ADVFN UK Market News

Author: Fiona Craig

  • FTSE 100 slips as Middle East tensions outweigh stronger UK economic growth

    FTSE 100 slips as Middle East tensions outweigh stronger UK economic growth

    The FTSE 100 traded lower on Thursday as escalating tensions between the United States and Iran overshadowed better-than-expected UK economic data, while investors continued to assess the potential impact of disruption to global energy markets.

    The FTSE 100 fell 0.37% by 07:25 GMT, extending the previous session’s losses. Elsewhere in Europe, Germany’s DAX declined 0.22% and France’s CAC 40 slipped 0.21%. Sterling was little changed against the US dollar at $1.3535.

    UK economy grows faster than expected

    Fresh figures from the Office for National Statistics showed the UK economy expanded more strongly than forecast.

    Gross domestic product increased 0.7% over the three months to May, comfortably ahead of economists’ expectations for 0.5% growth. Annual GDP growth accelerated to 1.3%, marking the fastest pace in 13 months.

    On a monthly basis, the economy grew 0.1% in May after contracting 0.1% in April, with the services sector providing the main support through a 0.3% increase in output.

    Iran tensions continue to dominate market sentiment

    Despite the encouraging economic data, geopolitical developments remained the primary focus for investors.

    A spokesman for Iran’s military headquarters warned that “all infrastructure in the region” would be “crushed under the steel blows” of Iran’s armed forces if the United States proceeded with threats to target Iranian infrastructure. The comments followed remarks by US President Donald Trump, who warned on Wednesday that Washington would “knock out all their power plants… all their bridges” unless Tehran returned to negotiations.

    Military activity intensified overnight as US forces reportedly carried out strikes around Tehran and in Semnan province, while Iran responded with missile and drone attacks targeting Bahrain, Jordan and Kuwait. Iran’s Revolutionary Guard said it had struck a US base in Jordan following what it described as an American attack near a children’s cancer hospital in Ahvaz.

    Strait of Hormuz concerns keep investors cautious

    Strategists continued to warn that tensions around the Strait of Hormuz could remain elevated for an extended period.

    Jefferies strategist Mohit Kumar said shipping through the vital energy corridor “has slowed down significantly,” adding that Iran currently appears unwilling to negotiate.

    Kumar said the latest escalation differs from previous confrontations, which had been “meant as an objective to gain an upper hand in negotiations and to eventually de-escalate the situation,” arguing Iran is unlikely to “give up its claim of sovereignty over the Strait that easily” and that he was “doubtful whether there is a unified leadership in Iran that can take that decision.”

    Jefferies said it was “keeping risk levels low” while continuing to expect “eventually we will get a deal even if it’s a fudge,” although the firm believes the current standoff could continue “for a few weeks,” leaving oil prices under continued upward pressure.

    Meanwhile, US Vice President JD Vance described the recent attacks as part of a “delicate diplomatic dance” during an interview with Joe Rogan, while President Trump said separately, “We’ll find out whether or not we settle with them or we just finish it off.”

    Commodities and corporate news

    Brent crude slipped 0.38% to US$84.63 per barrel, while West Texas Intermediate eased 0.08% to US$79.54. Gold futures fell 0.55% to US$4,029.27 an ounce, with spot gold down 0.88% at US$4,025.62.

    Among UK-listed companies, Crest Nicholson (LSE:CRST) warned operating profit is likely to come in at the lower end of its FY2026 guidance and confirmed an extension to a key banking covenant waiver.

    Ocado (LSE:OCDO) said it continues to pursue new retail partnerships in the United States while maintaining its target of becoming cash flow positive.

    TotalEnergies (LSE:TTE) said higher oil and gas prices linked to Middle East tensions are expected to support second-quarter earnings.

    Premier Foods (LSE:PFD) reported a 4% increase in first-quarter branded sales, helped by strong demand for its grocery and sweet treats portfolio.

    Frasers Group (LSE:FRAS) declined to provide guidance for FY2027, citing uncertainty surrounding ongoing takeover activity involving Hugo Boss and Accent Group.

    SSE (LSE:SSE) reaffirmed its earnings guidance after reporting higher investment across its electricity networks and stronger renewable generation, while also announcing the appointment of former National Grid chief executive John Pettigrew to its board.

  • SSE maintains full-year guidance as network investment jumps and renewable output increases (SSE)

    SSE maintains full-year guidance as network investment jumps and renewable output increases (SSE)

    SSE PLC (LSE:SSE) has reaffirmed its earnings guidance after reporting strong progress across its electricity networks and renewables businesses in its first-quarter trading update. The utility highlighted a significant increase in infrastructure investment alongside higher renewable generation, as it continues to execute its long-term growth strategy.

    Network investment accelerates

    SSE’s regulated networks division invested £0.9 billion during the first quarter, representing an 83% increase compared with the same period last year.

    The company said construction continues to advance on its major ASTI and LOTI electricity transmission projects, while investment in its distribution network also increased ahead of the planned submission of its ED3 business plan in December.

    The higher level of spending forms part of SSE’s wider £33 billion investment programme aimed at expanding and modernising the UK’s electricity infrastructure.

    “Since announcing our £33bn investment programme to unlock the enormous growth opportunity of U.K. electricity networks, we are continuing to see real progress as we work to deliver the plan, and in doing so we are underpinning compounding, long-term earnings growth and creating significant value for investors,” Barry O’Regan, CFO of SSE, said.

    Renewable generation strengthens

    SSE Renewables increased electricity generation by 31% year over year during the first quarter, benefiting from more favourable weather conditions and additional generating capacity coming online.

    The stronger operational performance supported the company’s confidence in its financial outlook, despite the seasonal importance of the winter months for energy production.

    Management maintained its adjusted earnings per share guidance of between 168p and 193p for the 2026/27 financial year, while leaving its longer-term target of 225p to 250p for 2029/30 unchanged.

    The company said the guidance issued in May remains valid, although performance will continue to depend on factors including weather conditions, energy markets and plant availability.

    Board strengthened with National Grid veteran

    SSE also announced the appointment of John Pettigrew as an independent non-executive director, effective from 1 December.

    Pettigrew joins the board after more than three decades at National Grid, where he held a range of senior strategic, operational and regulatory leadership positions.

    The appointment adds further industry experience to the board as SSE continues to expand its electricity infrastructure and renewable energy portfolio.

  • Trustpilot shares fall as unchanged full-year outlook overshadows strong first-half performance (TRST)

    Trustpilot shares fall as unchanged full-year outlook overshadows strong first-half performance (TRST)

    Trustpilot Group (LSE:TRST) shares fell around 10% after the online reviews platform reaffirmed its full-year guidance instead of raising expectations, despite reporting first-half results that exceeded market forecasts.

    Strong first-half results fail to lift guidance

    The company reiterated its expectation of delivering revenue growth in the high teens for the full year alongside an improvement of between two and three percentage points in its adjusted core profit margin.

    Although the outlook remained unchanged, investors appeared to have been anticipating an upgrade after Trustpilot reported stronger-than-expected bookings and revenue during the first six months of the year.

    First-half bookings reached US$171 million, around 5% ahead of company-compiled consensus estimates, representing constant currency growth of 18% compared with expectations of 16.5%. Revenue totalled US$151 million, approximately 2% above forecasts, with constant currency growth of 19%, ahead of the consensus estimate of 18.2%.

    North America and enterprise customers drive growth

    North America continued to be the company’s strongest-performing region, with bookings increasing 27% year over year.

    Trustpilot also recorded robust growth among larger customers, with annual recurring revenue from clients generating more than US$20,000 each rising 36% compared with the previous year. The performance highlights continued momentum in the company’s enterprise business.

    AI engagement continues to accelerate

    The company said it is seeing increasing engagement from artificial intelligence platforms.

    According to Trustpilot, requests from ChatGPT to its servers increased by more than 400% year over year during June. It also highlighted independent research from Seer Interactive, which ranked Trustpilot as the world’s most-cited review platform following a 1,490% increase in click-throughs generated by AI-powered search since fiscal 2025.

    Despite these encouraging operational trends and growing AI-related opportunities, investors focused on the absence of a higher full-year forecast, contributing to the sharp decline in the share price.

  • SIG shares slide after weaker sales prompt profit warning (SHI)

    SIG shares slide after weaker sales prompt profit warning (SHI)

    Shares in SIG (LSE:SHI) fell by as much as 22% on Thursday after the building materials distributor warned that challenging market conditions had weighed on first-half trading and lowered expectations for full-year profitability.

    Weak construction demand pressures sales

    SIG reported a 1.5% decline in like-for-like sales during the first half of the year, reflecting continued weakness across construction markets. The company said adverse weather conditions at the beginning of the year also disrupted trading and contributed to the softer performance.

    Management added that it does not expect a meaningful improvement in market conditions during the second half of the year.

    Profit outlook reduced

    As a result of the weaker trading environment, SIG now expects to deliver annual underlying operating profit of approximately £25 million (US$33.8 million).

    The revised guidance reflects ongoing pressure across the construction sector, with subdued demand continuing to affect activity in the company’s end markets.

    New improvement programme targets stronger cash generation

    Alongside the trading update, SIG unveiled a new improvement programme aimed at strengthening its financial performance over the medium term.

    The initiative is designed to generate £100 million in cash while increasing the group’s annual profit run rate by £50 million by the first half of 2028. Management expects the programme to improve operational efficiency and enhance profitability as market conditions recover.

  • Rotork agrees £5.5 billion takeover by ABB as shares soar on cash offer (ROR)

    Rotork agrees £5.5 billion takeover by ABB as shares soar on cash offer (ROR)

    Rotork (LSE:ROR) shares climbed almost 67% after Swiss engineering and technology group ABB (TG:ABB) reached agreement on a recommended all-cash acquisition of the UK-based flow-control specialist. The offer values Rotork at 503 pence per share, placing an enterprise value of approximately $5.5 billion on the business.

    Premium offer values Rotork at $5.5 billion

    The agreed offer represents a premium of roughly 60% to Rotork’s average share price over the previous three months. In addition to the cash consideration, shareholders will remain eligible to receive an interim dividend of up to 3 pence per share for the period ending 30 June, with the takeover price remaining unchanged.

    The acquisition will be funded using ABB’s existing cash reserves together with committed banking facilities. ABB added that proceeds from the planned sale of its robotics division to SoftBank are expected to further enhance its liquidity position.

    ABB targets expansion of its automation business

    ABB said the acquisition would strengthen its automation division by adding Rotork’s portfolio of flow-control and instrumentation products, which it believes complement its existing technologies.

    The company expects the acquisition to increase group revenue by around 3% while providing an immediate positive contribution to its Operational EBITA margin.

    “ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality, and customer trust that Rotork’s teams deliver each day,” chief executive Morten Wierod said in a statement, adding that the company sees a “compelling strategic fit” and expects the deal to expand ABB’s automation offering while accelerating Rotork’s growth.

    Board unanimously backs the offer

    Rotork Chair Dorothy Thompson said the board believes the proposal reflects the progress achieved under the company’s Growth+ strategy while offering shareholders an attractive opportunity to realise value in cash.

    “The board believed the offer recognized the company’s progress under its Growth+ strategy while providing shareholders with an attractive cash opportunity.”

    The Rotork board has unanimously recommended that shareholders vote in favour of the transaction.

    The acquisition is expected to complete during the first half of 2027, subject to shareholder approval and the receipt of customary regulatory clearances.

  • Market Open: Frasers Group Growth, Foxtons Profit Warning

    Market Open: Frasers Group Growth, Foxtons Profit Warning

    FTSE 100 edges lower as Iran tensions offset UK GDP strength. Frasers posts stronger results, Foxtons cuts guidance and Brent crude rises.

    Market Overview

    The FTSE 100 opened marginally lower, while Germany’s DAX also slipped and the Euronext 100 was broadly unchanged. Overnight, US markets finished higher, with both the Nasdaq and S&P 500 extending gains. Investors balanced stronger-than-expected UK GDP data against continuing tensions surrounding Iran, while higher oil prices and geopolitical uncertainty kept risk appetite in check.

    Commodity markets reflected the cautious tone. Brent crude continued to strengthen as concerns over potential disruption to global oil supplies supported prices, while gold was unchanged and copper edged lower. Natural gas was little changed, Bitcoin was broadly flat against sterling, and major currency pairs versus the pound showed only modest moves.

    Market Numbers

    FTSE 100: Down (-0.01%), 10,514.96

    Euronext 100: Up (+0.00%), 1,915.62

    DAX: Down (-0.37%), 24,908.18

    NASDAQ: Up, 26,269.23

    S&P 500: Up, 7,572.40

    In the Headlines

    Strong results – Frasers Group (LSE:FRAS)

    Frasers Group reported higher revenue and improved retail profitability as international expansion continued to gather pace. The update highlights continued momentum in its Sports Direct-led growth strategy and reinforces management’s focus on expanding the business across overseas markets.

    Guidance cut – Foxtons (LSE:FOXT)

    Foxtons reduced its profit guidance after warning that lettings reforms and a weaker housing market are weighing on trading conditions. The update points to ongoing pressure on the UK property sector despite the group’s efforts to manage costs and maintain operational resilience.

    Currencies (vs GBP)

    USD: Down (-0.05%), $1.3539

    CHF: Down (-0.05%), Fr.1.0895

    EUR: Unchanged (0.00%), €1.1804

    JPY: Down (-0.01%), ¥219.431

    AUD: Unchanged (0.00%), $1.932

    Bitcoin (BTC/GBP): Down, £47,421.03

    Commodities

    Copper: Down

    Gold: Unchanged

    Brent Crude: Up

    Natural Gas: Unchanged

  • Ocado releases interim results and confirms investor presentation date (OCDO)

    Ocado releases interim results and confirms investor presentation date (OCDO)

    Ocado Group (LSE) has released its interim results for the 26 weeks ended 31 May 2026, with the full report now available through the London Stock Exchange and the company’s investor relations website. The interim report has also been filed with the Financial Conduct Authority’s National Storage Mechanism in line with UK regulatory requirements.

    Interim report published ahead of investor briefing

    Alongside the publication of its half-year results, Ocado confirmed it will hold an investor and analyst presentation at 9:30am on 16 July 2026. The event will be streamed online and followed by a live question-and-answer session, providing shareholders and market participants with an opportunity to discuss the group’s first-half performance and outlook.

    The publication ensures investors have access to detailed financial and operational information while demonstrating the company’s continued commitment to transparent reporting and regulatory compliance.

    Focus remains on operational progress

    The interim announcement forms part of Ocado’s regular financial reporting schedule and supports ongoing engagement with the investment community. The accompanying presentation is expected to provide additional insight into the company’s first-half performance, operational developments and strategic priorities for the remainder of the financial year.

    Investors will be looking for further updates on the group’s technology platform, retail operations and progress towards improving profitability and cash generation.

    Investment outlook

    Ocado continues to make progress in improving cash flow while outlining a clearer pathway towards lower costs and greater operational efficiency. These developments have provided encouragement around the company’s longer-term earnings potential.

    However, challenges remain, including relatively weak underlying operating profitability and leverage-related risks. Although recent technical indicators have improved, they do not yet point to a sustained long-term uptrend, while the group’s valuation remains influenced by ongoing earnings and cash flow volatility.

    About Ocado Group

    Ocado Group is a UK-based online grocery and technology business that develops automated fulfilment, robotics and logistics solutions for retailers around the world. Alongside its consumer grocery operations, the company licenses its proprietary technology platform to international retail partners, positioning itself as a leading provider of e-commerce infrastructure for the grocery sector.

  • MS International strengthens cash position while increasing focus on defence operations (MSI)

    MS International strengthens cash position while increasing focus on defence operations (MSI)

    MS International (LSE:MSI) reported broadly stable annual revenue while strengthening its balance sheet and advancing its strategy of becoming a more defence-focused engineering group. Although profits declined amid delays to global defence procurement programmes, the company continued to generate strong cash, expanded its defence offering and outlined plans to reshape its portfolio through potential asset sales.

    Defence delays weigh on profits despite resilient trading

    Group revenue for the 2025/26 financial year remained broadly unchanged at £115.01 million. Profit before tax declined to £15.06 million, while earnings per share fell to 67.4p as slower-than-expected defence procurement programmes delayed the conversion of anticipated orders.

    Despite the weaker earnings performance, MS International significantly strengthened its financial position, increasing its cash balance to £46.53 million. The order book eased slightly during the year, reflecting the slower timing of defence contract awards rather than a reduction in long-term demand.

    Defence division continues to drive growth

    The Defence and Security business remained the group’s strongest-performing division, delivering resilient sales and profitability.

    Growth was supported by strong demand in the United States and increasing international interest in the company’s counter-drone technologies, including the Terrahawk VSHORAD system and a newly developed Multi Weapon Station for customers in the Middle East.

    Outside defence, the Forgings division faced more challenging conditions as tariffs disrupted market activity, although the business secured new strategic customers during the year. Meanwhile, the recently combined Petrol Station Superstructures and Branding division continued to benefit from cross-selling opportunities, growing demand for electric vehicle infrastructure and expansion within European branding markets.

    Portfolio reshaping and leadership transition

    MS International is continuing to review its portfolio as it sharpens its strategic focus on defence.

    The company confirmed that it is actively exploring the sale of its Petrol Station Superstructures and Branding division, with buyer interest already emerging. Management also indicated that strategic options for the Forgings business may be reconsidered once that process progresses.

    The year also marks a significant leadership transition. Long-serving chairman and chief executive David Sleath is stepping down from the board after more than five decades with the company and will become Life President. Anthony Wreford will assume the role of independent non-executive chairman, overseeing the next phase of the group’s development.

    Investment outlook

    MS International continues to benefit from a strong balance sheet, resilient defence operations and growing demand for advanced military technologies. Delays in procurement have affected short-term earnings, but the underlying defence pipeline remains supportive, particularly following significant contract wins with the US Navy and increasing international demand for counter-drone systems.

    Although technical indicators remain relatively weak and cash flow trends warrant continued monitoring, the company’s strategic refocusing and strengthened financial position provide a solid platform for future growth.

    About MS International

    MS International is a diversified engineering company operating across three core divisions: Defence and Security, Forgings, and Petrol Station Superstructures and Branding. The group supplies naval weapon systems, land-based defence equipment and counter-drone technologies to military customers worldwide, while also providing industrial forgings and infrastructure solutions for the fuel retail and corporate branding sectors. Its operations span the UK, the US, Brazil and several international markets.

  • Amaroq reports high-grade drilling results at Nalunaq as near-mine growth potential expands (AMRQ)

    Amaroq reports high-grade drilling results at Nalunaq as near-mine growth potential expands (AMRQ)

    Amaroq Ltd. (LSE:AMRQ) has reported another set of high-grade drilling results from its Nalunaq gold mine in southern Greenland, providing further evidence of the continuity of gold mineralisation within the Main Vein. The latest results strengthen confidence in the company’s production plans while highlighting additional exploration potential beyond its forthcoming resource update.

    High-grade drilling supports production outlook

    Recent underground drilling within the Mountain Block returned an average gold grade of 42.8 grams per tonne, with several intercepts exceeding 60 grams per tonne and a peak result of 132.5 grams per tonne over 0.5 metres.

    The results confirm the consistency of high-grade mineralisation within the Main Vein and support Amaroq’s exploration target of approximately 2 million ounces of gold. The drilling programme has also increased confidence in numerous planned mining stopes, reinforcing both short- and medium-term production planning.

    Additional work completed on the 500 level is helping refine the geological model in areas where mineralisation is less well defined.

    Exploration programme targets further resource growth

    Amaroq is now preparing to relocate drilling to the newly developed 810 Exploration Drift, where it will test largely unexplored western sections of the Main Vein.

    At the same time, a mountaineering-supported surface channel sampling programme is progressing between the 804 and 996 levels, with visible gold already identified during fieldwork.

    Importantly, the latest drilling results were received after the cut-off date for the company’s forthcoming MRE5 mineral resource estimate. As a result, the new discoveries represent additional upside beyond the imminent resource update.

    Management believes the 810 Exploration Drift represents one of the most promising near-mine growth opportunities at Nalunaq, with the potential to expand mineral resources close to existing infrastructure while increasing operational flexibility through the development of 12 to 24 months of pre-drilled production inventory.

    Investment outlook

    The latest drilling programme further strengthens confidence in the quality and continuity of the Nalunaq deposit while supporting both current production plans and longer-term resource expansion. Continued exploration success close to existing mine infrastructure has the potential to extend mine life and improve future production flexibility.

    With additional drilling results still to be incorporated into future resource estimates, Amaroq continues to build a pipeline of near-mine growth opportunities that could enhance the long-term value of its flagship Greenland gold project.

    About Amaroq Ltd.

    Amaroq Ltd. is a gold mining and exploration company focused on the high-grade Nalunaq underground gold mine in southern Greenland. The company is advancing resource growth through underground drilling, geological modelling and surface exploration, with the aim of expanding the mine’s resource base towards an exploration target of approximately 2 million ounces of gold. Its exploration strategy increasingly focuses on underground access and targeted surface sampling to evaluate previously untested extensions of the Main Vein.

  • Gulf Marine Services secures four-year offshore vessel charter in Brazil (GMS)

    Gulf Marine Services secures four-year offshore vessel charter in Brazil (GMS)

    Gulf Marine Services (LSE:GMS) has been awarded a four-year charter for one of its newest self-elevating accommodation units, further expanding its presence in the Latin American offshore market. The long-term contract strengthens revenue visibility, increases vessel utilisation and supports the company’s strategy of growing beyond its traditional Middle East operations.

    Long-term contract strengthens order visibility

    The 1,461-day charter has been awarded by an international offshore accommodation services provider and will see the vessel deployed offshore Brazil.

    Delivery is scheduled between August and November 2026 from Rio de Janeiro, providing Gulf Marine Services with another long-duration contract that enhances earnings visibility over the coming years.

    The award also extends utilisation of the company’s modern fleet of self-elevating support vessels, reinforcing demand for its specialist offshore accommodation capabilities.

    Latin America expansion gathers pace

    Management said the agreement reflects continued global demand for high-specification self-elevating support units while validating the company’s strategy of expanding into new international markets.

    The contract strengthens Gulf Marine Services’ presence in Brazil and supports its broader ambition to diversify geographically beyond its core Middle Eastern markets. The company believes the expansion will further enhance its competitive position across offshore support services for both traditional oil and gas developments and the growing offshore wind sector.

    By securing another multi-year charter, Gulf Marine Services has increased the proportion of contracted future revenue while broadening its international customer base.

    Investment outlook

    Gulf Marine Services continues to benefit from improving financial fundamentals, including lower debt levels, sustained profitability and generally healthy cash generation. Long-term charter contracts also provide greater earnings visibility and reduce exposure to shorter-term fluctuations in offshore activity.

    However, investors may remain cautious following a decline in net income and weaker free cash flow during 2025. Technical indicators also present a mixed picture, while the current valuation appears broadly balanced rather than deeply discounted.

    About Gulf Marine Services

    Gulf Marine Services is a leading provider of self-propelled, self-elevating support vessels serving the global offshore energy industry. Founded in Abu Dhabi in 1977 and listed on the London Stock Exchange, the company operates a fleet of 15 self-elevating support vessels from bases in the UAE, Saudi Arabia and Qatar. Its vessels support offshore platform maintenance, well intervention and renewable energy projects across the Middle East, Latin America, West Africa, North America and Europe.