ADVFN UK Market News

Author: Fiona Craig

  • British American Tobacco Shares Fall as Company Targets Lower End of FY26 Growth Guidance

    British American Tobacco Shares Fall as Company Targets Lower End of FY26 Growth Guidance

    British American Tobacco (LSE:BATS) shares fell 1.7% on Tuesday after the company said it expects fiscal 2026 revenue and adjusted profit from operations growth to be towards the lower end of its existing guidance ranges.

    BAT said it remains on track for revenue growth towards the lower end of its 3% to 5% range and adjusted profit from operations growth towards the lower end of its 4% to 6% range, both measured at constant exchange rates.

    Adjusted diluted earnings per share growth is expected to be towards the middle of the company’s existing 5% to 8% range at constant rates.

    The guidance was provided during BAT’s Capital Markets Day in Winston-Salem, North Carolina.

    BAT Sets New Category Targets Through 2030

    Chief Executive Tadeu Marroco and the management team also outlined the company’s Horizon 2030 objectives during the event.

    BAT is targeting mid-teens revenue growth for its New Categories business through 2030.

    The company expects the New Category contribution margin to reach at least 30% by 2030. BAT said its plans include a focus on premium products, changes in product mix, increased scale and more targeted allocation of resources.

    The targets represent the company’s longer-term objectives and remain dependent on future business and market conditions.

    Leverage Expected Within Target Range by Year-End

    BAT said it expects leverage to be within its target range of 2.0 to 2.5 times by the end of the year.

    The company also said it intends to continue returning cash to shareholders.

    Based on current spot exchange rates, BAT expects foreign currency translation to reduce fiscal 2026 adjusted diluted EPS growth by approximately 2% to 2.5%.

    The currency impact relates to the translation of results and is separate from the company’s constant-currency earnings guidance.

    BAT Outlines Multi-Category Strategy

    During the Capital Markets Day, BAT presented its strategy for its global multi-category portfolio.

    The company highlighted consumer insights, scientific research and innovation, global distribution and retail networks, regulatory expertise and digital capabilities as areas supporting its strategy.

    BAT’s Horizon 2030 plans include further development of its New Categories business alongside its broader portfolio, with the company setting targets for revenue growth and contribution margins through the end of the decade.

  • European Stocks Edge Higher as Bond Yields and Oil Prices Remain in Focus: DAX, CAC, FTSE100

    European Stocks Edge Higher as Bond Yields and Oil Prices Remain in Focus: DAX, CAC, FTSE100

    European equities traded modestly higher on Monday as investors assessed elevated sovereign bond yields and rising crude oil prices alongside continued geopolitical uncertainty.

    The pan-European STOXX 600 gained 0.3%, while Germany’s DAX was broadly unchanged. France’s CAC 40 and the UK’s FTSE 100 both advanced 0.2%.

    The moves came after a volatile month for European equities, during which higher borrowing costs and changes in expectations for monetary policy affected market sentiment.

    STOXX 600 Heads for First Monthly Decline in Six Months

    The STOXX 600 was down almost 2% for September and was on course to record its first monthly decline in six months.

    European equities have faced higher sovereign bond yields, which reached levels not seen since the 2008 global financial crisis, according to the supplied information.

    Factors affecting markets during the month included a European Central Bank interest rate increase, comments from central bank policymakers indicating a restrictive policy stance and warnings concerning the pace of development in the artificial intelligence sector.

    “AI investment is becoming less about promising narratives and more about companies’ ability to deliver on them,” said Javier de Berenguer, Fund Selector at MAPFRE Asset Management.

    Higher sovereign bond yields can increase borrowing costs and the discount rates applied to future corporate earnings, which can affect equity valuations.

    Middle East Developments Continue to Affect Sentiment

    Geopolitical developments in the Middle East also remained a factor for European markets.

    Investors continued to monitor exchanges between US President Donald Trump and Iranian leaders concerning the Strait of Hormuz, with uncertainty surrounding diplomatic negotiations and the regional security situation contributing to volatility in energy markets.

    “Equities have been held back to some extent by geopolitical risk,” Berenguer said.

    He added: “Increasing exposure to longer-term debt could be a sensible strategy.”

    Oil prices remained among the factors affecting inflation and interest-rate expectations, particularly as markets assessed the potential implications of energy costs for central bank policy.

    Eurozone Consumer Confidence and Lagarde Comments Awaited

    Investors were also awaiting eurozone consumer confidence data later in the session for indications of household sentiment amid higher energy costs and borrowing rates.

    Attention was expected to turn to comments from European Central Bank President Christine Lagarde.

    Market participants will be looking for indications of how the ECB views inflation, energy-market developments and the outlook for monetary policy during the final quarter.

  • European Gas Prices Rise After Two-Session Decline as Supply Risks Remain in Focus

    European Gas Prices Rise After Two-Session Decline as Supply Risks Remain in Focus

    European and British wholesale natural gas prices moved higher on Tuesday, reversing a two-session decline as traders continued to monitor Middle East developments and European gas storage levels ahead of the winter heating season.

    The benchmark Dutch front-month natural gas contract rose 1.77% to €72.53 per megawatt-hour, recovering some of its losses from earlier in the week.

    In the UK, the day-ahead wholesale gas contract increased 2.8% to 180.91 pence per therm.

    Dutch Gas Futures Head for 3.9% Monthly Gain

    Despite recent volatility, both contracts were on course to finish the month higher.

    The Dutch benchmark was heading for a monthly increase of approximately 3.9%, while the British contract was on track for a gain of around 10%.

    According to energy trading desks cited in the supplied material, both benchmarks have risen by more than 50% over the past two months amid geopolitical uncertainty and competition for liquefied natural gas cargoes.

    Since the beginning of the year, Dutch gas futures have increased 161%, while the British equivalent has risen 142%.

    Strait of Hormuz Developments Remain in Focus

    Energy markets continued to monitor the situation between the US and Iran concerning the Strait of Hormuz.

    Brent crude remained above $106 a barrel, while uncertainty surrounding energy transit through the Middle East continued to affect oil and gas markets.

    European gas storage inventories were approximately 12 percentage points below their levels at the same point last year, according to the supplied information.

    The combination of lower storage levels and the start of the winter heating season has increased attention on weather conditions and potential disruptions to energy supplies.

    Traders Monitor Winter Demand and LNG Supplies

    Energy trading desks cited in the supplied material said colder-than-expected weather or additional disruption to Middle Eastern energy transit could place further upward pressure on European gas prices.

    Competition for LNG cargoes also remains a factor for European buyers as the region enters the winter period.

    Future gas price movements will depend on factors including temperatures, storage withdrawals, LNG availability and geopolitical developments affecting global energy supplies.

  • AstraZeneca Shares Rise 2% After $2 Billion Summit Therapeutics Investment

    AstraZeneca Shares Rise 2% After $2 Billion Summit Therapeutics Investment

    AstraZeneca (LSE:AZN) shares rose 2.0% on Tuesday after the pharmaceutical company announced a $2 billion strategic equity investment in Summit Therapeutics (NASDAQ:SMMT) alongside a clinical collaboration focused on cancer treatments.

    Under the investment, AstraZeneca will acquire approximately 12% of Summit’s outstanding common stock through convertible preferred shares at a price equivalent to $18.36 per common share.

    The transaction was announced through the London Stock Exchange’s regulatory news service on 29 September 2026.

    The investment is linked to the companies’ planned collaboration involving ivonescimab, Summit’s bispecific antibody targeting PD-1 and VEGF.

    AstraZeneca and Summit Plan Cancer Combination Trials

    Alongside the equity investment, AstraZeneca and Summit entered into a clinical collaboration agreement to evaluate combinations of their oncology treatments.

    The companies plan to assess AstraZeneca’s CLDN18.2-targeting antibody-drug conjugate sonesitatug vedotin, or Sone-Ve, in combination with ivonescimab across several gastrointestinal cancer types.

    Clinical trials evaluating the combination are expected to begin shortly.

    The companies also signed a memorandum of understanding covering potential combinations of ivonescimab with additional AstraZeneca antibody-drug conjugates and other cancer medicines.

    The supplied information did not provide financial terms for the broader clinical collaboration beyond AstraZeneca’s $2 billion equity investment.

    AstraZeneca Submits Savolitinib-Osimertinib Combination to FDA

    Separately, AstraZeneca submitted a New Drug Application to the US Food and Drug Administration for a combination of savolitinib and osimertinib.

    The application covers the treatment of MET-driven, EGFR-mutant non-small cell lung cancer and is supported by results from the Phase III SAFFRON study.

    The submission represents a regulatory application and does not indicate that the combination has received FDA approval.

    AstraZeneca Shares Reach 12,738 Pence

    AstraZeneca shares reached 12,738 pence during Tuesday’s session, compared with an opening price of 12,526 pence.

    The shares were up 2.0% following the announcements.

    The broader FTSE 100 was also higher as UK shop price inflation slowed to 1.4% year on year in September, according to British Retail Consortium data.

    At the same time, higher oil prices, rising UK gilt yields and continued US-Iran uncertainty remained among the factors affecting the wider market.

    More About AstraZeneca

    AstraZeneca (LSE:AZN) is a pharmaceutical company with operations across areas including oncology and other therapeutic categories.

    Its agreement with Summit Therapeutics combines an equity investment with planned clinical studies evaluating ivonescimab alongside AstraZeneca oncology treatments.

  • Airbus A350F Completes Maiden Flight as Certification Programme Begins

    Airbus A350F Completes Maiden Flight as Certification Programme Begins

    Airbus (EU:AIR) conducted the maiden flight of its A350F freighter on Tuesday, beginning the certification testing phase for the new cargo aircraft ahead of its planned entry into service in 2027.

    The freighter version of Airbus’s A350 long-haul aircraft took off at the start of a flight expected to last approximately four hours.

    The maiden flight marks the beginning of around nine months of certification trials for the A350F.

    A350F Scheduled to Enter Service in 2027

    Airbus plans to introduce the A350F into commercial service in 2027 following completion of the certification programme.

    The aircraft expands Airbus’s presence in the dedicated air-freight market and is expected to compete with Boeing’s (NYSE:BA) 777 freighter series.

    The A350F is based on Airbus’s existing A350 long-haul aircraft platform but has been developed specifically for cargo operations.

    The supplied material did not provide details on current orders, production plans or the financial terms associated with the programme.

    More About Airbus

    Airbus (EU:AIR) is a European aerospace manufacturer producing commercial aircraft and other aerospace products.

    The A350F programme extends the company’s A350 family into the dedicated freighter market, with certification testing now underway ahead of the planned 2027 entry into service.

  • FTSE 100 Edges Higher as UK Shop Price Inflation Slows

    FTSE 100 Edges Higher as UK Shop Price Inflation Slows

    The FTSE 100 moved higher on Tuesday as investors assessed a slowdown in UK shop price inflation alongside developments involving the US and Iran.

    The FTSE 100 was up 0.33% as of 03:16 ET (07:16 GMT). Elsewhere in Europe, Germany’s DAX declined 0.20% and France’s CAC 40 fell 0.10%.

    Sterling was down 0.15% against the US dollar at $1.3238.

    UK Shop Price Inflation Eases to 1.4%

    British Retail Consortium data showed shop price inflation slowed to 1.4% year on year in September from 1.5% in August. The reading was below the 1.5% forecast but remained above the three-month average of 1.3%.

    Food inflation eased to 2.5% from 2.8%, while non-food inflation declined to 0.8% from 0.9%.

    The British Retail Consortium said retailers were absorbing higher costs associated with business rates, employment, energy and packaging taxes, while indicating there were limits to their ability to continue doing so.

    Broader UK consumer price inflation stood at 3.1% in August and is expected to exceed 4% in early 2027 as higher energy prices related to the Iran conflict feed through to inflation.

    Investors Monitor US-Iran Discussions

    Iran expects to receive an official US response on Tuesday to its proposal concerning the reopening of the Strait of Hormuz, Foreign Minister Abbas Araghchi said, according to Mehr news agency.

    “There are conditions that have been emphasised by the (supreme) leader, and these conditions must be implemented for the Strait of Hormuz to open,” Araghchi said.

    He said Qatari mediators were expected to present proposals to Washington, with Iran hoping for a response “by tomorrow”.

    US President Donald Trump confirmed that US officials had separately spoken with mediators on Monday, saying the process would “go pretty quickly”.

    A US official described the discussions as “positive and constructive” but said an agreement would require nuclear issues to be addressed.

    Trump also denied reports that he had offered sanctions relief or access to frozen funds. “This is untrue. I offered them nothing,” he wrote on Truth Social.

    US Secretary of State Marco Rubio said the Strait of Hormuz was open and that oil flows, excluding Iranian crude, were close to levels recorded before the conflict.

    Iran presented a seven-day proposal at the UN General Assembly last week that included ending hostilities, unfreezing assets, removing oil sanctions and lifting the US port blockade in exchange for reopening Hormuz. Trump rejected the proposal on Friday.

    Treasury Yields and Oil Prices Remain in Focus

    Jefferies economist Mohit Kumar said financial markets remained sensitive to interest rates and oil prices.

    “We are in a one factor world where rates are likely to drive all asset classes and rates are being driven by oil prices,” Kumar wrote in a note.

    He noted that the 10-year US Treasury yield had moved above 5.25%, while the S&P 500 declined 0.8% on Monday.

    Jefferies continues to see the possibility of an agreement before the US midterm elections but said it remains in “reduced risk mode” pending greater clarity on geopolitical developments.

    UK Police Investigate Possible Foreign State Involvement

    In the UK, five men arrested on Sunday near RAF Fairford on suspicion of terrorism and explosives offences were released on bail, police said.

    Counter-terrorism officers are examining whether a foreign state was involved. Iran has denied involvement.

    Rubio described the matter as “a very serious situation” involving a “foreign actor”.

    Oil and Gold Prices Rise

    Brent crude futures increased 1.34% to $99.15 a barrel, while WTI crude rose 1.24% to $93.75.

    Gold futures were higher at $4,175.40, while spot gold gained 0.72% to $4,144.87.

  • Vesuvius Shares Rise 23% After Company Confirms RHI Magnesita Takeover Proposal

    Vesuvius Shares Rise 23% After Company Confirms RHI Magnesita Takeover Proposal

    Vesuvius (LSE:VSVS) shares rose as much as 23% on Tuesday after the British refractories manufacturer confirmed it was considering a takeover proposal from RHI Magnesita (LSE:RHIM) valued at 551 pence per share.

    The proposal comprises 470 pence in cash and 0.28 new RHI Magnesita shares for every 10 Vesuvius shares. The valuation of the share component is based on RHI Magnesita’s one-month volume-weighted average share price on 27 August, when the proposal was made.

    Vesuvius said its board is evaluating the proposal with its financial and legal advisers, including consideration of the terms and execution risks.

    The company said there is no certainty that a firm offer will be made and advised shareholders to take no action at this stage.

    Vesuvius Shareholders Would Own Around 13% of Enlarged Group

    Under the proposed terms, Vesuvius shareholders would receive approximately 7.1 million new RHI Magnesita shares and would own around 13% of the combined company.

    The proposal also allows Vesuvius shareholders to receive the company’s declared interim dividend of 7.1 pence per share without an adjustment to the offer value.

    Vesuvius’ largest shareholder, Cevian Capital, provided an irrevocable undertaking on 27 August to support a recommended offer made on the proposed financial terms.

    Cevian has been a Vesuvius shareholder since 2012 and has a representative on the company’s board.

    RHI Magnesita Has Made Several Previous Approaches

    RHI Magnesita has made a series of proposals for Vesuvius since September 2025, which were previously rejected by the Vesuvius board.

    The first approach, made on 29 September 2025, valued Vesuvius at 448 pence per share in cash. Further proposals followed during October, November and December.

    On 17 March 2026, RHI Magnesita proposed an all-cash offer of 550 pence per share. Vesuvius subsequently provided access to information for confirmatory due diligence.

    RHI Magnesita revised the proposal on 23 June to 454 pence in cash and 96 pence in new RHI Magnesita shares, giving a headline value of 550 pence per Vesuvius share.

    The share component was capped at 9.5 million new shares, representing approximately 20% of RHI Magnesita’s issued share capital at the time. Vesuvius rejected the proposal on 29 June.

    The March and June proposals allowed Vesuvius shareholders to receive the 16.5 pence final dividend for 2025, which was paid on 6 July, without reducing the proposed offer value.

    Those proposals also included an additional payment of 2 pence per share for each month completion extended beyond 15 months following a firm offer announcement, subject to a maximum of three months. That provision is not included in the latest proposal.

    RHI Magnesita Faces 27 October Takeover Deadline

    Under the UK Takeover Code, RHI Magnesita has until 5 p.m. London time on 27 October to either announce a firm intention to make an offer for Vesuvius or state that it does not intend to make an offer.

    The deadline may be extended with the consent of the Takeover Panel.

    Vesuvius said its announcement confirming the proposal was made without the prior agreement or approval of RHI Magnesita.

    More About Vesuvius

    Vesuvius is a UK-listed company supplying refractory products, systems and services used in high-temperature industrial processes.

    RHI Magnesita is also listed in London and operates in the refractory products sector.

  • Roundhouse AI Moves Forward with AIM Admission

    Roundhouse AI Moves Forward with AIM Admission

    Roundhouse AI Ltd is progressing its move to AIM, marking an important stage in the company’s development as it builds infrastructure for the rapidly emerging autonomous AI agent economy.

    Currently trading on the AQSE Growth Market under the ticker (AQSE:ETHL), Roundhouse AI is transitioning to the London Stock Exchange’s AIM market as it enters its next phase of growth and commercial rollout.

    The company announced in August its intention to admit its entire issued and to be issued ordinary share capital to AIM, alongside the cancellation of its existing AQSE admission. The process has now advanced with the publication of its Schedule One announcement.

    The company expects admission to AIM on 13 October 2026, when its shares will trade under the ticker RHAI.

    Building infrastructure for the autonomous AI economy

    At the centre of Roundhouse AI’s proposition is the development of infrastructure for the emerging autonomous AI agent economy.

    As AI agents increasingly interact with businesses, platforms and other agents, the ability to establish identity, trust and reputation becomes an important part of the digital infrastructure required to support these interactions.

    Roundhouse AI is developing technology focused on this area.

    The company describes itself as a business building and operating infrastructure for AI agent deployment, with the objective of establishing the neutral data and reputation infrastructure standard for the autonomous AI agent economy.

    This includes its public analytics dashboard, which records and verifies real settlement activity between AI agents and merchants so their identity and reliability can be assessed.

    From technology development to commercialisation

    The AIM admission comes as Roundhouse AI moves into what it describes as its next “Go to Market” stage.

    The company is focusing on cornerstone partner negotiations, distribution validation and reference data access as it validates its commercial proposition.

    Its stated revenue model is built on three streams: enterprise API subscriptions for Agent Reputation Scores, consulting and advisory engagements with institutional clients, and larger bespoke enterprise contracts. providing the company with multiple routes to commercialisation as its technology is deployed.

    The focus is therefore shifting from the development of the underlying technology towards building partnerships, securing adoption and expanding data coverage, ahead of the Commercialisation stage in which the platform’s scored products are introduced.

    A rapidly developing AI market

    Autonomous AI agents are becoming an increasingly important area within the broader artificial intelligence market. By 2028, Gartner forecasts that AI agents will handle 90% of all B2B purchases, driving more than $15 trillion in spending through automated transactions.

    AI systems are moving beyond simply generating information and are increasingly capable of carrying out tasks, interacting with platforms and operating with greater levels of autonomy.

    As this develops, infrastructure supporting areas such as identity, data, reputation and interactions between AI agents will become an important part of the wider ecosystem.

    This is the market in which Roundhouse AI is positioning its technology.

    The company has already launched the first version of its public analytics dashboard, providing infrastructure for observing, recording and verifying transactions between AI agents and merchants.

    Entering its next phase

    Roundhouse AI’s move from AQSE to AIM represents a significant milestone for the company as it develops its position within the rapidly expanding AI infrastructure market.

    Following its AQSE admission in January, the company has continued to develop its AI infrastructure proposition and is now moving towards its next stage of commercial rollout.

    With the AIM admission scheduled for 13 October 2026, Roundhouse AI is entering this next phase with a focus on cornerstone partnerships, distribution validation, reference data access and the continued evolution of infrastructure for the autonomous AI agent economy.

    The company’s AIM ticker will be RHAI.

    For more information, visit Roundhouse AI.

  • Card Factory Reports 5.3% First-Half Revenue Growth and Raises Interim Dividend

    Card Factory Reports 5.3% First-Half Revenue Growth and Raises Interim Dividend

    Card Factory (LSE:CARD) reported revenue of £260.8 million for the first half, an increase of 5.3%, supported by its store operations, international activities and digital business.

    Statutory profit before tax increased during the period, reflecting improved store margins and working capital management.

    Adjusted profit before tax declined slightly as the group continued to invest in its digital operations and international expansion.

    Card Factory generated positive cash flow during the first half, a period that the company said has traditionally been weaker for cash generation.

    The group increased its interim dividend and continued a £15 million share buyback programme. Management also maintained its expectations for the full financial year.

    Card Factory Expands Party Range and International Operations

    During the period, Card Factory continued to manage its store portfolio and rolled out a new party product range as part of its expansion beyond greeting cards.

    The company also reported growth in the Republic of Ireland and through its wholesale partnerships.

    These include relationships with The Reject Shop, Aldi and Garlanna, through which Card Factory distributes products outside its directly operated store network.

    Funky Pigeon Integration Progresses

    Card Factory continued the integration of Funky Pigeon, reporting increased digital sales and customer growth within the business.

    The acquisition has expanded the group’s digital presence alongside its existing physical store network.

    Management said UK like-for-like trading trends were improving ahead of the Golden Quarter, which includes the important Christmas trading period.

    The group is also implementing its Simplify & Scale programme, which is intended to improve efficiency across the business.

    Card Factory continues to target a larger share of the broader celebrations market through its greeting cards, gifts, party products and digital operations.

    More About Card Factory

    Card Factory plc is a UK specialist retailer of greeting cards, gifts and celebration-related products.

    The group operates stores across the UK and Republic of Ireland alongside digital operations including Funky Pigeon. It also distributes products through international and wholesale partnerships.

    Card Factory estimates the broader celebrations market in which it operates at approximately £14.9 billion.

  • Made Tech Reports 26.8% Revenue Growth as Adjusted EBITDA Rises 69%

    Made Tech Reports 26.8% Revenue Growth as Adjusted EBITDA Rises 69%

    Made Tech (LSE:MTEC) reported revenue of £58.9 million for FY26, an increase of 26.8%, supported by demand for its digital and technology services across the UK public sector.

    Adjusted EBITDA increased 69% during the year as margins improved, while the group’s cash balance rose to £14.5 million. Made Tech ended the financial year with no debt.

    Contracted backlog declined modestly at the year end, although the company secured several multi-year public-sector contracts during the period.

    These included a £19 million partnership with the Government Digital Service.

    Made Tech Expands Workforce and AI Services

    The company increased its permanent workforce to 482 employees during FY26 and made changes to its delivery leadership.

    Made Tech also increased the use of artificial intelligence across its service lines, both within its own operations and in the development of products and services for customers.

    Projects delivered during the period included work on the Reception Baseline Assessment for schools and the redesign of the Met Office application.

    £40 Million Contract Lifts Backlog to Around £115 Million

    Following the end of FY26, Made Tech secured a £40 million contract, which the company described as its largest contract win to date.

    The award increased contracted backlog to approximately £115 million by late July.

    Following the contract win and post-period trading, Made Tech upgraded its expectations for FY27.

    Management also expects bookings during the first half of FY27 to reach their highest half-year level to date.

    Made Tech Targets Greater Recurring Revenue

    The company is seeking to increase the proportion of revenue generated from recurring and longer-term contracts as part of its strategy to improve revenue visibility.

    Made Tech also plans to expand its relationships across central and local government while developing its data, AI and digital services.

    Management expects continued public-sector investment in the modernisation of services and technology to provide opportunities for the business through FY30 and beyond, although these remain company expectations.

    More About Made Tech Group

    Made Tech Group PLC is an AIM-listed provider of digital, data, artificial intelligence and technology services, primarily serving the UK public sector and regulated industries.

    The company works with government and public bodies on areas including legacy technology modernisation, digital services, cyber resilience, data and AI.

    Its strategy includes increasing managed services and multi-year contracts while expanding relationships with existing and new public-sector customers.