London pre-open: Stocks to gain after positive Asian session; IAG, Pearson results in focus

(Sharecast News) - London stocks were set to gain at the open on Friday following a positive Asian session, amid results from the likes of Pearson, Melrose and IAG.

The FTSE 100 was called to open around 30 points higher.

Investors will be mulling a survey out earlier showing that UK consumer confidence dipped in February as people grew more pessimistic about their personal finances.

GfK's long-running consumer confidence index fell three points from January to -19, with three of the confidence measures down, one up and one flat.

The index measuring changes in personal finances over the last 12 months fell four points to -7 in February, while the index tracking the situation over the next year also declined four points, to 2.

The gauge tracking the general economic situation over the last 12 months ticked up to -44 in February from -45 the month before, while the index for the general situation over the next year was steady at -31.

The major purchase index dipped to -14 in February from -10 the month before. The savings index, which is not included in the overall index score, fell to 21 from 28.

Neil Bellamy, consumer insights director at GfK, an NIQ company, said: "After a modest improvement in recent months, consumer confidence is down three points in February, returning to the level seen in November 2025. This decline is mainly driven by weaker perceptions of personal finances - both looking back a year and ahead.

"Fewer people say that now is a good time to make major purchases (a measure that has dropped four points) and fewer consumers intend to save money (the savings index is down seven points). Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day to day spending over longer-term needs.

"Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year. Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth. With fewer entry level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups."

In corporate news, aerospace and defence company Melrose said it was targeting 2026 earnings of �700m to �750m after a 21% jump in profits last year as global tensions sparked a "significant" increase in military spending.

Adjusted pre-tax profit for the year to December 31 came in at �515m from �438m a year earlier. The company also unveiled a �175m share buyback.

Education and assessment provider Pearson said it had delivered on its goals in 2025, with both underlying sales and adjusted operating profit growth, leaving the firm confident in its outlook for 2026.

Pearson said underlying sales rose 4% for the year to �3.57bn, while adjusted operating profits increased 6% to �614m, lifting its operating margin from 16.9% to 17.2%. Operating cash conversion remained strong at 93%, supported by high fourthquarter sales, and free cash flow rose 8%, giving a 125% freecashflow conversion rate.

Looking ahead, Pearson guided to midsingledigit underlying sales growth, adjusted operating profits of �640m to �685m, and freecashflow conversion of 90-100%.

BA and Iberia owner IAG said it had delivered another "record" financial performance in 2025, with operating profit up 13% and revenue 3.5% higher at �5bn and �33.2bn, respectively.

Chief executive Luis Gallego said: "We are confident as we look to the future, with compelling market dynamics, long-term secular growth and a clear plan to leverage our business model and deliver our strategy."