1st Oct 2026 07:50
(Alliance News) - SSE has backed its annual profit guide and reports an increase in renewables output, while Land Securities has announced the buy of the Metrocentre shopping mall, and plans a placing to go towards funding the deal.
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 0.9% at 10,509.30
GBP: lower at USD1.3255 (USD1.3276 at previous London equities close)
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ECONOMICS
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UK annual house price growth halved last month, according to numbers from mortgage lender Nationwide, while there was a monthly decline again. House prices rose 0.8% on-year in September, cooling markedly from a 1.6% hike in August. It was the weakest rate of growth since December 2025. "Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns. This in turn has led to mounting financial market expectations of bank rate increases, which has maintained upward pressure on the market interest rates which underpin mortgage pricing," Nationwide Chief Economist Robert Gardner comments. Bank rate, the Bank of England's benchmark interest rate, was maintained at 3.75% last month. UK house prices fell 0.2% in September from August, the fourth monthly decline in five months. In August, prices rose 0.2% from July. House prices had registered monthly falls in each of May, June and July ahead of the August bump.
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BROKER RATINGS
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Bank of America cuts Babcock International to 'neutral' - price target 1,060 pence
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COMPANIES - FTSE 100
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SSE says it is on track to meet annual earnings guidance as the electricity generator hails continued "strong delivery" in its network. For the half-year ended September, SSE says renewables output is up around 20% year-on-year due to "more favourable weather conditions". "Delivery at Dogger Bank offshore wind farm continues to progress well, and in line with expectations, with turbine installation on Dogger Bank B beyond the half-way point," SSE adds. For the half year, it sees adjusted earnings per share between 64 pence and 68p. It is an outcome that reflects a "lower level of seasonality compared to prior years given an increasing proportion of earnings being generated from regulated networks". It is on track for an adjusted EPS between 168 and 193p for the full year, and between 225 and 250p for financial 2030. "Capital investment for the group is expected to be around GBP2.5 billion for the half-year, with adjusted net debt and hybrid capital expected to be around GBP11.5 billion," it adds. SSE will release half-year earnings on November 18.
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Land Securities has announced a GBP516 million deal to acquire the Metrocentre in Gateshead, partially funded by a bumper equity raise. The property investor is acquiring the shopping centre from Tynehawk Holdings (Jersey) Ltd. "Metrocentre is a top-10 shopping centre destination in the UK based on sales and attracts over 16 million visitors per annum. It is a high-quality, well-invested retail & leisure destination," Landsec says. "The acquisition is in-line with Landsec's strategy to invest a further GBP1 billion in major retail assets and further expands Landsec's market-leading platform. Following completion of the acquisition, Landsec will own 3 of the top 10 and 8 of the UK's top 30 shopping centres." Landsec proposes to raise roughly GBP500 million from an equity issue, with a price per share to be determined at the close of a bookbuild. Alongside the placing, there is a separate retail offer, it adds.
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COMPANIES - FTSE 250
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Inchcape has agreed to acquire a Volvo business in Peru and Costa Rica, and a Jaguar Land Rover business in Peru. The bolt-on buys, the car dealer says, have been acquired from Automotores Gildemeister. "Upon completion, the bolt-on acquisitions will expand the range of mobility solutions Inchcape offers customers in these markets, including enhancing its new energy vehicle range, while creating value for OEM partners through deep local insights and a proven ability to deliver sustainable growth," Inchcape adds. "Both markets offer ongoing growth opportunities and support Inchcape's continued expansion in the region, with Peru reaching a record total industry volume of 187,000 in 2025 and Costa Rica achieving just under 69,000 units." The transactions are expected to be completed in the first quarter of 2027.
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OTHER COMPANIES
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Imperial Leather and Carex maker PZ Cussons says annual expectations are unchanged. In a short statement ahead of its annual general meeting on Thursday, the consumer goods firm says like-for-like revenue growth in its first quarter was 4.5%. Expectations for operating profit for the full year ending May are unchanged, it adds. It had previously predicted adjusted operating profit in line with market expectations, which it put at a range of GBP58.0 million to GBP61.2 million.
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Filtronic reports it has won a USD68.1 million follow-on order from SpaceX. It is for the supply of its Cerus E-band gallium nitride solid state power amplifier, the manufacturer of radio frequency solutions says. It represents its largest order received from SpaceX to date. "The new order is expected to be materially fulfilled during FY2028, underpinning the board's expectations for FY2028, providing stronger visibility over future revenues," Filtronic adds.
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E.ON's buy of Ovo Energy has been cleared by the UK's competition watchdog. The Competition & Markets Authority will not refer the deal "to a phase 2 investigation". In May, the Essen, Germany-based energy firm said it had agreed the deal, which would add around 4 million customers in the UK, in addition to the 5.6 million customers it already supplies. The terms were undisclosed. E.ON adds on Thursday: "E.ON will now move to close the transaction. Until completion, E.ON and OVO continue to operate as fully independent businesses and there is no change for customers of either company."
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By Eric Cunha, Alliance News news editor
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BabcockSSELand SecuritiesInchcapePz CussonsFiltronic