British stocks slipped Thursday afternoon, with the FTSE 100 falling 0.3% as Drax came under regulatory scrutiny while Softcat gained on stronger-than-expected earnings. The pound strengthened 0.2% against the dollar to 1.35. In Europe, Germany’s DAX dropped 0.1% and France’s CAC 40 rose 0.2%.
Drax Under FCA Investigation
Drax Group (LSE:DRX) shares fell more than 9% after the U.K.’s Financial Conduct Authority (FCA) announced an investigation into the company’s biomass pellet sourcing following whistleblower allegations. The probe will cover January 2022 to March 2024 and assess whether annual reports for 2021–2023 complied with listing, disclosure, and transparency regulations. Drax confirmed it will cooperate fully with the FCA.
Softcat Gains on Strong Results
Softcat PLC (LSE:SCT) climbed over 3% after posting better-than-expected fiscal 2025 results. Analysts noted, however, that a few large, irregular contracts supported the performance, leaving some uncertainty for 2026. The IT reseller expects adjusted EBIT for 2025 to reach approximately £177 million, slightly above consensus estimates of £174 million.
Chesnara’s H1 Cash Generation Beats Forecasts
Life and pensions consolidator Chesnara (LSE:CSN) reported a 26% increase in commercial cash generation for H1 2025, reaching £37 million versus £29.2 million a year earlier, exceeding RBC Capital Markets’ estimate of £22 million. The increase was driven by UK and Netherlands operations, while the Swedish business was negatively affected by a stronger U.S. dollar. The board declared an interim dividend of 7.70p, up 3% from 7.48p last year.
Hunting Posts Mixed H1 Results, Announces Buyback
Hunting PLC (LSE:HTG) reported first-half revenue of $529 million and EBITDA of $70.2 million, slightly below analyst forecasts. Contracts with Kuwait Oil Company supported margins, but results fell short of expectations. The company unveiled a $40 million share buyback plan, to be executed in three tranches, with the first two expected in early 2026 and the third in the second quarter of that year. Operating profit stood at $36 million and net income at $21 million.
GSK Gains U.K. Approval for Oral UTI Antibiotic
Pharmaceutical company GSK plc (LSE:GSK) received regulatory approval in the U.K. for its oral antibiotic treatment for uncomplicated urinary tract infections, the first new oral option for this condition in nearly 30 years.
Barclays to Sell Entercard Stake
Barclays PLC (LSE:BARC) announced it will sell its entire stake in Entercard Group AB to joint venture partner Swedbank AB (LSE:81BO) for approximately SEK 2.6 billion ($300 million). The sale involves Barclays Principal Investments Limited divesting its holding in the consumer credit provider at book value, equal to half of Entercard’s net assets as of March 31, 2025.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply