increased by 0.3% between April and June, in line with the ONS's first estimate. The rate of growth slowed from a 0.7% rise in the prior quarter. Growth in the latest quarter was driven by increases of 0.4% in services and 1.0% in construction, while the production sector fell by 0.8%. Real household disposable income per head increased in the latest quarter by 0.2%, following a fall of 0.9% in the first quarter. Real GDP per head is estimated to have grown by an unrevised 0.2% in the second quarter, and is up by 0.9% compared with the same quarter a year ago.
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COMPANIES - FTSE 100
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Legal & General says Andrew Kail will replace Jeff Davies as chief financial officer from the start of December. Kail is the chief executive officer of the life insurance provider's largest business, Institutional Retirement, after joining in 2021 as CEO of the Retail Retirement division. Since the start of last year, Kail is also the CEO of the largest entity in the group, the Legal and General Assurance Society. Davies is leaving to work as CFO of Resolution Life from March 2, 2026. "In Andrew we have an outstanding CFO designate with deep knowledge of the different businesses of L&G and the key drivers of its performance. He is already a valued member of my leadership team and has played a pivotal role in developing and driving the group's growth strategy," says CEO Antonio Simoes. "I would like to thank Jeff for his eight years at L&G and particularly the last two years we have worked together," he adds.
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COMPANIES - FTSE 250
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Close Brothers swings to a pretax loss of GBP122.4 million for the twelve months to the end of July from a profit of GBP132.7 million in the prior year. Adjusted operating profit is down 14% to GBP144.3 million from GBP167.6 million. For the full year, net interest income falls 2.0% to GBP568.8 million from GBP580.7 million. The merchant bank's operating income drops 7.6% to GBP659.5 million from GBP713.4 million. It does not declare a dividend, unchanged from a year ago. The firm says the reinstatement of dividends will be reviewed once there is more clarity on the financial impact of the Financial Conduct Authority review of motor finance commission arrangements. Looking ahead, Close Brothers says it expects the net interest margin in the 2026 financial year to be "slightly lower" than 7% due to loan book mix impacts. It expects the operating loss from group central functions to be around GBP50 million, amid a reduction in legal and professional fees. It says it is committed to at least GBP20 million of additional annualised savings per year in each of the next three years. As a result, it expects adjusted operating expenses to be within the GBP410 million and GBP430 million range by the 2028 financial year. Chief Executive Mike Morgan says: "Over the last year, we have taken decisive action to address legacy issues and reposition the business for growth. We have sold Close Brothers Asset Management, Winterflood and the Brewery Rentals business, and we have repositioned our Premium Finance business to focus on commercial lines...The task now is to accelerate from here. I am confident we are on the right path and that we will return this business to double-digit returns."
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PayPoint says it will take a 49% stake in International Distribution Services' Collect+ business with an investment of GBP43.9 million. The payments and retail technology group says Collect+ has a network of more than 14,000 locations in the UK, of which almost 8,000 offer Royal Mail collect, send and return parcel services. Over the next 12 months, the intention is to expand the rollout of Royal Mail over the counter services through the network, including the launch of self-service kiosks during the first quarter of 2026. As a result of this transaction, PayPoint announces a special dividend of 50.0 pence per share combined with a share consolidation of 12 for 13, to be proposed for shareholder approval at a special general meeting on October 17. It expects the transaction as a whole to be earnings per share enhancing in the first full year to March 2027. "We are delighted that Royal Mail has invested into the Collect+ business, which has seen strong growth over the past 5 years as we have established it as the leading open [out of home] store network in the UK...We are also pleased today to be announcing a proposed special dividend and share consolidation, which combined with our ordinary dividend and continuing in year share buyback, will result in over GBP90 million of returns to shareholders in the current financial year," says PayPoint Chief Executive Nick Wiles.
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OTHER COMPANIES
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Falcon Oil & Gas enters agreement to be bought by Tamboran Resources to create a 2.9 million net prospective acre business across the Beetaloo Basin. Tamboran will acquire Falcon in exchange for 6.5 million Tamboran shares and cash consideration of USD23.7 million. The transaction values Falcon's subsidiaries at CAD239 million, or around GBP127.8 million. Falcon Oil says the takeover brings shareholders' Beetaloo interests to the centre of operations. It expects the takeover to complete by the first quarter of 2026. The firm will stop trading in London and Toronto after the takeover. "This transaction brings Falcon's shareholders' interests in the Beetaloo directly to the centre of operations and provides our shareholders with greater exposure to all activities carried out by Tamboran. Upon closing of the transaction Falcon shareholders will benefit from the increased exposure to the critically important pilot development currently underway in the Beetaloo. In addition, this transaction will remove any uncertainty around Falcon’s participation in the farmout of the phase 2 development area, as previously announced by Tamboran," says Falcon Oil CEO Philip O'Quigley.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
Legal & GeneralClose BrosPaypointFalcon Oil