25th Mar 2026 07:59
(Alliance News) - UK inflation holds steady in February, while Diageo agrees to sell its stake in an IPL franchise. United Utilities flags a boost to earnings from an accounting change, and Eurowag reports strong profit growth alongside upbeat 2026 guidance.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.7% at 10,037.96
GBP: lower at USD1.3386 (USD1.3394 at previous London equities close)
----------
ECONOMICS
----------
UK consumer price inflation held steady in February, while factory gate price growth eased and input costs returned to annual growth, according to data from the Office for National Statistics. The consumer prices index including owner occupiers' housing costs rose 3.2% in the 12 months to February, unchanged from January. The headline consumer prices index also held at 3.0% on-year, in line with both the previous month and FXStreet-cited consensus. On a monthly basis, CPIH and CPI each increased by 0.4% in February, matching the rise recorded a year earlier and meeting market expectations. The ONS said clothing prices provided the largest upward contribution, rising 0.6% on the month, compared with a 0.3% fall in February 2025. By contrast, motor fuels exerted the biggest downward pressure on prices. Underlying inflation showed signs of persistence. Core CPI, which excludes energy, food, alcohol and tobacco, edged up to 3.2% from 3.1%, in line with consensus. Core CPIH also ticked higher to 3.4% from 3.3%.
----------
Separate producer price data from the ONS pointed to a mixed backdrop for UK manufacturers. Input prices rose 0.5% on an annual basis in February, reversing a revised 0.4% decline in January and beating expectations of a 0.4% increase. On a monthly basis, input costs climbed 0.8%. However, output prices rose 1.7% on-year, slowing from 2.5% growth in January and falling short of FXStreet expectations of 2.6%. On a monthly basis, factory gate prices declined 0.5%. The import price index increased 0.3% annually. The ONS noted that the producer price data predates the escalation of hostilities in the Middle East at the end of February, which has since driven volatility in energy markets.
----------
BROKER RATINGS
----------
Morgan Stanley raises BP to 'overweight'
----------
Morgan Stanley cuts Shell to 'equal-weight'
----------
Morgan Stanley raises Croda to 'overweight' - price target 3,350 pence
----------
COMPANIES - FTSE 100
----------
United Utilities says underlying operating guidance remains unchanged ahead of its results for the year ending March 31, while an accounting change is set to boost earnings and reduce finance costs. The water utility expects underlying earnings per share for financial 2026 to be around 100p, in line with guidance, before the impact of the change in how inflation-linked debt is measured. The revised approach is expected to lower underlying net finance costs by around GBP35 million and increase underlying EPS by about 5p, while also reducing income statement volatility. United Utilities adds that its energy hedging position remains strong, with full coverage for summer 2026 and more than 90% hedged for winter 2026/27, supporting cost stability.
----------
Diageo says its subsidiary United Spirits Ltd has agreed to sell its entire stake in Royal Challengers Sports Pvt Ltd for INR166.6 billion, around GBP1.33 billion, concluding a strategic review launched in November. The disposal will see a consortium comprising Aditya Birla Group, The Times of India Group, Bolt Ventures and Blackstone's BXPE acquire ownership of Royal Challengers Bengaluru, which operates franchises in the Indian Premier League and Women's Premier League. Diageo says the transaction remains subject to customary regulatory and legal approvals, including from India's cricket board and competition authorities.
----------
Rio Tinto says it has signed a "landmark" partnership with the Queensland and Commonwealth governments to secure the long-term future of the Boyne aluminium smelter in Gladstone. Under the agreement, the two governments will invest a combined AUD2 billion, around 1.04 billion, over 10 years to 2040, supporting the transition to competitive long-term power and ensuring the smelter remains operational beyond its current energy contract, which expires in 2029. Rio Tinto Aluminium & Lithium Chief Executive Jerome Pecresse says: "This transformative partnership with the Queensland and Australian governments will ensure Boyne Smelter remains internationally competitive, strengthens the Australian aluminium sector for the future and supports the transformation and decarbonisation of the Queensland energy system."
----------
COMPANIES - FTSE 250
----------
HICL Infrastructure agrees to sell its 24% stake in the A63 motorway in France for around GBP311 million, representing a 21% premium to its most recent valuation. The disposal of the asset, which accounted for 8.4% of the portfolio as at September, will deliver an additional 2.2 pence of net asset value per share and an annualised return above the group's weighted average discount rate. HICL says the transaction is accretive to key portfolio metrics including expected return, yield, inflation correlation and asset life, while reducing exposure to lifecycle risk and political uncertainty in France. The sale also brings total disposals over the past three years to more than GBP1 billion at an average premium of 11%. The company intends to redeploy proceeds into new investment opportunities that exceed the returns available from share buybacks, while maintaining flexibility in capital allocation. Completion is expected later on Wednesday.
----------
Wag Payment Solutions, known as Eurowag, reports higher profit and net revenue for 2025 and sets out continued growth expectations for 2026, alongside a special dividend. The company says pretax profit rose 62% to EUR19.0 million from EUR11.7 million, as total revenue increased 3.2% to EUR2.31 billion from EUR2.24 billion. Net revenue climbed 13% to EUR330.1 million from EUR292.5 million, driven by strong growth in payment solutions. Adjusted earnings before interest, tax, depreciation and amortisation rose 8.5% to EUR132.1 million from EUR121.7 million, though the adjusted Ebitda margin eased to 40.0% from 41.6% due to higher operating costs linked to investment and scaling the business. Eurowag declares a second special dividend for 2025 of 1.5p per share, worth around EUR12 million. Looking ahead, the group guides for low double-digit net revenue growth in 2026 and an adjusted Ebitda margin of around 40%. Adjusted cash Ebitda is expected in the range of EUR105 million to EUR115 million, up from EUR98.0 million in 2025, as the company focuses on scaling its digital platform and migrating customers. Founder & CEO Martin Vohanka says: "After years of disciplined investment and execution, we brought to life our most ambitious project yet: Eurowag Office, our end-to-end digital platform is now live. This is a major strategic milestone for the group that strengthens our position as the commercial road transport industry's digital operational partner. We have already 35% of our customers actively using the platform and plan to migrate the majority of our customers by year-end 2026."
----------
OTHER COMPANIES
----------
Volex expects full-year results to significantly beat market consensus and is considering a move to London's Main Market, which would make it eligible for inclusion in the FTSE 250 index. The Hampshire, England-based maker of power and data transmission products says it continues to trade strongly in the second half, with full-year revenue now expected to be at least USD1.22 billion and results "significantly" ahead of current market expectations. Consensus forecasts had pointed to underlying operating profit of USD114.8 million on revenue of USD1.18 billion. Volex adds that underlying operating margins for financial 2026 are now expected to be slightly above the top end of its 9% to 10% target range, supported by strong demand for data centre products and operational efficiency gains. The company says it is evaluating a move to the Main Market from AIM, and with a GBP798 million market capitalisation, this could enable FTSE 250 inclusion.
----------
UK Oil & Gas says its clean energy subsidiary UK Energy Storage has signed a memorandum of understanding with Wales & West Utilities Ltd to support hydrogen infrastructure development. The agreement outlines plans to link Wales & West Utilities' proposed HyLine South West hydrogen pipeline with UKEn's planned South Dorset salt cavern storage project, which the company says could become a key national-scale storage hub. Both parties will also explore a joint application for government revenue support under the Hydrogen Transport & Storage Business Model, as well as collaborate more broadly on developing regional hydrogen pipelines, storage and networks.
----------
Young & Co's Brewery says its move from AIM to the London Main Market is expected to complete on April 28, with its shares set to begin trading on the Main Market the same day. The pub operator adds that the final day of trading on AIM will be April 27, with the transition taking place via an introduction of existing shares and no new equity issuance.
----------
MediaZest says trading has been "solid" at the start of its new financial year and it expects further growth and improved profitability in 2026. In an AGM statement, the Surrey-based audio-visual solutions provider says performance across its core retail, automotive and corporate office segments has remained strong, building on growth and improved earnings in financial 2025. The company says the outlook for financial 2026 is positive, with trading having begun "exceptionally well", supported by ongoing projects and customer roll-outs. MediaZest expects to deliver revenue of GBP5.0 million and pretax profit of GBP250,000 for the financial year to September 30, alongside further year-on-year growth. It adds that cash has improved to around GBP300,000 following recent debt restructuring and an equity raise.
----------
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
United UtilitiesDiageoRio TintoHICL InfrastructureEW GroupVolexYoung & Co's BreweryUK Oil & GasMediazestBPShellCroda International