ADVFN UK Market News

Author: Fiona Craig

  • London stocks fall as bond yields rise and Middle East conflict continues: FTSE100

    London stocks fall as bond yields rise and Middle East conflict continues: FTSE100

    UK equities traded lower on Tuesday as London markets reopened following the bank holiday weekend, with investors assessing higher global bond yields, developments in the Middle East and domestic shop price inflation data.

    The FTSE 100 fell 0.3% to around 10,798 points, following declines across European equity markets during Monday’s session, when UK markets were closed.

    Higher oil prices provided some support for energy companies including Shell and BP, while housebuilders, consumer stocks and mining companies traded lower.

    Global bond yields move higher

    Moves in fixed-income markets formed part of the backdrop for Tuesday’s equity trading, with the benchmark 10-year Japanese government bond yield reaching a generational high.

    U.S. Treasury and European borrowing costs also increased following comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday.

    Higher bond yields can affect the relative valuation of equities by increasing the returns available on fixed-income assets and raising borrowing costs.

    Brent crude approaches $91 amid Middle East developments

    Investors were also monitoring developments involving the U.S. and Iran following military exchanges over the extended weekend.

    U.S. forces carried out strikes against Iranian rocket launchers on Larak Island in the Strait of Hormuz, followed by Iranian missile strikes against U.S. military bases in Jordan.

    Brent crude moved towards $91 per barrel as markets assessed the potential impact of the conflict on shipping through the Strait of Hormuz.

    The increase in oil prices supported shares of some energy companies while adding to market attention on the potential effect of higher energy costs on inflation.

    Bunzl gains following half-year results

    Among individual London-listed companies, Bunzl (LSE:BNZL) rose 1.8% after the distribution and services group reported its half-year financial results.

    The company was among the gainers in a session in which the FTSE 100 traded moderately lower.

  • Ashtead Technology reports lower first-half earnings as revenue rises 1.1%

    Ashtead Technology reports lower first-half earnings as revenue rises 1.1%

    Ashtead Technology (LSE:AT.) reported revenue of £100.2 million for the first half of 2026, up 1.1% from £99.1 million a year earlier and 1.7% higher at constant currency.

    Growth in Europe was partly offset by previously reported disruption in the Middle East and lower offshore renewables activity in Asia. Revenue from oil and gas increased 1.9%, while renewables revenue declined 1.6%.

    Adjusted EBITA fell 7.3% to £25.1 million from £27.0 million, with the adjusted EBITA margin decreasing to 25.0% from 27.3%. The company attributed the change to revenue mix and higher depreciation following recent capital expenditure.

    Profit before tax declines to £17.5 million

    Operating profit decreased 5.9% to £21.8 million, while profit before tax declined 1.5% to £17.5 million.

    Adjusted basic earnings per share were 20.6p, down 5.9% from 21.9p in the corresponding period.

    Return on invested capital declined to 20.5% from 24.2%, a reduction of 369 basis points. The company said the return remained above its cost of capital.

    Net debt falls to £116.7 million

    Ashtead Technology reported net debt of £116.7 million, compared with £131.9 million previously, while leverage decreased to 1.4 times from 1.7 times.

    The company expects leverage to be approximately 1.3 times by the end of 2026.

    Ashtead said its addressable market is projected to grow at a compound annual growth rate of 6% to $3.4 billion by 2029, supported by customer backlogs and its pipeline of potential opportunities.

    “The company remains well positioned to navigate near-term market headwinds arising from the current geopolitical situation in the Middle East and continues to position itself to capture the longer-term opportunities as they arise,” Ashtead said in the release.

  • WPP plans up to 1,000 additional job cuts by year-end, FT reports

    WPP plans up to 1,000 additional job cuts by year-end, FT reports

    WPP (LSE:WPP) plans to cut up to 1,000 additional jobs by the end of 2026 as part of a restructuring programme under chief executive Cindy Rose, according to a Financial Times report published Tuesday.

    The British advertising group also plans to sell non-core businesses and reduce its property footprint as part of the changes, the report said.

    The latest planned reductions would follow approximately 11,000 job cuts made by WPP since the beginning of 2025.

    WPP workforce stood at 97,388 in June

    WPP employed 97,388 people as of June 30, 2026, according to the Financial Times, which cited people familiar with the company’s plans.

    The reported restructuring comes as advertising companies adjust their operations amid reduced client spending and increased use of artificial intelligence tools for certain tasks.

    WPP’s programme is expected to use AI as part of efforts to change its cost structure and operations.

    London property footprint set to be reduced

    WPP is also working to lower property-related expenses, according to the report.

    The company currently operates from three separate buildings on the south side of the River Thames in London. These operations are expected to be consolidated into two locations.

    The planned workforce reductions, property consolidation and disposal of non-core businesses form part of the restructuring measures reported by the Financial Times.

  • Bodycote shares rise 4.5% after agreeing Veritas Capital takeover

    Bodycote shares rise 4.5% after agreeing Veritas Capital takeover

    Bodycote (LSE:BOY) shares rose 4.5% to 953.85p during Tuesday’s session after the company agreed to a cash takeover by U.S. private equity firm Veritas Capital.

    Under the agreement, Veritas will acquire the Macclesfield-based heat treatment specialist for 940 pence per share in cash. Bodycote’s board has unanimously recommended the offer to shareholders.

    The transaction, which will be carried out through Veritas’s Vulcan Alpha Bidco vehicle, values Bodycote’s equity at approximately £1.65 billion and the company at around £1.85 billion including debt.

    Veritas raises offer from earlier indicative proposal

    The formal 940p-per-share offer is above the indicative proposals disclosed in early August, when Veritas and rival bidder CVC Advisers had submitted conditional proposals of approximately 914p to 915p per share.

    The takeover agreement was announced on the deadline set by the UK Takeover Panel under Rule 2.6(a) of the City Code on Takeovers and Mergers, by which Veritas and CVC Advisers were required to announce a firm intention to make an offer or state that they did not intend to proceed.

    Bodycote shares traded above the agreed 940p offer price following the announcement.

    Bodycote reaches 52-week high

    The shares reached an intraday 52-week high of 957p, compared with the agreed acquisition price of 940p.

    The move came as broader equity markets traded lower, with the S&P 500 down 0.4% and the Nasdaq declining 0.8%. The FTSE 250, of which Bodycote is a constituent, also traded against a cautious market backdrop.

    The takeover announcement and the increase from Veritas’s previous indicative proposal were the principal company-specific developments accompanying Tuesday’s rise in Bodycote shares.

  • Helium One reports extension of Galactica-Pegasus helium offtake agreement

    Helium One reports extension of Galactica-Pegasus helium offtake agreement

    Helium One Global (LSE:HE1) said the operator of its Galactica-Pegasus joint venture in Colorado has extended an existing helium purchase and sales agreement covering all helium production from the Pinon Canyon Plant.

    The agreement has been extended through the end of the first quarter of 2027, with pricing fixed in line with current U.S. market conditions. The company did not provide specific pricing information in the supplied material.

    The extension provides an offtake arrangement for production during the period while discussions regarding a longer-term agreement continue.

    Additional helium tube trailers delivered

    Helium One also reported the delivery of a fourth helium tube trailer, while a fifth trailer is being filled.

    Initial wells at Galactica-Pegasus were connected for first gas in late 2025, and additional wells are being brought onstream for helium and CO2 production.

    Helium One holds a 50% interest in the Galactica-Pegasus project, providing the company with exposure to production from the Colorado development.

    Rukwa project holds granted mining licence

    Alongside its U.S. activities, Helium One is progressing its southern Rukwa Project in Tanzania.

    The project has received a mining licence following an extended well test, with the company advancing its activities from exploration and appraisal towards development.

    Helium One Global is a helium exploration and development company with projects in Tanzania and the United States. Its portfolio includes the southern Rukwa Project and its 50% interest in the Galactica-Pegasus project in Colorado.

  • Bunzl raises 2026 outlook and announces £500 million share buyback

    Bunzl raises 2026 outlook and announces £500 million share buyback

    Bunzl (LSE:BNZL) reported first-half 2026 revenue of £5.93 billion, an increase of 2.9% at constant exchange rates, while adjusted operating profit rose 8.0%.

    The international distribution and services group reported an operating margin of 7.3% for the period. Revenue growth was supported by volumes and inflation, particularly in North America, while all of the group’s regions recorded underlying revenue growth.

    Bunzl said warehouse efficiencies and increased use of digital channels also contributed to profitability during the period.

    Bunzl updates full-year guidance

    Following its first-half performance, Bunzl raised its outlook for 2026. The company now expects modest underlying revenue growth for the full year, with margins anticipated to be broadly unchanged compared with the previous year.

    The group also announced a £500 million share buyback, which it plans to fund from cash generation and its existing balance sheet capacity.

    Bunzl reported that leverage remains at a level that allows it to pursue its capital allocation plans.

    Acquisition activity expected to increase in second half

    Bunzl completed two acquisitions during the period and said it expects acquisition activity to increase during the second half of 2026.

    The group continues to prioritise bolt-on acquisitions as part of its capital allocation strategy, alongside dividends and share buybacks.

    Bunzl plc is an international distribution and services group supplying non-food consumables including packaging, cleaning and hygiene products, safety equipment and healthcare supplies.

    The company operates across North America, Europe, the UK and Ireland, and other international markets. Its activities include distribution, own-brand products and digital ordering services for business customers.

  • KEFI Gold and Copper appoints Danny Callow as independent non-executive director

    KEFI Gold and Copper appoints Danny Callow as independent non-executive director

    KEFI Gold and Copper (LSE:KEFI) has appointed Danny Callow as an independent non-executive director, filling a vacancy created by a recent board retirement.

    Callow has experience in the development of copper and gold mining projects in Africa. As part of his role, he will chair a newly established operations and physical risks committee.

    The committee will form part of KEFI’s governance arrangements as the company progresses development of its Tulu Kapi gold project.

    KEFI reorganises board committee structure

    KEFI is also changing its governance structure, with four independent non-executive directors each set to chair key board committees.

    The directors will additionally join subsidiary boards as part of the company’s arrangements for oversight and accountability across the group.

    The changes are being implemented as KEFI progresses from project development towards planned mining operations.

    Management succession planned around Tulu Kapi production

    KEFI has also outlined a management succession plan linked to the development of Tulu Kapi.

    The company plans to appoint a chief executive, while its current executive chairman is expected to transition to the position of non-executive chair around the start of production at Tulu Kapi.

    KEFI also intends to appoint a new finance director as the company moves from the development phase into operations.

    KEFI Gold and Copper is a London AIM-listed exploration and development company with gold and copper projects in Ethiopia and Saudi Arabia. The group is developing the Tulu Kapi gold project in Ethiopia through KME Minerals Ethiopia Holdings and Tulu Kapi Gold Mines, while its Saudi Arabian activities are conducted through Gold and Minerals Limited.

  • Michelmersh Brick reports higher gross margin as first-half revenue falls 9.5%

    Michelmersh Brick reports higher gross margin as first-half revenue falls 9.5%

    Michelmersh Brick Holdings (LSE:MBH) reported first-half 2026 revenue of £32.4 million, down 9.5%, as activity across the UK construction market remained below previous levels.

    Gross margin increased to 37.0% during the period, while adjusted EBITDA was slightly higher following integration and efficiency measures implemented across the business.

    UK industry brick despatch volumes were approximately 9% lower and remained more than 25% below their 2022 peak. Against this backdrop, Michelmersh increased its market share during the period.

    Capacity changes implemented across manufacturing operations

    Michelmersh has adjusted production capacity in response to current market conditions. Production at its Freshfield Lane operation was reduced by 30%, while manufacturing restarted at Romsey.

    The group also closed its Charnwood pre-fabricated facility and transferred the associated production lines to its core brick manufacturing sites.

    Management said order intake is currently running ahead of production, although ordering patterns remain volatile.

    Interim dividend maintained

    Michelmersh maintained its interim dividend and reported net debt of £5 million. The group also has access to a £20 million facility.

    The board expects full-year performance to remain within market expectations. However, it identified political uncertainty in the UK and the continuing conflict in the Middle East as factors that could affect consumer confidence and construction activity.

    Michelmersh Brick Holdings is a specialist brick manufacturer and brick fabricator serving the UK and northern European construction markets. The group supplies clay bricks and pre-fabricated brick products for new-build and refurbishment projects.

  • Renalytix signs multi-year Quest Diagnostics agreement for U.S. kidneyintelX.dkd rollout

    Renalytix signs multi-year Quest Diagnostics agreement for U.S. kidneyintelX.dkd rollout

    Renalytix (LSE:RENX) has signed a multi-year agreement with Quest Diagnostics to expand access to its kidneyintelX.dkd blood test across the United States.

    Under the agreement, physicians in the U.S. will be able to order kidneyintelX.dkd through Quest’s connectivity and specimen collection network. Renalytix will perform the assay at its laboratory in New York and will remain responsible for billing for the test.

    Availability through the Quest network is targeted for early 2027.

    Agreement includes potential in-licensing option

    The arrangement also gives Quest an option to in-license kidneyintelX.dkd after specified commercialisation milestones have been achieved.

    The supplied information does not specify the financial terms of the multi-year agreement or the commercialisation milestones associated with the licensing option.

    Renalytix said the partnership is intended to expand physician access to kidneyintelX.dkd by using Quest’s U.S. connectivity and collection infrastructure.

    KidneyintelX.dkd targets diabetic kidney disease

    KidneyintelX.dkd is a blood-based test developed to assess the risk of progressive kidney function decline in adults with type 2 diabetes and early-stage chronic kidney disease.

    The test has received U.S. Food and Drug Administration authorisation and Medicare reimbursement.

    Renalytix is an AI-enabled in vitro diagnostics company focused on precision medicine for kidney disease. Its KidneyIntelX technology uses data-driven analysis to assess the risk of progressive kidney function decline in patients with early-stage diabetic kidney disease.

  • Alien Metals partner West Coast Silver raises A$6 million for Elizabeth Hill exploration

    Alien Metals partner West Coast Silver raises A$6 million for Elizabeth Hill exploration

    Alien Metals’ (LSE:UFO) joint venture partner West Coast Silver has received firm commitments to raise A$6 million through a placement to institutional and professional investors.

    The proceeds are expected to fund additional exploration at the Elizabeth Hill Silver Project in Western Australia, including further drilling, technical studies and work towards an updated mineral resource.

    Alien Metals retains a 30% free-carried interest in Elizabeth Hill and holds an 8.7% equity interest in West Coast Silver. Under the free-carried arrangement, Alien is not required to contribute to the near-term exploration expenditure covered by its carried interest.

    Placement expected to complete in early September

    West Coast Silver’s placement was priced at a 13.8% discount to its 15-day volume-weighted average price.

    Participants include Admiralty Resource Fund, alongside other institutional and professional investors. Completion of the financing is expected in early September 2026.

    The funding will also allow West Coast Silver to bring forward exploration programmes at the Elizabeth Hill South and Elizabeth Hill West areas.

    Funding supports expanded exploration programme

    The A$6 million financing provides West Coast Silver with additional capital to undertake drilling and technical work across the Elizabeth Hill project while Alien maintains its joint venture and equity interests.

    Alien Metals Limited is a London AIM-quoted mineral exploration and development company with a portfolio of assets in Australia.

    Its interests include the Georgina Basin iron oxide copper-gold project in the Northern Territory and interests in the Munni Munni PGM system and Elizabeth Hill Silver Project in Western Australia. The company holds some of its project exposure through joint ventures and equity investments.