(Alliance News) - SSE raises its dividend and reports results towards the upper end of guidance and Johnson Matthey agrees to buy catalyst firm Cormetech for USD360 million.
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 0.6% at 10,437.91
GBP: lower at USD1.3405 (USD1.3429 at previous London equities close)
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BROKER RATINGS
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Berenberg starts Aviva with 'buy' - price target 800 pence
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Mediobanca raises BAE Systems to 'outperform' - price target 2,600 pence
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COMPANIES - FTSE 100
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SSE says its full-year financial results are towards the upper end of guidance, reflecting "strong operational performance". The Perth, Scotland-based electricity generator says pretax profit falls 0.7% to GBP1.84 billion in the 12 months to the end of March from GBP1.85 billion a year earlier. Adjusted pretax profit sinks 5.6% to GBP2.02 billion from GBP2.14 billion. Revenue climbs 0.5% to GBP10.19 billion from GPB10.13 billion. The company recommends a final dividend of 47.3 pence per share, resulting in a full-year dividend of 68.7p, up 7.0% from 64.2p a year ago. "This year has demonstrated the strength and resilience of SSE's integrated model. We met all our financial and operational targets and delivery of our fully-funded GBP33 billion investment plan to 2030 - focusing on Networks, Renewables and Flexibility - is well under way," says Chief Executive Martin Pibworth. SSE says its "resilient business mix" means there is no immediate impact from macro volatility on its performance outlook. "With record levels of capital investment in line with our plan and strong momentum across the group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK," Pibworth adds. The company reiterates adjusted earnings per share expectations for financial 2027 between 168p and 193p, and between 225p and 250p for financial 2030. In financial 2026, adjusted earnings per share fell 4.8% to 153.5p from 161.3p a year prior.
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COMPANIES - FTSE 250
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Johnson Matthey agrees to buy Cormetech, a North Carolina, US-based manufacturer of selective catalytic reduction catalysts, for an enterprise value of USD360 million. The London-based speciality chemicals and sustainable technologies company says Cormetech's catalysts provide emissions control for stationary power generation and industrial applications. An additional earn-out consideration of up to USD100 million may be payable in 2028 and 2029, if Cormetech achieves certain financial performance targets. The transaction is expected to complete in June or July. Johnson Matthey says pretax profit from continuing operations falls 77% to GBP91 million in the 12 months to the end of March from GBP403 million a year prior. Revenue increases 14% to GBP12.57 billion from GBP11.02 billion. In the previous year, Johnson Matthey made a GBP482 million profit on disposal of businesses, compared to GBP5 million in financial 2026. The company holds its full-year dividend at 77.0p per share. It says its financial 2026 operating profit is in line with previously upgraded guidance. Operating profit from continuing operations falls 65% to GBP161 million from GBP454 million on a reported basis. However, underlying operating profit rises 14% to GBP340 million from GBP299 million. Johnson Matthey says the GBP1.33 billion sale of Catalyst Technologies is on track to complete by the end of August. Net sale proceeds of GBP1 billion will be returned to shareholders after completion. For financial 2027, it expects low-to-mid single digit percentage growth in underlying operating profit at constant precious metal prices and constant currency, excluding Catalyst Technologies and Cormetech. Chief Executive Officer Liam Condon says: "Cormetech will materially enhance the scale of Clean Air Solutions and create a global leader in stationary emissions control, including for the rapidly growing data centre market. Together with the progress we are making on strengthening our core businesses, we are on track to achieve our medium-term targets and deliver enhanced shareholder returns."
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Finsbury Growth & Income Trust says it is seeing "early signs of stabilisation" after a recent "disappointing" performance. The Edinburgh-based investment firm mainly targeting UK companies says net asset value per share falls 15% to 780.3p at the end of March from 923.0p a year prior. The first half NAV per share total return is negative 14%, compared to positive 2.1% a year prior. The company's benchmark, the FTSE all share index, rises by 8.9% over the same period. The firm says it will adopt an enhanced dividend policy from October 1, under which the annual dividend will increase by at least 50% to around 30p per share from 20p. "Going forward, the dividend will be set on a pence per share basis rather than by reference to NAV or share price, providing shareholders with greater clarity and certainty over their income." Finsbury Growth & Income Trust says. Chair Pars Purewal says: "While recent performance has been disappointing, we are seeing early signs of stabilisation and remain firmly committed to the portfolio manager's disciplined, long-term approach focused on high quality businesses with resilient franchises and hard-to-replicate data assets, where we believe AI will prove an enhancer of value rather than a threat. Against a backdrop of compelling UK valuations, our confidence in the company's prospects is growing, and the board remains committed to doing whatever it takes to improve shareholder outcomes through disciplined investing, active balance sheet management, an enhanced dividend policy and careful discount management."
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Fattal Hotel confirms a GBP930 million takeover offer for PPHE Hotel Group. On Wednesday, PPHE Hotel said it has received a GBP22 per share acquisition offer from Tel Aviv-based Fattal. The announcement comes after the Guernsey-registered operator of Park Plaza and art'otel hotels launched a strategic review and formal sale process in November, appointing Rothschild & Co as financial advisor. PPHE said the offer from Tel Aviv-based Fattal represents a fair value. PPHE said it now intends to engage with the major shareholders to assess the deliverability of the proposal. On Thursday, Fattal says it is willing to maintain the proposal to allow for "constructive engagement" with the PPHE board, with a view towards announcing a firm offer within the next four weeks.
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OTHER COMPANIES
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Property Franchise Group says it continues to trade in line with the board's expectations. Ahead of Thursday's annual general meeting, the Bournemouth, England-based property franchisor says it expects the UK Renters' Rights Act to "increase the regulatory and operational burden on self-managed landlords", which should create a "meaningful opportunity" for it and other operators. "The group is already seeing encouraging levels of enquiries from self-managed landlords seeking support with compliance and property management, and the board believes this represents an attractive medium-term growth opportunity for the group's franchise network," it says. The company says it "remains encouraged" by strategic opportunities through the development of the platform model. "The board remains confident in the group's long-term positioning and its ability to deliver on strategic opportunities, whilst continuing to adopt a measured and disciplined approach in light of the broader macroeconomic environment," it adds.
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By Michael Hennessey, Alliance News reporter
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