LONDON BRIEFING: Mideast peace hopes continue; Shell raises dividend

Thu, 07th May 2026 07:51

(Alliance News) - London stocks were called higher on Thursday, while JD Sports reports a "resilient performance" for its latest year and Aberdeen Group is set to become Herald Investment Trust's manager, as well as entering a "standstill agreement" with Saba Capital.

Most recently, Iran denied attacking a South Korean cargo ship in the Strait of Hormuz earlier this week, as US President Donald Trump said a deal to end the war was "very possible" but warned Washington would resume bombing if talks failed.

Tehran's embassy in Seoul said it "firmly rejects and categorically denies" allegations that its armed forces were behind a blast aboard the Panama-flagged HMM Namu, which caught fire on Monday.

Despite Trump's optimism, Iran has yet to respond to a new US proposal, with its chief negotiator warning that Washington was seeking to force the Islamic republic's "surrender."

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 16.4 points, 0.2% at 10,455.06

GBP: lower at USD1.3593 (USD1.3602 at previous London equities close)

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BROKER RATINGS

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Morgan Stanley cuts Relx to 'equal-weight' - price target 2,970 pence

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Deutsche Bank Research raises Polar Capital price target to 1,050 (900) pence - 'buy'

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COMPANIES - FTSE 100

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Shell reports first-quarter results, noting that it has not incurred an impairment from the Middle East conflict. Adjusted earnings rise annually to USD6.92 billion from USD5.58 billion, as the company notes higher realised prices. Adjusted earnings before interest, tax, depreciation and amortisation rise to USD17.74 billion from USD15.25 billion. Declares a 39.06 US cents per share dividend for the quarter, up from 35.8 cents the previous year and from 37.20 cents in the fourth quarter of 2025. Announces a new USD3.0 billion buyback programme, having just completed a USD3.5 billion one.

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JD Sports Fashion reports a "resilient" year ended January 31, with sales rising 11% to GBP12.66 billion from GBP11.46 billion. However, pretax profit falls 12% to GBP629 million from GBP715 million, and basic earnings per share fall 9.2% to 8.63 pence from 9.50p. The dividend for the year increases 20%, however, to 1.20p from 1.00p. Free cash flow rises 36% to GBP462 million from GBP339 million. "We delivered a resilient performance, achieving organic sales growth of 2.1% despite tough market conditions," says Chief Executive Regis Schultz, touting the firm's "customer‑led focus, alongside disciplined cost and capital management". Says first-quarter organic sales are flat annually and down 2.3% on a like-for-like basis. Widens full-year profit guidance range to between GBP750 million and GBP850 million. "Whilst we continue to expect muted market growth in FY27, we remain confident in JD Group's medium‑term trajectory, underpinned by our strong brand partnerships and agile, multi‑brand model," Schultz says.

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Lion Finance Group declares a GEL2.85 per share first-quarter dividend, and announces a GEL55.0 million [GBP15.0 million] share buyback. Pretax profit for the first quarter rises to GEL697.0 million from GEL609.1 million. Net interest income rises to GEL809.6 million from GEL683.7 million. Loan book is worth GEL41.88 billion as of March 31, 23% higher at constant currency than at the same time one year prior. "Georgia and Armenia remain among the broader region's fastest-growing economies, solidifying their reputations as stable, business-friendly markets and emerging regional hubs for technology, transport, and services," CEO Archil Gachechiladze comments. "The economic resilience and prudent macroeconomic management demonstrated by both nations provide a strong foundation for growth as regional connectivity improves. Our established presence and customer loyalty in both markets place us in an excellent position to benefit from their continued economic expansion."

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COMPANIES - FTSE 250

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Aberdeen Group announces a "three-year standstill agreement" with activist investor Saba Capital and Herald Investment Trust, committing Saba to not exercise any voting rights on any resolutions proposed at any annual or other general meeting of Herald, if the resolutions are against the recommendation of Herald's board. Says it and Saba have also reached agreements on another eight investment trusts in Aberdeen's range. The trusts have a combined roughly GBP12.5 billion in assets under management, and will have the option to participate in a similar standstill arrangement if their boards wish it. Also, Aberdeen proposes to become Herald's investment manager in the third quarter, as part of a wider agreement spanning Herald Investment Management funds. Herald, meanwhile, announces a tender offer for up to 66% of its share capital, allowing Saba and other shareholders an exit at close to net asset value. Saba, Herald's largest shareholder, has given an irrevocable undertaking to tender its full stake. Aberdeen's move to become Herald's manager assumes the successful completion of the tender process.

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Johnson Service launches a GBP55.0 million buyback programme, and says it has completed the refinance of its committed revolving credit facility, increasing it to GBP175.0 million from GBP135.0 million with a further GBP50.0 million accordion option. Says it has "continued to proactively manage ongoing cost inflation pressures, particularly in relation to labour, through a combination of resource management to maximise productivity, price increases and capital investment, focused on delivery of improved operational efficiencies and lower energy usage." Says group revenue for the first quarter rises 1.4% to GBP123.0 million from GBP121.4 million the year before, with 0.7% organic revenue growth. Workwear organic revenue growth rate is 3.9%, while HORECA organic revenue softens to a 0.6% decline.

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By Emma Curzon, Alliance News reporter

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