LONDON BRIEFING: BAT on track as British Land names new CEO

Tue, 02nd Jun 2026 07:58

(Alliance News) - British American Tobacco says it remains on track to meet full-year guidance, British Land appoints a new chief executive, and Elementis completes the sale of its pharmaceutical manufacturing business and unveils plans for a roughly USD35 million share buyback.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called 0.4% higher at 10,377.35

GBP: higher at USD1.3479 (USD1.3447 at previous London equities close)

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BROKER RATINGS

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Berenberg raises British Land price target to 534 (531) pence - 'buy'

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Deutsche Bank Research raises Applied Nutrition price target to 335 (306) pence - 'buy'

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Jefferies reinitiates Rosebank Industries with 'buy' - price target 470 pence

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COMPANIES - FTSE 100

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British American Tobacco says it remains on track to deliver its full-year guidance, supported by continued growth in the US and accelerating momentum in its New Categories business. The cigarette maker now expects New Categories revenue growth in the mid-teens for both the first half and full year of 2026, led by strong performances from its Velo oral nicotine and Vuse vapour brands. BAT continues to expect full-year revenue growth at the lower end of its 3% to 5% medium-term target range and adjusted profit from operations growth at the lower end of its 4% to 6% target. The company says it remains on track to reduce leverage to within its 2.0x to 2.5x target range by year-end while returning GBP1.3 billion to shareholders through share buybacks in 2026. Chief Executive Tadeu Marroco says: "In New Categories, revenue growth is accelerating and we now expect to deliver mid-teens for 2026. We continue to prioritise investment in our most profitable value pools, driving strong contribution growth."

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British Land appoints Joanne McNamara as chief executive officer. McNamara joins from Oxford Properties, where she is executive vice president for Europe and oversees an approximately GBP8 billion portfolio spanning office, retail, logistics and residential assets. She has worked at Oxford since 2010 and previously held roles at Hammerson and DTZ. British Land says she has a maximum notice period of six months and is expected to join by the end of November. Chair William Rucker says: "With her deep expertise of real estate, valuable experience in the world of private capital and a strong reputation for decisive leadership, she is exceptionally well placed to drive the business forward."

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COMPANIES - FTSE 250

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Chemring Group reports pretax profit of GBP18.8 million for the six months to April 30, down from GBP25.9 million a year earlier, despite revenue rising 7% to GBP237.3 million from GBP222.8 million. The Hampshire, England-based provider of technology products and services to the aerospace, defence and security markets increases its interim dividend by 4.0% to 2.8p per share from 2.7p and says its order book reached a record GBP1.40 billion at April 30, up 8% year-on-year. Net debt rises to GBP144.5 million from GBP93.3 million a year ago as the company continues to invest in expanding energetics production capacity. Chemring says trading in the first half was in line with expectations and leaves its full-year outlook unchanged, noting that 91% of expected 2026 revenue had either been delivered or was in the order book by the end of April.

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Elementis says it has completed the sale of its pharmaceutical manufacturing business to Associated British Foods for an enterprise value of EUR34.3 million. The speciality chemicals firm expects net cash proceeds of around EUR30 million after transaction costs and plans to return the proceeds to shareholders through a share buyback programme, which is expected to begin as soon as "practicable". Elementis says the disposal strengthens its focus on its core personal care and coatings markets, improves adjusted operating margins and reduces future capital intensity. The company adds that its balance sheet remains robust and its outlook for 2026 is unchanged.

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GB Group reports revenue of GBP285.0 million for the year ended March 31, up from GBP282.7 million a year earlier, while adjusted operating profit rises to GBP67.5 million from GBP67.0 million. The Chester, England-based identity and location technology provider swings to a pretax loss of GBP74.5 million from a profit of GBP15.7 million, primarily due to a GBP73.1 million non-cash impairment charge. GBG keeps its final dividend unchanged at 4.4p per share and says it completed GBP45 million of share buybacks during the year, with a further GBP10 million committed. The company expects mid-single-digit revenue growth in financial 2027, supported by improving performance in the Americas, growing demand linked to AI-driven fraud prevention and momentum from its GBG Go platform, which has secured more than 100 customer contracts since launch. GBG says it is well positioned to accelerate growth in a structurally expanding market.

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Wizz Air reports 7.1 million passengers for May, up 26% from 5.7 million a year prior. The figure for the 12 months to the end of May is up 12% at 72.4 million compared to 64.5 million. The airline operator says its Italian expansion continues with further aircraft allocations announced. Meanwhile, it adds that Tel Aviv services resumed on Thursday.

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OTHER COMPANIES

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Central Asia Metals agrees to acquire Australia's Cygnus Metals in an all-share deal valuing Cygnus at around AUD232 million, around GBP124 million. Under the proposed scheme of arrangement, Cygnus shareholders will receive 0.06 new CAML shares for each Cygnus share held, implying a value of AUD0.176 per share, a 60% premium to Cygnus's closing price on June 1. The acquisition would add the Chibougamau copper-gold project in Quebec, Canada, to CAML's portfolio, expanding its geographic footprint and development pipeline. Existing CAML shareholders are expected to own around 70% of the enlarged group, with Cygnus shareholders holding the remaining 30%. Major Cygnus shareholders, representing around 29% of the shares, intend to vote in favour of the deal, which is expected to complete in September, subject to shareholder, court and regulatory approvals.

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Serica Energy says its enlarged UK Continental Shelf portfolio could support annual average production of more than 50,000 barrels of oil equivalent per day into the next decade, underpinned by short-cycle projects with the potential to add 30,000 boepd of incremental production. At a capital markets day, the company announces a new dividend policy targeting payouts of 15% to 30% of post-tax cash flow from operations from financial 2026 onwards, which it says should support shareholder returns at or above current levels. Serica expects 2026 post-tax cash flow from operations of USD470 million to USD520 million and says all guidance remains unchanged, including production of significantly more than 40,000 boepd this year. The company says its investment programme is expected to be fully funded by free cash flow and that it remains on track to move to London's Main Market in the third quarter.

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By Eva Castanedo, Alliance News reporter

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