British equities slipped on Tuesday but remained above the 9,000 level, while the pound also weakened slightly. The market focus in the U.K. was on the government’s green light for the Sizewell C nuclear power project.
By 12:30 GMT, the FTSE 100 index had declined by 1%, with the British pound falling nearly 1% against the U.S. dollar, trading at around 1.34.
In Europe, Germany’s DAX dropped 1.2%, and France’s CAC 40 fell 0.9%.
UK Government Borrowing Surpasses Expectations
New data revealed that public sector borrowing in the U.K. was higher than anticipated for June, mainly due to rising inflation pushing up debt servicing costs. The Office for National Statistics (ONS) reported a borrowing figure of £20.7 billion ($27.9 billion) last month.
Government Approves £38 Billion Sizewell C Nuclear Facility
The U.K. government has authorized construction of the Sizewell C nuclear power station in Suffolk, a massive infrastructure investment valued at £38 billion ($51 billion). The government will hold a 44.9% share, making it the largest stakeholder. Canada’s La Caisse pension fund will own 20%, Centrica PLC (LSE:CNA) controls 15%, and Amber Infrastructure holds 7.6%.
Following the announcement, Centrica shares jumped more than 4%.
The project enjoys backing from both domestic and international investors, with La Caisse representing a key foreign stakeholder in the U.K. energy sector.
Compass Group Shares Advance After Upgraded Outlook
Shares in Compass Group (LSE:CPG) rose over 4% after the food services company increased its full-year profit forecast and revealed plans to acquire Vermaat Group for €1.5 billion, expanding its footprint in Europe.
The company posted an 8.6% organic revenue increase for Q3 ending June 2025, beating analyst predictions of 7.7% and accelerating from the previous quarter’s 7.7% growth.
Kier Group Shares Drop on CEO Departure Announcement
Kier Group’s (LSE:KIE) stock declined more than 5% after CEO Andrew Davies announced he will step down at October’s end. The company also released a trading update indicating revenue and profits are expected to meet board targets.
Stuart Togwell, Kier’s current Group Managing Director of Construction, will succeed Davies.
Sanofi to Acquire Vaccine Developer Vicebio for up to $1.6 Billion
French pharma giant Sanofi (EU:SAN) has agreed to buy UK-based vaccine developer Vicebio in a deal valued at up to $1.6 billion. The initial payment is $1.15 billion, with additional contingent payments of up to $450 million based on regulatory and development milestones.
Greencore Group PLC ADR Shares Surge on Strong Q3 Revenue
Greencore Group’s (LSE:GNC) shares jumped over 10% following a robust Q3 report showing revenue growth accelerated to 9.9%, up from 6.6% in the year’s first half. The boost was attributed to new contracts and favorable summer weather, with inflation recovery contributing 3.1% to growth.
Even excluding new contract gains, underlying volume rose 1.9%, outperforming the broader grocery market’s 0.7% expansion.
Mitie Group PLC Reports 10.1% Revenue Growth in Q1 FY26
Mitie Group (LSE:MTO) announced a 10.1% year-over-year revenue increase in Q1 fiscal 2026 to £1.28 billion, driven by 8% organic growth. The facilities management segment rose 7.3%, while the higher-margin Facilities Transformation division grew 12.8%.
The company remains on track with cost-saving initiatives to counter National Insurance pressures.
Admiral Group Plc Shares Fall as FCA Highlights Claims Issues
Admiral Group (LSE:ADM) shares slipped after the UK Financial Conduct Authority criticized the motor insurance sector’s claims handling, attributing rising premiums mainly to increased external costs rather than insurer profits.
Argentex Group PLC Interim CEO Steps Down; Company Prepares for Administration
Argentex Group (LSE:AGFX) confirmed that Interim CEO Tim Rudman resigned and the board has decided to appoint administrators for the company and some subsidiaries.
ME Group International PLC Shares Edge Higher on Record First-Half Profits
ME Group International (LSE:MEGP) shares rose slightly after reporting record first-half profits through April 30, 2025. Pre-tax profit climbed 13.3% to £34 million, revenue increased 2.3% (4.7% constant currency), and EBITDA improved 3.9% to £53.2 million, with a margin gain to 34.6%.
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