7th Jan 2026 07:55
(Alliance News) - Reckitt Benckiser proposes a GBP1.6 billion special dividend, Great Portland Estates buys a long-term central London lease and Topps Tiles reports higher sales.
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 0.3% at 10,096.53
GBP: lower at USD1.3493 (USD1.3500 at previous London equities close)
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BROKER RATINGS
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Barclays cuts Hikma Pharmaceuticals to 'underweight' (equal weight) - price target 1,600 (2,100) pence
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Berenberg raises Vodafone to 'buy' (hold) - price target 119 (82) pence
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Morgan Stanley raises RS Group to 'overweight' (equal weight) - price target 790 pence
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COMPANIES - FTSE 100
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Reckitt Benckiser confirms it intends to return around GBP1.6 billion to shareholders through a special dividend of 235 pence per share following the completion of the sale of the Essential Home business to Advent International. Reckitt proposes to pay the special dividend on January 30 in pounds sterling, with an equivalent amount in US dollars paid to American depositary receipts holders. The Slough, England-based consumer health and hygiene products company proposes a consolidation of its share capital on the basis of 24 new shares for every 25. This would reduce the number of existing shares in issue by around the same proportion of market capitalisation returned via the special dividend. Therefore, it expects that the market price of each share should remain at a broadly similar level following the special dividend and share consolidation. Reckitt will hold a general meeting on January 27 to approve the move.
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COMPANIES - FTSE 250
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Great Portland Estates buys a 155-year-long leasehold interest in 10 South Crescent, WC1 in London for GBP51 million from the City of London Corporation. The London-based commercial real estate developer and landlord says the purchase price reflects a net yield of 6.8% and a projected running yield of 7.1% once the vacant retail unit is let. It adds that the 72,605-square-foot building will be repositioned to create a "best-in-class, decarbonised HQ office and retail building". Currently the offices are single-let for a further four years at a "highly reversionary rent" of GBP67 per square foot, with recent nearby lettings achieving more than GBP125 per square foot. "10 South Crescent is a valuable addition to our central London portfolio and further demonstrates our ability to find value in our core West End markets," says GPE Investment Manager Harry Buxton. "Since our 2024 rights issue, we have now acquired six West End repositioning opportunities with an estimated capital commitment of circa GBP440 million and at a combined discount to replacement cost of some 60%."
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OTHER COMPANIES
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Topps Tiles says its revenue growth outperformed the market in the first quarter of the 2026 financial year. The Leicester-based tile retailer says revenue rises 3.7% on-year in the first quarter, excluding CTD. Revenue in the Topps Tiles brand delivers a "robust performance" and rises 2.0% on a like-for-like basis, the firm says. Including CTD, group sales rise 1.6%, as it notes that the CTD operation is now smaller than it was in the prior year, trading from 22 stores versus 31. The remaining CTD stores deliver consistent like-for-like growth of 4.7% in the period. "The group continued to deliver growth in Q1 across each of our existing businesses and delivered like-for-like growth in CTD stores, whilst achieving some significant milestones, including appointing an interim and permanent CFO, closing the CMA process with CTD and acquiring Fired Earth assets," says Chief Executive Officer Alex Jensen. "We are confident of delivering another year of progress both strategically and financially."
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Literacy Capital sells portfolio company Wifinity to Arcus Infrastructure Partners. The London-based investment trust says Wifinity is a UK-based internet managed service provider. At the end of September, it was one of the fund's ten largest holdings, worth 5.0% of net asset value at the end of the third quarter. Under the transaction, Literacy Capital says it will receive GBP15.0 million in cash at completion, with a further GBP400,000 expected around the end of 2026 subject to a specific milestone. "The sale of Wifinity marks a significant milestone, both for Wifinity and Literacy Capital, with the business having been a longstanding and successful holding for the fund," says Richard Pindar, chief executive officer of Literacy Capital's investment manager. "This transaction represents another notable realisation event for BOOK. Again, the counterparty or buyer is a substantial institutional investor, demonstrating the marked enhancement of Wifinity's attractiveness to larger investors since Literacy Capital's original investment eight years ago."
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By Michael Hennessey, Alliance News reporter
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Related Shares:
Hikma PharmaceuticalsVodafoneReckittGPETopps TilesLiteracy Cap