London’s IPO market got a double boost today as Princes Group confirmed plans for a listing and trading started in Beauty Tech Group.
It has been reported that the food group could attract a valuation of £1.5 billion, representing a major lift after a barren period for new listings.
On the corporate front, pub chain JD Wetherspoon reported a 10% lift in annual profits amid the impact of much higher employment costs.
FTSE 100 Live Friday
- Princes confirms IPO plan
- Brent Crude at four month low
- JD Wetherspoon flags wage cost impact
Market update: New FTSE 100 record amid IPO activity, Wetherspoon down 4%
10:10 , Graeme EvansIPO momentum and a record FTSE 100 index today provided cheer in a session when JD Wetherspoon fell on results and oil headed for its worst week since June.
London’s top flight posted a new peak of 9478.03, up 0.5% or 50.30 points after yesterday’s decline interrupted a run of four consecutive rises.
The advance, which included gains of 1% for NatWest and Marks & Spencer, came as Wall Street futures traded higher despite the US government shutdown.
BP and Shell shares rose after an improved session for Brent Crude, although the oil benchmark remains on track for its worst week since June.
The futures price is down 7% this week at $64.85 a barrel amid expectations that Saudi Arabia will prioritise market share over price support when OPEC+ ministers decide on November’s production quotas at a meeting this weekend.
A shortened fallers board was led by BT Group after a decline of 1.1p to 184.5p, while London Stock Exchange eased 28p to 8582p.
The stock market received a double boost today as Princes Group confirmed plans for a listing and trading started in Beauty Tech Group.
It has been reported that the Liverpool-based tinned tuna and Napolina firm could be valued at £1.5 billion in the initial public offering (IPO).
The listing plan comes with the UK 23rd in Bloomberg’s global IPO rankings, with just £184 million raised by new issues in the first nine months of the year.
Beauty Tech Group raised £29 million from the issue of new shares in today’s float, which gave the Cheshire-based company an initial valuation of £300 million.
The shares were 271p at this morning’s opening day ceremony at the London Stock Exchange before lifting as high as 287.4p in conditional dealings.
JD Wetherspoon posted the worst performance in the FTSE 250 index, even though a 10.1% rise in pre-tax profits of £81.4 million for the year to 27 July was much better than City forecasts of about £72 million.
The company also said August’s like-for-like sales growth of 3.7% was the 36th month in a row it has outperformed the wider industry.
The shares fell 4% or 25p to 640p amid concern over the impact of labour costs.
Chair Tim Martin said increases to NI contributions and wages added about £60 million to its yearly costs, while it also faced an impact from energy costs and new packaging taxes.
He said: “Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.”
Wetherspoon flags £60m hit from rising wage costs, shares fall
08:59 , Graeme EvansThe boss of JD Wetherspoon has said the pub group will try to “keep price increases to a minimum” amid pressure from rising labour costs.
Tim Martin said increases to national insurance contributions and wages were adding about £60 million to its yearly costs, while it was also facing an impact from energy costs and new packaging taxes.
“Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum,” he said.
The company, which operates nearly 800 pubs across the UK, said trading continued to improve and that it expected a “reasonable outcome” for the financial year.
Shares fell 4% or 29p to 636p, even though a 10.1% rise in pre-tax profits to £81.4 million for the year to 27 July was better than City forecasts of about £72 million.
The company also said August’s like-for-like sales growth of 3.7% was the 36th month in a row it has outperformed the wider industry.
Oil traders see “lower-for-longer” Brent Crude price
08:42 , Graeme EvansBrent Crude futures today traded at their lowest level since early June, having fallen 8% this week to stand at $64.59 a barrel.
The decline has been driven by market expectations that Saudi Arabia will prioritise market share over price support when OPEC+ ministers meet this weekend.
They are expected to announce a large increase in production quotas for November.
A survey of 92 traders, strategists and economists by Bloomberg Intelligence found that the vast majority see prices below $70 for the remainder of 2025.
The research also revealed that 82% now expect Brent Crude to be below $70 a barrel at the end of 2026, compared to 56% in March.
Salih Yalmaz, senior industry analyst at Bloomberg Intelligence, said: “The clearest message from this survey is that the market has truly shifted into a lower-for-longer mindset.
“The key driver for prices is no longer China or global demand growth — OPEC+ production strategy has decisively become the main force shaping price expectations, while geopolitical risk is deemed to be negligible despite conflicts and sanctions.”
Beauty Tech shares rise on debut, FTSE 100 higher
08:23 , Graeme EvansBeauty Tech Group shares have moved higher after the Cheshire-based firm made its debut on the London market in a £300 million IPO.
The shares were priced at 271p prior to this morning’s opening day ceremony at the London Stock Exchange before rising to 280p in conditional dealings.
The FTSE 100 index got back to winning ways after yesterday’s setback, rising 0.3% or 29.49 points to 9457.22.
Among the risers, Barclays lifted 4.5p to 384.8p and NatWest added 7.4p to 535.2p.
Princes Group confirms London IPO plan
07:46 , Graeme EvansLiverpool-based food business Princes Group today confirmed its intention to list on the London stock market.
The group, whose brands include Napolina and Crisp ‘N Dry, said the planned flotation was a “natural next step in our journey”.
It has been reported that the group could attract a valuation of £1.5 billion, representing a major boost for London’s moribund IPO market.
Whilst it is best known for tinned tuna, the group has built a £2 billion portfolio across the categories of food, fish, Italian products, oils and drinks. Its operations span seven countries, with 7800 employees..
Executive chair Angelo Mastrolia said: “Our decision to pursue a listing in London marks a pivotal moment in the history of Princes Group.
“The UK is our largest market and the home of an experienced leadership team: this decision reflects our long-term confidence in the business, the strength of our management, and the scale of the opportunity ahead of us.”
Beauty Tech set for £300m IPO
07:26 , Graeme EvansCheshire-based Beauty Tech Group will have an initial value of £300 million when conditional dealings in its shares get underway at 8am this morning.
An offer price of 271p is at the mid-point of previous expectations, with the at-home beauty technology products firm set to raise £29 million from the issues of new shares.
The initial public offering (IPO) provides a boost to the London stock market after a barren period for new issues.
The group was founded in 2009 by current chief executive Laurence Newman and chief technology officer Andrew Showman. It sells through three beauty technology brands – CurrentBody Skin, ZIIP Beauty and Tria Laser.
Newman said: “I am incredibly proud of everything The Beauty Tech Group has achieved since we launched CurrentBody in 2009.
“From establishing ourselves as a global leader in the fast growing at-home beauty technology market to successfully completing this milestone listing on the London Stock Exchange, the Group continues to go from strength to strength.”
JD Wetherspoon posts higher profit, highlights tax impact
07:15 , Graeme EvansJD Wetherspoon today posted a 10% rise in annual profits to £81.4 million, with like-for-like sales in the first nine weeks of the new financial year up by 3.2%.
Founder and chairman Tim Martin said he expects a “reasonable outcome” for the current period but that government-led cost increases in areas such as energy may have a bearing on the result.
He added: "In the last financial year, Wetherspoon, its customers and employees generated a total of £838 million of taxes for the UK government. The total tax raised by the government in the last financial year was £858.9 billion.
“Therefore, Wetherspoon generated approximately £1 in every £1,000 of all UK tax revenue. In other words, the country only needs about one thousand companies like Wetherspoon and no one else would have to pay any taxes at all.
“Wetherspoon is confident that it will provide more tax revenue for the government in the current financial year, while aspiring to increase earnings per share at the same time.”
Oil price set for worst week since June, FTSE 100 seen higher
07:02 , Graeme EvansThe price of Brent Crude today lifted 0.8% to $64.61 but the oil benchmark remains on course for its worst week since June.
Brent is down by about 8% this week, reflecting expectations that OPEC+ will announce a big increase in production quotas at its meeting this weekend.
The FTSE 100 index is seen opening today’s session slightly higher, having yesterday failed to extend its four-day winning streak.
London’s top flight closed 18.70 points or 0.2% lower at 9427.73, despite a 5% results-day jump for Tesco.
On Wall Street, the three main benchmarks finished between 0.1% and 0.4% higher as traders continued to take a relaxed view of the US government shutdown.
