27th Jan 2026 07:59
(Alliance News) - The UK pub sector awaits a GBP100 million support package from the Treasury aimed at easing cost pressures, the Financial Times reports, while Sage posts 10% quarterly revenue growth and Dr Martens reports a dip in third-quarter revenue.
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 10,187.15
GBP: lower at USD1.3686 (USD1.3704 at previous London equities close)
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ECONOMICS
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The UK Treasury is preparing to unveil a support package for pubs worth around GBP100 million per year, the Financial Times reports, as Chancellor Rachel Reeves faces mounting pressure to ease cost burdens that threaten widespread closures. The move follows criticism that changes to business rates announced in the autumn budget have sharply increased costs for pub operators. The relief, expected to be announced as early as Tuesday, will be targeted specifically at pubs, rather than the broader hospitality sector. The package is not expected to include a VAT cut on alcohol, the FT says
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The UK government unveils a sweeping overhaul of the leasehold system, including a plan to cap ground rents at GBP250 per year for leaseholders in England and Wales. Prime Minister Keir Starmer announces the move in a TikTok video, saying the reforms could save households "hundreds of pounds".
The draft Leasehold & Commonhold reform bill, set to be introduced on Tuesday, will also ban new leasehold flats and give existing leaseholders the right to convert to commonhold ownership.
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BROKER RATINGS
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Barclays raises Burberry to 'overweight' - price target 1,450 pence
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Citigroup starts AstraZeneca with 'buy' - price target 1,700 pence
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Citigroup starts GSK with 'neutral' - price target 1,900 pence
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Cantor cuts Computacenter to 'neutral' (overweight) - price target 3,500 (3,000) pence
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COMPANIES - FTSE 100
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Sage reports a "strong" first quarter as revenue rises across all regions. The accounting and payroll software provider says total revenue grows 10% to GBP674 million, up from GBP610 million a year prior. North America revenue rises 13% to GBP304 million from GBP268 million, driven by demand for Sage Intacct and continued growth in Sage 200 and Sage 50. UKIA revenue increases 10% to GBP194 million from GBP177 million. Europe revenue climbs 7% to GBP176 million from GBP165 million. Sage Business Cloud revenue advances 15% to GBP574 million, compared with GBP500 million a year earlier. Cloud-native revenue grows 24% to GBP253 million from GBP205 million. Recurring revenue also rises 10% to GBP655 million, up from GBP593 million, while software subscription revenue increases 12% to GBP568 million from GBP507 million. Subscription penetration reaches 84%, up from 83%. Chief Financial Officer Jacqui Cartin says Sage "delivered a strong start to FY26", with Q1 organic revenue growth accelerating to 10% as the group continues to invest in AI-driven innovation. "We reiterate our full-year guidance, as set out in our FY25 results announcement, and remain focused on driving efficient, sustainable growth and long-term value for all stakeholders," Cartin adds.
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COMPANIES - FTSE 250
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Dr Martens reports mixed third-quarter trading as promotions weigh on direct-to-consumer sales, but wholesale and the Americas deliver growth. The bootmaker says revenue for the 13 weeks ended December 28 falls 3.1% to GBP251 million, or 2.7% lower at constant currency, compared with the same period a year earlier. Year-to-date revenue stands at GBP573 million, down 1.8% reported and 0.7% at constant currency. By channel, Q3 wholesale revenue rises 9.5% at constant currency, while direct-to-consumer declines 6.5%. Regionally, EMEA revenue drops 6.0% at constant currency, Americas grows 2.2%, and APAC declines 2.7%. The company says it continues to focus on "improving the quality of revenue", with full-price direct-to-consumer sales up 2% year-to-date. Wholesale growth is "broad-based across all three regions", while ecommerce remains flat as clearance activity is scaled back "and returned to a normal promotional calendar, as previously guided". Dr Martens expects full-year revenue to be broadly flat at constant currency and says it is "comfortable" with market expectations for FY26 pretax profit, which it expects to show "significant" year-on-year growth.
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Cranswick expects full-year profit at the top end of guidance after "record" Christmas trading. The company reports "continued positive momentum" in the 13 weeks to December 27, with all product categories ahead of last year. December sales rise year-on-year, driven by record festive demand across Fresh Pork, Convenience and Gourmet ranges. Premium added-value products perform "particularly well". The food producer now expects FY26 adjusted pretax profit to be at the upper end of the GBP211.3 million to GBP216.0 million consensus range. Recent acquisitions – Blakemans, JSR Genetics and the Fridaythorpe feed mill – outperform initial expectations, Cranswick says. Poultry revenue is "significantly ahead" of last year, helped by higher fresh poultry prices, while Pet Products grows through its expanded partnership with Pets at Home Group. Cranswick now expects FY26 capital expenditure of GBP160 million to GBP170 million, below prior guidance. Net debt increases in the quarter but the group says it remains with GBP360 million of committed facilities. Chief Executive Officer Adam Couch says: "This excellent performance is the result of our unrelenting focus on delivering outstanding service levels, sector leading innovation and unrivalled product quality across our festive product range for our customers."
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Mitie reports with revenue growth accelerating in the third quarter and continued confidence in hitting its medium-term targets. The engineering, security, cleaning and hygiene services provider says revenue for the three months to December 31 rises 10% to GBP1.45 billion from GBP1.31 billion a year earlier, marking a sixth consecutive period of double-digit growth and confirming it is "significantly outpacing" the UK facilities-management market. The group expects double-digit growth to continue into Q4, traditionally its strongest period due to winter services and increased public-sector project work. Mitie says its pipeline and order book are at record levels, driven by long-term structural demand and investments in sales, marketing and AI. Contract wins and renewals total GBP4.7 billion year-to-date, while its bidding pipeline rises 28% to GBP30.4 billion. The company also cites increased projects work in the public sector and continued momentum across its divisions, including ongoing integration of Marlowe, which is delivering early synergies and cross-selling opportunities. Mitie has repurchased GBP43 million of shares so far under its GBP100 million buyback launched in October. The group reiterates confidence in meeting FY25–FY27 strategic plan targets, and remains on track to deliver FY26 revenue of around GBP5.7 billion, operating profit above GBP260 million, and free cash flow of at least GBP120 million.
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OTHER COMPANIES
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Costain wins GBP100 million contract to design and build a new M5 motorway junction serving a major gigafactory project. The construction and engineering firm says it has been awarded a five-year deal under the Regional Delivery Partnership framework to deliver junction 22A on the M5 in Somerset. The new junction will provide access to the Gravity Smart Campus and Agratas's planned GBP4 billion electric vehicle battery gigafactory, expected to be Britain's largest. As delivery integration partner and main works contractor, Costain will manage design, engineering, programme delivery and supply chain coordination. Chief Executive Officer Alex Vaughan says the project "builds on [Costain's] long-established highways expertise".
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London-based outsourcing firm Capita says it wins a three-year extension to its BBC TV Licensing contract, with the renewed term set to begin in July 2027. The outsourcing group will continue administering TV Licensing across the UK, focusing on operational efficiencies..Capita says the extension reflects the "strength of the relationship" and its consistent delivery, noting that the programme continues to achieve high customer satisfaction and meets all key service metrics. Chief Executive Officer Adolfo Hernandez says the renewal "is a testament to the strength of our relationship, our operational expertise, and our commitment to continuous improvement".
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By Eva Castanedo, Alliance News reporter
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ComputacenterBurberryAstrazenecaGlaxosmithklineSage GroupDr. MartensCostain GroupCranswickPets at homeMitieCapita