17th Jun 2026 07:59
(Alliance News) - UK consumer price inflation held steady in May while producer input inflation accelerated to its highest level in more than three years. On the corporate front, Tritax Big Box REIT agreed terms for a data centre project in Essex, and AO World proposed a further GBP20 million shareholder return after annual profit more than doubled.
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 10,478.01
GBP: lower at USD1.3413 (USD1.3422 at previous London equities close)
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ECONOMICS
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UK consumer price index inflation remains unchanged at 2.8% on-year in May, in line with April, according to the Office for National Statistics. The consumer prices index including owner occupiers' housing costs, the ONS's preferred inflation measure, also holds steady at 3.0%. On a monthly basis, both CPI and CPIH rise 0.2%, below the FXStreet-cited consensus for a 0.4% increase. Core CPI accelerates to 2.6% from 2.5%, but comes in below forecasts of 2.7%. Services inflation rises to 3.7% from 3.2%, while goods inflation slows to 2.0% from 2.4%. The ONS says transport provides the largest upward contribution to inflation, partly offset by food and non-alcoholic beverages.
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UK producer input price inflation accelerates to 8.7% in May from a revised 7.9% in April, marking the strongest annual increase since February 2023, according to the Office for National Statistics. The reading comes in just below the FXStreet-cited consensus of 8.8%. On a monthly basis, input prices rise 0.2%, with crude oil providing the largest upward contribution. Factory gate output price inflation eases slightly to 4.0% from 4.1%, although output prices increase 0.5% on the month. Meanwhile, import price inflation strengthens to 10.1% from 8.8% in April.
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BROKER RATINGS
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JPMorgan cuts WH Smith price target to 575 (700) pence - 'overweight'
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RBC resumes Bodycote with 'sector perform' - target 750 pence
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Wedbush Securities starts Flutter Entertainment at 'outperform' - price target USD138
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COMPANIES - FTSE 100
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Tritax Big Box REIT enters into a development management agreement with related party Tritax Management LLP to deliver a 125-megawatt data centre scheme in Chelmsford, Essex, the second project in its data centre pipeline. Under the agreement, Tritax Management will provide development, planning, construction and technical services, receiving around GBP3.3 million for project assembly work completed to date, a development management fee of up to 5% of project costs subject to planning approval, and a 17.5% share of development profits upon successful completion and letting of the scheme. Half of any profit-share payment will be reinvested in Tritax shares. The company says the targeted yield on cost remains 10% to 11%, and the board considers the related-party agreement "fair and reasonable" for shareholders.
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COMPANIES - FTSE 250
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AO World reports full-year pretax profit for the twelve months ended March 31 more than doubles to GBP50.5 million from GBP20.6 million as revenue rises 11% to GBP1.27 billion from GBP1.14 billion. Adjusted pretax profit increases 16% to a record GBP50.5 million, while free cash flow jumps to GBP66.4 million from GBP26.3 million and the company ends the year with net funds of GBP16.4 million, compared with net debt of GBP35.9 million a year earlier. The Manchester-based electricals retailer intends to return a further GBP20 million to shareholders through a GBP10 million special dividend and a new GBP10 million share buyback programme. Looking ahead, it expects financial 2027 pretax profit to be in line with current market expectations despite an uncertain external environment and ongoing inflationary pressures.
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Personal Assets Trust reports a net asset value total return of 6.3% for the year ended April 30, down from 7.5% a year earlier and below the FTSE All-Share Index's 25.2% return. NAV per share rises to 540.84p from 515.22p, while share price total return is 6.2%. The trust pays four interim dividends of 1.4p per share during financial 2026 and says it intends to pay a first financial 2027 interim dividend of 1.4p per share in July, barring unforeseen circumstances. The company maintains a high level of liquidity, with 54.8% of assets held in cash, government bonds, inflation-linked securities and gold at year-end. Chair Ian Ferguson says: "The investment manager's focus remains on the avoidance of permanent capital loss (our preferred definition of risk) and on growing the real value of the company's capital over the long run."
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Hays completes the sale of its operations in the Czech Republic, Denmark, Hungary, Luxembourg, Romania and Sweden to private equity investor Meraki Capital for around GBP4 million in net cash proceeds. The recruitment firm says the transaction will result in a modest non-cash loss on disposal in the second half of financial 2026. Hays also says it is exploring options for its businesses in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the UAE. The 13 countries involved are expected to generate broadly break-even pre-exceptional operating profit on around GBP85 million of net fees in the 12 months to June 30. Hays says the moves form part of its strategy to focus on its remaining 16 core markets and build scale in higher-performing countries. CEO Mark Dearnley says: "Reshaping our portfolio to provide a sharper focus and build scale in high performing and high potential markets remains a key strategic priority for Hays."
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Saba Capital Management, the second-largest shareholder in Workspace Group with a 24.7% stake, urges shareholders to back its campaign to replace the company's non-executive directors, arguing that Workspace's shares continue to trade at a roughly 50% discount to net asset value. Saba says it has proposed a strategy focused on accelerated property disposals and share buybacks to unlock shareholder value, contrasting this with Workspace's recently announced plan to reinvest disposal proceeds into upgrading properties to drive rental income growth. Saba says it has identified a disposal roadmap covering 56 assets and is also advocating outsourcing property management and a more targeted refurbishment programme. The activist investor is seeking shareholder support for six board nominees ahead of a vote on its proposals. Saba says that on June 10, International Workplace presented a new strategy. Saba comments: "Even under management's own assumptions, the plan is expected to take several years to generate meaningful earnings growth. In our view, shareholders are being asked to accept considerable execution risk, uncertain returns, and an extended investment horizon, despite the existence of a more immediate and lower-risk alternative."
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OTHER COMPANIES
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PZ Cussons upgrades its profit guidance for the year ended May 31 after reporting continued strong trading. The Manchester-based maker of Imperial Leather and Carex expects like-for-like annual revenue growth of around 6%, with reported revenue of about GBP540 million. Adjusted operating profit is now expected to be at or slightly above the upper end of its GBP53 million to GBP57 million guidance range, helped by trading momentum and stability in the Nigerian naira. PZ Cussons also expects net debt of less than GBP30 million, down by more than GBP80 million from financial 2025, largely due to the sale of its 50% stake in PZ Wilmar.
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RC365 Holding says its Hong Kong subsidiary, Regal Crown Technology Ltd, has signed a merchant point-of-sale agreement with StarCruises International Ltd. Under the deal, RC365 will deploy its RC3.0 payment platform, including cryptocurrency acceptance functionality, for StarCruises customers. The one-year agreement, which renews automatically unless terminated, is expected to go live in June following user acceptance testing. RC365 says revenue will be generated through percentage-based transaction processing fees on merchant sales, with no minimum transaction commitments. RC365 CEO Chi Kit Law says: "We are delighted that our subsidiary, Regal Crown Technology, has secured this agreement with an international brand like StarCruises. This contract win underlines the continuing growth, scaling potential, and competitive health of our secure fintech and cross-border online payment gateway ecosystems across East Asia."
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Smiths News says it secures a long-term distribution contract with News UK, extending its partnership through July 2037 and expanding its territories to become the exclusive national distributor of News UK's titles across Great Britain from July 2027. The news wholesaler says the deal is expected to add around GBP125 million in annual revenue from July 2027. Smiths News says it expects one-off implementation and transition costs in financial 2027 to support the network expansion, but anticipates the investment will be earnings accretive from financial 2028. The company says it intends to maintain ordinary dividend guidance for financial 2026 and 2027 at or above current consensus estimates of 5.2p per share. CEO Jonathan Bunting says: "[The partnership] deepens a relationship spanning more than 50 years, securing a reliable and sustainable national route to market for retailers and consumers - and enabling us to freeze delivery service charges for our retail customers for the life of the contract."
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By Eva Castanedo, Alliance News reporter
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