Mobico Q1 revenue rises, Diageoo reiterates full-year guidance
By Josh White
Date: Monday 19 May 2025
(Sharecast News) - London open
The FTSE 100 is expected to open 24 points lower on Monday, having closed up 0.59% on Friday at 8,684.56.
Stocks to watch
Troubled bus and rail operator Mobico on Monday reported a 9% rise in first-quarter revenues, driven by a strong performance in Spain, while the UK and Germany reported declines. Revenue from the ALSA division in Spain surged by 13%, while the UK and Germany were down 2% and 3% respectively. North America, where the group is offloading its school bus operations, rose 13%.
Drinks giant Diageo reiterated guidance for full-year organic sales and operating profits after a solid pickup in underlying growth in the third quarter. Organic net sales increased by 5.9% in the three months to 31 March, compared with a 1.0% increase in the first half, though this was mainly a result of "significant phasing benefits" which are expected to reverse in the fourth quarter. The company also gave its first financial estimate of the impact of tariffs on its business, calculating a $150m hit on an annualised basis before any mitigation measures.
A takeover vehicle backed by KKR and Stonepeak reaffirmed its recommended all-cash offer for Assura on Monday, arguing it provided greater certainty, immediate liquidity, and superior long-term growth prospects compared to the rival share-and-cash bid from Primary Health Properties (PHP). It criticised PHP's offer for introducing high leverage of 55% loan-to-value, as well as reliance on asset disposals, elevated refinancing costs, and significant execution risks including potential scrutiny from the UK competition regulator. The potential suitor said its proposal offered Assura shareholders a cleaner exit amid market volatility, while enabling Assura to accelerate its growth through private capital.
Newspaper round-up
Santander UK is freezing salaries, slashing bonuses and cutting jobs across its commercial banking arm as part of a wider shake-up that could help make the bank more attractive to potential buyers. The bank began unexpectedly changing bankers' job titles and shuffling staff into new teams earlier this month amid a larger review of the Spanish lender's UK business, where there is mounting frustration over regulations and costs. - Guardian
The chancellor, Rachel Reeves, could be forced to spend more than £5bn and employ 92,000 extra workers across the public sector if declines in productivity continue until 2030, according to analysis of official figures. The Centre for Economics and Business Research (Cebr), an economic consultancy, said more workers would be needed by the end of the decade to achieve the same level of service, after a decline last year in the amount produced each hour by the average public sector worker. - Guardian
The former head of GCHQ has joined the board of an Oxford quantum computing start-up as Britain vies with China and the US for an edge developing the cutting-edge supercomputers. Oxford Quantum Circuits (OQC) has appointed Sir Jeremy Fleming, who led the spy agency until 2023, as a director. The start-up has raised more than £100m to build a fleet of advanced quantum computers, some of which are already being tested by customers. - Telegraph
Creditors of Thames Water are braced to write off £6 billion, or one third, of its debt if KKR successfully takes control of the company. Additionally, according to informed sources, creditors will only be able to swap their debt for new equity in the troubled regional water monopoly if they are prepared to inject more cash. - The Times
The government is being urged to consider leaning on Britain's £150 billion foreign exchange reserves to prevent deep cuts in overseas aid to low-income countries threatened by the withdrawal of US funding. A group of Labour MPs wants the government to maintain its commitment of nearly £2 billion to the World Bank's International Development Association, a facility for poor countries, which is in the line of fire as the UK cuts its foreign aid budget. - The Times
US close
US stock markets finished out a strong week in solid fashion, with all three Wall Street benchmarks putting in decent gains as investors shrugged off gloomy economic data to focus on an improving trade outlook.
The Dow finished 0.8% higher, the S&P 500 gained 0.7% while the Nasdaq rose 0.5%, despite data on US consumer confidence, building permits and housing starts all missing market forecasts.
The three benchmark indices have gained 3.4%, 5.3% and 7.2% over the past five trading sessions, respectively, with sentiment boosted by last weekend's agreement between the US and China to lower tariffs for 90 days as the two powerhouses continue trade negotiations.
Meanwhile, billion-dollar AI deals between Saudi Arabia and several American chip and server manufacturers have given markets an extra boost, as president Donald Trump continued his tour of the Middle East.
"This week, investors welcomed the easing of US-China trade tensions, which significantly reduced fears of a global recession," said Patrick Munnelly, partner of market strategy at Tickmill Group.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN