7th Sep 2026 07:59
(Alliance News) - Standard Life reports better than expected half-year profit, while Spire Healthcare puts pen to paper on a private equity buyout.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 0.2% lower at 10,795.49
GBP: higher at USD1.3529 (USD1.3522 at previous London equities close)
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ECONOMICS
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UK house prices suffered an August decline, as the "market remains subdued", Lloyds reports. UK house prices fell 0.4% on-year last month, the first annual decline since November 2023. In July, prices edged up 0.1%. On-month, house prices fell 0.2% in August. They had fallen 0.1% in July from June. "The housing market has faced a more difficult backdrop in recent months, with the impact of global
events on inflation and borrowing costs creating greater economic uncertainty," Lloyds analyst Andrew Asaam comments. "We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices. While affordability remains a challenge, wages continue to grow and employment has held up better than many anticipated. This will help to support demand from those who need or want to move."
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The UK chancellor will unveil a GBP150 million fund for fast-growing northern firms as he sets out plans to grow the economy through an "active" state. John Healey will seek to tell an "optimistic story" about Britain in a major speech on Monday, echoing Prime Minister Andy Burnham's push to strike a more upbeat note than his predecessor. But it comes against a challenging economic backdrop ahead of Healey's first budget on October 28, with a leap in government borrowing costs amid concerns about the inflationary impact of the Iran war threatening his fiscal headroom. The British Business Bank will commit up to GBP150 million to a new fund "to get behind the most innovative and fast-growing firms", the chancellor will say.
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BROKER RATINGS
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JPMorgan starts Bytes Technology with 'underweight' - price target 375 pence
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COMPANIES - FTSE 100
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Standard Life reports stronger than expected half-year profit, and says it is on track to deliver on guidance. The London-based retirement savings provider says its attributable pretax loss in the first half of 2026 widened to GBP272 million from GBP209 million a year prior, though total income surged to GBP21.73 billion from GBP8.60 billion. Hurting its bottom line were GBP473 million worth of "adverse hedging-related economic variances", which it largely puts down to rising equity markets during the half-year. Adjusted operating profit shot up 25% on-year to GBP563 million from GBP451 million, Standard Life says, topping the company-compiled consensus of GBP541 million. Total cash generation climbed 15% to GBP900 million, also beating consensus of GBP804 million. It ups its interim dividend by 2.6% to 28.05 pence from 27.35p. "Standard Life continues to demonstrate exciting momentum against our vision to be the UK's leading retirement savings and income business. Our strong half year results reflect how we are helping more customers achieve better outcomes and we remain on track to deliver our end -2026 financial targets, while our profitable growth and strong cash generation is increasing our financial flexibility," Chief Executive Officer Andy Briggs says. Standard Life says it is on track to achieve its GBP5.1 billion total cash generation target for the 2024 to 2026 stretch. Its adjusted operating profit aim of GBP1.1 billion for 2026 is also on track. The company expects to achieve some GBP500 million of excess cash in 2026. It is the final year it will use excess cash to de-lever. "Excess cash generated post-2026 will be available to be deployed to the highest returning opportunities, in line with our capital allocation framework. We will look to strike the right balance between growth opportunities and shareholder returns," it adds. In April, it announced it struck a GBP2.0 billion deal to acquire Aegon's UK insurance and pensions operations, in a cash and shares deal. Then last month, it said it has formed a partnership to expand its UK pension risk transfer business, backed by an initial capital commitment of up to GBP2 billion over five years. Standard Life will contribute GBP500 million of this, with the remainder coming from a consortium of institutional investors that includes CVC Capital Partners, Prudential Financial, Goldman Sachs, and MS&AD Insurance Group Holdings. The consortium is led by CVC and the US's Prudential Financial. CEO Briggs adds on Monday: "The GBP2 billion acquisition of Aegon UK and our recently announced UK PRT partnership will further strengthen our capabilities and customer offering. Standard Life champions the belief that everyone's journey to and through retirement can be better and we look to the future with confidence."
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COMPANIES - FTSE 250
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Gamma Communications says its half-year profit increased, boosted by "strong growth" in its German offering. The London-based cloud communications and voice services provider says pretax profit in the six months to June 30 rose 15% to GBP50.1 million from GBP43.5 million a year prior. Revenue rose 4.2% to GBP330.0 million from GBP316.6 million, Gamma says. "Group results were underpinned by strong growth in our German businesses and improved momentum in Service Provider, and were delivered despite the continued challenging UK SME macroeconomic backdrop," it adds. Gamma last week Tuesday accepted a takeover offer from Epiris, valuing the firm's share capital at around GBP1.02 billion. "As a result of the announcement of the proposed acquisition of the group, the group does not intend to declare or pay any further dividends prior to the effective date," it adds on Monday. The Times, meanwhile, reported Sunday that a rival is sizing up a Gamma offer of its own. The Times reports that as part of the proposal, private equity firm Waterland would sell a chunk of Gamma to telecommunications services firm Giacom. Giacom would buy two Gamma divisions focused on small and medium-sized enterprises, The Times reports.
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Spire Healthcare has agreed to a more than GBP1 billion private equity takeover bid, and the private healthcare adds that Chief Executive Officer Justin Ash steps down from the position. Tulip UK, a newly-formed firm owned by funds managed or advised by Toscafund Asset Management, THCP Advisory and Ares Management, will pay 250p in cash per Spire share. It is a 66% premium to Spire's undisturbed share price of 150.4p on May 13, the day before Toscafund made a non-binding proposal at the same 250p price. The sum values Spire's ordinary share capital at GBP1.03 billion. It gives the firm an enterprise value of GBP2.31 billion. "Funds managed or advised by Toscafund have been investors in Spire since 2021 and Toscafund has long been supportive of Spire. Toscafund highly regards Spire's culture and commitment to delivering high quality care. Toscafund has a detailed understanding of Spire's business model and of the UK healthcare sector, supported by its previous ownership of a private hospital peer of comparable size to Spire," a statement says. "In that context, the Bidco board considers that the underlying quality, freehold property and well-invested asset base of the Spire group are not fully reflected in its public market valuation. The Bidco board believes that taking the Spire group private pursuant to the acquisition would provide strategic and financial flexibility to unlock long-term stakeholder value." The offer has acceptances of just over 53% of Spire shares. Spire says that Ash will retire from his role as CEO, with the "process of identifying a successor" ongoing. Vice Chair David Sloman becomes interim CEO. Ian Cheshire will leave the role of chair, to be succeeded on an interim basis by Debbie White. The changes are with effect Monday.
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OTHER COMPANIES
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SigmaRoc announces a deal to acquire a Lithuanian dolomite business for EUR110 million, plus a further EUR8 million for some non-core assets. The lime and minerals firm says the buy of Akcine Bendrove, or Dolomitas, "serves to develop our presence in the Baltics". "SigmaRoc already has quarrying and distribution operations in Lithuania, Latvia and Estonia which will benefit from the additional scale and products that Dolomitas provides. Dolomitas will operate within the group as an integrated business unit within SigmaRoc's Baltics platform," it adds. It will pay EUR90 million in cash, with EUR20 million of the acquisition consideration being paid in the form of SigmaRoc shares. "The additional EUR8 million of cash consideration is being paid for non-core assets, including an industrial section of land near the port of Klaipeda, which SigmaRoc may look to develop for importing or exporting aggregates and other processing activities," SigmaRoc adds. The deal is expected to be completed in the fourth quarter of the year and be "earnings enhancing for 2027". Separately, SigmaRoc announces that pretax profit grew 14% in the first half of 2026, to GBP44.9 million from GBP39.5 million a year prior, while revenue rose 2.5% to GBP523.1 million from GBP510.3 million. The firm left its outlook for 2026 unchanged.
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Ferrexpo says it has restarted production at its operations in war-hit Ukraine. It suspended production of iron ore products from its mining and pelletising operations in Ukraine last month amid "the ongoing threat of attacks in and around Ukrainian ports". "Given the well documented attacks currently taking place on ports and vessels in the Black Sea, the company intends to focus on exports to customers in Europe," it adds. On Friday, the firm said it raised USD100 million from the sale of new shares. Following Ferrexpo's announcement, its shares are starting to trade again in London.
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By Eric Cunha, Alliance News news editor
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Bytes TechSpire HealthcareStandard LifeGamma CommunicationsSigmaroc.Ferrexpo