Market update: Retailers in focus, Foxtons unveils growth strategy
10:20 , Graeme EvansThe contrasting fortunes of second tier retailers WH Smith and B&M today provided the focus during a subdued session for FTSE 100 investors.
The top flight rose 11.83 points to 798.85 as European markets took the introduction of 50% tariffs on most US imported steel and aluminium imports in their stride.
Mining stocks underpinned the robust performance in London after Glencore rose 7p to 289.7p and Anglo American lifted 53.5p to 2233.5p.
Other top flight risers included Games Workshop, which continued its recent strong run by adding another 330p to 15,750p.
Marks & Spencer fell 2% or 6.1p to 368.5p, while Severn Trent and Land Securities declined 1% during a weaker session for defensive stocks.
The FTSE 250 index outperformed its blue-chip counterpart by lifting 0.3% or 70.70 points to 21,088.48.
The best performing mid-cap company was the customised electronics distributor discoverIE, which jumped 13% or 84p to a six-month high of 717p.
Alongside forecast-beating record earnings for the year, it lifted its margin target to 17% for 2029/30 compared with a previous objective of 15% by 2027/28.
The upgrade followed a record 14.8% margin in the second half of the 2024/25 financial year, well above the 13.5% it had targeted for the year.
WH Smith also featured on the FTSE 250 risers board, lifting 30p to 1054p after the retailer told investors it is well placed for the peak summer trading period.
Travel like-for-like sales in the UK rose 6% in the 13 weeks to 31 May and by 5% across the global estate of airport and railway station sites.
B&M European Value Retail shares moved the other way, declining 7% or 23.9p to 308.1p after annual results showed a 1.8% fall in operating profit t o £591 million.
Like-for-like sales in the UK fell 3.1% against a backdrop of consumer caution, highlighting the challenge facing Tjeerd Jegen when he starts as chief executive on 16 June.
The group declared a final dividend of 9.7p a share, lifting the total for the year by 2% to 15p in addition to the special dividend of 15p paid In February.
There was no guidance on current year trading but the company did highlight it is facing £75 million of cost headwinds before any mitigating action.
Peel Hunt, which has a share price target of 500p, said: “There is still much to prove here, but the CEO inherits a fine business model and a growth machine that has just missed a few beats recently.”
In the FTSE All-Share, Foxtons rose 0.7p to 66p after the estate agency business held a capital markets event to outline plans for the next stage of growth.
It unveiled a new target to deliver £50 million of adjusted operating profit in the medium-term, more than double 2024’s level.
The growth strategy includes a focus on bolt-on acquisition opportunities within Foxtons' core London market, as well as expanding its footprint into new, high value commuter markets.
S4 Capital cuts revenues guidance but shares rise
09:33 , Graeme EvansMarketing firm S4 Capital has warned that annual revenues are set to fall as US tariff hikes continue to cause global economic uncertainty.
The group, whose executive chairman is former WPP boss Sir Martin Sorrell, said like-for-like net revenues are expected to drop by low single percentage digit in 2025.
It had previously guided for revenues to remain largely flat on the year before.
S4 Capital still expects underlying earnings to be “broadly” similar to 2024, helping shares to lift 5%.
Drinks giant scraps 2030 sales target, Diageo shares steady
09:19 , Graeme EvansDiageo shares are steady in the FTSE 100 index after fellow global spirits business Rémy Cointreau withdrew its targets for the 2029-30 financial year.
The Paris-based group said the move was due to the lack of economic visibility, uncertainty of US-China tariff policies and absence of a recovery in the US market.
The withdrawal of its objectives for 2029-30, which were originally put in place in June 2020, also reflected the upcoming arrival of a new chief executive.
In today’s annual results, the group reported an 18% drop in sales to 984.6 million euros while operating profit fell 30.5% to 217 million euros.
For 2025-26, it expects sales to return to mid-single digit growth on an organic basis.
Diageo shares have lost a fifth of their value this year but held firm at 1998p in today’s session.
WH Smith shares rise on update, B&M under pressure
08:31 , Graeme EvansWH Smith shares have risen 2%, up 18p to 1042p after the retailer told investors it is well placed for the peak summer trading period.
Like-for-like sales in the UK rose 6% in the 13 weeks to 31 May and by 5% across the global retail estate.
B&M European Value Retail fell 3% or 10.7p to 321.3p after annual results showed a 1.8% dip in operating profit.
The FTSE 250 index rose 51.97 points to 21,069.75, while the FTSE 100 index fell 2.55 points to 8784.47.
In the top flight, Marks & Spencer fell 4.7p to 369.6p and Auto Trader lost 13.2p to 787p.
Mining stocks offered support after gains of 1% for Anglo American and Antofagasta, alongside gains of 2% for the gold focused Fresnillo and Endeavour Mining.
The strong run for Games Workshop continued after shares lifted another 230p to 15,650p, while Babcock International put on 14p to 1036p.
Hammerson CEO to leave next year
07:58 , Graeme EvansBrent Cross shopping centre owner Hammerson today announced that chief executive Rita-Rose Gagné is to step down next year.
She joined the FTSE 250-listed business, whose portfolio also includes Bullring & Grand Central in Birmingham and Cabot Circus in Bristol, in November 2020.
Hammerson chair Robert Noel praised Gagné for her “outstanding leadership and immense contribution” over the past five years.
He said: “During this time, she has driven a substantial turnaround, transforming and strengthening Hammerson into the largest UK-listed, pure-play owner and manager of prime retail and leisure anchored city destinations.
“The company is now well positioned to continue to deliver growth and value creation."
B&M profits fall amid UK pressure, flags cost headwinds
07:36 , Graeme EvansB&M European Value Retail today reported lower annual profits after its UK business performed below expectations in the year to the end of March.
The group has 777 stores in the UK operating under the B&M brand, as well as 343 under the Heron Foods and B&M Express brands and 135 outlets in France.
Revenues rose 3.7% to £5.6 billion, primarily driven by the contribution from new stores and a positive performance in France.
Like-for-like sales in the UK fell 3.1% against challenging market headwinds, including “a very subdued” garden season and heightened consumer caution.
Adjusted operating profit fell 1.8% to £591 million and bottom-line profit by 11.4% to £431 million.
In the current financial year, B&M said its underlying fixed cost base will increase by about £75 million before mitigation as a result of factors including minimum-wage linked cost inflation and National Insurance increases.
WH Smith travel sales rise, upbeat ahead of summer peak
07:11 , Graeme EvansWH Smith today said revenues in its airports and rail stations travel business rose 7% on a constant currency basis in the 13 weeks to the end of May.
The performance, which includes like-for-like growth of 6% in the UK, keeps the retailer on track to deliver a full-year performance in line with expectations.
The group said it is well positioned ahead of the peak summer trading period.
It added: “We are strengthening our focus on cost and cash discipline, and we are in a strong position to capitalise on substantial value creating opportunities that exist across our markets.”
The sale of its high street business to Modella Capital is on course to complete at the end of this month.
FTSE 100 holds firm after US rally, Asia stocks higher
07:01 , Graeme EvansThe OECD”s downgraded economic outlook failed to upset US markets yesterday as the S&P 500 finished 0.6% higher and the Nasdaq Composite rose 0.8%.
The Dow Jones Industrial Average closed up 0.5%, with futures pointing to a broadly flat start to trading on Wall Street later.
The OECD said the US economy is expected to grow by 1.6% this year, down from 2.2% in the previous outlook, and slow further to 1.5% in 2026.
The downgrade was offset by an unexpected rise in US job openings in April, indicating demand for workers remains healthy.
The FTSE 100 index closed up 12.76 points at 8787.02 last night and is forecast to open about 0.1% higher at today’s opening bell. Asia markets are in positive territory, led by a rise of 1% for the Nikkei 225.
