LONDON BRIEFING: Games Workshop earnings up; Softcat "encouraged"

Fri, 22nd May 2026 07:48

(Alliance News) - Games Workshop predicts improved annual earnings, Softcat says third quarter profit improved and Inchcape announces a Bulgarian buy,

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 0.4% at 10,479.67

GBP: up at USD1.3423 (USD1.3401 at previous London equities close)

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ECONOMICS

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UK public sector borrowing was higher than expected last month, numbers on Friday showed, while retail sales were shy of expectations. The Office for National Statistics said borrowing in April totalled GBP24.34 billion, rising from GBP11.48 billion in March and higher than the GBP19.46 billion recorded a year prior. The ONS said the April figure was "GBP3.4 billion more than the GBP20.9 billion forecast by the Office for Budget Responsibility". However, borrowing in the financial year to March was below an OBR forecast. Borrowing in the financial year ended March was provisionally estimated at GBP129.0 billion, down 15% on-year and GBP3.7 billion below the OBR's GBP132.7 billion forecast. Borrowing in the year to March was estimated at 4.2% of gross domestic product, the lowest figure since financial 2020 when it was 2.6%. The ONS said its forecast for borrowing in the year to March was reduced by GBP3.0 billion from its last estimate. The ONS added: "Public sector net debt excluding public sector banks – a measure of the amount of money owed to the UK private sector and overseas less any liquid assets held – was provisionally estimated at 94.2% of GDP at the end of April 2026; this was 0.5 percentage points more than in April 2025 and remains at levels last seen in the early 1960s." Separately, it said retail sales volumes fell 1.3% in April from March. They had risen 0.6% in March, revised down from an initially reported 0.7% climb. A lesser decline of 0.6% had been expected for April, according to consensus cited by FXStreet. "Fuel volumes fell in April as some retailers suggested that motorists were conserving fuel. This followed strong March growth, with retailers reporting that motorists stocked up as prices rose," the ONS said. On-year, sales were flat in April, massively undershooting an FXStreet cited forecast of a 1.3% rise.

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BROKER RATINGS

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Peel Hunt reinitiates Greencore with 'buy' - price target 300 pence

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COMPANIES - FTSE 100

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Games Workshop expects to report a slight rise in annual profit, amid double-digit revenue growth. The fantasy game figurine maker and retailer expects pretax profit in the year to May 31 of GBP265 million, rising 0.8% from GBP262.8 million. Core revenue is 11% higher at GBP625 million from GBP565.0 million. Licensing revenue, however, is down to GBP30 million from GBP52.5 million. Games Workshop releases annual results on July 28.

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COMPANIES - FTSE 250

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Workspace Group says Saba Capital Management is looking to oust all of its non-executives. The flexible workspace provider says it received a revised requisition notice stating that Saba wants to replace all six of its non-executive directors. A previous request was for the removal of only five. Saba is looking to appoint six new directors in their place. It had previously only eyed appointing four. Workspace says: "The board firmly believes in the strength of the company's existing strategy and further detail will be provided at its full year results on 10 June 2026. The board, together with its advisers, is carefully reviewing the revised requisition. Shareholders are advised to take no action in respect of the revised requisition at this time."

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Softcat says profit in the third quarter urged, and it is "encouraged" by momentum it is seeing. The provider of IT infrastructure products says it saw double-digit year-on-year growth in gross profit and underlying operating profit in the third quarter ended April 30. Softcat adds: "Growth remains broad-based with particular strength in corporate, supported by customer demand for AI-enabled infrastructure and continued pull forward of some orders due to memory shortages. The board is pleased with progress to date and now expects mid-teens growth in underlying operating profit for the full year, up from high single-digit previously. Looking further ahead, the board is encouraged by the momentum in the business and prospects for continued market share gains, while recognising the uncertainty caused by the ongoing memory shortages and macroeconomic environment."

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Automotive distributor Inchcape has struck a deal to buy Silver Star. Silver Star is a distributor of Mercedes-Benz passenger vehicles and Daimler Trucks and buses in Bulgaria. "This acquisition will further scale Inchcape's share of passenger vehicles in the Bulgarian market as well as expanding its presence into the truck category. The acquisition reflects the group's Accelerate+ strategy and its disciplined approach to capital allocation, which focuses on opportunities that enhance long-term shareholder returns," Inchcape adds. Silver Star achieved revenue of around GBP240 million in 2025. "We have an active M&A pipeline and the capability to capitalise on it where we see value for shareholders. Our recent transaction in Iceland is progressing well and demonstrates how we quickly integrate businesses to deliver growth and drive operational performance. We remain focused on disciplined capital allocation and on creating long-term, sustainable value for shareholders," Inchcape Chief Executive Duncan Tait says.

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OTHER COMPANIES

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Infrastructure and construction services firm Hercules says annual profit declined, despite an increase in revenue. Pretax profit in the year to September 30 fell 62% to GBP852,000 from GBP2.2 million. Revenue was up 19% to GBP121.2 million from GBP101.9 million. "We have significantly expanded our operational capabilities across our Labour Supply and Construction Services businesses during the period, and our underlying performance in FY 2025 reflects this. We have been investing in our IT systems and acquired new expertise, adding to the long-term durability of our business," Chief Executive Officer Brusk Korkmaz says. In the first half of the new year, revenue has climbed to GBP59.2 million from GBP54.6 million, Hercules says.

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By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com