28th Oct 2026 07:56
(Alliance News) - GSK reports a fall in third-quarter profit despite higher revenue, while Unilever upgrades its full-year volume growth outlook. Aston Martin narrows its third-quarter loss as revenue jumps, driven by deliveries of its Valhalla supercar.
Investors also await Chancellor John Healey's UK budget later today, with the government's plans for taxation, spending and economic growth in focus.
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 0.1% at 10,676.34
GBP: lower at USD1.3280 (USD1.3307 at previous London equities close)
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ECONOMICS
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The UK Treasury says standing charges on gas bills will be scrapped for around 23 million households in 2027 or as soon as possible thereafter, under plans to be outlined in Chancellor John Healey's budget. The fixed daily charges currently cost a typical household around GBP108 annually, regardless of gas consumption. Healey will ask energy regulator Ofgem to remove the charges, with fixed costs instead incorporated into unit rates. The Treasury estimates the change could save 60% of households an average of GBP45 a year. Prime Minister Andy Burnham says the move will make energy bills fairer and give consumers greater control over their costs.
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BROKER RATINGS
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Shore Capital raises HSBC Holdings to 'hold' (sell) - price target 1,380 (1,335) pence
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Berenberg cuts Johnson Matthey to 'hold' (buy) - price target 2,550 (2,300) pence
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COMPANIES - FTSE 100
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GSK reports a 21% fall in third-quarter pretax profit to GBP1.94 billion from GBP2.46 billion a year earlier, despite revenue rising 4.0% to GBP8.89 billion from GBP8.55 billion. The pharmaceutical company says operating profit falls 18% to GBP2.13 billion from GBP2.59 billion, reflecting restructuring charges of GBP328 million and lower other net operating income. Core operating profit rises 3.0% to GBP3.08 billion, supported by strong Specialty Medicines sales, which increase 15% at constant exchange rates to GBP3.9 billion. Vaccines sales fall 2.0% to GBP2.6 billion. GSK maintains its full-year guidance for revenue growth of 3.0% to 5.0% and core operating profit and earnings per share growth of 7.0% to 9.0%, all at constant exchange rates. It expects revenue and core operating profit growth towards the upper half of their respective ranges, but core EPS growth towards the lower half. GSK declares a third-quarter dividend of 17p per share and continues to expect a full-year payout of 70p. Chief Executive Officer Luke Miels says: "GSK has delivered another strong quarter, with our key growth drivers and new launches performing well. We remain focused on operational delivery, execution and accelerating R&D. Over recent months we have received 3 new specialty medicine approvals in the US."
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Unilever upgrades its full-year 2026 outlook for underlying volume growth to at least 3.0%, following strong third-quarter trading. The consumer goods group reports turnover in the third quarter up 6.7% to EUR13.3 billion, with underlying sales growth of 5.2%, comprising volume growth of 2.9% and price growth of 2.3%. Home Care leads performance with underlying sales growth of 9.1%, followed by Personal Care at 6.3% and Beauty & Wellbeing at 5.7%, while Foods remains broadly flat. Emerging markets deliver underlying sales growth of 9.5%, offsetting a 0.9% decline in developed markets. Unilever continues to expect full-year underlying sales growth of 4.0% to 6.0% and modest improvement in its underlying operating margin from 20% in 2025. It says the planned combination of its Foods business with McCormick remains on track and declares a quarterly dividend of EUR0.4664 per share, up 3.0% year-on-year. Unilever declares a third-quarter dividend of EUR0.4664 per share, unchanged from the second quarter and up 3.0% year-on-year. CEO Fernando Fernandez says: "We are performing while transforming Unilever. We are becoming simpler and sharper, with greater focus and stronger execution as we drive 'Desire at Scale' across our brands. This progress gives us confidence that we will now deliver at least 3% volume growth for the full year."
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Intertek Group reports third-quarter revenue growth of 7.0% at constant currency to GBP941.8 million, with like-for-like growth of 6.4%. The testing, inspection and certification company says revenue for the first nine months of 2026 rises 6.4% at constant currency to GBP2.71 billion, including 5.4% like-for-like growth. Intertek maintains its full-year outlook for mid-single-digit like-for-like revenue growth, margin improvement, strong earnings growth and cash generation. It also says its proposed acquisition by EQT remains on track to complete in the fourth quarter of 2026 or first quarter of 2027, subject to outstanding regulatory approvals.
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COMPANIES - FTSE 250
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Plus500 launches Kalshi perpetual futures contracts through its US Futures Commission Merchant business, becoming the first FCM outside Kalshi Prime to offer the products on the US-regulated exchange. The trading platform operator says the contracts, which have no expiration date, are available across its business-to-business and business-to-business-to-consumer channels, covering cryptocurrencies, commodities and indices. Plus500 will provide execution, clearing and risk management services through its proprietary technology infrastructure. The launch builds on its existing partnership with Kalshi in prediction markets and forms part of its strategy to expand its US operations and product offering.
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Hunting cuts its full-year 2026 adjusted Ebitda guidance to USD128 million to USD133 million, citing disruption from the ongoing Middle East conflict, slowing activity in North America and supply chain issues affecting its Advanced Manufacturing business. The precision engineering group reports year-to-date Ebitda of approximately USD89 million, representing a margin of around 12%. Hunting says reduced drilling activity in Saudi Arabia and logistical disruption across the Middle East are weighing on its Hunting Titan and Asia Pacific operations, although its Subsea Technologies business continues to perform strongly. Net borrowings narrow to around USD11 million at September 30 from USD19 million at June 30. The company expects full-year capital expenditure of USD35 million to USD45 million and anticipates a decision on the Kuwait Oil Company re-tender before year-end, with shipments expected to begin in the second half of 2027.
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Elementis raises its full-year 2026 adjusted operating profit guidance to USD133 million to USD135 million, slightly above its previous expectations and in line with the latest company-compiled analyst consensus of USD134.7 million, up from USD132.5 million at the half-year stage. The specialty chemicals company reports revenue growth of 7.0% on an organic constant currency basis to USD479 million in the nine months to September 30, driven by strong Personal Care performance, continued momentum in Asia and improving trading in the Americas. Its Coatings division benefits from strong demand in Energy and operational improvements at its St Louis plant. Elementis expects fourth-quarter revenue to be lower than in the third quarter, which benefited from earlier-than-anticipated customer orders, but remains on track for further progress in the second half.
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OTHER COMPANIES
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Aston Martin Lagonda Global Holdings narrows its third-quarter pretax loss to GBP77.1 million from GBP111.9 million a year earlier, as revenue jumps 36% to GBP388.7 million from GBP285.2 million, driven by deliveries of its Valhalla supercar. The luxury carmaker's operating loss narrows to GBP26.4 million from GBP56.1 million, while adjusted Ebitda rises to GBP69.9 million from GBP10.7 million. Wholesale volumes remain broadly flat at 1,431 vehicles, including 127 Valhalla deliveries. For the first nine months, revenue rises 38% to GBP1.02 billion, while the pretax loss narrows to GBP231.3 million from GBP252.7 million. Free cash outflow improves to GBP225.2 million from GBP415.0 million, although net debt increases to GBP1.57 billion from GBP1.38 billion a year earlier. Aston Martin maintains its full-year guidance, expecting wholesale volumes broadly in line with 2025, gross margin in the high 30s% and adjusted operating margin to improve towards breakeven. CEO Adrian Hallmark says: "Our year-to-date 2026 performance demonstrates tangible and consistent progress towards the financial transformation of Aston Martin. Valhalla deliveries, and the benefits of our transformation programme, have lifted gross margin to 35%, while free cash outflow almost halved as we move towards our goal of cash generation. We expect this momentum to continue into Q4 and beyond, in line with our unchanged full year 2026 guidance and outlook."
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Renew Holdings acquires Porter Brothers Holdings Ltd, parent company of PBU (UK) Ltd, for up to GBP50 million on a cash and debt-free basis, strengthening its position in the UK electricity transmission and distribution market. The engineering services group pays an initial GBP31.1 million in cash, funded through existing banking facilities, with a further GBP18.9 million contingent on the business meeting profit targets over three years. PBU specialises in extra-high-voltage cabling and directional drilling services, with sustainable earnings before interest and tax of GBP3.9 million and Ebitda of GBP5.5 million. Renew expects the acquisition to be immediately earnings enhancing and says it will expand its ability to capitalise on GBP50 billion to GBP60 billion of committed investment in UK electricity networks.
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Zegona Communications PLC proposes transferring its London listing from the equity shares category to the equity shares category, making it eligible for consideration for inclusion in the FTSE UK index series, including the FTSE 100 and FTSE 250. The telecommunications investment company, which acquired Vodafone Spain in 2024, says the move could improve share liquidity, attract passive investment flows and increase its visibility among investors. Zegona has applied to the Financial Conduct Authority for the transfer to take effect on November 25, with potential index inclusion at the March 22, 2027 rebalance, subject to eligibility requirements. The company says it has an enterprise value of approximately EUR8 billion and has returned EUR1.6 billion to shareholders since acquiring Vodafone Spain.
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By Eva Castanedo, Alliance News senior economics reporter
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Related Shares:
Renew HoldingsAston Martin LagondaElementisHuntingPlus500Intertek GroupUnileverGlaxosmithklineZegona ComJohnson MattheyHSBC Holdings