The FTSE 100 extended its recent decline, tracking broader European weakness as escalating tensions in the Middle East dampened investor sentiment. Market participants were also digesting a fresh wave of UK corporate earnings while keeping a close eye on the upcoming UK Spring Budget.
By 0821 GMT, the blue-chip index was down 1.4%. Sterling weakened 0.7% against the U.S. dollar to 1.3322. On the continent, Germany’s DAX fell 2.3% and France’s CAC 40 dropped 1.6%.
Overnight, U.S. President Donald Trump said Washington would do “whatever it takes” to achieve its military objectives, signalling that operations could extend for several weeks. Analysts at Jefferies suggested that identifying a clear exit strategy may prove challenging, noting that any leadership change in Iran without broader structural shifts would likely be insufficient for U.S. or Israeli objectives. They added that further escalation could occur before diplomatic progress is achieved.
UK Corporate Round-Up
Greggs plc (LSE:GRG) reported full-year profit before tax of £171.9 million for the 52 weeks to 27 December 2025, down 9.4% year-on-year but broadly in line with analyst expectations. Total sales rose 6.8% to £2.15 billion, supported by new store openings, while like-for-like sales growth slowed to 2.4% amid tougher trading conditions and an unusually warm summer.
Inchcape Plc (LSE:INCH) posted 2025 pretax profit of £443 million, matching consensus forecasts, and announced a £175 million share buyback — its second in under a year. Earnings per share rose 13% on a constant currency basis to 80.8 pence, ahead of expectations, while the dividend increased 13% to 32.3 pence.
Aberdeen Group plc (LSE:ABDN) reported adjusted operating profit up 4% to £264 million, with IFRS profit before tax jumping 76% to £442 million. Assets under management and administration rose 9% to £556 billion, and operating profit at its interactive investor platform climbed 34%. The company deferred its £1 billion net inflow target to 2027.
Fresnillo plc (LSE:FRES) delivered strong 2025 results, with adjusted revenue up 27.6% to $4.65 billion and EBITDA surging 80.7% to $2.80 billion, benefiting from higher precious metal prices and improved cost discipline.
Keller Group plc (LSE:KLR) reported revenue of £3.09 billion and adjusted operating profit of £218.2 million, alongside a new £100 million share buyback programme.
International Workplace Group Plc (LSE:IWG) posted adjusted EBITDA of $531 million for 2025, up 6%, and lifted its 2026 buyback programme to $100 million.
Morgan Advanced Materials plc (LSE:MGAM) reported 2025 sales of £1,030 million, ahead of consensus, though organic growth declined 3.3%. Management said 2026 guidance aligns with market expectations.
Johnson Service Group plc (LSE:JSG) announced full-year adjusted EBITA of £72.5 million, broadly matching analyst forecasts.
With geopolitical uncertainty persisting and fiscal policy under scrutiny, markets remain sensitive to both global developments and domestic economic signals.
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