4th Feb 2026 07:58
(Alliance News) - Beazley agrees to takeover terms for a GBP8.0 billion takeover by Zurich Insurance, while GSK reports "another strong performance" helped by its Specialty Medicines arms.
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 0.2% at 10,331.79
GBP: higher at USD1.3712 (USD1.3695 at previous London equities close)
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BROKER RATINGS
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JPMorgan raises Berkeley Group to 'overweight' (neutral) - price target 5,000 (4,700) pence
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Jefferies cuts Energean to 'underperform' (hold) - price target 680 (930) pence
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Goldman Sachs cuts Harbour Energy to 'sell' - price target 200 pence
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COMPANIES - FTSE 100
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Beazley agrees to a takeover offer from Zurich Insurance which values it at around GBP8.0 billion. Zurich offers 1,310 pence per share in cash before allowed dividends, which take the total value for the insurer up to 1,335p per share. If the permitted dividend is declared and paid in full, the total value of the takeover would be at a 63% premium to Beazley's market capitalisation before the takeover process began in January. The firms say the transaction would establish a leading, global specialty platform with around GBP15 billion of gross written premiums. The board of Beazley says it is minded to recommend the offer to shareholders, should Zurich give a firm intention to make an offer on these terms. "Zurich looks forward to commencing its confirmatory due diligence on Beazley and working with Beazley towards a binding offer announcement," it says. Zurich has until February 16 to announce a firm intention to make an offer for Beazley.
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GSK says it delivered "another strong performance" in 2025, driven mainly by its Specialty Medicines arm. The London-based pharmaceuticals company reports turnover of GBP32.67 billion for 2025, up 4.1% from GBP31.38 billion a year prior. Pretax profit more than doubles to GBP7.41 billion from GBP3.48 billion, as cost of sales falls 0.3% to GBP9.02 billion from GBP9.05 billion. Selling, general & administrative costs were 18% lower at GBP9.09 billion from GBP11.02 billion, while research & development costs increase 18% to GBP7.53 billion from GBP6.40 billion. GSK says Specialty Medicines sales rose 17% to GBP13.5 billion, while Respiratory, Immunology & Inflammation sales jump 18% to GBP3.8 billion. Oncology sales rise 43% to GBP2.0 billion and HIV sales increase 11% to GBP7.7 billion. GSK says Vaccines sales rise 2% to GBP9.2 billion, with shingles vaccine sales up 8% and meningitis 12% higher. Influenza vaccine sales are down 24%. The firm declares a fourth quarter dividend of 18 pence per share, up from 16p a year prior. The total 2025 dividend is 66p, up from 61p in 2024. GSK adds that it expects a 70p per share dividend for 2026. GSK says it has so far bought back GBP1.4 billion worth of shares as part of its GBP2 billion buyback programme. Looking ahead, GSK expects turnover growth between 3% and 5% in 2026, with core operating profit and core earnings per share growth between 7% and 9%. GSK expects sales of more than GBP40 billion in 2031. "GSK delivered another strong performance in 2025, driven mainly by Specialty Medicines, with double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology and HIV. Good R&D progress also continued, with five major product approvals achieved and several acquisitions and new partnerships completed to strengthen the pipeline further in oncology and RI&I," says Chief Executive Officer Luke Miels. "We expect this positive momentum to continue in 2026, which will be a key year of execution and operational delivery with strong focus on commercial launches and accelerating R&D."
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SSE expects financial 2026 adjusted earnings per share between 144 pence and 152p, due to a "strong operational performance" against mixed weather conditions. It says previously reported Business Unit operating profit expectations remain unchanged. The Perth, Scotland-based electricity generator says the regulated networks business delivers a 64% increase in investment compared to the first nine months of the last financial year, as strategic delivery accelerates. Generation output from SSE Renewables over the first nine months of the financial year ending in March is 7% higher than the same period in the prior year. "We are encouraged by recent steps from government and regulators - from positive signals on the upcoming transmission price control to the success of AR7 and updated ambitions for offshore wind - which highlight the value of SSE's integrated business model and will ultimately help deliver a cleaner, secure and more affordable energy system," says Chief Financial Officer Barry O'Regan.
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COMPANIES - FTSE 250
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Watches of Switzerland Group says trading throughout the third quarter was "strong" and consistent with trends in the first half of the year. The Leicester, England-based watch and jewellery retailer says sales growth in the third quarter to January 25 is ahead of expectations, while demand continues to outstrip supply for key luxury brands in the UK and US. "The US delivered sustained broad-based growth across categories, brands and price points, reflecting the strength of client demand and the effectiveness of the group's operating model," Watches of Switzerland says. It raises expectations for sales growth in constant currency to between 9% and 11% from between 6% and 10% previously. Earnings before interest and tax margin guidance is adjusted to between 70 and 90 basis points lower, from between flat and 100 basis points lower previously. "I am pleased to report another period of strong performance, building on the sales momentum established in the first half and reflecting strong trading over the holiday period," says Chief Executive Officer Brian Duffy. "Looking ahead we remain focused on further cementing our market position across both the US and UK, underpinned by our differentiated model, long-standing brand partnerships and disciplined execution."
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OTHER COMPANIES
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GlobalData confirms plan to transfer to the Main Market of the London Stock Exchange from the AIM market. The London-based data analytics and consultancy says it will move to the Commercial Companies category of the Official List of the Financial Conduct Authority. It expects that admission will take place on March 5, with the last day of trading on AIM on March 4. It notes that admission remains subject to a number of conditions, including the approval by the FCA of a prospectus, but it is not conditional on shareholder approval.
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Ryanair says passenger numbers climb 2.4% to 12.7 million in January from 12.4 million a year ago, while the load factor remains at 91%. On a rolling 12-month basis, passenger numbers rise 4.8% to 206.9 million from 197.4 million. The load factor is unchanged at 94%. The airline says it operated almost 73,000 flights in January.
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By Michael Hennessey, Alliance News reporter
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Berkeley GroupEnergean Oil & GasHarbour EnergyBeazleyGlaxosmithklineSSEWatches SwitzRYA.LGlobalData