The Co-operative Group has revealed it slumped to a half-year loss after taking an earnings hit of around £80 million from a “malicious” cyber attack in April.
It said the attack impacted sales by about £206 million, which left it with an £80 million blow to earnings, although this also included £20 million of non-underlying one-off costs.
In the FTSE 100 index, companies reporting today included Babcock International and the technology company Halma.
FTSE 100 Live Thursday
- Co-op discloses cyber attack hit
- Fashion giant posts profit rise
- Babcock maintains progress
Market update: Miners support FTSE 100, cyber insurer Beazley continues to rise
10:22 , Graeme EvansCopper’s latest price rise today lifted the shares of Rio Tinto, Anglo American and Glencore during a downbeat session for the wider FTSE 100 index.
The commodity is at a two-month high after Freeport McMoRan yesterday declared force majeure on deliveries from its Grasberg copper mine in Papua, Indonesia.
The move, which followed a fatal mud-rush incident earlier this month, cuts supply from the world’s second largest copper mine.
UBS said the development increased the magnitude of forecast 2026 deficits in the global copper market.
Despite tariffs and economic uncertainty, the bank pointed out that copper demand has been resilient in China alongside robust growth in the energy transition sector.
Anglo American followed yesterday’s 5% rise by adding another 2% or 43p to 2714p, while Rio Tinto lifted 125.5p to 4873.5p and Glencore improved 5.15p to 335.4p.
The best performing stock in the FTSE 100 was JD Sports Fashion, which added 2.5p to 90.4p amid improving sentiment on the back of yesterday’s half-year results.
Cyber insurance specialist Beazley was another notable riser amid ongoing disruption at Jaguar Land Rover and the disclosure of big losses at the Co-op following its April attack.
The shares rose 18p to 866.5p, meaning they have lifted more than 10% this month.
The risers board also featured the safety technology conglomerate Halma, which advanced 2% or 58p to 3396p after upgrading revenues guidance for the year.
The FTSE 100 index fell 0.2% or 20.35 points to 9230.8p, with heavyweights AstraZeneca and HSBC among those down 1% during a poor session for European markets.
Defence business Babcock International, whose shares have risen by more than 140% this year, fell 19p to 1211p after posting a trading update.
The group said organic revenue growth and underlying operating margin progress had been in line with expectations in the five months to 31 August.
In the FTSE 250, Petershill Partners jumped 33% after the Goldman Sachs-backed alternative investment group set out plans to return capital to shareholders and de-list from the market.
The company listed in September 2021 but said the share price did not reflect the quality and underlying value of its assets or strong financial performance.
At the bottom of the FTSE 250 index, Mitchells & Butlers fell 5% or 15p to 249.5p after the Harvester and All Bar One owner reported a slower pace of sales growth.
The fourth quarter improvement of 3.1% compared with growth of 5% in the previous three months and 4.7% in the second quarter. Growth year-to-date is 4.2%.
H&M posts higher profit amid more store closures
09:29 , Graeme EvansH&M has revealed stronger-than-expected profits as it continues efforts to cut costs, including through store closures.
The Swedish clothing giant said on Wednesday that it has closed 135 stores over the past nine months and expects to shut more sites in the current quarter.
It said most of the closures took place in Asia, Oceania and Africa, while 21 took place in Western Europe.
H&M reported operating profits of 4.91 billion Swedish krona (£390 million) for the quarter to the end of August, rising from 3.51 billion krona (£280 million) a year earlier.
Government considers support for Jaguar Land Rover suppliers
09:04 , Graeme EvansThe Government is considering stepping in to help keep Jaguar Land Rover suppliers trading after the car maker halted production because of a cyber attack.
On Tuesday, ministers met firms in JLR’s supply chain to discuss pressures on their operations since the attack.
The Government is now considering buying component parts typically used by JLR from their suppliers in order to keep them trading until production restarts at the car giant.
It comes after warnings from unions and politicians that some small suppliers, which produce parts for the car giant, could collapse without urgent financial support.
Jaguar Land Rover paused production at the end of August after being targeted by hackers.
Mitchells & Butlers shares down 8% after update
08:23 , Graeme EvansThe shares of pub chain Mitchells & Butlers have fallen 8% or 20.5p to 243p after the Harvester and All Bar One owner reported a slower pace of sales growth.
The fourth quarter improvement of 3.1% compared with like-for-like growth of 5% in the previous months and 4.7% in the second quarter. Growth across the financial year to the end of September is currently 4.2%.
The company repeated that it expects £130 million of cost inflation in the next financial year, representing about 6% of its base.
Chief executive Phil Urban said: “We are pleased with our performance over the year, in which we remained consistently ahead of the market, across all market segments.”
He said sales growth has been broad based, with strong like-for-like performances in both food and drink across its portfolio of brands.
Derren Nathan, Hargreaves Lansdown head of equity research, said: “It’s set to deliver operating profit growth of around 5% to £328 million, an outcome worth raising a glass to, given the additional cost burden brought about by higher National Insurance contributions and the increase in the National Living Wage.”
He pointed out that shares have more than doubled over the last three years.
“With consumer sentiment fragile, and the potential for a further tax grab in the November budget, there’s no obvious catalyst for near-term appreciation.”
FTSE 100 lower, Babcock shares fall back
08:13 , Graeme EvansThe FTSE 100 index has fallen 0.3% or 29.98 points to 9220.45, with Babcock International among the fallers after it posted a trading update this morning.
The defence group made no change to guidance but shares slipped back 9p to 1221p, having been among this year’s top performers in the top flight.
Halma shares rose 40p to 3378p after it forecast a stronger-than-expected revenues performance for the financial year.
FTSE 100 stock Halma upgrades revenues guidance
07:58 , Graeme EvansHalma, the FTSE 100-listed group of life-saving technology companies, today lifted revenues guidance for the financial year.
It expects to deliver low double digit percentage organic constant currency growth, up from previous guidance for an upper single digit percentage.
The increase is primarily driven by stronger-than-expected growth in photonics within the environmental and analysis sector.
There is no change to the company’s margin guidance, which it expects to be modestly above the middle of the target range of 19-23% in the year to March.
Halma employs over 9000 people in more than 20 countries., Its shares have lifted 23% this year.
Babcock maintains progress amid strong nuclear activity
07:33 , Graeme EvansDefence business Babcock International, whose shares have risen by more than 140% this year, today described recent trading as encouraging,
The group said organic revenue growth and underlying operating margin progress had been in line with expectations in the five months to 31 August.
In a brief update ahead of its AGM, Babcock reported strong growth in Nuclear driven by civil nuclear projects and submarine support.
Ongoing growth in Marine was partly offset by lower revenue in the Land division, due to lower activity in its Rail business.
Babcock said it continued to make progress towards medium-term guidance.
In June, it upgraded targets to average revenue growth of mid-single digit, underlying operating margin of at least 9% and average operating cash conversion of at least 80%.
Co-op discloses cyber attack impact
07:18 , Graeme EvansCo-op today posted a half-year loss after the retailer revealed a £206 million hit to revenues following this summer’s cyber attack disruption.
The group’s bottom-line loss of £50 million for the six months to 5 July compared with a profit of £58 million a year earlier. At an underlying level, the loss of £75 million followed a £3 million profit the year before.
The deficit included £20 million of one-off costs in relation to the April cyber attack, as well as an estimated underlying margin impact of £60 million.
The group expects a further, but reduced, impact in the second half of its financial year.
Co-op chair Debbie White said: “Our balance sheet strength and the magnificent response of our 53,000 colleagues enabled us to maintain vital services for our members and their communities.
“We must now build our Co-op back better and stronger to meet the challenges and opportunities that lie ahead.“
FTSE 100 recovers lost ground, US stocks struggle
07:00 , Graeme EvansThe FTSE 100 index last night closed 0.3% higher at 9250.43, having been as low as 9177.09 earlier in the session.
A surge for copper-focused stocks including Anglo American drove the turnaround, although London’s top flight is seen 0.2% lower at today’s opening bell.
The weak start follows a disappointing session on Wall Street after the Dow Jones Industrial Average closed 0.4% lower and the S&P 500 index fell 0.3%.
Asia markets are mixed, with the Nikkei 225 up 0.2% and the Hang Seng index near its opening mark.
