The performance of retail chain Primark is in focus after owner Associated British Foods published an update today.
Partnerships-led housebuilder Vistry has also released results showing a big fall in half-year profit.
The FTSE 100 index is pointing higher after leading Wall Street benchmarks last night set more records.
FTSE 100 Live Wednesday
- Primark UK sales improve
- Vistry backs profit upturn
- Lenders meet City minister
Market update: FTSE 100 rallies despite AB Foods weakness, DCC up 5%
10:20 , Graeme EvansPrimark and sugar uncertainty today drove a 10% slide for Associated British Foods in a session when the FTSE 100 index was lifted by fresh Wall Street records.
A strong US handover after the S&P 500 index and Nasdaq last night scaled new heights helped London’s top flight to advance by 0.2% or 18.44 points to 9260.97.
Anglo American featured among the best performing stocks, rising by another 3% or 66p to 2556p as the positive reaction to its Teck Resources merger continued.
Energy-focused DCC led the top flight, up 4% or 190p to 4860p after completing the sale of DCC Healthcare and promising the return of a further £600 million in proceeds for shareholders.
Associated British Foods slumped 227p to 2014p after a year-end trading update featured a mixed performance by its Primark retail division.
Favourable weather and womenswear trends have improved UK trading but tough conditions in Europe will mean like-for-like sales about 2% lower in the second half.
The conglomerate, whose operations span retail, ingredients, agriculture, grocery and sugar, said it was pleased with its overall performance against a backdrop of “consumer caution, geopolitical uncertainty and inflation”.
It added that next year’s expected recovery of its loss-making sugar division is likely to be delayed because European prices remain below previous hopes.
Shore Capital said the 2025 results outcome is set to be slightly weaker than it anticipated but that there is still much to like about the shares, reflecting the company’s values, relevance, balance sheet and opportunities.
The City firm added: “We retain a Buy stance, albeit the shares may tread water for a while until stronger progress emerges.”
In the FTSE 250 index, Vistry shares dropped 4% or 24.2p to 579.6p after the partnerships-led housebuilder reported a 33% drop in half-year profits.
The performance was in line with this summer’s weaker guidance, reflecting a lower level of demand from affordable housing partners ahead of June’s spending review.
Chief executive Greg Fitzgerald highlighted the group’s debt reduction progress and forecast a significant step-up in second half completions and profits.
The shares of DIY chain Wickes initially rose on the back of its in-line interim figures, which showed a 16.7% increase in profit to £27.3 million. They later stood 1.3p lower at 193.9p, continuing the poor run of recent weeks.
The shares of Gym Group rallied 8% or 11.2p to 147.8p after the UK operator of 249 sites posted stronger first-half profits and said trading momentum continued in July and August.
It remains confident that it will deliver 3% like-for-like revenue growth for the year, with adjusted earnings now seen at the top end of analysts' forecast range.
Gym Group reports strong momentum, shares jump
09:17 , Graeme EvansThe shares of Gym Group are up 9% after the UK operator of 249 sites posted stronger first-half results and said momentum continued in July and August.
It remains confident that it will deliver 3% like-for-like revenue growth for the year, with adjusted earnings now seen at the top end of analysts' forecast range.
The figure for the half year to 30 June lifted 24% to £27.4 million as revenues growth continued to outpace cost inflation.
Chief executive Will Orr said the company remains on track to deliver its target of opening 14-16 new gyms this year, all funded from free cash flow.
He added: “In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations.”
Shares rose 12p to 148.6p, returning the FTSE All-Share company to near where it started the year.
Contactless card £100 limit under review - FCA
08:56 , Graeme EvansContactless card limits are set to exceed £100 after the Financial Conduct Authority (FCA) proposed giving providers flexibility to decide the right level.
The limit has been raised in steps over the years, with many providers already offering customers the ability to adjust their personal contactless limits or turn off contactless functionality on their card altogether.
The FCA said it is encouraging firms to continue to offer their customers this choice. The regulator’s proposals are out for consultation until 15 October.
FTSE 100 improves, AB Foods slides and Vistry lower
08:29 , Graeme EvansThe shares of Associated British Foods have fallen 9% or 207p to 2034p, even though a year-end update showed an improved sales trend for Primark in the UK.
A weaker performance in Europe means second half like-for-like sales are likely to be 2% lower than a year earlier. The group’s sugar division is also seen posting a full-year operating loss, albeit with an improvement forecast for 2026.
The FTSE 100 index is 0.3% or 23.74 points higher at 9266.27, led by consumer healthcare business Haleon after a rise of 2% or 8.2p to 368.3p.
In the FTSE 250, Vistry shares have fallen 3% or 17.1p to 586.7p following the release of half-year results. Wickes is up 3.8p to 199p on the back of its interim figures, which showed a 16.7% increase in profit to £27.3 million.
Vistry profits down amid uncertainty, backs second half upturn
07:47 , Graeme EvansPartnerships-focused housebuilder Vistry today said half-year profits fell by a third to £80.6 million, a performance in line with its expectations.
Total completions of 6889 fell 12%, reflecting weaker demand from affordable housing partners due to uncertainty ahead of the June Spending Review.
The average selling price increased by 4% to £283,000 but overall revenues declined 6% to £1.8 billion.
The group’s forward order book totals £4.3 billion, down from £5.1 billion the year before. It is 88% forward sold for 2025, with guidance unchanged for a year-on-year improvement in full-year profit.
Chief executive Greg Fitzgerald highlighted the group’s debt reduction progress, down 9% to £293.1 million in the first half.
He added: “The group's first half performance was in line with expectations and we are well positioned to deliver for the full year.
“Working with our partners, we have a strong pipeline of development opportunities which will drive our second half performance, with an expected significant step-up in completions and profits.”
New City minister to meet bank bosses
07:30 , Graeme EvansSenior executives of the UK’s biggest banks and building societies will today be urged to make use of looser lending rules to help first-time buyers get a home.
New City minister Lucy Rigby, who is due to meet the lenders today, said bank bosses should make first-time buyers their top priority and take advantage of measures outlined in the “Leeds reforms” package announced in July.
These include loosening lending rules to allow banks and building societies to offer more mortgages at 4.5 times a buyer’s income.
Primark sales improve in the UK, conditions remain tough
07:14 , Graeme EvansAssociated British Foods today said Primark sales returned to growth in the UK after benefiting from favourable weather and stronger womenswear demand.
UK and Ireland sales are expected to grow by around 1% in the second half of the financial year, representing “a good sequential improvement” on the first half after Primark's market share increased from 6.6% to 6.8%.
The retailer’s trading in the US was strong but a more subdued consumer environment impacted performance in Europe.
The group, which has operations in grocery, ingredients and sugar, said it was pleased with its overall performance in “what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation”.
FTSE 100 seen higher, oil price up 1%
07:00 , Graeme EvansWall Street last night posted another strong performance after the S&P 500 index rose 0.2% and the Nasdaq Composite lifted by 0.5% to set record highs.
The Dow Jones Industrial Average improved 0.3% despite downward revisions to non-farm payroll statistics for the past 12 months.
Asia markets are in positive territory, while the FTSE 100 index is seen opening about 0.1% higher after lifting 21.09 points or 0.2% at 9242.53 yesterday.
The gold price has lifted 0.4% to $3641 an ounce, with Brent Crude up by more than 1% at $67.12 a barrel.
