22nd Aug 2025 07:51
(Alliance News) - The FTSE 100 is set to open slightly higher on Friday, while in Germany the economy has declined by more than expected in the latest quarter.
Meanwhile, Revolution Beauty has reported a swing to loss following decreased sales, proposed a fundraise worth over GBP15 million, and announced the return of a co-founder as its new chief executive.
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 1.1 points at 9,310.30
GBP: lower at USD1.3397 (USD1.3426 at previous London equities close)
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ECONOMICS
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Germany's economy shrank by more than initially expected in the second quarter of the year, data published by the Federal Statistical Office shows. Gross domestic product declined by 0.3% quarter-on-quarter in the three months to June 30, more than the fall of 0.1% that had been estimated in the preliminary data released in late July. In the first quarter, GDP had grown 0.3% from the fourth quarter of 2024. On-year, economic growth was 0.2% on a price and calendar-adjusted basis, short of the preliminary estimate of 0.4% growth. In the first quarter, GDP had increased 0.3% annually. Separately, the statistical office says the general German government deficit was reduced by 40% to EUR28.9 billion in the first half of 2025, according to provisional data, from EUR48.3 billion a year prior. The office attributes this to social contributions and tax revenues rising faster than public expenditure.
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BROKER RATINGS
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Peel Hunt cuts WH Smith to 'hold' (add) - price target 755 (1,400) pence
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Panmure Liberum raises Balfour Beatty to 'buy' (hold) - price target 650 (500) pence
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COMPANIES - FTSE 250
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Tritax Big Box REIT confirms that it will not increase its cash and share takeover offer for Warehouse REIT. "While the board of BBOX continues to believe that a combination of BBOX and Warehouse represents a compelling proposition for both sets of shareholders it does not believe that increasing the financial terms would be in the interests of BBOX shareholders," Tritax says. The firm adds that it remains "highly disciplined on capital allocation". When a takeover deal between the companies was announced in late June, it valued Warehouse REIT at GBP485.2 million or 114.2p per share, with Tritax to pay 47.2p in cash, plus 0.4236 of one of its own shares, for each share in Warehouse REIT. In July, however, Warehouse switched its recommendation to favour a higher offer of 115.00p per share, or GBP489 million, from private equity firm Blackstone. The value of Tritax's offer had further declined to 111.1p per Warehouse share at the time. However, as of Friday Blackstone says it has only received valid acceptances of its offer in respect of 1.1 million Warehouse shares, representing around 0.26% of the latter's existing issued share capital.
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OTHER COMPANIES
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Resolute Mining for the first half of 2025 reports a pretax profit of USD124.1 million, up from USD53.4 million the year before. Revenue increases 31% to USD447.5 million from USD341.5 million. However, gold poured came to 151,460 ounces, down from 167,140 ounces. Gold sales decrease to 145,120 ounces at an average realised price of USD3,076 per ounce, from 157,321 ounces at USD2,170 per ounce. Earnings before interest, tax, depreciation, and amortisation surge 81% to USD211.1 million from USD116.4 million. Resolute maintains its full-year production and cost guidance at 275,000 to 300,000 ounces and USD1,650 to USD1,750 per ounce, respectively. "Resolute has had a very positive first half of the year," says CEO Chris Eger.
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Revolution Beauty announces a placing of up to 345.1 million shares and a subscription of up to 154.9 million shares, at 3.00p each, to raise gross proceeds of approximately GBP15.0 million. It also proposes a retail offer to raise up to approximately GBP1.5 million by issuing up to 50.0 million shares at the issue price. Revolution Beauty also reports its results for the year ended February 28, with a pretax loss of GBP16.8 million against the prior year's GBP11.4 million profit. Revenue falls 26% to GBP142.6 million from GBP191.3 million, although Revolution says this follows the planned rationalisation of its product and brand portfolio. Says first-quarter net sales have fallen 29% on-year, although annual decline rates have improved in June and July. Also, it details actions it has taken to address the revenue declines, such as resurrecting profitable stock-keeping units that were previously discontinued. Moreover, Revolution announces that Co-Founder Tom Allsworth is set to return as CEO, in connection with the GBP15.0 million equity fundraise. His appointment should take effect "in the coming days", at which point Interim CEO Colin Henry will step down with immediate effect.
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By Emma Curzon, Alliance News reporter
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Related Shares:
Wh SmithBalfour BeattyResolute MiningTritax Big BoxWarehouse ReitRevolution Beauty