ADVFN UK Market News

Author: Fiona Craig

  • FTSE 100 Rises 0.45% as Mining Stocks Gain and UK Inflation Reaches 3.1%

    FTSE 100 Rises 0.45% as Mining Stocks Gain and UK Inflation Reaches 3.1%

    The FTSE 100 rose 0.45% on Wednesday morning, supported by gains in mining shares as metals prices increased, while investors assessed UK inflation data and developments in the Middle East.

    At 07:27 GMT, Germany’s DAX was up 0.26% and France’s CAC 40 gained 0.29%. Sterling was little changed against the US dollar, rising 0.01% to $1.3479.

    UK consumer price inflation increased to 3.1% in the 12 months to August, compared with 2.9% in July, according to the Office for National Statistics. The reading matched forecasts, with higher motor fuel costs contributing to the increase.

    ING developed markets economist James Smith said the rise in inflation had been anticipated, with weekly fuel price data suggesting that the headline rate could reach 3.4% next month.

    Smith noted that food inflation declined to 1.1%, while core consumer price inflation remained at 2.6%.

    ING expects inflation to peak at approximately 3.7% early next year and maintains a base case in which the Bank of England leaves interest rates unchanged into 2027.

    Smith said any November interest rate increase would be more closely linked to sustained energy prices and their implications for the Bank’s inflation forecasts than to the latest inflation figures alone.

    Barratt Redrow Leads FTSE 100 Gains as Mining Shares Advance

    Barratt Redrow (LSE:BTRW) rose 6.8% after reporting adjusted profit before tax of £572.8 million, exceeding the consensus estimate of £540.3 million.

    The housebuilder also reduced its home completion guidance for the 2027 financial year, citing delays in the planning process.

    Mining shares advanced alongside higher metals prices.

    Fresnillo (LSE:FRES) gained 2.88%, while Antofagasta (LSE:ANTO) rose 2.8%. Anglo American (LSE:AAL) increased 1.86% and Rio Tinto (LSE:RIO) added 1.16%.

    Silver prices climbed 2.23%, copper gained 0.61%, platinum advanced 0.74% and palladium rose 1.35%.

    The movements came as markets continued to assess supply risks associated with the conflict in the Middle East.

    China Calls for US-Iran Negotiations as Oil Prices Decline

    Chinese Foreign Minister Wang Yi called for renewed negotiations between Washington and Tehran on Wednesday during a visit to Beijing by Iranian Foreign Minister Abbas Araghchi.

    Wang urged the two countries to resume substantive discussions on outstanding issues and rebuild a negotiating framework based on the consensus reached following the Islamabad memorandum of understanding.

    Separately, Iranian state media reported that the country’s Revolutionary Guard had shot down a US MQ-9 drone over Qeshm Island.

    In Washington, the US House of Representatives passed a War Powers Resolution concerning Iran by 220 votes to 204 on Tuesday.

    Seven Republican lawmakers supported the resolution, compared with four in an earlier vote.

    A Congressional Budget Office estimate cited in reporting put the cost of the conflict at $38 billion and indicated that US missile-interceptor stockpiles were being depleted.

    In commodity markets, Brent crude declined 0.93% to $107.74 a barrel, while West Texas Intermediate fell 1.47% to $104.27.

    Gold futures increased 0.95% to $4,373.70 an ounce, while spot gold rose 0.91% to $4,333.84.

    UK Corporate Updates: Moonpig, WH Smith and Babcock

    Moonpig (LSE:MOON) maintained its outlook for the 2027 financial year, with revenue growth at its core Moonpig platform offsetting a planned reduction in reported Experiences revenue.

    WH Smith (LSE:SMWH) said it expects full-year headline profit before tax of approximately £75 million, at the lower end of its previous guidance range. The retailer cited increased promotional activity and higher costs.

    Babcock International (LSE:BAB) reaffirmed its full-year guidance, reporting continued demand across its marine, nuclear and land operations amid increased defence expenditure.

  • Games Workshop Shares Rise 2.2% as Company Declares 70p Dividend

    Games Workshop Shares Rise 2.2% as Company Declares 70p Dividend

    Games Workshop (LSE:GAW) shares rose 2.2% on Wednesday after the miniature wargames manufacturer issued a trading update and announced a further dividend.

    The company reported that trading through 30 August 2026 was in line with the board’s expectations for the financial year.

    Games Workshop also declared a dividend of 70 pence per share, bringing total dividends announced so far in the 2027 financial year to £3 per share.

    The trading update confirmed that the company’s performance remained consistent with its existing expectations, with no changes to its full-year outlook disclosed in the supplied information.

    Games Workshop manufactures and sells miniature wargames and associated products.

  • Vodafone Shares Fall 1.5% as OXG Stake Sale Could Affect €1.1 Billion in Potential Earnings

    Vodafone Shares Fall 1.5% as OXG Stake Sale Could Affect €1.1 Billion in Potential Earnings

    Vodafone Group PLC (LSE:VOD) shares declined 1.5% to 129.3 pence on Wednesday following reports that the company could lose up to €1.1 billion ($1.27 billion) in potential earnings linked to a change in ownership at its German broadband joint venture, OXG.

    According to the Financial Times, Société Générale agreed earlier this month to acquire Patrick Drahi’s 50% stake in OXG.

    The report indicated that the French bank will not assume Drahi’s deferred payment obligations as part of the transaction.

    The arrangement could affect up to €1.1 billion in potential earnings for Vodafone, although the final financial impact has not been established in the supplied information.

    The reported transaction would transfer Drahi’s interest in the German broadband venture to Société Générale, changing the ownership structure of OXG.

    Vodafone’s shares were trading at 129.3 pence following the reported decline.

  • Entain Plans 400 Customer Care Job Cuts and Raises Concerns Over Potential UK Gambling Tax Increase

    Entain Plans 400 Customer Care Job Cuts and Raises Concerns Over Potential UK Gambling Tax Increase

    Entain (LSE:ENT), the owner of Ladbrokes, said on Wednesday that it plans to eliminate approximately 400 customer care positions as it responds to higher gambling taxes in the UK.

    The proposed reductions represent around 20% of the company’s customer care workforce of 2,000 employees.

    Entain said the restructuring is intended to address the financial impact of increased gambling duties, which have raised operating costs for betting and gaming companies.

    The announcement follows tax changes introduced in November, when gaming duties were increased to 40% and online sports betting levies to 25%.

    Entain has also raised concerns about the possibility of further tax increases affecting gaming machines.

    In a letter dated 11 September and shared on Wednesday, Chief Executive Stella David urged the UK government to consider the potential employment and economic consequences of a substantial increase in Machine Games Duty.

    The company warned that additional taxation could affect employment across betting shops and the communities in which they operate.

    Media reports indicate that further increases in gambling taxes, including duties on gaming machines, are under consideration ahead of the October Budget. No additional increase has been confirmed in the supplied material.

    The proposed job reductions and Entain’s representations to the government come as the company assesses the impact of existing taxation and the possibility of further changes to gambling duties.

  • Barratt Redrow FY26 Revenue Rises 6.6% to £6.06 Billion as Home Completions Increase 5%

    Barratt Redrow FY26 Revenue Rises 6.6% to £6.06 Billion as Home Completions Increase 5%

    Barratt Redrow plc (LSE:BTRW) reported a 6.6% increase in revenue to £6.06 billion for the 52 weeks ended in 2026, supported by higher home completions, while adjusted profit before tax declined 7.1% amid pressure on margins.

    Total home completions increased 5.0% to 17,667, reflecting the group’s combined operations following the acquisition of Redrow.

    Statutory profit before tax rose to £363.5 million, partly reflecting a reduction in integration costs associated with the acquisition. However, adjusted profit before tax fell 7.1%, while return on capital employed also declined.

    The company confirmed that the integration of Redrow had been completed, with £73 million of cost synergies delivered during the financial year.

    Barratt Redrow maintained its target of achieving £100 million in total synergies from the combination.

    The group ended the financial year with net cash of £772.8 million after making dividend payments and undertaking share buybacks.

    Forward sales increased in both volume and value, while reservation rates recorded a modest improvement.

    Despite these developments, Barratt Redrow reduced its home completion guidance for the 2027 financial year to between 17,500 and 17,900 properties, citing delays in the planning process.

    The revised guidance implies a completion range slightly below to marginally above the 17,667 homes delivered in FY26.

    The company continues to operate through its three residential brands, Barratt, David Wilson Homes and Redrow, serving private homebuyers and institutional customers.

    Its activities include private housing development, multi-unit residential projects and properties for the private rental sector.

    Barratt Redrow is pursuing purchasing efficiencies and operational improvements across its combined business following the Redrow integration.

    The group also maintains a capital return programme involving dividends and share buybacks, alongside investment in its housing development operations.

    The company’s FY27 outlook reflects its current assessment of market conditions and planning-related constraints, with completion volumes expected to remain broadly in line with the previous financial year.

  • Filtronic Secures $8 Million US Satellite Contract for mmWave Payload Technology

    Filtronic Secures $8 Million US Satellite Contract for mmWave Payload Technology

    Filtronic (LSE:FTC) has secured an $8 million follow-on contract with a US-based customer to design, develop and manufacture prototype millimetre-wave (mmWave) units intended for deployment on satellites.

    The agreement expands an existing relationship that began with a smaller development contract awarded in June 2026.

    The latest award is separate from an earlier $8 million order placed by the same customer for amplifier technology, bringing the combined value of the two disclosed orders to $16 million.

    Under the new agreement, Filtronic will undertake the design, development and production of prototype mmWave units for satellite payload applications.

    The company expects the contract to contribute revenue across the 2027 and 2028 financial years, extending its involvement in the customer’s satellite technology development programme.

    Management said the follow-on award reflects the customer’s confidence in Filtronic’s radio frequency engineering and manufacturing capabilities.

    The contract also aligns with Filtronic’s strategy of expanding its activities in satellite communications, one of the markets targeted for longer-term development alongside aerospace, defence and telecommunications infrastructure.

    The additional work extends the company’s relationship with the US customer beyond its initial development programme and existing amplifier technology order.

    Filtronic designs and manufactures high-frequency radio frequency components and systems used in satellite payloads, defence equipment and communications networks.

    The AIM-listed company operates engineering and manufacturing facilities in the UK and supplies customers across international space, aerospace, defence and telecommunications markets.

  • WH Smith Revenue Rises 5% in Summer Trading as FY Profit Guidance Remains at £75 Million

    WH Smith Revenue Rises 5% in Summer Trading as FY Profit Guidance Remains at £75 Million

    WH Smith (LSE:SMWH) reported a 5% year-on-year increase in group revenue during the peak summer trading period and maintained its expectation for full-year headline profit before tax of approximately £75 million, in line with market forecasts.

    The travel retailer said revenue growth was supported by its UK operations, particularly stores in hospitals and travel hubs, alongside performance in its North American airport business.

    Trading at North American resort locations was less favourable, while profitability across the group was affected by increased promotional activity, reduced brand marketing and inflationary pressures.

    WH Smith is continuing a transformation programme focused on reducing costs, improving cash and working capital management, and reshaping its store portfolio towards travel retail formats that management expects to generate higher returns.

    The company raised £103 million through an equity issue to support its balance sheet. Net debt has subsequently declined to approximately £325 million, with leverage standing at around 2.0 times.

    As part of its portfolio review, WH Smith is withdrawing from or transitioning to franchise arrangements in several international markets, including Norway, Denmark, Sweden and the Netherlands.

    The group is also reviewing its North American resort operations, with plans to reduce its exposure to stores with a greater emphasis on fashion products.

    In the UK, WH Smith opened six new one-stop-shop stores at major airports ahead of the peak summer trading period.

    The format combines a broader range of travel essentials within individual stores, with the company seeking to increase average transaction values in locations with high passenger volumes.

    WH Smith has also completed the disposal of Cult Pens as part of its programme to exit operations outside its core travel retail strategy.

    Management is implementing further cost-saving measures and reviewing capital expenditure to align investment with its revised store portfolio.

    The company continues to target improvements in cash generation and working capital as it adjusts its operations across domestic and international markets.

    Despite the impact of promotional activity and inflation on margins, WH Smith reiterated its full-year headline profit before tax guidance of approximately £75 million.

    The group operates travel retail stores across airports, railway stations, hospitals and resort locations, with a substantial presence in the UK and North America.

    Its current strategy focuses on travel essentials, portfolio restructuring and franchise arrangements in selected international markets.

  • 80 Mile Reports £1.46 Million Interim Loss as Greenland Drilling and Italian Biofuels Projects Advance

    80 Mile Reports £1.46 Million Interim Loss as Greenland Drilling and Italian Biofuels Projects Advance

    80 Mile Plc (LSE:80M) reported a widened pre-tax loss of £1.46 million for the first half of 2026, alongside a significant reduction in its cash balance, as the company continued developing its energy and resources portfolio in Greenland and Italy.

    The AIM-listed group has reorganised its operations around three principal assets: the Jameson Land Basin hydrocarbon project in East Greenland, the Disko-Nuussuaq nickel-copper-cobalt-platinum group elements project in West Greenland, and the Greenswitch Ferrandina biodiesel facility in Italy.

    The company said it now holds 100% ownership of key licences and operating entities across these projects. Its remaining assets, including Finnish copper interests and the Dundas mineral sands project, are being retained or marketed for potential partnerships.

    At Jameson Land, partner Greenland Energy Company received clearance from the US Securities and Exchange Commission and completed a Nasdaq listing, securing approximately US$70 million for the planned drilling programme.

    80 Mile also confirmed exclusive licensing rights over the basin and reported progress on permitting, with drilling currently expected during winter 2027.

    The project has a stated resource potential of 13 billion barrels. This represents an exploration estimate rather than established commercial reserves, with drilling and further evaluation required to determine the presence and recoverability of hydrocarbons.

    At the Disko-Nuussuaq project, drilling rigs were mobilised in June, followed by the commencement of systematic drilling in July.

    The programme is being undertaken in connection with a proposed joint venture with USFM Corporation. Under the pending arrangement, USFM is expected to fund US$30 million of expenditure in exchange for a 51% interest.

    80 Mile would retain a 49% interest, with its share of expenditure carried by USFM during the initial phase.

    The company expects drilling results and subsequent geological interpretations to provide further information on the project’s nickel, copper, cobalt and platinum group element potential.

    In Italy, 80 Mile’s wholly owned Greenswitch Ferrandina biodiesel facility obtained INS and ISCC sustainability accreditations.

    According to the company, these certifications provide access to applicable double-counting incentives and Italy’s CIC regime, supporting preparations for a commercial restart.

    The group is also pursuing offtake agreements and evaluating potential future opportunities involving sustainable aviation fuel and hydrogen.

    During the reporting period, 80 Mile raised £1.9 million to support working capital requirements and transferred its shares to the SETS trading platform.

    The company also reported governance changes and its recognition as AIM Company of the Year.

    Despite progress across its operating portfolio, the group recorded a higher interim loss and a substantially lower cash balance. Further project development remains dependent on funding, regulatory approvals and operational execution.

    Over the coming year, planned activities include the release of assay results from Disko, continued permitting at Jameson Land and preparations for commercial production at Ferrandina.

    80 Mile is listed on AIM, the Frankfurt Stock Exchange and OTC markets. Its activities encompass hydrocarbon exploration, battery metals exploration and biofuels production, with additional mineral interests in Greenland and Finland.

  • Babcock Maintains FY27 Guidance as Defence Contracts Expand and £200 Million Buyback Begins

    Babcock Maintains FY27 Guidance as Defence Contracts Expand and £200 Million Buyback Begins

    Babcock International (LSE:BAB) has maintained its full-year 2027 guidance after reporting that trading during the first five months of the financial year was in line with management expectations, supported by performance in its Nuclear and Aviation businesses.

    The defence and engineering services group also announced contract developments across several international markets, alongside a £250 million bond issue and a further £200 million share buyback programme.

    Babcock reported the transition of Harry Holt to chief executive officer and introduced organisational changes intended to support growth and operational development.

    In Canada, the company secured a multi-year contract to provide support for Victoria Class submarines. It was also selected as preferred bidder for a French Air Force combat training programme.

    Additional contract activity included follow-on support work for military vehicles supplied to Ukraine and extensions to support arrangements for Australia’s Anzac Class frigates.

    Within its nuclear operations, Babcock is expanding its involvement in energy infrastructure through support for small modular reactor deployment and a technology partnership focused on advanced reactor systems.

    The company also highlighted potential opportunities associated with UK defence investment, including the Government’s £298 billion Defence Investment Plan and the £26 billion Royal Oak naval infrastructure modernisation programme.

    Babcock provides through-life support for the UK’s nuclear submarine fleet and operates key naval bases, placing its existing activities within the scope of planned investment in naval infrastructure and defence capabilities.

    The group is also developing its Hybrid Navy and ARMOR Force initiatives, which focus on autonomous systems, digital technologies and their potential application across future defence operations.

    On financing, Babcock issued a £250 million six-year sterling bond to extend its debt maturity profile.

    The company has also launched a further £200 million share buyback programme, which is scheduled to be completed by the end of FY27.

    Babcock’s unchanged guidance reflects its current trading performance and management’s expectations for the remainder of the financial year.

    The group is scheduled to publish its half-year 2027 financial results on 19 November 2026, providing a further update on trading, contract activity and financial performance.

    Babcock International provides defence, nuclear and aviation engineering services, including submarine maintenance, naval base operations, military vehicle support and aerospace training. Its operations span the UK and international markets, including Canada, France, Poland and Australia.

  • Rockfire Resources Reports Molaoi Zinc and Silver Drill Readings as Mine Design Work Advances

    Rockfire Resources Reports Molaoi Zinc and Silver Drill Readings as Mine Design Work Advances

    Rockfire Resources (LSE:ROCK) has reported preliminary drilling results from its wholly owned Molaoi zinc deposit in Greece, including multiple elevated zinc and silver readings from diamond drill hole HMO-021, as the company works towards upgrading its mineral resource classification.

    The drilling programme is intended to provide additional geological information to support the conversion of the existing Inferred resource to the Indicated category.

    Preliminary results from HMO-021 include several high-grade zinc and silver readings obtained using portable X-ray fluorescence (pXRF) equipment. Rockfire said the readings included the highest silver grade encountered at Molaoi to date.

    The results remain preliminary, with laboratory assays pending. The final grades will require confirmation through laboratory analysis.

    Alongside the drilling programme, Rockfire has completed metallurgical and geotechnical testing to inform processing plant selection and underground mine design.

    Metallurgical results support the potential use of a Semi-Autogenous Grinding (SAG) circuit rather than a conventional ball mill. The company said this configuration could reduce operating costs and electricity consumption, subject to further engineering assessment.

    Geotechnical testing included Uniaxial Compressive Strength measurements, which identified variations in rock strength across the deposit.

    The findings will be used to assess underground mining conditions and determine appropriate excavation designs and rock support requirements.

    Rockfire is also preparing to expand its drilling capabilities, with a company-owned drilling rig scheduled to arrive in Athens in November.

    The equipment is expected to support the continuation of exploration and resource development activities at Molaoi.

    The Molaoi deposit contains zinc, lead, silver and germanium mineralisation. Rockfire is advancing drilling, metallurgical studies and mine design work as part of its evaluation of the project’s development potential.

    The company also holds exploration interests in Queensland, Australia, including the Plateau gold-silver deposit and the Marengo gold-silver-copper prospect. Certain Australian projects are subject to farm-in arrangements with ASX-listed partners.