15th Jan 2026 07:55
(Alliance News) - UK GDP rises faster than expected in November, Schroders expects higher annual earnings, and Dunelm guides profit to the lower end of expectations after a softer second quarter.
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 0.5% at 10,230.95
GBP: lower at USD1.3434 (USD1.3450 at previous London equities close)
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ECONOMICS
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UK gross domestic product rises in November, up 0.3% from October and beating FXStreet expectations for a 0.1% increase, according to the Office for National Statistics. The monthly gain reverses a 0.1% decline in October and was driven by a 0.3% rise in services output and a 1.1% jump in production. Over the three months to November, GDP grew 0.1%, improving from flat growth in the previous rolling period. Services also expanded 0.2% on a three-month basis, providing the biggest lift to overall activity. Production fell 0.1% over the same period, held back by a sharp drop in motor vehicle manufacturing. Construction remained a drag on the economy, with output down 1.3% in November and 1.1% over the three months, marking its weakest run since March 2023.
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UK trade figures for November showed a mixed performance, with exports and imports moving in opposite directions, the Office for National Statistics said. Goods exports rose by GBP600 million, or 1.9%, driven by higher shipments to both EU and non-EU markets. Goods imports fell by the same amount, down 1.1%, as lower purchases from non-EU countries offset an increase in imports from the EU. Trade with the US weakened notably. Exports to the US, including precious metals, fell by GBP500 million, or 10%, while imports declined by GBP900 million, or 12%. Over the three months to November, the UK's total trade deficit in goods and services widened by GBP2.7 billion to GBP6.1 billion. The goods deficit increased by GBP3.4 billion to GBP58.9 billion, while the services surplus rose by GBP700 million to GBP52.8 billion.
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BROKER RATINGS
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Deutsche Bank Research cuts easyJet to 'sell' - price target 465 pence
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Wells Fargo cuts Flutter Entertainment to 'equal weight' - price target 228 USD
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COMPANIES - FTSE 100
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Schroders expects to report a sharp rise in annual earnings after stronger fee income, improved market conditions and tighter cost control lifted performance in 2025. The asset manager says adjusted operating profit will be at least GBP745 million, up from GBP603.1 million the year before and ahead of market expectations. Adjusted net operating income increases to at least GBP2.58 billion, up from GBP2.44 billion, supported by favourable asset-mix shifts, higher performance fees and carried interest. Costs remain tightly managed, with adjusted operating expenses broadly flat on 2024's GBP1.83 billion, helping the cost-to-income ratio improve to around 71% from 75%. Assets under management rise to about GBP825 billion including joint ventures, up from GBP778.7 billion, with positive net new business of roughly GBP11 billion. Public Markets bring in GBP3.9 billion of inflows, while Schroders Capital attracts about GBP4.5 billion, supported by the first contribution from Future Growth Capital. Wealth Management adds GBP3.4 billion.
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DCC expands its European footprint with the acquisition of UGI International's liquid gas businesses in Poland, Hungary, Czechia and Slovakia. The EUR48 million cash deal gives the group access to more than 30,000 bulk and cylinder customers and over 200 million litres of annual volumes, supported by well-invested infrastructure and a shared service centre in Warsaw. The four businesses are weighted toward commercial and industrial clients, with Poland representing the largest opportunity through AmeriGas Polska, the country's second-largest operator with around 13% market share. DCC says the fragmented markets offer strong consolidation potential, with procurement synergies expected across Continental Europe. The acquisitions are expected to complete within six months, subject to approvals, and should deliver a mid-teen return on capital from the second year of ownership. Chief Executive Donal Murphy says: "Liquid gas represents a compelling growth opportunity for DCC to consolidate fragmented markets at high returns. We are very focused on growing our liquid gas business in both Europe and North America."
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COMPANIES - FTSE 250
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Oxford Instruments says it remains on track to meet full-year market expectations as strong demand in its Advanced Technologies division offsets a steadier performance elsewhere. The scientific instruments maker reports continued momentum in the third quarter, with group order intake supporting a book-to-bill ratio of 1.2. Orders in Imaging & Analysis grow 2.4% on an organic constant-currency basis, with restructuring efforts in its Belfast imaging unit delivering expected savings. Advanced Technologies performs notably better, with year-to-date orders rising 45% on the same basis and an order book now extending well into financial 2027. Oxford Instruments completes the sale of its NanoScience division on January 2, receiving GBP48.5 million in net cash proceeds. The company also confirms that pension contributions have ceased following a buy-in agreement completed in December. The group continues its GBP100 million share buyback, having repurchased GBP41.2 million of the first GBP50 million tranche to date. Currency remains a headwind, with a GBP5.5 million impact on adjusted operating profit still expected for the year.
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Dunelm warns that full-year profit will come in at the lower end of market expectations after a weaker second quarter. The homewares retailer says total sales rose 1.6% year-on-year in the 13 weeks to December 27, bringing first-half sales to GBP926 million, up 3.6%. Digital sales accounted for 42% of quarterly revenue of GBP498 million. Gross margin for the half increased by 60 basis points, helped by favourable currency movements. However, trading in the second-quarter was softer than anticipated, "particularly around Black Friday and continuing into December, highlighting the ongoing challenging macroeconomic environment", Dunelm said. Dunelm expects pretax profit of GBP112 million to GBP114 million for the first half and now forecasts financial 2026 pretax profit to land at the lower end of the analyst consensus range of GBP214 million to GBP227 million. Dunelm adds that Winter Sale trading has been stronger than in the second-quarter. CEO Clo Moriarty says: "The performance reflected a strong first quarter followed by a more challenging close to the half. Whilst the UK retail environment remains variable, we have acted on some clear lessons from the first half, including targeted steps to improve availability...I see multiple opportunities to extend Dunelm's market-leading position - there is much more in the tank. As such, we are now moving forwards with energy and discipline."
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AG Barr announces that Mark Allen has stepped down as non-executive chair with immediate effect to focus on his expanded role at Hilton Food Group, where he recently moved from non-executive chair to executive chair. Senior Independent Director Susan Barratt has been appointed interim chair while the board begins the search for a permanent successor. Non-executive director Louise Smalley will take over as senior independent director during the interim period. Allen, who served as chair for five years, says the company is "in great shape" as he hands over responsibilities. Barratt, the owner of IRN-BRU, Rubicon, Boost and Funkin, thanks him for his "outstanding contribution".
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OTHER COMPANIES
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Fuller, Smith & Turner says it has maintained "growth momentum", with like-for-like sales up 5.3% in the 41 weeks to January 10. The pubs and hotels group reports an "outstanding" five-week Christmas and New Year period, delivering like-for-like sales growth of 8.2% against a "strong" prior year. Fuller's expects to complete its existing buyback of one million A shares in the coming days, and the board has approved a further programme for up to an additional one million A shares, to begin once the current tranche is finished. Executive Chair Simon Emeny says: "I am delighted we have maintained our strong growth momentum – in both sales and profitability – and this has been further enhanced with an excellent Christmas trading period. In addition to this outstanding operational performance, we continue to effectively deliver on our capital allocation framework with the ongoing share buyback programme and through our extensive programme of capital investment, with a number of exciting investment schemes scheduled for the final quarter of this financial year."
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By Eva Castanedo, Alliance News reporter
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Flutter EntertainmenteasyJetSchrodersDCCOxford InstrumentsDunelmBarr (A.G.)Hilton FoodsFuller Smith & Turner