ADVFN UK Market News

Category: Top Story

  • FTSE 100 opens higher as investors await key UK data; SkinBio tumbles

    FTSE 100 opens higher as investors await key UK data; SkinBio tumbles

    UK equities began the week on a firmer footing Monday as investors positioned ahead of a packed economic schedule. Employment figures are due on Tuesday, followed by inflation data on Wednesday — both seen as potentially influential for the Bank of England’s interest rate decision next month.

    By 1029 GMT, the FTSE 100 was up 0.1%, while sterling edged 0.01% lower against the dollar to 1.3647 in GBP/USD trading. Germany’s DAX was little changed and France’s CAC 40 gained 0.3%.

    UK market movers

    Shares of Barratt Redrow PLC (LSE:BTRW) dropped more than 2% after Deutsche Bank lowered its profit projections and cut its price target by 15%, pointing to weakening market conditions and rising fire-safety remediation expenses.

    Analyst Chris Millington reduced the target price to 454 pence from 536 pence but kept a “buy” recommendation on the stock, which last closed at 388.90 pence. The bank trimmed its underlying pre-tax profit forecasts by 9% for fiscal 2026, 6% for FY27, and 7% for FY28.

    Elsewhere, SkinBioTherapeutics PLC (LSE:SBTX) slumped over 37% after announcing an internal probe into former CEO Stuart Ashman over allegations of material financial misrepresentation. The issue will require a 17% reduction in reported 2025 revenue.

    The skincare-focused group said it will reverse £770,000 in royalty income, a move expected to significantly widen operating losses and push fiscal 2026 performance well below market expectations. Management noted that information received late on February 13 raised “significant doubt” about the legitimacy of the royalty revenue.

    Optima Health PLC (LSE:OPT) declined 4.8% after confirming it had agreed to acquire PAM Healthcare Limited for around £100 million. The deal will be funded through £70 million in new borrowing facilities from HSBC and Barclays, alongside a £30 million bridge loan from Deacon Street Partners Limited, controlled by major shareholder Lord Ashcroft.

    Meanwhile, Schroders PLC (LSE:SDR) was cut to “sector perform” by RBC Capital Markets, which argued that limited upside remains for the asset manager’s shares following Nuveen’s approach. RBC lifted its price target to 610 pence to reflect the cash terms outlined in the 612 pence-per-share offer.

    Economic and political backdrop

    On the housing front, asking prices in the UK were largely flat in February after a record jump in January, according to property portal Rightmove. The average price for newly listed homes slipped by £12 to £368,019, following a 2.8% surge the previous month. Even so, prices are still 2.8% higher than in December, marking the strongest start to a year since 2020.

    In political news, the BBC reported that the UK government is considering accelerating plans to raise defense spending to 3% of GDP. Britain had previously pledged to increase annual defense outlays to 2.5% of economic output by 2027, with a goal of reaching 3% after the 2029 general election.

  • NatWest shares advance after UBS lifts profit outlook

    NatWest shares advance after UBS lifts profit outlook

    Shares of NatWest Group PLC (LSE:NWG) gained 4.6% on Monday after UBS increased its earnings projections for the UK lender, citing robust fourth-quarter performance and stronger capital generation.

    The Swiss bank reiterated its “buy” recommendation and kept its 780 pence price target unchanged, implying potential total returns of around 40%. UBS raised its diluted earnings per share estimates by 5% for 2026, 4% for 2027, and 3% for 2028.

    UBS said NatWest’s fourth-quarter pre-tax profit — excluding notable items and litigation costs — came in 7% ahead of market consensus. Net interest income surpassed expectations by 3%, while operating expenses matched forecasts. Loan impairments were 30% better than anticipated, totaling 13 basis points of loans.

    The broker pointed to “strong” operating momentum, noting expansion in both lending and deposits, as well as an 8 basis point rise in net interest margin compared with the market’s expectation of just a 2 basis point increase.

    NatWest’s common equity tier 1 (CET1) ratio stood at 14.0%, 30 basis points above consensus estimates. That figure reflects the £750 million share buyback announced in connection with the Evelyn Partners transaction.

    Looking ahead, UBS said the bank’s 2026 guidance is broadly in line with current market forecasts, while its newly introduced 2028 targets indicate potential upside of 2–3% relative to consensus and appear achievable.

    Those medium-term goals include a return on tangible equity above 18%, compound annual growth in customer assets and liabilities of more than 4%, a cost-to-income ratio below 45%, and an intention to operate with a CET1 ratio of approximately 13.0%.

  • Optima Health shares slide after £100 million PAM takeover agreement

    Optima Health shares slide after £100 million PAM takeover agreement

    Shares of Optima Health (LSE:OPT) dropped 4.8% on Monday after the UK-based provider of technology-enabled corporate health and wellbeing services revealed a deal to purchase PAM Healthcare Limited for roughly £100 million.

    The transaction remains subject to approval under Ireland’s Foreign Direct Investment rules. To fund the purchase, Optima has secured £70 million in new borrowing facilities from HSBC and Barclays, alongside a £30 million bridge loan from Deacon Street Partners Limited, which is controlled by major shareholder Lord Ashcroft.

    The company plans to refinance the bridge facility through a fully underwritten £35 million open offer priced at 175 pence per share — a 17.8% discount to the February 13 closing price. The equity raise is expected to proceed after the acquisition is finalized.

    Management said the deal should enhance adjusted earnings per share beginning in the first full financial year after completion, with EPS accretion projected to exceed 25% by the end of year three. On an unaudited pro forma basis, the combined group is expected to generate more than £26 million in underlying adjusted EBITDA before accounting for synergies.

    “This transformational acquisition underscores our intent in delivering our stated strategic objectives and cements Optima’s position in its attractive and growing market,” said Jonathan Thomas, Chief Executive Officer of Optima Health.

    Founded in 2004, PAM reported unaudited revenue of about £66.6 million for the year ended December 31, 2025, alongside adjusted EBITDA of £8.2 million. The business serves more than 1.5 million employees and works with over 1,500 organizations.

    Following the acquisition, Optima is set to become the clear market leader, with an estimated 15% pro forma market share. The transaction also advances the company toward its longer-term goal of reaching a 25% share of the market. Management expects annual revenue and cost synergies to surpass £5 million once the integration process is complete.

  • Shortened Trading Week Brings Key Data, Earnings and Renewed U.S.–Iran Dialogue Into Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Shortened Trading Week Brings Key Data, Earnings and Renewed U.S.–Iran Dialogue Into Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Investors are entering a holiday-shortened week that nonetheless features important economic releases and major corporate earnings. Oil markets remain steady as Washington and Tehran prepare for another round of nuclear negotiations in Switzerland. Meanwhile, Warner Bros. Discovery is reportedly reassessing takeover discussions, while gold and Bitcoin are trading lower.

    U.S. markets closed to start the week

    Wall Street is shut on Monday for a public holiday, but attention will quickly shift to a busy calendar of data and earnings in the days ahead.

    On Friday, U.S. equity benchmarks ended mixed. Markets reacted to January inflation data showing price pressures easing more than anticipated, increasing speculation that the Federal Reserve could move up its next rate cut to June. Earlier in the week, however, a strong labor market report had suggested that policymakers — who reduced borrowing costs multiple times in 2025 — might delay further easing until later in the year.

    The Nasdaq Composite continued to face headwinds, as investors remain wary of how emerging artificial intelligence models could disrupt the technology and communications sectors. Questions surrounding intensifying competition and the timeline for returns on heavy AI-related capital spending weighed on sentiment across major indices last week.

    Focus now turns to Friday’s release of the December personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge. An advance estimate of fourth-quarter U.S. GDP is also due the same day.

    Corporate earnings remain a key driver this week, with reports expected from Walmart Inc. (NYSE:WMT), Palo Alto Networks (NASDAQ:PANW), Analog Devices (NASDAQ:ADI) and Booking Holdings (NASDAQ:BKNG).

    U.S.–Iran nuclear discussions resume

    The United States and Iran are set to meet again in Switzerland for a second round of talks aimed at addressing Tehran’s nuclear program, after dialogue resumed earlier this month.

    The renewed negotiations come amid ongoing tensions. Washington has reinforced its military presence in the Middle East and signaled readiness to escalate pressure if diplomacy fails. President Donald Trump has repeatedly warned Tehran that it must agree to a deal or risk further military consequences.

    Iranian officials said over the weekend that they are prepared to consider compromises on their nuclear activities in exchange for relief from U.S. sanctions, adding that the next step lies with Washington.

    “[T]here is still a large risk premium priced into the market given the uncertainty over how the situation between the U.S. and Iran evolves,” analysts at ING said in a note.

    Oil prices were largely steady in European trading, with thin volumes due to market holidays in both China and the United States. Weak economic growth data out of Japan also added to concerns about global demand. Brent crude for April delivery hovered near $67.72 per barrel.

    Warner Bros. weighs fresh takeover talks – report

    In corporate news, reports suggest new developments in the takeover saga involving Warner Bros. Discovery (NASDAQ:WBD).

    Bloomberg reported that Warner Bros. is considering reopening negotiations with Paramount Skydance (NASDAQ:PSKY) after David Ellison’s group enhanced its hostile offer. Board members are reportedly assessing whether Paramount’s proposal could be more attractive than a competing bid from Netflix Inc. (NASDAQ:NFLX).

    Last week, Paramount pledged to increase the cash component offered to Warner Bros. shareholders for every quarter that a deal remains unresolved in 2026 and to cover any penalties associated with terminating Warner’s current agreement with Netflix. However, the base offer of $30 per share remains unchanged.

    Gold retreats as dollar steadies

    Gold prices moved lower in European trading as the U.S. dollar stabilized following recent inflation data. Precious metals have experienced sharp swings over the past two weeks and remain below late-January highs.

    Spot gold fell to around $4,998.69 per ounce, while April futures declined to roughly $5,018.69. Although safe-haven demand has been supported by geopolitical tensions, stronger dollar moves have limited gains.

    Bitcoin extends its slide

    Bitcoin (COIN:BTCUSD) continued to decline, marking a fourth consecutive week of significant losses across the cryptocurrency market.

    The digital asset pulled back toward $68,624 after briefly surpassing $70,000 over the weekend. Bitcoin has now lost roughly half its value since reaching a record high near $126,000 in October.

    Meanwhile, Strategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin, said it would remain able to meet its debt obligations even if the cryptocurrency fell to $8,000. The company stated on social media that it can “withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt.”

    Strategy currently holds 714,644 Bitcoin, financed through a combination of equity issuance and long-term debt.

  • European equities tick up as earnings optimism offsets holiday-thinned trade; miners in focus: DAX, CAC, FTSE100

    European equities tick up as earnings optimism offsets holiday-thinned trade; miners in focus: DAX, CAC, FTSE100

    European markets started the week slightly firmer on Monday, buoyed by a generally constructive earnings season, though trading volumes were muted due to holidays in both Asia and the United States.

    At around 08:02 GMT, Germany’s DAX advanced 0.4%, France’s CAC 40 added 0.2%, and the U.K.’s FTSE 100 rose 0.2%.

    Earnings momentum supports markets

    Activity was subdued, with much of Asia closed for Lunar New Year celebrations and U.S. markets shut for George Washington’s birthday. Even so, investor sentiment across Europe remained broadly upbeat as corporate earnings continue to exceed expectations against a gradually stabilising economic backdrop.

    According to LSEG data, companies accounting for 57% of Europe’s total market capitalisation have reported results so far. Fourth-quarter earnings growth is averaging 3.9%, outperforming earlier forecasts that had pointed to a 1.1% contraction. Around 60% of companies have surpassed analyst estimates, compared with a typical beat rate of 54%.

    While Monday’s earnings calendar is relatively light, attention this week will turn to Europe’s major mining groups — Rio Tinto (LSE:RIO), Glencore (LSE:GLEN), Anglo American plc (LSE:AAL) and Antofagasta plc (LSE:ANTO) — as they release results amid elevated metals prices.

    Automaker Volkswagen AG (TG:VOW3) is also likely to draw scrutiny after Manager Magazin reported that the group plans to reduce costs by 20% across its brands by the end of 2028.

    Across the Atlantic, the earnings spotlight will fall on Walmart Inc. (NASDAQ:WMT), which is set to publish quarterly results on Thursday. Investors will be watching closely for signals on U.S. consumer demand.

    Economic data in focus

    On the macro front, Eurozone industrial production figures for December are due later Monday, with economists expecting a 1.5% month-on-month decline.

    In the U.K., asking prices for newly listed homes were broadly flat in February, dipping by just £12 to an average of £368,019 after a 2.8% rise in January, according to property portal Rightmove.

    Earlier in Asia, Japan’s latest GDP reading disappointed. The economy expanded at an annualised pace of just 0.2% in the fourth quarter, well below expectations of 1.6%. The data showed only a modest recovery following a sharp contraction in the third quarter, potentially strengthening the case for further fiscal support under Prime Minister Sanae Takaichi.

    Oil steady ahead of U.S.–Iran talks

    Crude prices were little changed in quiet holiday trade, as markets awaited further diplomatic engagement between Washington and Tehran.

    Brent crude futures slipped 0.1% to $67.66 per barrel, while U.S. West Texas Intermediate futures edged down 0.1% to $62.68 per barrel.

    Both benchmarks had declined between 0.5% and 1% last week after U.S. President Donald Trump suggested that a potential agreement with Iran could be reached within a month, weighing on prices.

    A second round of U.S.–Iran discussions is scheduled for Tuesday in Geneva, following renewed talks earlier this month aimed at resolving long-standing tensions over Iran’s nuclear programme.

  • Barratt Redrow slips after Deutsche Bank trims forecasts and price target

    Barratt Redrow slips after Deutsche Bank trims forecasts and price target

    Barratt Redrow plc (LSE:BTRW) shares dropped more than 2% on Monday after Deutsche Bank lowered its earnings projections and reduced its price target by 15%, pointing to weaker trading momentum and rising fire-safety remediation costs.

    Analyst Chris Millington cut the target to 454p from 536p, while retaining a “buy” recommendation on the stock, which last closed at 388.90p.

    Deutsche Bank reduced its underlying pre-tax profit forecasts by 9% for fiscal 2026, 6% for FY27 and 7% for FY28. The revisions followed Barratt’s first-half results, which Millington said were largely in line with expectations but underscored the impact of difficult market conditions.

    According to the broker, subdued demand in the first half weighed on both profit margins and the forward order book. In addition, Barratt’s £1.3 billion provision balance remains a key drag on valuation. Deutsche Bank said this level of provisioning is likely to constrain cash generation, even as management pursues outlet growth and margin recovery initiatives.

    Reflecting these pressures, the brokerage lifted its discount rate assumption from 8% to 10%, aligning it with longer-term historical averages and better accounting for the financial impact of ongoing fire-safety remediation work.

    Despite near-term challenges, Deutsche Bank expects Barratt to deliver above-average profit growth over the coming years, supported by plans to expand outlets and rebuild margins. The bank forecasts a FY28 return on tangible equity of 8.5%, suggesting the current valuation of 0.79 times price-to-net tangible assets is broadly justified.

    Even so, Millington argued the shares could warrant a higher multiple if market conditions improve, particularly if aided by potential government measures to stimulate housing demand.

    The revised 454p price target is based on Deutsche Bank’s estimate of the company’s net tangible asset value for calendar year 2026.

  • Pantheon Resources reshapes board as work advances at Kodiak, Alaska

    Pantheon Resources reshapes board as work advances at Kodiak, Alaska

    Pantheon Resources plc (LSE:PANR) has detailed plans for its 12 March virtual AGM, to be followed by a public investor webinar, while confirming changes to its board structure as it transitions toward development-focused execution.

    Executive Chair David Hobbs will move into a non-executive position, and director Allegra Hosford Scheirer will step down. The governance adjustments reflect a strategic pivot from exploration-led oversight to an emphasis on engineering delivery as the company progresses its North Slope development programme.

    On the operational front, Pantheon has commenced seismic reprocessing over the north-western section of its Kodiak project, located updip from the Theta West-1 discovery. The company is also preparing for a potential Theta West-2 appraisal well, subject to securing funding and the necessary permits. In parallel, Pantheon plans to present its portfolio at the NAPE 2026 expo as it seeks to attract strategic partners and capital to support advancement of its Alaskan assets.

    From an investment standpoint, the outlook remains pressured by ongoing financial challenges, including recurring losses and negative free cash flow. Technical indicators are also weak, with the share price trading well below key moving averages. Valuation support is limited, as a negative price-to-earnings ratio reflects unprofitable operations and no dividend yield is currently available.

    More about Pantheon Resources

    Pantheon Resources plc is an AIM-listed oil and gas company focused on developing its wholly owned Ahpun and Kodiak fields on Alaska’s North Slope, close to established infrastructure including roads, pipelines and the Trans Alaska Pipeline System. The company is targeting monetisation of independently certified contingent resources of approximately 1.6 billion barrels of oil and 6.6 trillion cubic feet of associated gas, with plans to reach a final investment decision and first production at Ahpun before advancing Kodiak.

  • Altona Rare Earths delivers high-grade fluorspar and gallium results at Monte Muambe

    Altona Rare Earths delivers high-grade fluorspar and gallium results at Monte Muambe

    Altona Rare Earths plc (LSE:REE) has released initial assay results from its 2025 drilling programme at the Monte Muambe project in Mozambique, with roughly 10% of samples analysed to date.

    Data received from diamond drill holes across the Fluorite and Python zones confirm near-surface mineralisation consistent with potential open-pit extraction. Early intercepts include peak grades of 82.76% CaF₂ and 409 g/t Ga₂O₃, while the weighted average fluorspar grade stands at 31% CaF₂ — broadly aligned with commercial mining benchmarks and company expectations.

    Further assay results are expected in the coming weeks and will feed into a maiden mineral resource estimate for fluorspar and gallium. Management said the strong early data, alongside encouraging engagement with investors at Mining Indaba, reinforces the project’s development potential and strategic importance.

    Monte Muambe already hosts a JORC-compliant rare earths resource and benefits from a 25-year mining licence. The asset forms the core of Altona’s strategy to fast-track annual production of 50,000 tonnes of acid-grade fluorspar over a projected mine life of at least 12 years, while also evaluating gallium recovery from processing tailings. The company believes the project positions it to supply critical raw materials into sectors such as batteries, nuclear energy and advanced technologies, strengthening its exposure to Africa’s evolving critical minerals value chain.

    Despite the operational progress, the investment case remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, persistent cash burn and rising leverage alongside declining equity. Technical indicators provide some counterbalance, with the shares exhibiting a strong upward trend and positive momentum signals. However, valuation metrics remain limited in usefulness due to negative earnings and the lack of dividend support.

    More about Altona Rare Earths

    Altona Rare Earths plc is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa. Its flagship Monte Muambe project in Mozambique hosts rare earths, fluorspar and gallium mineralisation under a 25-year mining licence, with near-term fluorspar production targeted alongside longer-term rare earths development.

    The group is also advancing the Sesana copper-silver project in Botswana as part of a diversified portfolio aimed at supplying materials to clean energy, high-technology, defence and industrial markets.

  • Seraphim Space Trust marks up core holdings after contract and funding momentum

    Seraphim Space Trust marks up core holdings after contract and funding momentum

    Seraphim Space Investment Trust plc (LSE:SSIT) has reported significant valuation increases across its four largest SpaceTech investments as of 31 December 2025, following major contract awards and substantial funding rounds.

    The combined fair value of ICEYE, ALL.SPACE, D-Orbit and HawkEye 360 climbed by £69 million to £261 million. That represents a 36% uplift across those positions and equates to a 24% rise relative to the trust’s most recently published net asset value, reflecting strengthening fundamentals and execution across its core portfolio companies.

    The largest contribution came from ICEYE, which was revalued using public market comparables after securing a €1.7 billion contract with the German government. ALL.SPACE also saw gains linked to recent corporate developments, while D-Orbit and HawkEye 360 were re-rated following sizeable late-stage investment rounds backed by new institutional participants.

    The trust indicated that no further material valuation adjustments are expected elsewhere in the portfolio for the reporting period. Interim results for the six months to 31 December 2025 are scheduled for release on 5 March 2026, alongside presentations for analysts and retail investors, signalling management’s confidence in ongoing portfolio progress.

    From an investment perspective, the outlook is tempered by weak earnings quality and limited cash generation, despite the company maintaining a highly conservative balance sheet. Technically, the share price trend remains strong but appears stretched. Valuation metrics look demanding, with a high price-to-earnings ratio and no declared dividend, though this is partially balanced by a consistent stream of positive portfolio developments, particularly defence-related contract wins.

    More about Seraphim Space Investment Trust Plc

    Seraphim Space Investment Trust plc is the first publicly listed fund focused exclusively on SpaceTech. It invests primarily in growth-stage, privately funded companies positioned to become global leaders across areas such as climate technology, satellite communications, mobility and cyber security. The trust is listed on the main market of the London Stock Exchange and aims to back businesses with strong competitive moats and first-mover advantages in rapidly expanding orbital and data-driven markets.

  • European equities hit fresh highs as earnings momentum offsets soft UK growth: DAX, CAC, FTSE100

    European equities hit fresh highs as earnings momentum offsets soft UK growth: DAX, CAC, FTSE100

    European markets climbed to new record levels on Thursday, buoyed by a strong wave of corporate results from major names including Legrand, Hermes and Siemens.

    Investors largely brushed aside weaker-than-expected U.K. growth data. Britain’s economy expanded by 0.1% quarter-on-quarter in the fourth quarter, matching the previous period but falling short of forecasts for 0.2% growth, as business investment declined and the services sector showed little momentum.

    On an annual basis, GDP rose 1.0%, below economists’ expectations of 1.2%.

    In market action, the U.K.’s FTSE 100 hovered around flat territory, while France’s CAC 40 advanced 1.0% and Germany’s DAX gained 1.4%.

    Among individual stocks, Legrand (EU:LR) rallied after the French electrical and digital infrastructure specialist increased its dividend and unveiled a 2026 revenue growth target of 10–15% at constant exchange rates.

    Luxury house Hermes International (EU:RMS) also posted solid gains following another quarter of consistent revenue expansion.

    Schroders (LSE:SDR) surged after agreeing to a £9.9 billion acquisition by U.S.-based asset manager Nuveen, a move that significantly boosted its share price.

    Siemens (TG:SIE) jumped as well, with the German engineering group lifting its fiscal 2026 adjusted earnings outlook and reaffirming its revenue growth expectations after delivering first-quarter results ahead of forecasts.

    EssilorLuxottica (EU:EL) climbed sharply after reporting an 18% increase in fourth-quarter sales, supported by strong demand for AI-enabled eyewear.

    Ipsen (EU:IPN) advanced following robust 2025 results and an upbeat forecast for 2026 performance.

    In London, British American Tobacco (LSE:BATS) edged higher after posting a 2.3% rise in annual profit and announcing plans for a £1.3 billion share buyback in 2026.

    On the downside, Unilever (LSE:ULVR) slipped despite reporting 3.5% underlying sales growth in 2025, while Swisscom (TG:SWJ) declined after posting lower full-year net income for 2025.