FTSE 100 Live Tuesday
- Barclays profit tops forecasts
- AstraZeneca backs 2025 guidance
- Greggs hit by cost headwinds
Market update: Games Workshop leads FTSE 100, Barclays lower
10:19 , Graeme EvansForecast-beating results by AstraZeneca, Barclays and Games Workshop received a contrasting reaction in a resilient FTSE 100 index today.
Games Workshop led London’s top flight, lifting 5% or 760p to 16,020p after the Warhammer fantasy miniatures firm posted another set of record annual results.
Profits rose by a bigger-than-expected 29.5% to £262.8 million after sales improved by 19.5% in constant currency terms. Chief executive Kevin Rountree said: “Games Workshop and the Warhammer hobby are in great shape.”
The shares are up by 20% this year and by more than 50% in the past year.
Traders initially gave a muted response to AstraZeneca half-year results after the drugs giant left guidance unchanged despite a beat on second quarter earnings.
Total revenue rose 11% to $28 billion (£21 billion) across the half year, driven by double-digit growth in oncology and biopharmaceuticals. This led to a 13% increase in core operating profit to $9.4 billion (£7 billion).
The shares later rallied to stand 208p higher at 10,998p as attention turned to the group’s pipeline momentum following 12 recent late-stage trial successes.
Barclays shares drifted half a penny to 360.75p, despite its second quarter profit figure of £2.48 billion being 11% ahead of the City consensus.
Total income beat forecasts by 3%, driven by the investment banking and UK corporate divisions. This was partially offset by a small miss on net interest income in UK banking.
It announced a further £1 billion share buyback and a half year dividend of 3p a share, representing a 21% increase in capital distributions to £1.4 billion.
Chief executive CS Venkatakrishnan said: "We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.”
The FTSE 100 index gained momentum as the session wore on to stand 34.34 points higher at 9115.78. Leading European benchmarks were also stronger after yesterday’s muted reaction to the EU-US trade deal.
Other risers in London’s top flight included the gambling group Entain, which rose 17.3p to 1010.5p following a strong quarter for its BetMGM joint venture.
The FTSE 250 index fell 55.06 points to 21,896.74p after Paragon Banking Group and car distribution business Inchcape dropped 9% on the back of updates.
Greggs also fell 5% or 75p to 1570p as half-year results showed a 14.3% fall in half-year profits to £63.5 million.
Morgan Sindall rose 4% or 165p to 4625p after 37% growth in adjusted profit to £95.9 million during a record half year for the construction and fit-out group.
Car market strongest since 2019 - Auto Trader
09:32 , Graeme EvansThe UK’s car market is on track for its strongest year since before the coronavirus pandemic, according to new analysis.
Online vehicle marketplace Auto Trader said it expects two million new and 7.75 million used cars to be sold across the whole of 2025, as older, budget-friendly models drive growth.
The total of 9.75 million would be a 3% increase on last year’s figure of 9.5 million (1.9 million new and 7.6 million used).
It would also be the highest annual total since 10.3 million (2.4 million new and 7.9 million used) in 2019, before the pandemic crisis began.
Barclays quarterly profit beats forecasts, shares fall
09:29 , Graeme EvansBarclays shares drifted lower today, despite the banking giant’s second quarter profit figure of £2.48 billion coming in 11% ahead of the City consensus.
Total income beat forecasts by 3%, driven by the investment banking and UK corporate divisions. This was partially offset by a small miss on net interest income in UK banking.
Impairments were 16% lower than expected, aided by a lower charge in the US consumer banking division.
Analysts at Jefferies reiterated their Buy recommendation following the results.
They said: “Some may not like the mix, but the net result is a good one and next year's return on tangible equity target above 12% looks increasingly achievable.”
The shares fell 2.2p to 359p.
AstraZeneca shares rise after earnings beat
09:02 , Graeme EvansAstraZeneca shares have risen 110p to 10,900p after second quarter earnings came in ahead of City expectations and the company reiterated guidance for 2025.
The drugs giant continues to expect total revenues growth in the high-single digits and core earnings per share up by a low double-digit percentage.
Shore Capital has backed Astra to deliver on its longer-term growth ambitions, with its fair-value estimate of 13,500p a share an earnings multiple of about 17.5 times.
It said this was a premium to peers “that we feel can be justified given pipeline momentum, limited exposure to patent expiries this decade, and its earnings potential".
Derren Nathan, head of equity research at Hargreaves Lansdown, added: “AstraZeneca looks in rude health at this year’s halfway mark, after narrowly beating market expectations.”
Given the strong financials, he said it was a little disappointing not to see an upgrade to full-year guidance as this now feels to be within relatively easy grasp.
Alongside the wider industry Nathan said AstraZeneca’s share price has been dragged down by fears over US tariffs and policy on drug pricing.
Greggs hit by cost headwinds and weaker footfall
08:37 , Graeme EvansBakery chain Greggs saw profits fall in the first half of the year after customers stayed away from its branches during winter storms and the summer heatwaves.
The company, which is known for its sausage rolls and steak bakes, revealed pre-tax profits down 14% to £63.5 million in the six months to the end of June.
Greggs, which has more than 2600 shops, said the fall in profit “reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year”.
Shares fell 2% or 34.2p to 1610.8p.
AstraZeneca higher in robust FTSE 100, Morgan Sindall up 3%
08:32 , Graeme EvansAstraZeneca shares have risen 80p to 10,870p and Barclays by 1.15p to 362.35p after the blue-chip heavyweights released half-year results.
The FTSE 100 index is up 5.28 points to 9086.72, with gambling group Entain 6.9p higher at 1000p following a strong quarter for its BetMGM joint venture.
In the FTSE 250 index, Greggs shares are down 30.5p to 1614.5p after half-year results showed a 14.3% fall in half-year profits to £63.5 million.
Morgan Sindall rose 3% or 140p to 4600p after reporting 37% growth in adjusted profit to £95.9 million during a record half year for the construction and fit-out services group.
WH Smith sells Funky Pigeon for £24m
08:09 , Graeme EvansFunky Pigeon is set for a new home after Card Factory agreed to buy the personalised greetings card business in a deal worth £24 million.
WH Smith, which acquired the brand in 2010, is selling the business in order to continue its strategic focus on travel retail operations.
Card Factory chief executive Darcy Willson-Rymer said the deal marked a significant step forward in his company’s strategy to build a scaled, competitive digital presence in the celebration occasions market.
Anglian to pay £62.8m after wastewater failures
07:48 , Graeme EvansThe water regulator has told Anglian Water to pay out a £62.8 million enforcement package due to failures managing its wastewater treatment works and network.
Ofwat said it is proposing that the package must be paid by the company and its shareholders “for the benefit of the environment and their customers”.
It said failures by the company led to “excessive spills from storm overflows”.
The industry regulator said its investigation found that the water firm failed to run, maintain and upgrade its wastewater operations adequately to ensure they could cope with the flows of sewage and wastewater coming to them.
Games Workshop delivers another record year
07:43 , Graeme EvansFTSE 100-listed Games Workshop today reported another set of record annual results, with pre-tax profit up 29% to £262. 8 million in the year to 1 June.
The Warhammer fantasy miniatures business grew revenues by 17% to £617.5 million. This included a sharp rise in licensing revenues to £52.5 million.
Chief executive Kevin Rountree said: “We once again have designed, made and sold in record quantities, the best fantasy miniatures in the world.
“We delivered year on year sales growth, once again, in all of our core established countries and the organic growth via our export team to places globally was impressive too.”
AstraZeneca boss hails strong momentum
07:28 , Graeme EvansAstraZeneca today reiterated guidance for 2025 after reporting a 13% increase in core operating profit to $9.4 billion (£7 billion) for the first six months.
Total revenues rose 11% to $28 billion (£21 billion), driven by double-digit growth in oncology and biopharmaceuticals. Core earnings per share increased 17% to $4.66.
Chief executive Pascal Soriot said the company’s strong revenues momentum continued through the first half of the year, alongside success for its “broad and diverse” pipeline after 12 positive late stage trial readouts.
He added: “As we enter our next phase of growth, we have pledged $50 billion to continue to grow in the US, which includes the largest manufacturing investment in AstraZeneca’s history, set for Virginia.
“This landmark investment reflects not only America’s importance but also our confidence in our innovative medicines to transform global health and power AstraZeneca’s ambition to deliver $80 billion revenue by 2030.”
Barclays posts £5.2bn half year profit, lifts dividend
07:11 , Graeme EvansBarclays today said half-year pre-tax profits rose 23% to £5.2 billion, boosted by a 28% improvement in the second quarter of the year.
It announced a further £1 billion share buyback and a 3% higher half year dividend of 3p a share, representing a 21% increase in capital distributions to £1.4 billion for the half year.
Chief executive C. S. Venkatakrishnan said: "We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.”
FTSE 100 seen higher, Asia markets weaker
06:59 , Graeme EvansThe FTSE 100 index is set to open higher after yesterday’s downbeat reaction to the US-EU trade deal.
London’s top flight gave up initial gains to close 38.87 points or 0.4% lower at 9081.44. The index had traded as high as 9169.01 at one point.
It was a similar story on Wall Street where the Dow Jones Industrial Average closed down 0.1% and the S&P 500 stayed near to its opening mark.
The Nikkei 225 and Hang Seng index are down by about 1% but the FTSE 100 index is seen rising by about 0.3%.
