17th Oct 2025 07:51
(Alliance News) - Pearson reaffirms its 2025 outlook as sales accelerated and Smiths Group agrees to sell its Interconnect division for GBP1.3 billion to Molex. Man Group reports higher assets under management at the end of the third quarter.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 1.2% lower at 9,324.59
GBP: higher at USD1.3463 (USD1.3429 at previous London equities close)
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BROKER RATINGS
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JPMorgan raises Whitbread price target to 2,900 (2,800) pence - 'neutral'
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COMPANIES - FTSE 100
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Pearson reports underlying group sales were up 4% year-on-year in the third quarter of 2025, bringing growth for the first nine months of 2025 to 2%. The educational publisher says it remains on track to deliver on 2025 market expectations, with stronger sales growth expected in the fourth quarter. Assessment & Qualifications sales rose 4% in in the third quarter and 2% for the nine months, while Virtual Learning sales increased 17% in the third quarter and 4% over nine months. Higher Education sales were down 1% in the third quarter but up 2% year-to-date, and English Language Learning returned to growth with third quarter sales up 1%. Enterprise Learning & Skills sales rose 2% in the third quarter and 3% for the nine months. Pearson cites progress on its strategic priorities, including new partnerships with Cognizant, Deloitte and Salesforce, and expansion of its AI-powered learning tools. Chief Executive Omar Abbosh says: "Pearson delivered another quarter of good progress, with accelerated sales growth in [the third quarter], and robust performance across our businesses. With clear drivers for strong future growth, we are well positioned for the opportunities that lie ahead."
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Smiths Group agrees to sell its Smiths Interconnect division to Molex Electronic Technologies Holdings, part of Wichita, Kansas-based Koch, at an enterprise value of GBP1.3 billion. Completion is expected in the second half of financial 2026. The engineering group says the sale marks a "notable step forward" in its strategy to become a more focused industrial engineering company and to enhance shareholder returns. It adds that an ongoing GBP500 million share buyback is on track to complete by the end of 2025. The engineering company operating in the energy, industrial, security and aerospace sectors continues to progress both the sale and demerger processes for Smiths Detection. Chief Executive Roland Carter says: "This is an important step as we deliver on our commitment to focus Smiths and unlock the inherent value in our business. Today's announcement, and our recent results, show we are delivering on our strategy with pace and purpose." The Interconnect division provides items such as cabling products and connectors.
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An HIV prevention injection developed by ViiV Healthcare, majority-owned by GSK with Pfizer as a minority shareholder, is set to be approved for use in England and Wales. The long-acting cabotegravir, marketed as CAB-LA, is administered every two months and offers an alternative to daily oral PrEP pills. The National Institute for Health & Care Excellence has issued draft guidance recommending the treatment for adults and young people unable to take oral PrEP, with rollout expected later this year. UK Health Secretary Wes Streeting called the approval "game-changing", saying that for vulnerable people unable to take other methods of HIV prevention, "this represents hope."
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COMPANIES - FTSE 250
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Man Group reports assets under management of USD213.9 billion at September 30, up from USD193.3 billion at June 30, driven by USD9.7 billion in positive net flows, a USD10.0 billion boost from investment performance and USD900 million from other movements. The investment manager in public and private markets said the figure excludes assets related to its acquisition of Bardin Hill, which completed on October 1. Systematic long-only strategies saw strong momentum, with assets rising to USD72.7 billion from USD61.3 billion, while discretionary long-only assets grew to USD43.9 billion from USD38.1 billion.
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OTHER COMPANIES
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Sheffield-based building materials firm SIG reports like-for-like revenue was flat year-on-year in the third quarter of 2025, with growth of 1% over the first nine months. The company says subdued demand has persisted across the sector, with no material signs of recovery, though it continues to perform well relative to market conditions. "Pricing pressure has continued to more than offset modest inflation on input costs, leading to a net 1% reduction in pricing in the period, consistent with the level experienced in H1," SIG says. UK Interiors delivered 5% growth in the third quarter, driving overall UK like-for-like growth of 1%, while European sales were down 2%. SIG says its outlook for full-year underlying operating profit remains unchanged and in line with market expectations. The company adds that operational and cost-efficiency initiatives continue to support performance. Chief Executive Officer Pim Vervaat says he is "pleased to see the robust trading performance in continued difficult market circumstances" and remains confident the group is well positioned to benefit when demand recovers.
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By Eva Castanedo, Alliance News reporter
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PearsonWhitbreadSmiths GroupManSIGGlaxosmithkline