10th Jun 2026 07:59
(Alliance News) - WH Smith lowers its profit guidance for a second time, Workspace Group cuts its dividend and swings to a full-year loss while Vodafone agrees to form a fibre joint venture in Greece.
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 0.1% at 10,241.73
GBP: higher at USD1.3394 (USD1.3381 at previous London equities close)
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BROKER RATINGS
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Exane BNP reinitiates Mondi with 'underperform' - price target 660 pence
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COMPANIES - FTSE 100
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Vodafone Group agrees to form a 50-50 joint venture with Athens-based Public Power Corp, comprising their respective fibre to the home networks and wholesale fibres businesses in Greece. The joint venture's fibre businesses currently cover over 1.6 million homes in Greece. Berkshire, England-based telecommunications provider Vodafone says the joint venture would intend to provide wholesale open access to internet service providers in Greece. Formation of the joint venture is subject to the completion of due diligence, agreement on binding transaction documentation and is subject to regulatory approval. There is no certainty at this stage that a transaction will be agreed, Vodafone says.
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Tritax Big Box REIT says a decision from the UK government on planning at its data centre at Manor Farm, Heathrow, is now expected on or before July 7. The real estate investment trust investing in logistics properties in the UK notes that the government has designated data centres as critical national infrastructure, and says the scheme "strongly supports" the UK's digital strategy. Tritax says the probability of securing planning consent remains unchanged and it will continue to update shareholders as the process progresses.
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COMPANIES - FTSE 250
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WH Smith lowers its outlook due to "ongoing uncertainty" and proposes a placing to strengthen its capital position. The Swindon, England-based travel retailer now expects to deliver headline pretax profit before non-underlying items of between GBP75 million and GBP90 million, down from April's guidance for between GBP90 million and GBP105 million. Before that, earlier guidance was for between GBP100 million and GBP115 million. The company says it is making good progress on restructuring plans. Revenue in the 14 weeks to June 6 rises 5% on a constant currency basis, with like-for-like revenue up 2%. WH Smith says its expectations for the full year "reflect the observed and anticipated decline in passenger numbers and weakening consumer demand across all divisions". It also notes a reduction in brand marketing, higher promotional activity and inflation headwinds across the group. "The group assumes no near-term improvement in consumer confidence and that jet fuel supplies can be maintained," it says. WH Smith proposes a capital raise, including a non-pre-emptive placing, of up to around 26 million new shares, representing 20% of share capital. The placing will be through an accelerated bookbuild. The placing includes both existing shareholders and new institutional investors, a subscription by certain directors and members of management and a separate retail offer. Executive Chair Leo Quinn says: "There is no doubt that current economic uncertainty and its effect on consumer appetite for spending has created headwinds. In this environment, sorting legacy issues while investing in the core model requires the financial flexibility of a stronger balance sheet in lock-step with self-help. This placing is a prudent and proactive step to accelerate our transformation of what is, at heart, a good business with some great people and clear opportunity for profitable growth."
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Workspace Group cuts its dividend as full-year earnings fall. The London-based flexible workspace provider swings to a pretax loss of GBP120.5 million for the 12 months to the end of March from a GBP5.4 million profit a year earlier. Revenue is down 2.1% at GBP181.4 million from GBP185.2 million. The firm records a GBP159.2 million loss in fair value, widened from a GBP55.9 million loss in the previous year. Workspace lowers its final dividend to 16.7 pence per share, down 12% from 19.0p a year ago. This takes the full year payout to 26.1p per share, down 8.1% from 28.4p The firm's property valuation falls 7.0% to GBP2.13 billion at the end of March from GBP2.37 billion. Net rental income is down 7.1% to GBP113.4 million, while underlying net rental income falls 2.4% to GBP109.9 million. "Our focus is on earnings through disciplined execution, driving higher occupancy with pricing growth while controlling costs. We believe this is the best strategy to maximise income and capital returns for shareholders and our ambition is to deliver, organically, trading profit before interest of over GBP125 million per annum in the medium term," says Chief Executive Officer Charlie Green. "We will also explore further opportunities to better leverage our platform for growth and generate accretive value for shareholders."
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Water utility company Pennon reports a swing to a pretax profit of GBP114.4 million in the financial year ended March 31, from a loss of GBP72.7 million a year prior. Underlying earnings before interest, tax, depreciation and amortisation improve by 55% to GBP519.2 million from GBP335.6 million. Revenue grows 23% to GBP1.29 billion from GBP1.05 billion. It ups its final dividend by 3.1% to 20.03p, bringing the total payout to 29.29p, down 7.2% from 31.57p. Looking ahead, the company says it is "well positioned to deliver for customers, communities, and the environment in the years ahead". Chief Executive Officer Keith Haslett says: "As Pennon enters a new era under my leadership, it does so on the back of a return to profitability and the mobilisation of our AMP8 investment plan. However, it is clear that there is more work to do, and improving operational discipline and capital delivery will be important to meet the commitments we have made and the standards we aspire to achieve in the future."
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OTHER COMPANIES
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EnQuest says it has agreed to buy interests in four offshore production sharing contracts in Malaysia via a reverse takeover, which would see its production more than double in size. The oil and gas company with operations in the UK and Malaysia says the proposed acquisition will see it inter three separate farm-out agreements with Petronas Carigali and E&P Malaysia Venture. The maximum total consideration is USD833 million, of which USD554 million is payable on completion, which is expected on December 31. Pre-emption rights for package two of three give existing production sharing contract partners the right to match the proposed terms for the acquisition. EnQuest says the proposed acquisitions would deliver a step change in its production, reserves and cash flow, as well as providing "significant organic opportunities" for future growth. The consideration is expected to be funded by its existing debt facilities and cash resources. Production for the enlarged group would rise to over 100,000 barrels of oil equivalent per day, more than double 2025 production. It has the potential to deliver the 100,000 boepd rate through the end of the decade, EnQuest adds. 2P reserves would rise around 85% from 2025 levels to around 300 million barrels of oil equivalent. 2C resources would be up around 46% to 660 million boe. "With these proposed acquisitions, we are taking a decisive step in the evolution of our business. It reflects our clear focus on building a larger, more diversified portfolio, while maintaining our discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term shareholder returns," says Chief Executive Officer Amjad Bseisu.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
MondiVodafoneTritax Big BoxWh SmithWorkspaceEnquestPennon