24th Oct 2025 07:56
(Alliance News) - NatWest Group upgraded its 2025 guidance after reporting a strong third-quarter profit rise, while GSK secured US approval for its multiple myeloma drug Blenrep.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called higher 0.1% at 9,585.47
GBP: higher at USD1.3328 (USD1.3323 at previous London equities close)
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ECONOMICS
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UK retail sales rise 0.5% month-on-month in September, beating expectations for a 0.2% fall and extending a four-month run of growth, according to the Office for National Statistics. Sales increase 0.9% in the three months to September compared with the previous quarter and are 1.5% higher year-on-year, though still 1.6% below pre-pandemic levels. The ONS says warmer weather boosted clothing sales, while online and mail-order demand remained strong, with non-food store sales up 0.9% and online volumes reaching their highest since February 2022. Online spending climbs 1.4% on the month and 5.6% annually, accounting for 28% of total retail sales.
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BROKER RATINGS
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Peel Hunt raises WH Smith to 'buy' (hold) - price target 800 (755) pence
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RBC raises Kingfisher to 'outperform' (sector perform) - price target 350 (320) pence
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COMPANIES - FTSE 100
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NatWest Group reports "strong" third-quarter results, with operating pretax profit in the three months ended September 30 up 30% year-on-year to GBP2.18 billion from GBP1.67 billion, supported by higher income and improved margins. Total income rises 15% to GBP4.33 billion from GBP3.74 billion, including net interest income of GBP3.27 billion, up 13% from a year earlier, and above Visible Alpha consensus of GBP3.20 billion, and a net interest margin of 2.37%, compared with 2.18% a year prior. Total income excluding notable items grows 10% to GBP4.17 billion. Impairment losses narrow to GBP153 million from GBP245 million, while litigation and conduct costs drop sharply to GBP12 million from GBP41 million. NatWest's return on tangible equity climbs to 22.3% from 18.3% a year earlier, and its common equity tier 1 ratio strengthens to 14.2% from 13.6%. Assets under management and administration rise 8.1% in the quarter to GBP56.0 billion, driven by strong client net inflows. The bank upgrades its 2025 guidance, now expecting income excluding notable items of around GBP16.3 billion, up from GBP16 billion previously, and a return on tangible equity of above 18%. Chief Executive Paul Thwaite says performance remains strong, underpinned by "healthy levels of customer activity" and ongoing simplification to support growth and efficiency.
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GSK secures US Food & Drug Administration approval for Blenrep, belantamab mafodotin-blmf, in combination with bortezomib and dexamethasone to treat adults with relapsed or refractory multiple myeloma after at least two prior lines of therapy. The decision is based on phase III Dreamm-7 trial data, which showed a 51% reduction in the risk of death and a tripling of median progression-free survival to 31.3 months versus 10.4 months for a daratumumab-based regimen. Chief Scientific Officer Tony Wood says the approval marks "another significant milestone," offering the only anti-BCMA therapy available in community settings where 70% of patients receive care. GSK introduces a streamlined risk management programme to ease patient access and is advancing additional trials to evaluate Blenrep in earlier treatment lines, with long-term survival data expected in 2028.
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COMPANIES - FTSE 250
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JTC extends its 'put up or shut up' deadline for prospective bidders Permira and Warburg Pincus to 1700 GMT on November 7, with the UK Takeover Panel's consent under Rule 2.6(c). The trust and corporate services group says talks with both parties are ongoing following prior preliminary, non-binding approaches to acquire the entire share capital. JTC reiterates there is no certainty a firm offer will be made.
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VinaCapital Vietnam Opportunity Fund reports a disappointing performance for the financial year ended June 30, with a net asset value total return of negative 2.2% in USD, compared with a positive 7.8% the year before. NAV per share falls 4.0% to USD7.13 from USD7.43, while the share price declines 7.8% to USD5.77. The fund posts a loss per share of 33 US cents, compared with earnings of 47 cents in the prior year, though it maintains its annual dividend at 14.5 US cents per share. Manager VinaCapital Investment Management says "Although the results for the year might be a disappointment, performance in the first three months of the current financial year has shown a substantial improvement with the NAV per share up by 12.4% and the share price improving by 13.3%, both in USD terms."
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OTHER COMPANIES
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Pan African Resources expects its shares to start trading on the main board of the London Stock Exchange from Friday. The Rosebank-headquartered gold producer also said on Friday it expects shares to be admitted to the equity shares category of the official list maintained by the UK Financial Conduct Authority from Friday. The company first announced its plan to move its listing to the main board of the LSE early last month. Back then, it indicated that the listing transfer does not intend to raise any funds or offer any new securities. Pan African Resources ends its presence on the AIM Market of the LSE, where is has been listed since 2007. The junior gold producer has said it believes that the proposed move to the Main Market could enhance its corporate profile and broaden its access to a wider pool of UK and global investors, supporting its next phase of growth.
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Revel Collective launches a strategic review and formal sale process after what it calls a "continued period of external challenges" affecting trading. The bar and pub operator, which owns the Revolution, Revolucion de Cuba and Peach Pubs brands, says first-quarter group revenue fell 7.4% year-on-year on a like-for-like basis to GBP26.3 million, with bar sales down 11%. Despite cost-cutting measures, the group says changes in the UK autumn budget – including higher national insurance, minimum wage and spirits duty – have cost over GBP4 million annually. Revel expects a significant profit contribution from the festive trading period but warns it will need additional funding early in 2026 to stay within banking limits. The company, advised by Cavendish and FTI Consulting, says it is considering a range of options including a sale of the business or its brands, though it is not currently in talks with any potential offeror.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
NatwestJtc PlcGlaxosmithklineVinaCapital Vietnam Opportunity FundPan African ResourcesThe Revel CollectiveWh SmithKingfisher