7th Jul 2026 07:59
(Alliance News) - UK house prices edge higher in June, Halma buys French diagnostics firm Dreampath for an initial EUR154 million, while Shell expects lower second-quarter oil production.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called 0.1% higher at 10,661.97
GBP: higher at USD1.3381 (USD1.3354 at previous London equities close)
----------
ECONOMICS
----------
UK house prices rose for the first time in four months in June, according to the newly rebranded Lloyds house price index, as easing mortgage rates offered some support to buyers despite continued affordability pressures. The average UK house price increased 0.2% on the month to GBP299,330 from GBP298,812 in May, reversing the previous month's 0.2% decline and beating the FXStreet-cited consensus for a 0.1% rise. Annual house price growth edged up to 0.6% from 0.5%, although prices remained 0.4% lower on a quarterly basis. Lloyds said lower mortgage rates should gradually support demand if they continue to fall, but warned affordability remains stretched and the pace of house price growth is likely to remain measured. For first-time buyers, annual house price growth accelerated to 0.8% in June from 0.3% in May. The average first-time buyer property now costs GBP240,433. The Halifax house price index has also been rebranded as the Lloyds house price index from July, with the bank stressing the methodology is unchanged as it has long been based on mortgage data from both Halifax and Lloyds Bank.
----------
BROKER RATINGS
----------
Goldman Sachs raises Rentokil Initial to 'buy' (neutral) - price target 590 (515) pence
----------
JPMorgan cuts ITV to 'neutral' (overweight) - price target 85 (104) pence
----------
Deutsche Bank Research starts Porvair with 'buy' - price target 1,050 pence
----------
COMPANIES - FTSE 100
----------
Shell expects second-quarter integrated gas production of 610,000 to 650,000 barrels of oil equivalent per day, down from 909,000 boepd in the first quarter due to the impact of the Middle East conflict on Qatari volumes. However, the energy major expects trading and optimisation in the division to be "significantly higher" than in the first quarter. Elsewhere, Shell guides for upstream production of 1.75 million to 1.85 million boepd, marketing sales volumes of 2.55 million to 2.65 million barrels per day and a higher indicative refining margin of around USD20 a barrel, up from USD17. Renewables and Energy Solutions adjusted earnings are forecast between a USD300 million loss and USD300 million profit, compared with a USD300 million profit in the first quarter. Corporate adjusted earnings are expected to improve to a loss of between USD500 million and USD700 million, from a USD900 million loss in the first quarter.
----------
Halma has agreed to acquire France-based Dreampath Diagnostics for an initial EUR154 million in cash, plus an earnout of up to EUR121 million based on performance through March 2028. Headquartered in Strasbourg, the company provides automated systems for anatomical pathology laboratories to track, store and manage patient tissue samples, and is forecast to generate EUR33 million in revenue in financial 2027. Halma says the acquisition, funded from existing debt facilities, strengthens its healthcare business by adding capabilities in tissue sample traceability and lifecycle management. Halma Chief Executive Marc Ronchetti says: "Dreampath is a high-quality business in a growing area of diagnostics, driven by increasing demand for better healthcare, more testing alongside new treatments, and rising rates of chronic disease as populations age. It strengthens our Healthcare Sector by adding complementary capabilities and broadening our portfolio of technologies that support safer, more efficient and effective care."
----------
COMPANIES - FTSE 250
----------
Keller upgrades its full-year outlook after stronger-than-expected trading, saying it now expects 2026 revenue and underlying operating profit to be "materially" ahead of current market expectations of GBP3.15 billion and GBP223 million, respectively. The London-based geotechnical specialist contractor said its North American business has outperformed thanks to strong demand for infrastructure and data centre projects, while trading in Europe and the Middle East has been robust and tendering activity remains buoyant. Keller added that its balance sheet and cash generation remain strong, and it is confident in its long-term growth strategy. CEO James Wroath says: "Our North American operations, which account for around 60% of the group's revenue, have delivered an exceptional performance across the US and Canada so far this year, supported by increased activity in infrastructure and data centres. This reflects Keller's ability to identify and respond to structural megatrends and pivot to subsectors with strong customer demand which drive business growth."
----------
Victrex maintained its full-year guidance after reporting a strong third quarter, with revenue rising 18% year-on-year to GBP84.5 million as sales volumes increased 17% to 1,238 tonnes. The Lancashire, England-based polymer solutions provider for automotive, aerospace, energy & industrial, electronics, and medical markets said momentum from the second quarter continued, driven by growth in its Sustainable Solutions business, particularly aerospace and electronics, alongside some stabilisation in medical markets. Year-to-date revenue increased 7% and volumes rose 10%. Victrex reiterated its forecast for underlying pretax profit of GBP42 million to GBP44 million for financial 2026 and said it remains on track to deliver annualised cost savings of at least GBP10 million by financial 2027 under its profit improvement plan, with initial benefits expected in the fourth quarter.
----------
OTHER COMPANIES
----------
Cairn Homes reported a "strong" first half as revenue rose around 60% year-on-year to about EUR450 million from approximately 1,130 homes delivered, up from EUR284.5 million from 708 units a year earlier. The Irish housebuilder said sales momentum remained strong, with around 100 homes sold per week since the end of April, lifting its closed and forward order book to around 4,800 homes worth EUR1.8 billion. Cairn reaffirmed full-year guidance for revenue of EUR1.05 billion to EUR1.08 billion, operating profit of EUR180 million to EUR185 million and return on equity of around 16.5%. The company also said it intends to raise its interim dividend by around 10% to 4.5 euro cents per share and continues to expect to increase housing output by 35% across 2026 and 2027, delivering around 6,000 new homes over the two years.
----------
Beauty Tech Group upgraded its full-year guidance after reporting first-half revenue materially ahead of the prior year, driven by growth across its core business, key markets and sales channels. The Cheshire, England-based seller of at-home beauty treatment technology now expects 2026 revenue of no less than GBP170 million and adjusted Ebitda of at least GBP45 million, ahead of previous market expectations of GBP161.7 million and GBP41.5 million respectively. The company said strong revenue growth and margin improvement reflected its well-invested operating model, with Chief Executive Laurence Newman citing growing brand awareness, continued investment in research and clinical studies, and a pipeline of new product launches supporting positive momentum into the second half.
----------
Young & Co's Brewery reported a "strong" start to its new financial year, with revenue rising 9.4% in the 14 weeks to July 6 and up 5.5% on a like-for-like basis against a strong comparative period. The pub operator said trading was supported by warm weather over the late May bank holiday, strong demand at pubs with gardens and riverside locations, the start of the FIFA World Cup, Wimbledon and an early contribution from the recently acquired Cubitt House estate. Young's said it remains confident for the year ahead despite sector challenges and will continue to invest selectively across its premium pub and bedrooms estate.
----------
Reveille Resources debuted on the Aquis Growth Market after raising GBP2.0 million in its initial public offering, with dealings commencing on Tuesday under the ticker REV. The natural resources explorer, focused on uranium opportunities in Italy, said it previously raised GBP680,000 in pre-IPO subscriptions. Reveille said proceeds will support the advancement of exploration licence applications for the Novazza and Val Vedello uranium deposits, historically estimated to contain around 15 million pounds of uranium oxide. Directors invested a combined GBP412,000 across the fundraising rounds and will hold 23.3% of the company following admission, while institutional investor YA II PN will own a 12.5% stake.
----------
By Eva Castanedo, Alliance News senior economics reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
ShellHalmaPorvairRentokil InitialITVVictrexKellerBeauty Tech GrpCairn HomesYoung & Co's Brewery