19th Jun 2026 07:53
(Alliance News) - UK government borrowing rose more than expected in May, while Barratt Redrow named a new finance chief and LBG Media bought Gen Z-focused agency Uncovered for GBP26.8 million.
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 0.2% at 10,377.00
GBP: lower at USD1.3196 (USD1.3246 at previous London equities close)
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ECONOMICS
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UK government borrowing rises more than expected in May as debt interest costs reach a record for the month. Public sector net borrowing totals GBP23.3 billion, up 30% from GBP17.9 billion a year earlier and GBP5.6 billion above the Office for Budget Responsibility's forecast. Borrowing in the first two months of the 2026-27 financial year reaches GBP46.3 billion, exceeding forecasts by GBP7.7 billion. Debt interest payable climbs 54% to a record May high of GBP11.7 billion, while public sector net debt stands at 95.1% of GDP. The current budget deficit totals GBP18.5 billion in May and GBP34.5 billion in the financial year to date.
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UK retail sales rebound in May, helped by warm weather and promotional activity, data from the Office for National Statistics show. Retail sales volumes rise 1.2% month-on-month, beating expectations and reversing a revised 1.0% decline in April. Sales volumes increase 0.4% in the three months to May compared with the previous three-month period. The ONS says department stores benefit from favourable weather conditions, while promotions boost sales at non-store retailers. Computer and telecommunications retailers also continue to see support from product launches earlier in the year.
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BROKER RATINGS
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RBC cuts Admiral Group to 'sector perform' (outperform)
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COMPANIES - FTSE 100
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Barratt Redrow appoints former Britvic finance chief Rebecca Napier as chief financial officer and executive director, effective August 3. Napier joins from Britvic, where she served as CFO until its acquisition by Carlsberg in 2025, and previously held senior finance roles at IAG, including CFO of British Airways. Chair Caroline Silver says Napier's experience in finance, transformation and capital markets will support the group as it nears completion of the Barratt-Redrow integration. Napier says: "I am excited to be joining Barratt Redrow at an important time for the group and for the UK housing sector."
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COMPANIES - FTSE 250
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PPHE Hotel says a GBP22.00-per-share takeover proposal from Fattal Hotel Group is no longer deliverable after major shareholder Euro Plaza Holdings, which owns around 33% of the company, opposed the offer. The hotel's independent committee says Fattal has indicated it would not proceed with a bid without Euro Plaza's support and has therefore concluded the proposal cannot be delivered in its current form. PPHE adds it received an indicative proposal from another party on May 31, which remains under assessment at a preliminary stage. The company says it intends to conclude its strategic review and formal sale process as quickly as possible after more than seven months of discussions.
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Utilico Emerging Markets Trust reports a NAV total return of 25.9% in financial 2026, compared with a negative 2.9% a year earlier, as net asset value per share rises 22% to 313.54p from 257.28p. The investment trust increases its ordinary dividend by 5.0% to 9.585p per share and declares a special interim dividend of 2.50p, marking its 11th consecutive year of dividend growth. The company says Latin America delivers strong performance during the year, despite heightened geopolitical tensions and the outbreak of wider conflict in the Middle East. Chair Mark Bridgeman says: "Given all the uncertainty that has been witnessed this year, the results demonstrate the strength of UEM's EM infrastructure and utilities focused portfolio and its investment strategy of delivering long term sustainable returns."
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OTHER COMPANIES
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Cordiant Digital Infrastructure reports a 16.3% NAV total return for financial 2026, with net asset value per share rising 13% to 146.0p at March 31 from 129.6p a year earlier. The digital infrastructure investor declares a total annual dividend of 4.45p per share, including a final interim dividend of 2.28p, up 2.3% from 4.35p a year earlier. The company says portfolio revenue and adjusted Ebitda increase 9.9% and 7.8%, respectively, on a constant-currency basis, supported by contract wins, price escalators and acquisitions. Looking ahead, Cordiant says it is well-positioned to benefit from structural growth in demand for digital infrastructure driven by rising data consumption, cloud adoption and artificial intelligence.
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Ladbible owner LBG Media acquires a 75% stake in Gen Z-focused social media agency Uncovered for an initial GBP26.8 million, with potential earnout payments of up to GBP7.0 million and options to acquire the remaining 25% through 2030. The social entertainment group says the acquisition will be immediately earnings enhancing, delivering double-digit EPS accretion in the first full year, while strengthening its direct revenue base and creative capabilities. Uncovered, which generated GBP10.2 million in revenue and GBP2.7 million in adjusted Ebitda in 2025, is expected to grow revenue by at least 50% in 2026. LBG also secures a new debt facility of up to GBP50 million with HSBC to support the acquisition and future M&A opportunities.
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Synthomer agrees to divest its Czech-based Acrylate Monomers business to German investment firm Mutares as part of its strategy to simplify the group and focus on higher-margin speciality chemicals. The business generated EUR68 million in sales and an adjusted Ebitda loss of EUR10 million in 2025, although trading improved to break-even in the first four months of 2026. Synthomer says the unit is its only remaining upstream asset and one of the most capital-intensive parts of the portfolio. The deal, expected to complete at the end of the third quarter, includes a cash-generation sharing arrangement of up to EUR12 million over three years, with no upfront consideration. Existing supply arrangements between the business and Synthomer will continue under the new ownership.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
AdmiralBarratt RedrowCordiant Digit.Utilico Emerging MarketsHSBC HoldingsLBG MediaInternational Airlines