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LONDON BRIEFING: Victrex, SIG name new CEOs; Unite Group backs outlook

8th Jul 2025 07:53

(Alliance News) - Unite Group expects to benefit from a pick-up in UK university student numbers, while building materials firm SIG warned it saw "no notable pick-up in demand" during the first half of 2025.

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 8,797.43

GBP: down at USD1.3629 (USD1.3641 at previous London equities close)

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BROKER RATINGS

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Berenberg starts Just Group with 'buy' - price target 209 pence

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Jefferies reinitiates Flutter with 'buy' - price target 380 USD

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COMPANIES - FTSE 100

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Unite Group hailed "continuing momentum", as the student accommodation provider expects a pick-up in admissions for the upcoming academic year. The owner, manager and developer of student accommodation reiterated 2025 guidance of EPRA earnings per share between 47.5 pence and 48.25p. Unite updated on current trading and quarterly property valuations for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture. The JV is operated alongside GIC, the Singaporean sovereign wealth fund. The USAF property portfolio was independently valued at GBP2.94 billion at the end of June, a 0.6% like-for-like increase over the quarter. The LSAV portfolio was valued at GBP2.09 billion, a 0.7% rise on a like-for-like basis over the quarter. "Student numbers are expected to increase for the 2025/26 academic year due to a growing UK 18-year-old population and improving trends in international student recruitment. Sales momentum has picked up in recent weeks, in-line with our expectations for a later sales cycle, and we continue to target occupancy of at least 97%," said Unite Students Chief Executive Officer Joe Lister said. "Demand for our accommodation remains underpinned by our alignment to the UK's strongest universities and nomination agreements with our university partners." The company said 85% of beds have been sold for 2025/26.

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COMPANIES - FTSE 250

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Polymer solutions provider Victrex said it suffered a "softer than expected performance" in its Medical unit, and saw an unfavourable sales mix in the Sustainable Solutions arm during its third quarter. Victrex said revenue in the third quarter ended June 30 fell 3% on-year to GBP71.5 million. Sales volumes rose 8%, but the average selling price per kilogramme slumped 11%. The company is still targeting for underlying pretax profit in the second half of its financial year to be "slightly improved" on the GBP23.2 million achieved in the first, but cautioned that a continuation of third quarter trends would lead to its bottom line being at a "broadly similar level". "The group is well positioned to deliver at least high single digit volume growth for the full year, in line with guidance, although the remainder of FY 2025 sees a tougher comparative and we are mindful of ongoing macroeconomic uncertainty. At profit level, our range of outcomes reflect the impact of an adverse sales mix in both divisions, a weaker Medical performance and the headwinds from our new China manufacturing facility, as well as a [roughly GBP9 million] currency headwind," CEO Jakob Sigurdsson said. Victrex announced that Sigurdsson plans to step down from the CEO role after eight years. The company announced it has poached the CEO of AB Dynamics to become its next boss. James Routh has "more than 30 years' experience across international companies serving end-markets aligned to Victrex, including transportation, aerospace and defence", Victrex said. "James will succeed Jakob as chief executive. He has signed his service contract, however, a definitive start date has not yet been agreed. A further update on timing will be announced separately, once finalised," Victrex added. AB Dynamics, a supplier of advanced testing, simulation and measurement products, said Routh has a 12-month notice period. He is expected to continue in the CEO role until the company completes a selection process.

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The Competition & Markets Authority said it is considering whether Greencore's buy of Bakkavor may reduce competition in the UK. Greencore in May agreed a GBP1.2 billion takeover of Bakkavor, creating a "leading UK convenience food business". Dublin-based convenience foods maker Greencore will pay 85 pence per share in Bakkavor as part of the consideration. The consideration also includes 0.604 of a new Greencore share per Bakkavor share. Greencore shareholders will own 56% of the combined firm, and shareholders in London-based provider of fresh food Bakkavor will own 44%. Based on Greencore's undisturbed closing price of 190p on March 13, the deal values each Bakkavor share at 200p, and its entire issued and to be issued share capital at roughly GBP1.2 billion. The CMA said Tuesday: "To assist it with this assessment, the CMA invites comments on the transaction from any interested party." The invitation to comment closes on July 22.

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OTHER COMPANIES

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Building materials firm SIG expects to report a slight rise in first half profit but a revenue fall, believing that the European construction market is "at a low point in the cycle". SIG also announced a new chief executive, but will soon be on the hunt for someone new in that position. SIG said revenue in the first half of 2025 fell 1% on-year on a reported basis to GBP1.31 billion. On a like-for-like basis, it rose 1%. Underlying operating profit growth to around GBP15 million, from GBP12 million, is expected. "Demand in all markets remains well below historical levels, and trends in the second quarter were similar to those experienced in Q1, with European construction at a low point in the cycle," SIG said. "The board continues to expect the group to deliver full year underlying operating profit in line with market expectations. Having seen no notable pick-up in demand during the period, the board remains cautious as to the prospect of meaningful market improvement during the second half." SIG puts consensus for underlying operating profit at GBP31.6 million, which would be an improvement from GBP25.1 million in 2024. SIG named Pim Vervaat as its new CEO, taking on the role from the start of October. SIG has exercised its right to place its existing CEO Gavin Slark on garden leave for the remainder of his employment until the end of 2025. Slark in May agreed to join Travis Perkins. Vervaat will transition to the role of non-executive chair around 18 months following the start of his stint as CEO. Andrew Allner will leave the chair position. "At this time Andrew will have served a full term in his role, having been appointed in November 2017. A process to identify Pim's successor as SIG's CEO will be undertaken in advance of this handover," SIG added. Vervaat is currently senior independent director of LED lighting firm Luceco.

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Begbies Traynor reported growth in annual earnings and the professional services consultancy said "activity levels are encouraging". In the year to April 30, pretax profit roughly doubled to GBP11.5 million from GBP5.8 million. Revenue rose 12% to GBP153.7 million from GBP136.7 million. "Looking forward, activity levels are encouraging with positive momentum across the group. We have increased the scale of our teams and market conditions are supportive. We currently expect revenue will be at the upper end of the range of market expectations, with a further year of profit growth in line with expectations, as we continue to invest in growing the business," Executive Chair Ric Traynor said. "Overall, our broad range of advisory services, diversified client base and growth opportunities, underpinned by our robust financial position, gives us confidence in continuing our track record of growth in the new financial year and beyond, progressing towards our medium-term revenue target of GBP200 million." Begbies lifted its final dividend to 2.9 pence per share from 2.7p. Its total dividend was higher at 4.3p from 4.0p. In addition, it announced it will begin a buyback of up to 1.0 million shares, "to mitigate future dilution" from the exercise of share options and deferred consideration obligations.

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By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


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Just GroupFlutter EntertainmentBegbiesSIGBakkavorGreencoreVictrexAB DynamicsUniteLuceco
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