UK equities slipped modestly at Thursday’s open but remained close to record territory as investors digested a fresh wave of corporate earnings, including updates from Rolls-Royce and London Stock Exchange Group. Sterling weakened against the US dollar while continuing to trade above the $1.35 level.
At 0813 GMT, the benchmark FTSE 100 index was down 0.08%. The pound fell 0.2% to $1.3533 versus the dollar. Across Europe, Germany’s DAX declined 0.2%, while France’s CAC 40 advanced 0.3%.
Globally, markets also reacted to results from NVIDIA Corporation (NASDAQ:NVDA), which beat revenue forecasts and issued an upbeat outlook but failed to spark investor enthusiasm. Attention additionally turned to geopolitical developments as the United States and Iran entered talks, while artificial intelligence remained a key theme, with investors weighing returns on heavy AI-related capital spending and potential disruption risks, according to Jefferies.
UK Market Round-Up
Rolls-Royce (LSE:RR.) reported a 40% rise in annual profit following strong aero-engine performance, alongside upgraded medium-term targets and enhanced shareholder return plans.
Underlying operating profit reached £3.46 billion in 2025, producing a margin of 17.3% and exceeding the £3.27 billion consensus estimate. Free cash flow totalled £3.3 billion, supported by strong operating execution and expanding long-term service agreement balances, leaving the group with net cash of £1.9 billion at year-end. For 2026, Rolls-Royce expects underlying operating profit of £4.0 billion to £4.2 billion and free cash flow of £3.6 billion to £3.8 billion.
London Stock Exchange Group (LSE:LSEG) posted a 56.5% increase in pretax profit for 2025 and announced an additional £3 billion share buyback programme. Pretax profit rose to £1.97 billion from £1.26 billion a year earlier, while total income excluding recoveries grew 5.8% to £8.99 billion, or 7.1% on an organic constant-currency basis. Reported earnings per share climbed 85.1% to 238.4 pence, with adjusted EPS up 15.7% to 420.6 pence.
WPP (LSE:WPP) unveiled a multi-year restructuring strategy named Elevate28, aimed at simplifying operations and restoring organic growth. The advertising group plans to transition from a holding company structure into a unified operating model organised around four divisions: WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions, operating across North America, Latin America, EMEA and APAC.
Hikma Pharmaceuticals plc (LSE:HIK) issued 2026 guidance below market expectations, forecasting sales growth of 2% to 4% compared with consensus estimates of 5.5%. Core EBIT is projected between $720 million and $770 million, below the $778 million consensus estimate, while injectables margins are expected to remain below market forecasts.
Ocado Group (LSE:OCDO) reported stronger-than-expected second-half 2025 performance and said it anticipates achieving positive free cash flow in the second half of 2026, with full-year 2027 also expected to turn cash-flow positive. Group revenue beat expectations by 4.5%, while EBITDA exceeded consensus by 4.2%.
CVS Group (LSE:CVSG) delivered first-half 2026 revenue growth of 5.8%, broadly matching forecasts as sales reached £356.9 million. Like-for-like growth improved to around 2.7%, reflecting a recovery from negative growth recorded a year earlier. UK operations generated £320.6 million in revenue, with Australia contributing £36.3 million.
Derwent London (LSE:DLN) reported a net asset value of 3,225 pence per share for FY25, up 2.4%, alongside earnings per share of 98.4 pence and a dividend of 81.5 pence per share. Leasing activity totalled £11.3 million during the year at rents nearly 10% above estimated rental value.
Howden Joinery Group (LSE:HWDN) exceeded profit expectations for FY25 and announced a £100 million share buyback. Pre-tax profit reached £344.9 million, beating consensus estimates of roughly £331 million.
Greencoat UK Wind (LSE:UKW) reported net asset value per share of 133.5 pence at the end of 2025, equating to a total return of -4.9% for the year. Shares trade at a nearly 30% discount to NAV, prompting a continuation vote at the upcoming AGM.
Man Group (LSE:EMG) recorded record organic growth, with assets under management rising 35% year-on-year to $227.6 billion, supported by $28.7 billion in net inflows and strong investment performance. The firm achieved its sixth consecutive year of market share gains.
Drax Group (LSE:DRX) reported record renewable electricity generation for 2025, producing 6% of UK power and 11% of UK renewable output. Adjusted EBITDA declined to £947 million due to lower power prices, while operating profit dropped following £378 million in non-cash impairments. The company extended its share buyback programme with a new £450 million plan.
Tate & Lyle (LSE:TATE) said third-quarter trading was in line with expectations, with revenue for the three months to December 31 rising 15% on a reported basis following the integration of CP Kelco.
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