18th Jun 2026 07:56
(Alliance News) - UK unemployment edged lower in the three months to April, as wages grew faster than expected, while Tesco backed annual guidance after first-quarter sales growth and Whitbread reported improved trading as it outlined plans to generate GBP2 billion in free cash flow by financial 2031.
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 0.5% at 10,452.21
GBP: lower at USD1.3320 (USD1.3393 at previous London equities close)
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ECONOMICS
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UK unemployment falls to 4.9% in the three months to April from 5.0%, beating the FXStreet-cited consensus forecast that it would remain unchanged. The Office for National Statistics says the employment rate is broadly steady at 75.0%, while annual regular pay growth is 3.4% and total pay growth is 4.4%. However, labour market demand continues to soften, with vacancies falling by 19,000 to 707,000, their lowest level since early 2021. The number of payrolled employees declines by 103,000 from a year earlier, a steeper fall than the 80,000 decline expected by analysts cited by FXStreet, while the claimant count rises to 1.71 million in May. Real regular pay increases 0.1% and total pay rises 1.2% after adjusting for inflation.
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BROKER RATINGS
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Berenberg cuts Anglo American to 'hold' (buy) - price target 4,200 pence
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Berenberg raises Valterra Platinum to 'buy' (hold) - price target 7,100 (6,400) pence
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COMPANIES - FTSE 100
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Tesco reports first-quarter sales of GBP16.83 billion, with like-for-like growth of 1.0%, supported by a 1.8% rise in UK sales and strong online demand. The supermarket says customer satisfaction improved strongly during the quarter and that Tesco Media is growing well, with the World Cup creating opportunities for brand partnerships. Chief Executive Ken Murphy says: "With the conflict in the Middle East creating ongoing uncertainty for many households, we remain focused on giving customers the very best combination of price, quality and service." Tesco maintains guidance for financial 2027 adjusted operating profit of GBP3.0 billion to GBP3.3 billion and free cash flow of GBP1.5 billion to GBP2.0 billion. For financial 2026 it had reported adjusted operating profit of GBP3.15 billion and free cash flow of GBP1.96 billion. The retailer says it has repurchased GBP341 million of shares under its GBP750 million buyback programme, which it expects to complete by April 2027. Tesco will publish its half-year results on October 8.
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Whitbread reports sales of GBP727 million for the 13 weeks to May 28, up 2.0% from a year earlier, as it delivers what it describes as a strong and improved trading performance in the first quarter. The Premier Inn owner says its UK forward-booked position is ahead of the prior year and remains confident it will outperform the wider hotels and restaurants market. Whitbread notes a favourable supply environment in both the UK and Germany, where it continues to expand. The company also sets out longer-term ambitions to increase margins and returns and generate GBP2 billion of free cash flow by financial 2031. CEO Dominic Paul says: "On April 30, following a comprehensive review of all options to maximise value creation and deliver profitable growth, we outlined our new five-year plan. We are executing each element at pace including: our proposed exit from all remaining branded restaurants in the UK to become a pure-play hotel business; refocused growth plans in the UK that will drive higher profits and returns; and accelerating cash flow and returns in Germany."
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Informa reports underlying revenue growth of 6.4% in the five months to May 31, supported by continued strength in both its Academic Markets and B2B Live Events businesses. The company says more than USD4 billion of revenue has already been traded, booked or is visible for the full year and reiterates guidance for double-digit underlying growth in adjusted earnings per share in 2026. Informa expects further strong adjusted EPS growth in 2027, supported by a full schedule of annual and biennial events and the restaging of deferred launches. The group says more than USD600 million of revenue for the first half of 2027 has already been booked or confirmed. Informa also notes its GBP250 million share buyback programme remains ongoing.
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COMPANIES - FTSE 250
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XPS Pensions Group reports a fourth consecutive year of double-digit revenue growth, with revenue rising 13% to GBP262.7 million from GBP231.8 million. Pretax profit falls 5.1% to GBP38.7 million from GBP40.8 million, while adjusted pretax profit increases 8% to GBP64.2 million from GBP59.5 million. The pensions consultancy raises its total dividend by 11% to 13.2 pence per share from 11.9p, including a proposed final dividend of 9.1p. XPS says growth is driven by strong demand for advisory, administration and insurance consulting services, with the Polaris acquisition integrating well. Co-Chief Executive Paul Cuff says the group continues to benefit from changes in the pensions market, while Co-Chief Executive Ben Bramhall highlights opportunities from artificial intelligence and technology investment. XPS says it remains confident of delivering further growth in financial 2027 in line with board expectations.
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Costain Group says it has been selected by Norfolk County Council to design and build new road infrastructure for the West Winch Housing scheme near King's Lynn. The contract forms a significant part of the wider GBP122 million project, with design work beginning this year and construction expected to start in 2027. Costain will deliver a new link road connecting the A47 and A10, alongside new roundabouts, a cycle path and the dualling of just under one mile of the A47. The scheme is intended to support the development of up to 4,000 new homes south of King's Lynn. Chief Executive Alex Vaughan says: "This award is built on our long-established highways delivery expertise and our proven track record in delivering best-in-class, value-for-money services for local authorities across the UK."
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OTHER COMPANIES
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Mountview Estates reports a 13% decline in annual pretax profit as higher costs offset broadly stable revenue, while maintaining its total dividend at 525p per share. For the year ended March 31, pretax profit at the London-based real estate developer fell to GBP27.1 million from GBP31.3 million as gross profit declined 8.5% to GBP38.6 million. Revenue edged down 0.4% to GBP71.8 million from GBP72.1 million, while earnings per share fell 13% to 522.1p from 602.5p. Net asset value per share was broadly unchanged at GBP103.2, compared with GBP103.3 a year earlier. The property investor proposed a final dividend of 275p per share, maintaining the total annual payout at 525p. Chief Executive Duncan Sinclair says: "This [UK] government's professed intention is to promote growth but its every move has stifled growth and so it is left to us to try and reduce this negative effect. We have managed to contain our administrative expenses to the extent that there is a modest saving in this expense. Our net finance costs have been reduced by over twenty percent which is in part a reduction in our purchases but to pay too much for our purchases would be a reckless strategy."
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Time Out Group signs a master franchise agreement with Giunina LLC to bring its first Time Out Market to South America, with a Sao Paulo location expected to open in the first quarter of 2027. The media and hospitality company says the market will combine its editorially curated food and culture concept with a locally tailored offering reflecting Sao Paulo's culinary and cultural scene. The agreement is Time Out's second franchise deal following the launch of its franchise model in India in 2025. Giunina, founded by Brazilian hospitality executive Benjamin Ramalho, will be responsible for development and operations, while Time Out will provide strategic support and receive franchise fees and ongoing payments without contributing development capital. Time Out currently operates markets in 13 cities worldwide and has five more locations in development.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
InformaWhitbreadTescoXps PensionsCostain GroupValterra PlatinumAnglo AmericanMountview Est.Time Out