U.K. equities hovered near the flatline on Thursday as geopolitical tensions eased following a sustained truce between Israel and Iran, while investors digested corporate updates and currency movements. Meanwhile, Shell firmly dismissed speculation it is pursuing a takeover of rival BP.
As of 07:30 GMT, the FTSE 100 edged up by 0.05%, while the British pound advanced 0.5%, crossing the $1.37 threshold against the U.S. dollar. Continental markets also traded higher, with Germany’s DAX gaining 0.4% and France’s CAC 40 up by 0.06%.
Shell Denies Interest in BP Acquisition
Shell (LSE:SHEL) issued a categorical denial regarding reports that it was exploring a potential acquisition of BP (LSE:BP.), following claims made by the Wall Street Journal suggesting early-stage talks were underway.
In a statement Thursday, Shell said it is not in discussions and not evaluating such a move. Under U.K. takeover rules, Shell’s denial restricts it from making a formal approach to BP for the next six months, unless specific exceptions apply.
Inchcape Holds Guidance Amid Trade Headwinds
Vehicle distributor Inchcape (LSE:INCH) maintained its 2025 full-year guidance in a trading update released ahead of its interim results. The company expects growth to be driven by a wave of new product launches scheduled for the second half of the year.
While acknowledging the potential impact of tariffs on global supply and demand dynamics, Inchcape remains optimistic. It continues to execute a £250 million share buyback, with approximately £150 million already completed—roughly 7% of total shares outstanding. Earnings per share are forecast to grow, supported by both operational gains and capital returns.
Serco Upgrades Revenue Forecast After Strong H1
Serco (LSE:SRP) revised its full-year revenue outlook upward to £4.9 billion, crediting a stronger-than-expected first half of the year. The public services contractor expects £2.4 billion in revenue for H1, reflecting 2% annual growth, supported equally by organic growth and acquisitions. Exchange rates shaved off 2% from reported figures.
The firm now anticipates 1% organic growth for the full year, up from its prior flat projection. Key drivers include robust activity in UK immigration services and new defence contracts. However, it kept its full-year operating profit guidance unchanged at around £260 million.
Moonpig CEO to Step Down; 2026 EPS Seen Higher
Moonpig (LSE:MOON) announced Thursday that its CEO, Nickyl Raithatha, will depart after leading the company for seven years. The greeting card and personalized gift retailer did not disclose a timeline for his exit or details about a successor.
The company said it expects adjusted earnings per share (EPS) to increase between 8% and 12% in fiscal 2026, building on a strong 2025 performance, when EPS rose 18.1% to 15 pence.
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