12th Oct 2026 07:57
(Alliance News) - Metlen Energy has announced a collaboration with aerospace firms Thales and Leonardo, while Hays says that a decline in net fees eased at the start of its financial year.
Elsewhere in early UK corporate news, AIM-listed ActiveOps has warned on earnings, while explorer Kefi Gold & Copper has resumed work at an Ethiopian asset following a security incident.
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 0.3% at 10,581.55
GBP: higher at USD1.3255 (USD1.3233 at previous London equities close)
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ECONOMICS
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UK Prime Minister Andy Burnham will tell MPs it would be a "dereliction of duty" not to seek a new deal with the EU. In a Commons address on Monday, the PM is expected to reiterate his argument from the Labour Party conference that Brexit has done "more harm than good". He will call on all parties to support the government's approach in seeking a closer relationship with the EU, arguing such a move could help control immigration and boost growth. A No 10 source said: "Andy understands why some politicians don't want to face up to the reality that Brexit has not delivered what they once promised.
"But it is time for a different conversation about what our long-term relationship should be. Sticking with the status quo and not working relentlessly to secure a good deal that boosts growth would be a major dereliction of duty." At the Labour conference in Liverpool last month, Burnham said he would set out the "options" for Britain's long-term relationship with Europe around the time of a UK-EU summit planned for the end of the year. He has suggested that those options could include rejoining the bloc.
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High inflation rather than the scale of flexibility provided by fiscal "headroom" is the key challenge facing UK Chancellor John Healey, economists said as they warned against a "steady-as-she-goes" budget. Analysis by the Institute for Fiscal Studies found that while the war in the Middle East means inflation will be higher than expected in the coming years, rising prices will also boost tax revenues. This means the fall in the financial buffer available to the chancellor will be smaller than widely anticipated. The most pressing problem for the chancellor identified ahead of the budget on October 28 is that inflation will erode the budgets of government departments, creating the need for either large cuts to some public services or potential top ups to spending plans totalling tens of billions of pounds.
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Vacancies for financial jobs in London fell by almost a third in recent months, according to research. The number of jobs on offer in the sector totalled 1,200 in September, down from 1,719 in July, services firm Morgan McKinley said. Vacancies were down 11% over the past year as employers become more cautious about hiring staff, the report added. Mark Astbury, of Morgan McKinley, said: "The continued fall through September is particularly notable. August typically sees recruitment activity soften as businesses and candidates take time away from the market, but vacancies failed to rebound as businesses returned after the summer."
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BROKER RATINGS
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RBC raises Standard Life to 'outperform' ('sector perform') - price target 950 (970) pence
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COMPANIES - FTSE 100
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Metlen is working with aerospace firms Thales and Leonardo for "potential opportunities" in the Greek defence telecommunications space programme. The aluminium producer and electricity generator, which also invests in network infrastructure, battery storage, and other green technologies, is teaming with Thales Alenia Space and Thales Hellas. Thales Alenia Space is 66%-owned by Paris-headquartered Thales. Rome-based Leonardo owns the remainder. Thales Hellas is the Greek unit of Thales. Metlen has signed a collaboration agreement with the firms, "to jointly prepare for potential opportunities in the frame of the future Greek defence telecommunications space programme". "The cooperation agreement brings together the complementary capabilities of the three companies to support Greece's ambition to enhance its sovereignty, security and strategic autonomy in the space domain, while maximizing contribution from the national industrial ecosystem through technology transfer and skills development, supporting the development of high-value industrial and technological space capabilities in Greece," Metlen says. "Under the agreement, the partners will establish a framework to assess how their respective expertise and industrial assets could contribute to a future end-to-end defence telecommunications space system."
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COMPANIES - FTSE 250
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Hays says the decline in net fees eased at the start of its new financial year, as the recruiter hails "real energy across the group". Net fees declined 5% year-on-year in the first quarter ended September 30. On a like-for-like basis, they fell 3%, Hays says, with the pace of decline slowing from 5% in the final quarter of financial 2026. "Our recently introduced momentum strategy addresses the future hiring needs of our clients, sharpens our focus and captures the benefits associated with market leadership. There is real energy across the group, and I would like to thank our colleagues for their positive engagement and rapid execution," Chief Executive Officer Mark Dearnley says. "In line with our expectations, the decline in group net fees eased to 3% in Q1 driven by good Temp & Contracting
growth in several of our countries. Perm activity remains mixed with sustained strong growth in North America but ongoing fragility in Northern Europe. Our medium term targets can be achieved through our own actions and we were pleased to make continued good progress with our structural cost and productivity initiatives during the quarter." Hays says it is making "good progress exploring strategic options" for its units in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and UAE. "We are in advanced discussions for several of these businesses," Hays adds. "Over the last year, we have reshaped our country portfolio as we focus on building scale in high performing and high potential markets where we have an ability to establish and grow leading positions. Going forward, Hays will focus on 16 core countries." In June, Hays announced it is exploring options relating to these nations. It also sealed the disposal of operations in six European nations in June.
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Seraphim Space Investment Trust has injected a further USD23.1 million into portfolio firm Skylo Technologies. Seraphim says the new backing has been funded using proceeds of a GBP137 million C share issue. Skylo is a connectivity partner to mobile network operators, device manufacturers and chipset providers. Andre Ronsoehr, an investment partner at Seraphim Space Manager LLP, says: "We are pleased to make this further investment in Skylo, a company we first backed in 2023. Since then, non-terrestrial network connectivity has moved rapidly from a specialist capability towards becoming an integral part of the broader communications ecosystem." Seraphim Space Manager is the investment trust's investment manager.
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OTHER COMPANIES
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Equipment rental firm Vp expects an annual performance in line with market forecasts, predicting second half growth. It puts market expectations for the year ending March 31 at GBP351.3 million for revenue and GBP32.5 million for pretax profit before amortisation and impairment of goodwill, trade names, customer relationships and exceptional items. Profit in 2026 amounted to GBP27.0 million, with revenue totalling GBP358.3 million. The second half of the financial year is "expected to outperform" the equivalent period 12 months earlier. "Within our end markets, electricity transmission continues to perform well, rail remains stable and we have seen encouraging momentum in water as AMP8 activity has grown in the second quarter. The group's International segment continues to perform well," Vp says. Asset Management Period 8 is the 5-year regulatory and investment cycle for the UK water and sewerage industry in England and Wales, running from April 2025 to 2030. "Performance in the group's Brandon Hire Station division has improved following last year's restructure, despite continued challenges in the General Construction market. As expected, some exceptional costs relating to the restructure have been recognised in this financial year," Vp says. Chief Executive Alice Woodwark says Vp's UK "momentum" has made it more confident in its second half prospects. It releases results for the half-year ended September 30 on November 25.
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Exploration and development firm Kefi Gold & Copper says it is resuming development at the Tulu Kapi project in Ethiopia, after a security incident last month. The 'Genji incident' resulted in "multiple fatalities involving security personnel and community members, including one company employee", Kefi said in September, prompting it to suspend work at the gold project. It adds on Monday: "The Genji incident on 4 September 2026 was the first occasion when any company personnel had suffered injury, let alone a fatality, in some 12 years of Kefi's control of the project. The incident was fortunately concluded on 10 September 2026, largely as a result of close collaboration with the local community." Since the event, it has held consultations with community representatives and government representatives, along with other stakeholders. "As a result of these positive discussions, the company is now recommencing the development programme for Tulu Kapi in a phased and measured approach," Kefi adds. Kefi shares had slumped 37% on the day it reported the security incident. It has shed another 18% since.
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ActiveOps has left its outlook for the current financial year unchanged, but has warned on the next one, amid a "potential customer loss and lower new business activity". In a trading statement, the provider of decision intelligence software for service operations says revenue in the first half ended September 30 rose 21% to GBP25.3 million from GBP20.8 million a year prior. "While new customer wins and implementations have been lower than in the prior year, the board continues to expect FY27 results to be in line with current market expectations," it says. It puts the market forecast ranges at GBP47.4 million to GBP49.7 million for revenue and GBP5.0 million to GBP6.4 million for adjusted earnings before interest, tax, depreciation and amortisation. However, it expects an outcome for financial 2028 below market expectations. "The company has been notified by a major customer that it does not intend to renew its contract with ActiveOps when it falls due in March 2027. Whilst notification of this non-renewal has only just been received and details are yet to be formally agreed, the board has adopted a prudent approach and removed the associated revenue in full from its FY28 expectations. This reduces previously anticipated FY28 revenue by approximately GBP3.8 million," ActiveOps says. For financial 2028, market forecasts stand at GBP50.0 million to GBP56.4 million for revenue, and GBP6.7 million to GBP9.0 million for adjusted Ebitda. In financial 2026, which ended back in March, ActiveOps reported an adjusted Ebitda of GBP4.3 million and revenue of GBP45.0 million.
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By Eric Cunha, Alliance News news editor
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Related Shares:
Standard LifeActiveopsVpKefi Gold & CopperSeraphim SpaceHaysMetlen Energy