Three things you need to know as the UK financial markets open, from Tony Cross.
#1. GSK to settle Zantac cancer claims
After last night’s market close, GSK LON:GSK announced it had reached a settlement with 10 law firms representing 80,000 claimants regarding its Zantac drug. The deal has been struck with no admission of liability and management note that the payout makes no difference to GSK’s growth agenda or investment plans, with costs being funded through existing resources. Whilst this is a significant sum, the fact the matter is now settled may offer investors some cause for optimism going forward.
#2. Office space set to perform for Great Portland
Great Portland Estates LON:GPE published a quarterly trading update this morning, noting that momentum has been maintained and letting rates are running meaningfully above the Estimated Rental Value. Management add that the economic outlook is now improving and rental growth guidance for the full year has been reiterated with prime office space set to perform best.
#3. N Brown widens margins
N Brown Group LON:BWNG issued interim results this morning, noting a decline in revenue but an uptick in the adjusted pre-tax profit following gross margin improvements and cost reductions. The ongoing business transformation appears to be yielding results and the full year outlook remains unchanged.
