18th Aug 2025 07:42
(Alliance News) - The FTSE 100 was called higher on Monday, while constituent Land Securities celebrated "significant early progress" on its strategy after agreeing a GBP245 million disposal.
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 9152.70
GBP: lower at USD1.3547 (USD1.3566 at previous London equities close)
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ECONOMICS
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UK house sellers are lowering asking prices to tempt buyers, resulting in the most active July for agreed sales since the post-lockdown market in 2020, according to property listings site Rightmove. The average new seller asking price dropped by 1.3%, or GBP4,969, in August to GBP368,740. The monthly fall is in line with the 10-year average for August, returning to seasonal trends after larger-than-usual declines in June and July. Over the summer, average asking prices have fallen by GBP10,777 as sellers price more competitively to stand out in a high-supply market. The number of sales agreed in July was 8% higher than a year earlier, while the supply of homes for sale was 10% greater. The increased choice for buyers has kept annual price growth muted at 0.3%, Rightmove said. Around 34% of properties currently on the market have been reduced in price, the second-highest August proportion since 2012.
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UK manufacturing companies have been lagging behind international competitors over the last two decades, falling down global automation tables, according to a report. The report by Make UK and Sage said nearly half of UK manufacturers identify a lack of technical skills as the biggest hurdle to improving their use of innovative advanced technologies. Use of robotics and artificial intelligence systems was poor, with training of people in relevant digital skills well below what is needed to catch up, it was warned.
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BROKER RATINGS
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RBC starts Babcock International with 'outperform' - price target 1,200 pence
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RBC cuts Close Brothers to 'sector perform' (outperform) - price target 525 pence
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Goldman Sachs raises Flutter price target to 25,300 (23,750) pence - 'buy'
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COMPANIES - FTSE 100
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Land Securities Group said it has exchanged contracts for the unconditional sale of its Queen Anne's Mansions office block to Arora Group for a total cash consideration of GBP245 million. It said the deal marks "significant early progress" on its goal of releasing GBP2 billion in capital from offices by 2030, as the company works to focus its portfolio on assets which can deliver long-term sustainable income and earnings per share growth. The sale was "achieved much earlier than planned", and "will impact EPRA earnings for FY26 by GBP7 million and for FY27 by GBP15 million, as a broadly equivalent sum will now be received upfront in cash as part of the sale proceeds," Land Securities said. It expects the sale to complete in early December.
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COMPANIES - FTSE 250
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Plus500 announced the start of a new share buyback programme worth up to USD90.0 million in total. This will commence on Monday once the existing USD110.0 million buyback programme is complete. It forms part of the shareholder returns worth USD165.0 million which Plus500 announced in its half-year results last week. "Today's announcement is consistent with Plus500's disciplined capital allocation framework and reflects the group's robust financial position, cash generative business model and the board's ongoing confidence in the group's ability to deliver strong shareholder returns over the medium-term," the company said. "This confidence is reinforced by the substantial operational and financial momentum achieved in recent years, including during H1 2025."
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HICL Infrastructure, in an interim trading update, said it remains on track to deliver its covered target dividend of 8.35p per share for the year ending March 31. It also reaffirmed its target of an 8.50p dividend for financial 2027. The firm said its portfolio has delivered a solid operational performance, with yield investments continuing to underpin cash generation, in line with expectations. "Growth assets progressed capital expenditure in accordance with their business plans, supporting both earnings and longer-term cashflows," HICL said. Additionally, it announced its agreement to sell 50% of its investments in Southmead Hospital and Pinderfields and Pontefract Hospitals, and its entire equity interest in four UK NHS Local Improvement Finance Trust [LIFT] projects and Edinburgh Schools, to Dutch pension provider APG for GBP225 million in total. It expects to complete the sale by December 31, "comfortably ahead" of its target of divestments worth at least GBP200 million by March 31. Due to exceeding this goal, HICL said it will consider deployment of excess proceeds in line with its disciplined capital allocation framework. "This will include consideration of selective acquisition activity alongside further share buybacks," it said, adding: "With supportive infrastructure market conditions and policy tailwinds, the company is well placed to continue building a high-quality portfolio that supports long-term earnings and sustainable dividend growth."
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OTHER COMPANIES
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Thungela Resources declared an interim gross dividend of 200 South African rand cents, unchanged from last year, and reported its first-half results. Profit for the six months ended June 30 fell 79% on-year to ZAR248 million from ZAR1.19 billion. Revenue decreased 12% to ZAR14.81 billion from ZAR16.75 billion. "Our financial results reflect the continued pressure on coal prices, with the average realised export prices in South Africa and Australia declining by 11% and 10% respectively," Chief Executive July Ndlovu said. Export saleable production in South Africa increased 4% to 6.4 million tonnes from 6.2 million tonnes, and for the Ensham coal mine it fell 16% to 1.6 million tonnes from 1.9 million. Looking ahead, Thungela "remains on track to achieve full year guidance". "As we navigate ongoing complexities in the operating environment and uncertainties in the macroeconomic landscape, we have conviction in the outlook that high-quality thermal coal will continue to play a fundamental role in the global energy demand," Ndlovu commented.
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By Emma Curzon, Alliance News reporter
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BabcockFlutter EntertainmentClose BrosPlus500Land SecuritiesHICL InfrastructureThungela Resources