20th Mar 2026 07:57
(Alliance News) - UK public sector borrowing grew on-year last month to nearly a new record for February, Unilever confirms takeover talks with McCormick for its Foods business, while JD Wetherspoon warns its profit may miss current market expectations.
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 10,116.40
GBP: higher at USD1.3426 (USD1.3367 at previous London equities close)
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ECONOMICS
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UK public sector borrowing grew on-year last month to nearly a new record for February. According to the Office for National Statistics, net borrowing amounted to GBP14.33 billion in February, widened from GBP12.13 billion a year prior and swung from a surplus of GBP31.86 billion in January 2026. It was the second-highest February borrowing figure since monthly records began in 1993, and was only behind GBP15.48 billion in 2021, in the midst of the Covid 19 pandemic. Borrowing in the fiscal year-to-date totalled GBP125.9 billion, down 8.7% over the same 11-month period a year ago, but still the fourth-highest April to February borrowing on record. Borrowing in the fiscal year to February 2026 was provisionally estimated at 4.1% of gross domestic product, down 0.6 percentage point from the same period a year ago. The ONS said borrowing rose in February from last year due to the timing of central government debt interest payable. Public sector net debt excluding public sector banks was provisionally estimated at 93.1% of GDP at the end of February 2026, and remains at levels last seen in the early 1960s, the ONS said.
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BROKER RATINGS
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HSBC raises BP to 'hold' (reduce) - price target 565 (430) pence
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RBC cuts Antofagasta to 'underperform' (sector perform) - price target 2,800 (3,600) pence
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COMPANIES - FTSE 100
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Unilever confirms it has received an offer for its Foods business and is in discussions with US-based spice and seasoning manufacturer McCormick & Co. It notes there can be no certainty a transaction will be agreed. "The board believes Foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the Foods business as part of Unilever," Unilever says. On Tuesday, Bloomberg reported the firm is in the early stages of considering a separation of its food assets. On Wednesday, the Financial Times reported talks between Unilever and Kraft Heinz to discuss the possible merger of their food brands. The talks, which have now ended, were about a merger of Unilever's food business with Kraft Heinz's condiments division, the newspaper said, citing "people familiar with the talks".
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Smiths Group raises its interim dividend but reports lower earnings for the first half of its financial year. The engineering firm says pretax profit falls 17% to GBP126 million in the six months to the end of January from GBP152 million a year prior. Revenue edges down 1.0% to GBP915 million from GBP924 million. Smiths says, in addition to the 2026 GBP1 billion share buyback underway, a further GBP1.5 billion will be returned to shareholders via a structured return and share buyback through the 2027 calendar year, after completion of the sale of Smiths Detection. It raises its interim dividend to 15.00 pence per share, up 5.4% from 14.23p a year prior. Looking ahead, the firm says it expects organic revenue growth between 3% and 4% in financial 2026, with second half growth within the 5% to 7% target range and an operating profit margin of around 20%. "2026 is a significant year of progress as we reposition Smiths towards higher growth and higher returns markets. We delivered increased momentum in the second quarter, and our strong order book supports an improved second-half performance," says Chief Executive Officer Roland Carter.
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COMPANIES - FTSE 250
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JD Wetherspoon warns its full year profit may be "slightly below" current market expectations. The Watford, England-based pub chain says pretax profit falls 37% to GBP26.0 million in the six months to January 25 from GBP41.3 million a year prior. Revenue rises 5.7% to GBP1.09 billion from GBP1.03 billion, while like-for-like sales are up 4.8%. Basic earnings per share drop 33% to 18.7 pence from 27.8p. JD Wetherspoon maintains its interim dividend at 4.0p per share. The firm says like-for-like sales in the seven weeks to March 15 climb 2.6%. As previously reported, the pub chain says national insurance and labour rate rises will increase costs by around GBP60 million per year. "There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry," says Chair Tim Martin. "This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged."
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OTHER COMPANIES
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CAB Payments says a takeover proposal from StoneX "significantly undervalues" the firm and its future prospects. The firm's independent board says it has rejected the possible offer from StoneX of around 95 pence per share. The offer trumped a USD1.15, around 85p, per share offer from the Helios consortium, led by London-based private equity firm Helios Investment Partners, which CAB Payments rejected, calling it "highly opportunistic". CAB Payments says in evaluating the StoneX offer, it has taken into account the "significant improvement" in its financial and operational performance in 2025 as well as its medium-term financial guidance.
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By Michael Hennessey, Alliance News reporter
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BPAntofagastaUnileverSmiths GroupWetherspoon (J.D)Cab Payments