30th Oct 2025 07:51
(Alliance News) - Shell launches new USD3.5 billion buyback, WPP cuts its outlook while Permanent TSB puts itself up for sale.
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 0.2% at 9,734.84
GBP: lower at USD1.3209 (USD1.3236 at previous London equities close)
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BROKER RATINGS
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Goldman Sachs raises GSK price target to 1,700 (1,580) pence - 'neutral'
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JPMorgan raises Next price target to 13,030 (11,700) pence - 'neutral'
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COMPANIES - FTSE 100
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Shell says it has completed the USD3.5 billion share buyback announced in the second quarter and says it is starting a new USD3.5 billion programme to finish by the fourth quarter results announcement. The London-based oil and gas major declares a dividend per share of 35.80 US cents in its third quarter results, unchanged from the second quarter. Income attributable to shareholders rises to USD5.32 billion in the quarter to the end of September from USD4.29 billion a year ago. Shell says adjusted earnings fell to USD5.43 billion in the third quarter from USD6.03 billion a year prior. Revenue falls to USD68.15 billion from USD71.09 billion a year ago. Shell says higher attributable income in the quarter reflects higher trading and optimisation margins, higher sales volumes and favourable tax movements, partly offset by higher operating expenses.
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WPP says its performance in the year-to-date is at the low-end of expectations. The London-based advertising agency says revenue in the third quarter fell 8.4% to GBP3.26 billion, and was down 3.5% on a like-for-like basis. Revenue in the year-to-date is 8.0% lower at GBP9.92 billion, or down 2.8% on a like-for-like basis. Based on trading in the year-to-date, the firm expects 2025 like-for-like growth in revenue less pass-through costs of between negative 5.5% and negative 6.0%, with a headline operating profit margin of around 13%. In the year-to-date, like-for-like revenue less pass-through costs is down 4.8%. "My ambition is for WPP to lead our industry in terms of innovation, client delivery and organic growth. However, I acknowledge that our recent performance is unacceptable and we are taking action to address this," says Chief Executive Officer Cindy Rose. "To deliver performance improvements, we will position our offering to be much simpler, more integrated, powered by data and AI, efficiently priced and designed to deliver growth and business outcomes for our clients."
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Vodafone enters a binding agreement to buy Skaylink, primarily from funds management by Waterland, for a total consideration of EUR175 million. Skaylink is a "leading full-service cloud, digital transformation and security specialist", Vodafone says. "The transaction is part of Vodafone Business' ambition to accelerate growth in key areas such as security, managed services and cloud," the firm adds. It expects the transaction to complete by the end of March 2026.
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COMPANIES - FTSE 250
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Computacenter continues to expect its full-year adjusted operating profit in 2025 to be ahead of the prior year. The technology services provider says its performance in the nine months to date is "comfortably ahead" of last year. "We maintained strong momentum in North America driven by continued volume growth with both enterprise and hyperscale customers, while the UK delivered further improvement," says Computacenter. It notes that Germany returned to growth during the period, with indications towards the end of September of the expected recovery in public sector activity in the fourth quarter. As expected, Computacenter says trading in France "remained challenging" due to political and economic uncertainty. The firm notes that the fourth quarter is its largest of the year and it remains mindful of the "ongoing uncertain geopolitical and macroeconomic backdrop". "While we also face a tough comparative following a strong finish to 2024, we are encouraged both by our progress year to date and our committed product order backlog, which remains healthy in all geographies," it says. The current backlog is ahead of the position a year ago and at the end of the first half. Therefore, it continues to expect full-year adjusted operating profit in 2025 to be ahead of the prior year. "Looking further ahead, the combination of the strength of our integrated Technology Sourcing and Services model and our geographic diversity, gives us continued confidence in our long-term growth prospects," Computacenter says.
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Spectris says reported sales in the third quarter to the end of September were 11% higher at GBP335.6 million from GBP302.7 million a year ago. The London-based provider of high-tech instruments, test equipment and software says sales were 4% higher on a like-for-like basis. By division, Spectris Scientific sales were 12% higher on a reported basis, and up 5% on a like-for-like basis, while Dynamics sales rose 10%, and 4% higher on a like-for-like basis. The company continues to expect full year adjusted operating profit to be in line with expectations. It adds that its acquisition by New York-based private equity firm Kohlberg Kravis Roberts & Co is "in an advanced stage of preparation for completion".
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OTHER COMPANIES
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Permanent TSB says it is commencing a formal sales process. The Dublin-based financial services provider says it has seen a "significant increase" in appetite for its shares from international investors, against a backdrop of increased consolidation activity in the European banking sector. The firm says its board and its largest shareholder, the Irish government, believes finding a new owner is in its best interests. "PTSB is an important part of the retail banking market and wider Irish economy, and its continued sustainable growth is critical to ensuring competition in the market and providing choice to consumers," the company says. Chair Julie O'Neill adds: "If successful, this FSP would result in the exit of the state's last remaining shareholding in the Irish banking sector and, most importantly, return capital to the state and taxpayers." In a third quarter trading update, Permanent TSB says total operating income was down 4% in the nine months to September compared to a year ago. The net interest margin was 2.01%. Permanent TSB says total operating expenses were marginally lower on-year and notes that it is on track to reduce costs to its 2025 target of EUR525 million. The bank leaves its 2025 guidance unchanged and reaffirms its 2027 return on tangible equity target of 9%, with a new medium-term target of 11% for 2028. "Our guidance for 2025 remains unchanged, as does our intention to restart dividend payments to our shareholders next year, subject to financial position and required regulatory and other approvals," says CEO Eamonn Crowley.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
GlaxosmithklineNextShellWPPVodafoneComputacenterSpectrisPerm Tsb Grp