(Alliance News) - UK house price growth slowed sharply in May, according to Nationwide Building Society, as uncertainty linked to the Middle East conflict weighed on consumer confidence. easyJet rebuffed takeover speculation from Castlelake while Applied Nutrition raised guidance, announced a US acquisition and unveiled a licensing deal.

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

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MARKETS

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FTSE 100: called down 0.4% at 10,365.88

GBP: lower at USD1.3470 (USD1.3479 at previous London equities close)

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ECONOMICS

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Nationwide Building Society says UK annual house price growth slows to 1.7% in May from 3.0% in April, while house prices fall 0.6% month-on-month, reversing a 0.4% increase and marking the first monthly decline of 2026. The average UK house price falls to GBP278,024 from GBP278,880. Chief Economist Robert Gardner says housing market momentum has weakened amid uncertainty caused by the Middle East conflict, which has pushed up energy prices and market interest rates. He notes consumer confidence has fallen sharply and housing market sentiment has deteriorated, with new buyer enquiries remaining weak. However, Gardner says housing affordability has improved in recent years as income growth has outpaced house price gains and mortgage rates remain below 2023 highs, providing some confidence that any near-term slowdown could prove temporary if energy prices and market conditions stabilise.

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Endeavour Mining says a contractor employee died following a heavy mining equipment incident during water drainage activities at its Lafigue mine in Ivory Coast on Friday. The company has launched an investigation and temporarily suspended contractor activities, while processing operations continue.

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BROKER RATINGS

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Goldman Sachs raises Segro to 'buy' (neutral) - price target 900 (800) pence

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DZ Bank raises Rio Tinto to 'buy' (hold) - fair value 9,000 (7,500) pence

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COMPANIES - FTSE 100

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JD Sports Fashion says it has completed the first GBP100 million tranche of its GBP200 million share buyback programme, announced in February. The retailer purchased 136.8 million shares at an average price of 73.09 pence each for total consideration of GBP100.0 million. Following completion on May 29, JD Sports holds 79.9 million shares in treasury and has 4.89 billion shares in issue excluding treasury shares. The company says details of the second GBP100 million tranche will be announced in due course.

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COMPANIES - FTSE 250

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easyJet says it has not been approached by or held discussions with Castlelake LP. following the investor's disclosure that it is considering a possible takeover offer. Castlelake says it holds a 2.14% stake in easyJet and, under UK takeover rules, any offer would need to be at no less than 403.23 pence per share. It must announce a firm intention to make an offer or walk away by June 26. easyJet describes the timing of the announcement as "highly opportunistic", arguing its share price has been temporarily depressed by the Middle East conflict and higher jet fuel prices. Before the Iran conflict erupted on February 28, easyJet shares had closed at 464.00p on February 27. The airline also highlights the regulatory and financial challenges of any takeover, saying it remains focused on its medium-term target of delivering more than GBP1 billion in pretax profit and is supported by an investment-grade balance sheet and net cash position. Castlelake says there can be no certainty that an offer will be made.

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Applied Nutrition raises guidance for the financial year ending July 31, now expecting revenue of around GBP148 million, ahead of market expectations of GBP140.3 million. The company expects adjusted earnings before interest, tax, depreciation, and amortisation of GBP39.5 million, in line with consensus forecasts. The Liverpool-based sports nutrition brands company also agrees to acquire the trade and majority of assets of US-based manufacturer Nutrablend Group for USD16 million in cash. The acquisition includes a manufacturing and warehousing facility in Buffalo, New York, with capacity to support up to USD300 million in annual revenue. Applied Nutrition expects the deal to be earnings enhancing in financial 2027. In addition, Applied Nutrition signs a North American licensing agreement with Mondelez International Inc to develop and manufacture sports nutrition products under the Sour Patch Kids and Swedish Fish brands. The initial product range is expected to launch in August 2026 and be stocked in around 2,200 Walmart stores and 1,300 GNC locations across the US and Canada.

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ME Group International says revenue rose 2% year-on-year in the six months to April 30, but trading softened in April, particularly in its French photobooth and laundry businesses. The company attributes the weakness to lower consumer confidence and changing spending patterns linked to the ongoing conflict in the Middle East. While trading improved in May, ME Group says it does not expect trading patterns to normalise while the conflict and broader macroeconomic uncertainty persist. As a result, it now expects full-year pretax profit of GBP69 million to GBP74 million. The company says its laundry expansion programme remains on track, with more than 1,300 Wash.ME machines due to be installed in financial 2026.

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OTHER COMPANIES

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Cerillion reports pretax profit of GBP5.5 million for the six months to March 31, down 41% from GBP9.3 million a year before, as revenue falls 14% to GBP18.0 million from GBP20.9 million. The software provider says the decline reflects the timing of contract deliveries, with minimal high-margin software licence revenue recognised in the first half and a material contribution expected in the second half. New orders more than doubled to GBP39.6 million, including a GBP42.5 million contract with Oman's national telecoms operator Omantel, while the back-order book rose 64% to a record GBP82.1 million. Cerillion increases its interim dividend by 15% to 5.5p from 4.8p and says it remains on track to meet full-year market expectations.

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Redcentric appoints Tim Sykes as chief financial officer and executive director with immediate effect. Sykes has more than 30 years of financial experience and previously served as CFO of Proactis Holdings PLC for 15 years before becoming its CEO and overseeing its take-private transaction. He succeeds Tony Ratcliffe, who joined on a fixed-term basis in August 2025 to support the sale of Redcentric's data centre business. Ratcliffe will remain with the company for a period to ensure an orderly handover. The Harrogate, North Yorkshire-based IT managed services provider completed the sale of its data centre business for estimated consideration of GBP122.9 million in April. Separately, in a trading update Redcentric says revenue for the managed services provider business was GBP132.1 million in the financial year ended March 31, down 2.2% from GBP135.1 million a year prior. Chief Executive Officer Michelle Senecal de Fonseca says: "we are well positioned to accelerate growth and deliver sustainable value for shareholders in FY27 and beyond."

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By Eva Castanedo, Alliance News reporter

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