ADVFN UK Market News

Category: Market News

  • Market Open: Marston’s Growth Target, Wickes Sales Growth

    Market Open: Marston’s Growth Target, Wickes Sales Growth

    FTSE 100 opens flat as investors watch Middle East tensions. Marston’s and Wickes lead headlines while Brent crude eases and copper gains.

    Market Overview

    The FTSE 100 opened marginally lower, while European markets were mixed as the Euronext 100 edged higher and Germany’s DAX gained at the open. Overnight, US markets finished weaker, with the Nasdaq closing at 25,508.07 and the S&P 500 ending at 7,443.28 as investors monitored renewed security concerns in the Middle East, including shipping risks around the Strait of Hormuz and their potential impact on energy markets. The FTSE 100 opened 0.001 per cent lower, the Euronext 100 rose 0.04 per cent and the DAX gained 0.10 per cent.

    Commodity markets remained in focus as geopolitical tensions continued to influence sentiment. Copper strengthened, while gold eased and Brent crude traded lower despite ongoing supply concerns. Natural gas edged higher. Against sterling, the US dollar and Swiss franc were little changed, the euro was steady, the Japanese yen and Australian dollar edged higher, while Bitcoin was higher.

    Market Numbers

    FTSE 100: Down (-0.001%), 10,524.25
    Euronext 100: Up (+0.04%), 1,902.53
    DAX: Up (+0.10%), 24,871.47
    NASDAQ: Down, 25,508.07
    S&P 500: Down, 7,443.28

    In the Headlines

    Trading update – Marston’s (LSE:MARS)
    Marston’s said trading has been supported by stronger customer demand during the World Cup period and outlined plans to accelerate growth. The update suggests trading momentum has improved despite a challenging consumer backdrop, providing reassurance over the group’s outlook.

    Retail update – Wickes (LSE:WIX)
    Wickes reported second-quarter sales growth and maintained its full-year expectations. The update indicates continued resilience in consumer demand across its home improvement business despite ongoing economic uncertainty.

    Currencies (vs GBP)

    USD: Down (-0.00%), $1.3431
    CHF: Down (-0.01%), Fr.1.0879
    EUR: Unchanged (0.00%), €1.1765
    JPY: Up (+0.00%), ¥218.244
    AUD: Up (+0.01%), $1.9187
    Bitcoin (BTC/GBP): Up, £49,235.60

    Commodities

    Copper: Up
    Gold: Down
    Brent Crude: Down
    Natural Gas: Up

  • FTSE 100 falls as Strait of Hormuz tensions offset ceasefire optimism

    FTSE 100 falls as Strait of Hormuz tensions offset ceasefire optimism

    UK stocks edge lower amid renewed Middle East uncertainty

    The FTSE 100 traded modestly lower on Tuesday as investors assessed reports of a proposed temporary ceasefire between the United States and Iran, while renewed attacks on commercial shipping in the Strait of Hormuz continued to fuel geopolitical uncertainty. Investors also digested stronger-than-expected UK labour market figures alongside an improvement in the government’s latest borrowing data.

    The FTSE 100 slipped 0.18%, while Germany’s DAX traded broadly flat and France’s CAC 40 gained 0.05%. Sterling strengthened 0.07% against the US dollar to $1.3444.

    Ceasefire proposal competes with escalating regional conflict

    According to reports, Qatar, Egypt and Pakistan have put forward a proposal for a 10-day ceasefire between Washington and Tehran, aimed at reopening the Strait of Hormuz and creating an opportunity for broader discussions on maritime security.

    However, uncertainty remained elevated after reports that Iran attacked a tanker in the Strait of Hormuz early on Tuesday, forcing the crew to abandon the vessel. The incident followed a tenth consecutive night of US airstrikes targeting Iran’s military capabilities linked to commercial shipping.

    Separately, Yemen’s Houthi movement announced a blockade of Saudi Arabia through the Bab al-Mandeb Strait, while Iran’s president declared the country had entered “full-scale war.” Meanwhile, diplomatic efforts continued, with Iran’s interior minister travelling to Pakistan for mediation talks.

    US President Donald Trump has yet to decide whether to support the proposed ceasefire or continue backing wider military operations alongside Israel, with officials suggesting the coming days will be critical.

    Government announces energy tax cut

    Domestically, newly appointed Prime Minister Andy Burnham announced that VAT on household electricity bills will be abolished from October 1, with the measure funded by cancelling the £1.8 billion Digital ID programme.

    “We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope,” Burnham said.

    Chancellor John Healey added that the policy would “help bring down inflation while supporting households in every postcode.”

    Government bond yields moved higher following the announcement.

    UK labour market remains resilient

    Fresh data from the Office for National Statistics showed the UK unemployment rate fell to 4.9% during the three months to May, outperforming forecasts of 5.0%.

    Employment increased by 148,000 over the quarter, comfortably ahead of economists’ expectations for an 80,000 gain, while the employment rate rose to 75.1%.

    Average weekly earnings increased by 4.3% year-on-year, slightly below the expected 4.5%, while regular pay excluding bonuses rose 3.4%, matching forecasts.

    Private sector regular pay growth stood at 2.9%, compared with 5.5% in the public sector, while job vacancies declined by 7,000 to 712,000 during the second quarter.

    Public borrowing declines in June

    The UK’s public finances also showed improvement, with public sector borrowing falling to £16.0 billion in June, a reduction of £7.9 billion compared with the same month last year and marginally below official forecasts.

    Borrowing for the financial year to date reached £57.6 billion, down £3.7 billion from a year earlier but still £2.7 billion above projections.

    Public sector net debt stood at 94.9% of GDP at the end of June, up 0.4 percentage points year-on-year and remaining close to levels last seen in the early 1960s.

    Commodities mixed as investors seek safety

    Oil prices eased despite ongoing geopolitical tensions, with Brent crude falling around 0.4% to $88.87 per barrel, while US WTI crude remained broadly unchanged near $82.46.

    Gold extended its rally as investors sought defensive assets, with futures climbing 1.6% to $4,078.52 an ounce and spot gold rising 1.7% to approximately $4,074.33.

    UK companies in focus

    Mitie Group (LSE:MTO) reported a 10% increase in first-quarter revenue, supported by contract wins, renewals and the acquisition of Marlowe. The company also agreed to a £3.1 billion takeover by OCS Group and suspended its £100 million share buyback programme.

    MONY Group (LSE:MONY) posted record first-half revenue and reiterated its full-year earnings guidance, with growth across its Insurance, Money and Home Services divisions helping offset weaker Cashback performance. Ongoing cost efficiencies and increased use of automation and artificial intelligence continued to support profitability.

    Compass Group (LSE:CPG) delivered 7.1% organic revenue growth during the third quarter as new business momentum accelerated into its target range. The catering group said it remains on course to achieve a fifth consecutive year of 4% to 5% net new business growth.

    Wickes Group (LSE:WIX) reported higher second-quarter revenue, driven by increased customer volumes and market share gains despite continued pricing pressure. The home improvement retailer maintained its fiscal 2026 profit guidance, supported by growth in its TradePro membership programme and digital sales.

  • Frasers increases Hugo Boss holding above 30% as takeover bid enters mandatory phase (FRAS)

    Frasers increases Hugo Boss holding above 30% as takeover bid enters mandatory phase (FRAS)

    Frasers crosses key ownership threshold in Hugo Boss

    Frasers (LSE:FRAS) announced on Tuesday that it has increased its shareholding in Hugo Boss (TG:BOSS) to approximately 30.28%, triggering the requirement to make a mandatory takeover offer under German takeover regulations.

    The British retail group acquired a further 2.55 million shares in the German fashion company, lifting its ownership from 26.06% to above the 30% threshold. The latest purchase further strengthens Frasers’ position as Hugo Boss’ largest shareholder.

    Existing €38-per-share offer remains on the table

    Frasers first announced its proposed acquisition of Hugo Boss in June, offering €38 per share in a transaction that values the German fashion retailer at around €2 billion, equivalent to approximately $2.28 billion.

    Hugo Boss’ management has previously recommended that shareholders reject the proposal, describing the offer as “financially inadequate.”

    Acceptance deadline approaches

    Frasers confirmed that its takeover offer remains open, with the initial acceptance period currently scheduled to expire on July 27.

  • IQE raises 2026 revenue guidance on strong AI and data centre demand

    IQE raises 2026 revenue guidance on strong AI and data centre demand

    IQE plc (LSE:IQE) said trading during the first half of 2026 exceeded management expectations, prompting the company to raise its full-year revenue outlook. Growth has been driven by strong demand across its core markets, particularly for Indium Phosphide products used in optical photonics applications supporting artificial intelligence and data centre infrastructure. IQE expects first-half revenue of at least £64 million and has increased its guidance to forecast revenue growth of more than 30% for the full year. The company also expects adjusted EBITDA to reach the low teens of millions of pounds while maintaining a debt-free banking position and cash reserves of £41.6 million.

    Management said demand has remained strong across several strategic markets, including aerospace and defence, 3D sensing and wireless communications. The company expects this momentum to continue into the second half of the year, reflecting the benefits of its ongoing transformation strategy and its leadership in advanced compound semiconductor materials. IQE believes its expanding role within AI and data centre supply chains further strengthens its relationships with key customers and positions the business to benefit from long-term growth in semiconductor demand.

    Despite the improved trading outlook, IQE continues to face financial challenges following a period of losses, negative gross profit in 2025, negative free cash flow, rising debt and lower shareholder equity. However, recent share price momentum has strengthened, with technical indicators remaining positive. Valuation remains more difficult to assess given the absence of positive earnings and dividend payments.

    About IQE plc

    IQE plc is a Cardiff-based manufacturer of advanced compound semiconductor wafers and materials used in a wide range of technology applications, including communications infrastructure, artificial intelligence, data centres, automotive electronics, industrial systems and aerospace and defence.

    The company operates large-scale epitaxy manufacturing facilities in the UK, the United States and Taiwan, supplying semiconductor manufacturers and original equipment manufacturers worldwide. Through its expertise in advanced materials and extensive intellectual property portfolio, IQE develops high-performance wafer technologies that support next-generation electronic and photonic devices.

  • Marston’s targets faster growth after World Cup boosts trading performance

    Marston’s targets faster growth after World Cup boosts trading performance

    Marston’s (LSE:MARS) reported a strong uplift in trading during the Football World Cup, with England matchdays generating like-for-like sales growth of 22%. The company’s Grandstand pub format delivered particularly impressive results, with sales rising approximately 170% year on year on England matchdays. Despite a softer trading environment outside peak periods, which left year-to-date like-for-like sales 1.6% lower overall, recently converted Grandstand venues continued to outperform, achieving around 30% like-for-like sales growth.

    The pub operator said ongoing cost discipline and improving operating margins have kept the business on track to meet full-year market expectations. Management now expects to achieve its EBITDA margin expansion target ahead of schedule and plans to accelerate investment in its most successful formats by completing around 100 additional Grandstand conversions during FY2027. As leverage falls towards approximately four times EBITDA, the company also intends to reintroduce shareholder returns through share buybacks while continuing to invest in growth opportunities.

    Marston’s outlook continues to improve as profitability and operating margins strengthen, although relatively high debt levels and softer cash flow remain factors for investors to monitor. Technical indicators still point to a broader downward share price trend despite signs that the stock may be oversold, while the company’s low price-to-earnings ratio continues to provide valuation support.

    About Marston’s

    Marston’s PLC is one of the UK’s largest pub operators, with a nationwide estate of more than 1,300 managed, partnership, tenanted and leased pubs. Listed on the London Stock Exchange under the ticker MARS, the company employs around 9,000 people and focuses on community-based hospitality supported by digital ordering and evolving pub formats.

    The group’s strategy centres on improving profitability through operational efficiency, format innovation and enhanced customer experiences. A key element of this approach is the expansion of its Grandstand pub concept, which is designed to maximise trading during major sporting events while driving higher customer engagement and long-term revenue growth.

  • GB Group reports steady first-quarter trading as identity business continues to grow

    GB Group reports steady first-quarter trading as identity business continues to grow

    GB Group plc (LSE:GBG) said trading during the first quarter of its 2026 financial year was in line with board expectations, supported by mid-single-digit revenue growth across its core Identity and Location divisions. The company noted that its smaller Global Fraud Solutions business experienced longer sales cycles and faced challenging comparisons with a particularly strong performance in the same period last year.

    Chief Executive Dev Dhiman said growth in the Identity and Location segments was driven by robust demand for identity verification services across the EMEA region and increasing adoption of GBG Go, the company’s AI-powered global identity platform. During the quarter, GB Group continued to enhance its technology by expanding journey analytics, document and biometric verification capabilities and artificial intelligence features. Management believes these investments will support the company’s medium-term strategy of accelerating sustainable growth.

    GB Group’s outlook continues to benefit from improving free cash flow generation and a manageable balance sheet. However, earnings volatility, a significant net loss reported during 2026 and pressure on gross margins remain challenges. While technical indicators have shown some short- to medium-term improvement, the shares have yet to establish a stronger long-term trend. Valuation also remains constrained by negative earnings, although the company continues to offer a modest dividend yield.

    About GB Group plc

    GB Group plc is a global technology company specialising in identity verification, location intelligence and fraud prevention solutions. Through its AI-powered trust intelligence platform, the company helps organisations verify identities, validate locations and reduce digital fraud by analysing billions of data interactions.

    For more than 30 years, GB Group has supported businesses around the world with technology that enables secure digital transactions and regulatory compliance. Serving more than 20,000 customers globally, the company continues to invest in artificial intelligence and advanced verification technologies to help organisations build trust and support long-term digital growth.

  • MONY Group delivers record first-half revenue as AI strategy supports growth

    MONY Group delivers record first-half revenue as AI strategy supports growth

    MONY Group (LSE:MONY) reported record first-half results for 2026, with like-for-like revenue rising to £227.1 million and adjusted EBITDA reaching £75.5 million, both representing 1% growth on a reported basis. The performance marked the company’s fifth consecutive interim period of revenue growth, while earnings per share increased and operating costs declined. Management said it remains confident of delivering full-year adjusted EBITDA in line with current market expectations.

    Performance was supported by solid growth across the insurance, money and home services divisions. Home services revenue increased 30%, driven by strong demand for energy switching and expanding audience engagement through MoneySavingExpert. In contrast, cashback revenue declined 13% as softer retail spending and lower affiliate marketing budgets weighed on activity, while travel revenue fell to zero following the company’s move to a minority investment in Ice Travel Group.

    MONY Group continued to strengthen its customer proposition during the period, helping consumers save an estimated £1.5 billion. Its SuperSaveClub membership grew to more than 2.5 million users, while the MoneySavingExpert platform expanded to 3.5 million app downloads and approximately 9 million newsletter subscribers. The company also accelerated product development, transforming the MoneySuperMarket app into a broader personal finance platform while launching an investment service, a digital insurance broker for members and preparations for a new SME banking offering.

    Artificial intelligence remains a key element of the group’s strategy, with AI being used to improve customer journeys, increase conversion rates and automate internal processes. Alongside continued investment in technology, the board announced shareholder returns exceeding £90 million for 2026, including an ongoing share buyback programme worth around £25 million and a higher interim dividend of 3.36 pence per share.

    The company’s outlook continues to benefit from strong profitability, low leverage and healthy free cash flow generation. While technical indicators remain positive, elevated momentum signals suggest the shares may be approaching overbought territory in the near term. Overall, MONY Group continues to combine disciplined capital returns with investment in long-term digital growth initiatives.

    About MONY Group PLC

    MONY Group PLC is a leading UK digital consumer finance business and the owner of MoneySuperMarket, MoneySavingExpert and Quidco. The company helps consumers compare products across insurance, banking, energy and household services while expanding into areas including investments, business banking and membership-based savings programmes.

    Its strategy focuses on using digital technology and artificial intelligence to improve customer engagement, simplify financial decision-making and diversify revenue streams beyond traditional price comparison. Through its portfolio of brands, MONY Group has built an ecosystem spanning personal finance apps, editorial content, cashback services and comparison tools, serving both consumers and financial services providers.

  • OCS agrees £3.1 billion acquisition of Mitie as facilities services leader reports strong FY27 start

    OCS agrees £3.1 billion acquisition of Mitie as facilities services leader reports strong FY27 start

    Mitie Group (LSE:MTO) has agreed to a recommended cash acquisition by OCS Group International in a deal valuing the company at up to 221.6 pence per share, including its proposed final dividend. The offer values Mitie’s equity at approximately £3.1 billion and represents a premium of more than 40% to recent trading levels. Mitie’s board has unanimously recommended the transaction, while directors and a major shareholder have provided irrevocable undertakings to vote in favour of the deal.

    The acquisition will be completed through a Scottish court-sanctioned scheme of arrangement, subject to shareholder approval and regulatory clearances. Once completed, the combined business is expected to generate approximately £8.5 billion in annual revenue, creating one of the UK’s largest facilities services providers. Management believes the enlarged group will be better positioned to compete with global rivals, broaden its sector expertise and geographic reach, increase investment in technology and operations, and expand career opportunities for employees.

    Alongside the acquisition announcement, Mitie reported a strong start to FY27, with first-quarter revenue increasing 10% to £1.41 billion. Organic revenue grew 4%, supported by contributions from the Marlowe acquisition, while total contract wins and renewals reached £1.6 billion. The company’s bidding pipeline also expanded to a record £32.5 billion, with customer retention improving to 91%, providing greater visibility over future revenue.

    Business Services delivered particularly strong growth, with revenue rising 23% following major contract wins in security and hygiene services, as well as a strong performance in Spain. Technical Services revenue declined 5%, although management said sales momentum had improved under new leadership. Integration of Marlowe continues to progress ahead of plan, delivering cost synergies, office consolidation and a significant expansion of cross-selling opportunities to approximately £700 million in annual contract value.

    Mitie is also investing in artificial intelligence through its Process Reimagination and Optimisation programme, which applies agentic AI across areas including workforce management, recruitment, cleaning and security services to improve efficiency and support future margin growth. The company maintained its BBB investment-grade credit rating, continued its £100 million share buyback programme and ended the quarter with net debt of £477 million, reflecting seasonal working capital movements and acquisition-related borrowing. Management said improving free cash flow supports confidence in delivering its FY25–FY27 strategic objectives.

    While Mitie’s outlook remains supported by steady revenue growth, strong cash generation and a healthy pipeline of new business, investors continue to monitor higher leverage and pressure on profitability. Technical indicators remain relatively weak, although the company’s valuation continues to be supported by a moderate earnings multiple and dividend yield.

    About Mitie Group plc

    Mitie Group plc is a UK-based facilities management company providing services across government, defence, healthcare, critical infrastructure and commercial sectors. The group specialises in managing complex built environments through a combination of facilities management, engineering expertise, digital technologies and artificial intelligence.

    OCS Group International is also a UK-headquartered facilities services provider with experience integrating acquisitions and expanding across multiple sectors and international markets. The proposed combination of OCS and Mitie is expected to create one of the UK’s largest private-sector employers, offering services across a broad range of industries while investing in technology, workforce development and operational excellence.

  • Wickes delivers second-quarter sales growth and maintains full-year expectations

    Wickes delivers second-quarter sales growth and maintains full-year expectations

    Wickes (LSE:WIX) reported revenue growth of 2.3% during the second quarter of 2026, with like-for-like sales increasing across both its Retail and Design & Installation businesses. The home improvement retailer said trading remains in line with expectations and management continues to expect full-year adjusted profit before tax to meet current market forecasts.

    Retail sales returned to growth during the quarter, rising 1.8% year on year as higher customer numbers and increased sales volumes drove performance. TradePro sales climbed 6%, supported by continued engagement from professional trade customers and growing use of the company’s digital platforms. Meanwhile, the Design & Installation division recorded its fifth consecutive quarter of delivered sales growth, although demand for bespoke kitchens remained relatively subdued.

    Wickes continued to outperform the wider home improvement market during the first half, increasing market share through its value-focused proposition and ongoing investment in customer experience, digital capabilities and store improvements. The company is also progressing its property strategy through store refurbishments, refresh programmes and planned new openings. Its balance sheet remains strong, with net cash of £152 million following share buybacks and employee share purchases. Management expects further productivity improvements and lower business rates to provide additional support for profitability during the second half of the year.

    The company’s outlook reflects a combination of improving cash generation and a healthy financial position, balanced against relatively modest profitability and leverage considerations. While technical indicators remain cautious in the near term, Wickes continues to benefit from a reasonable valuation and an attractive dividend yield.

    About Wickes Group

    Wickes Group plc is a digitally focused home improvement retailer serving both trade professionals and DIY customers across the UK. The company operates 229 stores alongside a growing digital platform, offering building materials, home improvement products and project-based installation services.

    Its business is built around three core areas: TradePro services for professional customers, DIY retail and Design & Installation, which includes kitchens, bathrooms and solar energy solutions. Through its value-led strategy and continued investment in digital services and customer experience, Wickes aims to strengthen its market position in the UK home improvement sector.

  • Revolution Beauty returns to positive EBITDA as turnaround gains momentum

    Revolution Beauty returns to positive EBITDA as turnaround gains momentum

    Revolution Beauty Group (LSE:REVB) has reported audited results for the year ended 28 February 2026, highlighting significant progress in its turnaround strategy despite lower annual revenue. Sales declined to £102.1 million during the year, while the company recorded an adjusted EBITDA loss of £8.2 million. However, performance improved markedly in the second half, with adjusted EBITDA returning to a positive £4.3 million as gross margins strengthened. Under the leadership of returning founders Tom Allsworth and Adam Minto, the business has implemented more than £9 million of annualised cost savings, improved inventory management, reduced net debt and stabilised trading, positioning the company for a renewed focus on sustainable profitability.

    Management said the positive momentum has continued into FY27, with trading running ahead of internal expectations. First-quarter sales were broadly flat compared with the prior year, while the company generated positive EBITDA despite the period traditionally being its weakest seasonally. Direct-to-consumer revenue increased 26% year on year, supported by strong performance through TikTok Shop. Revolution Beauty also continues to streamline its product portfolio, invest in new product launches and marketing initiatives, and renegotiate pricing with major US retailers to help offset the impact of tariffs.

    Chairman Iain McDonald said the market has yet to fully recognise the progress made in the company’s transformation programme and its long-term growth potential within the global beauty industry. Management believes the return of the founders has strengthened relationships with employees and retail partners, with the business now prioritising consistent profitability, cash generation and disciplined growth rather than relying solely on cost reductions.

    The company’s outlook remains constrained by weaker financial fundamentals, including lower annual revenue, recent losses, reduced free cash flow and negative equity. Although the share price has shown signs of improving momentum in the short term, longer-term technical indicators remain less supportive. In addition, the company’s negative earnings mean traditional valuation metrics continue to offer limited support.

    About Revolution Beauty Group plc

    Revolution Beauty Group plc is a global beauty company specialising in affordable cosmetics, skincare and personal care products. The business operates a portfolio of brands that are sold through direct-to-consumer e-commerce channels as well as major retail partners, with products available in approximately 17,500 stores across the UK, the US and international markets.

    The company manufactures part of its product range at its own UK facility while also using third-party logistics and warehousing operations in the UK and the US to support its international distribution network. With a focus on innovation, accessible pricing and digital engagement, Revolution Beauty aims to strengthen its position in the expanding global mass-market beauty sector.