30th Jun 2026 07:59
(Alliance News) - The UK economy grows 0.6% in the first quarter, Sainsbury's backs its guidance as first quarter sales rise, while Acceler8 Ventures agrees to an all-share acquisition of Intuitive Investments.
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 0.1% at 10,492.12
GBP: lower at USD1.3242 (USD1.3247 at previous London equities close)
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ECONOMICS
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UK real gross domestic product increased by an unrevised 0.6% in the first quarter, according to data from the Office for National Statistics. UK gross domestic product rose 0.6% in the three months to March, unchanged from the previous estimate, accelerating from growth of 0.1% in the fourth quarter of 2025, the latter revised down from 0.2%. In output terms, the ONS said growth in the latest quarter was caused by an increase in all three sectors, with the largest contribution from the services sector, which grew by 0.8%. On-year GDP growth was revised lower for the first quarter to 0.9% from 1.1%. On an annual basis, GDP growth in 2025 was revised down to 1.3% from 1.4% previously, following unrevised growth of 1.0% in 2024. Real GDP per head is estimated to have increased by 0.6% in the first quarter of 2026, and is up by 0.7% compared with a year ago. Real household disposable income per head fell by 0.8% in the first quarter, following a 1.2% rise in the fourth quarter. Trade data released alongside the GDP figures showed the UK current account deficit, including trade in precious metals, narrowed by GBP5.04 billion to GBP22.13 billion, or 2.8% of GDP, in the first quarter. This was a larger deficit than the FXStreet-cited consensus, which expected a first quarter deficit of GBP21.5 billion.
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BROKER RATINGS
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Citigroup cuts easyJet to 'neutral' - price target 580 pence
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UBS cuts Mondi to 'neutral' - price target 750 pence
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COMPANIES - FTSE 100
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J Sainsbury backs its guidance for the 2027 financial year despite uncertainty from the conflict in the Middle East, as it reports higher sales in the first quarter. The London-based food retailer says Total retail sales, excluding fuel, rise 2.7% on-year in the 16 weeks to June 20 to GBP9.15 billion. Like-for-like sales, excluding fuel, are up 2.1%. Sales in the Sainsbury's brand rise 3.1% to GBP8.04 billion, while Argos sales fall 0.5% to GBP1.11 billion. "We will continue to make deliberate, balanced choices to sustain our strong competitive position and expect to continue to outperform the grocery market," J Sainsbury says. The firm adds that it has made an "encouraging" start to the year, but warns that the impact of the conflict in the Middle East remains uncertain. It continues to expect to report total underlying operating profit between GBP975 million and GBP1.08 billion for financial 2027, with Retail free cash flow of more than GBP500 million. Chief Executive Simon Roberts says: "Customers are looking for value now more than ever. We are consistently delivering outstanding quality at great value, so more people are choosing Sainsbury's for their big weekly shop. This has driven an encouraging start to the year with continued volume growth and market outperformance."
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Legal action against seven of Britain's biggest housebuilders is set to be launched on behalf of homebuyers in a claim that could seek to secure up to GBP4.5 billion in compensation. Mark McLaren – a former parliamentary and legal affairs manager at consumer group Which? – is planning to bring a class action claim against Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and its Countryside Partnerships division over allegations that consumers had to pay higher prices for new-build properties due to alleged anti-competitive behaviour by the firms. It is being launched on behalf of more than 700,000 people who bought new build homes in Great Britain between October 2015 and June 24 this year. The action – which is now going to the Competition Appeal Tribunal in order to get the go ahead – follows an investigation by the Competition & Markets Authority into whether the housebuilders shared commercially sensitive information for two years until February 2024.
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COMPANIES - FTSE 250
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Saga says it traded in line with expectations for the first four months of its financial year that is running to the end of January 2027, and remains on track to deliver its full year guidance. Ahead of Tuesday's annual general meeting, the Kent, England-provider of products and services for people over 50 says Travel continues to "trade strongly", with the Cruise division performing ahead of expectations. It expects Ocean Cruise and River Cruise first half revenue to be higher than the previous year. Holiday revenue and passenger numbers are also expected to increase. Trading in Insurance Broking "remains in line with expectations", Saga adds. "Saga has made a strong start to the year, building on the significant growth we achieved last year. Our momentum in Travel has continued, demonstrating the resilience of our customers and our diverse offering, despite the current geopolitical uncertainty," says Chief Executive Officer Mike Hazell. The firm says it remains on track and continues to make "clear progress" towards its medium-term targets of at least GBP100.0 million underlying pretax profit and a leverage ratio below 2.0x by January 2030. Net debt falls to GBP464.7 million at the end of May from GBP569.5 million a year earlier.
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International Workplace Group increases its share buyback programme by USD50 million, taking the programme up to USD150 million. The Zug, Switzerland-based provider of hybrid workspaces announced the first tranche on December 31, 2025 and a second on March 3. International Workplace Group grants authority to Jefferies to carry out the buyback.
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OTHER COMPANIES
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Acceler8 Ventures agrees to an all-share acquisition of Intuitive Investments Group, an investor in technology and life science companies. Acceler8 Ventures, an acquisition vehicle, says Intuitive shareholders will receive 2.6797 new Acceler8 shares for each Intuitive share held. The offer values Intuitive at around GBP600 million, based on the middle market closing price of 80p per Acceler8 share. As a result of the acquisition, Intuitive shareholders will own around 99% and Acceler8 shareholders will hold 1.0% of the enlarged share capital of Acceler8 on admission. Accelera8 proposes the admission of its shares to the Equity Shares (Commercial Companies) category and trading on the London Stock Exchange's Main Market. Intuitive says the Acceler8 offer is the most efficient and effective way of making an ESCC listing. The offer has the backing of just under 46% of Intuitive shareholders so far. "The transaction presents an exciting opportunity for AC8 shareholders to participate in the next phase of IIG's development. Therefore, I believe the enlarged group will be well positioned to deliver meaningful long-term value for its shareholders," says Acceler8 Chair David Williams. Intuitive Chair Nigel Rudd adds: "We are delighted to have reached agreement with AC8 on a Transaction that delivers our principal strategic objective of moving to the Main Market of the London Stock Exchange."
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Mears Group confirms that it has continued to trade well and that it expects to report full-year 2026 results in line with market expectations. The Gloucester, England-based provider of housing and social care says during the first half, it secured new orders with local government of GBP1.5 billion. The firm announces a new contract award from Rooftop Housing Group, with an estimated value of GBP150 million over 10 years. It expects to meet market expectations for 2026 results, with revenue of GBP1.04 billion and adjusted pretax profit of GBP50.7 million. "Mears has continued to make strong progress against its key strategic objectives. The group continues to deliver growth in its core maintenance activities, having performed strongly through an intensive period of contract rebids, complemented by strategically important new business wins with Birmingham City Council and Rooftop Housing Group," says CEO Lucas Critchley. "We also remain well positioned to deliver additional housing services to central government."
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By Michael Hennessey, Alliance News reporter
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Related Shares:
easyJetMondiSainsbury'sBarratt RedrowBellwayBerkeley GroupPersimmonTaylor WimpeyVistry GrpSagaInternational Workplace GroupAcceler8Intuitive Investment GroupMears