LONDON BRIEFING: Vodafone profit swings; LondonMetric bids for Picton

Tue, 12th May 2026 07:59

(Alliance News) - Vodafone Group swings to an annual profit as impairment charges disappear, while LondonMetric Property agrees a non-binding takeover proposal for Picton Property Income alongside Schroder Real Estate Investment Trust.

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

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MARKETS

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FTSE 100: called lower 0.5% at 10,216.23

GBP: lower at USD1.3560 (USD1.3651 at previous London equities close)

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BROKER RATINGS

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Berenberg cuts Shell price target to 4,000 (4,100) pence - 'buy'

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Berenberg cuts WH Smith price target to 574 (634) pence - 'hold'

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COMPANIES - FTSE 100

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EQT Fund Management Sarl says it has made a final GBP60.00 per share cash buyout proposal for Intertek Group, valuing the offer at up to GBP61.077 per share including Intertek's proposed 107.7 pence final dividend. EQT says the proposal represents a 59% premium to Intertek's closing share price on April 9 and describes the offer as superior to the standalone prospects of the London-based assurance, inspection, product testing and certification firm. EQT says the terms are final and will not be increased unless a competing bidder emerges.

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Vodafone swings to a pretax profit of EUR1.86 billion in the year ended March 31 from a EUR1.48 billion loss a year earlier, helped by higher revenue and the absence of impairment charges. In financial 2025, Vodafone booked a EUR4.52 billion impairment charge, compared with none in financial 2026. Revenue rises 8.0% to EUR40.46 billion from EUR37.45 billion, driven by service revenue growth and the consolidation of Three UK, partly offset by foreign exchange movements. Service revenue increases 8.8% to EUR33.48 billion, or 5.4% organically, with growth across all segments except Germany. Adjusted Ebitda after leases rises 3.8% to EUR11.35 billion from EUR10.93 billion, and by 4.5% organically. Operating profit improves to EUR2.84 billion from a EUR411 million loss. Vodafone says it achieved the top end of its financial 2026 guidance, with adjusted Ebitda after leases of EUR11.6 billion and adjusted free cash flow of EUR2.6 billion on a guidance basis. It declares total dividends of 4.6125 euro cents per share, up 2.5% from 4.5 cents a year earlier. Chief Executive Margherita Della Valle says: "After the transformation of the last three years, we are now a simpler company with a stronger growth outlook. Our strategic progress has generated good group service revenue momentum for the year, together with profit and cash flow at the upper end of our guidance range...We are now well set for mid-term growth."

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LondonMetric Property and Schroder Real Estate Investment Trust say they have reached agreement in principle on a non-binding all-share takeover offer for Picton Property Income valuing the company at GBP403.4 million. Under the proposed terms, Picton shareholders would receive 0.190 LondonMetric shares and 0.881 Schroder Real Estate shares per Picton share, implying a value of 78.2p each, a 7.0% premium to Monday's closing price. LondonMetric would acquire 46% of Picton's assets, with Schroder Real Estate taking the remaining 54%. The consortium says the deal is expected to be earnings accretive for both buyers and deliver a material increase in dividend income for Picton shareholders. Picton's board says it would be minded unanimously to recommend the offer, subject to due diligence and agreement on final terms.

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Imperial Brands PLC reports higher half-year revenue and lifts its interim dividend, while saying it remains on track to deliver full-year results in line with guidance. Revenue in the six months to March 31 rises 0.8% to GBP14.72 billion from GBP14.60 billion a year earlier, while pretax profit falls to GBP791 million from GBP1.30 billion. Adjusted operating profit edges up 0.6% at constant currency, however, supported by robust tobacco pricing and growth in next-generation products. The Bristol, England-based tobacco products manufacturer raises its interim dividend by 4.0% to 83.36 pence from 80.16p and says it expects annual adjusted operating profit growth of 3% to 5%. The company continues to expect low-single-digit growth in tobacco revenue and double-digit growth in next-generation product revenue for the full year.

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IMI says it remains on track to deliver a sixth consecutive year of mid-single-digit organic revenue growth after a strong first quarter. Organic revenue rises 5% year-on-year in the quarter, while statutory revenue is 6% higher, helped by foreign currency movements. The Birmingham, England-based engineering firm reconfirms guidance for 2026 adjusted basic earnings per share of 136p to 142p, up compared to 132.3p in 2025. The company says it is actively monitoring the situation in the Middle East, which accounted for 6% of 2025 revenue, and guidance assumes conditions allow planned shipments to the region to be delivered by year-end. IMI adds it expects to offset any inflationary pressures through price rises where necessary.

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COMPANIES - FTSE 250

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3i Infrastructure reports lower annual pretax profit despite higher investment gains, while raising its dividend target for financial 2027. Pretax profit in the year to March 31 falls to GBP295 million from GBP333 million, while earnings per share decline to 32.0p from 36.1p. Net gains on investments rise to GBP191 million from GBP182 million. The company lifts its total dividend for financial 2026 by 6.3% to 13.45p from 12.65p, including a final payout of 6.725p, and sets a financial 2027 dividend target of 14.30p. 3i Infrastructure says the portfolio will become more balanced following the sale of TCR and notes supply disruption caused by the conflict in the Middle East.

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Wizz Air Holdings expects to report a breakeven to slightly positive net profit for the year ended March 31, saying its outlook has improved from previous guidance due to stronger underlying revenue and a well-hedged macroeconomic mix. The airline says conflict in the Middle East has created near-term uncertainty around fuel costs and customer demand, though it is around 70% hedged for summer fuel needs at USD720 per metric tonne. Wizz Air says first-half capacity for the new financial year is scheduled at around 51 million seats, up 28% year-on-year, while forward bookings are 44% sold, up two percentage points from a year ago. The company says it has used promotional fares to stimulate demand and maintain booking momentum amid geopolitical uncertainty.

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Bytes Technology cuts the total dividend payout and reports lower annual profit as it adapts to structural change in the IT market. The Surrey, England-based enterprise software firm sees its pretax profit decline 6.4% to GBP69.8 million for the financial year that ended February 28, from GBP74.6 million a year earlier. But revenue for the year rises 1.6% to GBP220.6 million from GBP217.1 million. Gross profit is up 2.5% to GBP167.3 million from GBP163.3 million as the one-year adverse effect of the Microsoft incentive changes ended in January 2026, and the strategic refinement of the private sector sales structure to strengthen medium-term growth settled. Administrative expenses increase by 7.6% to GBP104.3 million from GBP96.9 million. Bytes declares a final dividend of 7.0 pence, up 1.4% from 6.9p, but this is insufficient to boost the total payout. Total dividend nearly halves to 10.2p from 20.0p. Bytes announces a new GBP25 million share buyback. Further, Bytes says it has decided to split the combined roles of chief financial officer and chief operating officer, held by Andrew Holden. Holden will stand down as CFO once a suitable replacement has been appointed.

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OTHER COMPANIES

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On the Beach Group swings to a pretax loss in the first half of its financial year despite reporting record booking volumes, as competitive pricing and disruption linked to conflict in the Middle East weigh on revenue. Pretax loss for the six months ended March 31 is GBP3.2 million, compared with a GBP4.5 million profit a year earlier, while revenue falls to GBP52.2 million from GBP59.4 million. Booking volumes rise 7% year-on-year to a record 324,000, ahead of the wider market, while travelled volumes increase 22%. The company says reduced revenue reflects competitive pricing in a challenging environment and later booking patterns across the industry. On the Beach maintains its interim dividend at 1.0 pence per share and says bookings over the last six weeks since the half-year end are up 9% year-on-year. The group says it remains well positioned to manage ongoing volatility and reinstates full-year guidance for adjusted pretax profit of GBP18 million to GBP25 million. Chief Executive Shaun Morton says: "However, whilst the group has limited exposure to destinations in the Middle East, the ongoing conflict has impacted consumer demand since March 1 and led the group to withdraw its guidance, as announced in the AGM trading update. Second-half booking activity has stabilised to a more consistent trading pattern and bookings over the last 6 weeks are up 9% as we approach the key Summer departure months. As a result, we have today reinstated guidance and the board is confident in delivering financial 2026 adjusted pretax profit in the range of GBP18 million to GBP25 million."

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By Eva Castanedo, Alliance News reporter

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