9th Jan 2026 07:53
(Alliance News) - J Sainsbury reports a strong Christmas period as food sales rise, while Herald Investment Trust launches a tender offer conditional on Saba selling all of its shares.
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 0.2% at 10,061.49
GBP: lower at USD1.3425 (USD1.3431 at previous London equities close)
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BROKER RATINGS
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Goldman Sachs raises Antofagasta to 'buy' (neutral) - price target 4,000 (2,480) pence
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Berenberg raises Marks & Spencer to 'buy' (hold) - price target 415 (412) pence
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COMPANIES - FTSE 100
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J Sainsbury reports higher spending over the Christmas period, helped by groceries as general merchandise and clothing sales weaken. The retailer says total retail sales excluding fuel rise 3.3% in the six weeks to January 3, and climb 3.9% in the third quarter in total, the 16 week period to January 3. Like-for-like sales excluding fuel in the third quarter rise 3.4%. Grocery sales in the Christmas period jumped 5.1%, but General Merchandise & Clothing sales fall 1.0% and Argos sales decline 2.2%. For the third quarter, Grocery sales rise 5.4%, General Merchandise & Clothing sales fall 1.1% and Argos sales drop 1.0%. Sainsbury's brand sales overall rise 4.6% in the Christmas period and 4.9% in the third quarter. The firm lifts its Retail cash flow view for the year to more than GBP550 million, from previous guidance of more than GBP500 million. It backs its financial 2026 retail underlying operating profit guidance of over GBP1 billion, and says it still expects to return more than GBP800 million in cash to shareholders this financial year. This includes ordinary dividends, a GBP250 million special dividend and a GBP250 million share buyback. "We have won grocery market share for the sixth consecutive Christmas period, again delivering our winning combination of value, quality, service and availability for customers. When we strengthened our profit guidance in November, we said we planned to invest in the strength of our competitive position through the most important trading period of the year," says Chief Executive Simon Roberts. "More customers switched to Sainsbury's, trusting us for both great value essentials and premium Taste the Difference products in their big Christmas shop and we were the only major grocer to grow items in the basket."
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COMPANIES - FTSE 250
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Herald Investment Trust proposes a tender offer allowing shareholders to sell up to 100% of their shares. The London-based investment trust says if 25% owner Saba Capital Management block the tender offer it will propose a backstop, which will require a lower shareholder approval threshold and could be implemented without Saba's support. "The purpose of the backstop tender offer is to ensure that shareholders have the opportunity to exit close to net asset value, at a time before Saba might gain control of the board or the management of the company," Herald says. The tender offer will be conditional upon shareholder approval at a general meeting. For the tender offer to proceed, at least 75% of votes cast at the meeting will need to be in favour. The tender offer will also be conditional on Saba electing to tender all of their shareholdings in the company. "Saba has currently indicated that they will not support the tender offer. However, the board believes all shareholders should have the opportunity to express their support for the tender offer, which the board sees as the best solution for the company and shareholders as a whole, and the board will endeavour to persuade Saba to support the tender offer before it closes," the firm says. It expects to hold the general meeting in early February.
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Unite Group launches a GBP100 million share buyback programme. The Bristol, England-based owner and manager of student accommodation says further capital allocation will be kept under review as it progresses with its target disposal programme of between GBP300 million and GBP400 million. It enters an agreement with Deutsche Bank and JPMorgan Securities to run the buyback programme. The buyback will conclude by June 30. In a trading update, the firm reiterates its financial 2025 guidance for adjusted earnings per share of between 47.5 pence and 48.3p. It says 64% of beds have been sold for the 2026/27 academic year, slightly behind the prior year at 67%. It says sales progress to date is consistent with target for occupancy between 93% and 96% and rental growth between 2% and 3% for the 2026/27 academic year. "Our conversations with our university partners show continued demand for our high-quality, value-for-money accommodation, notwithstanding a slower start to the 2026/27 sales cycle," says Chief Executive Officer Joe Lister.
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OTHER COMPANIES
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Life Science REIT says its portfolio value at the end of 2025 was GBP332.6 million, a 7.8% decline from the June 30 valuation of GBP360.6 million. Due to further drawdowns from the debt facility, it says the EPRA net tangible assets was 57.7 pence per share, down 13% from 66.3p per share at the end of June. "The fall in value is predominantly due to outward yield shift across the portfolio, which is in line with wider market trends, but particularly impacts certain assets within the portfolio which are experiencing higher ongoing vacancy levels," the firm says. "With reference to specific assets, the most significant decline has been at Cambourne Park Science and Technology Campus. This has been the result of a number of factors including: in particular, ongoing vacancy of the fitted lab units; structural vacancy across the park and uncertainty around a pending lease expiry with one of the larger occupiers," Life Science REIT adds. It will release its results for 2025 in April.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
AntofagastaMarks & SpencerSainsbury'sHerald Investment TrustUniteLife Science