British stocks opened a touch softer on Thursday but remained close to record levels, with markets digesting a steady flow of corporate results and monitoring currency and geopolitical developments.
At 0813 GMT the FTSE 100 dipped 0.08%. The pound weakened against the U.S. dollar, falling 0.2% to trade at $1.3533. In continental Europe, Germany’s DAX was down 0.2% while France’s CAC 40 rose 0.3% during the same early trading window.
Investor attention was split between corporate earnings and broader macro themes. Chipmaker NVIDIA Corporation reported revenue that exceeded expectations and supplied an upbeat outlook, but those results failed to excite investors broadly. Market participants also shifted focus to geopolitics as the U.S. and Iran entered talks on Thursday. Artificial intelligence remained a prominent theme, with analysts and investors weighing concerns about returns on capital spending and the potential for AI-driven disruption, according to Jefferies.
UK corporate roll call
Several U.K.-listed groups reported results on Thursday, with the data ranging from sharply higher profits to strategic reorganizations and dividend and buyback announcements. Highlights included Rolls-Royce, the London Stock Exchange Group and a host of other listed companies that released results or strategic updates.
Rolls-Royce reported a 40% increase in annual profit, driven by strong aero-engine performance. The company raised its medium-term targets and increased planned shareholder distributions. For 2025 Rolls-Royce posted an underlying operating profit of 3.46 billion, delivering a margin of 17.3%, ahead of the consensus estimate of 3.27 billion. Free cash flow for the year reached 3.3 billion, supported by robust operating performance and growth in long-term service agreement balances, leaving the company with net cash of 1.9 billion at Dec. 31, 2025. The company set guidance for 2026 of underlying operating profit between 4.0 billion and 4.2 billion, with expected free cash flow of 3.6 billion to 3.8 billion.
London Stock Exchange Group reported a notable rise in profitability for 2025, with pretax profit increasing 56.5% to 1.97 billion from 1.26 billion a year earlier. The group also announced 3 billion in additional share buybacks. Total income, excluding recoveries, rose 5.8% on a reported basis to 8.99 billion, and climbed 7.1% on an organic, constant currency basis. Reported earnings per share increased 85.1% to 238.4 pence, while the adjusted earnings per share measure rose 15.7% to 420.6 pence.
WPP unveiled a multi-year strategic plan dubbed Elevate28, aimed at simplifying the companys corporate structure and returning to organic growth following recent underperformance. Under the plan WPP will move from a holding company structure to a single-company model and consolidate operations into four core units - WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions - which will operate across four geographic regions: North America, Latin America, EMEA and APAC.
Ocado Group reported solid second-half 2025 results and provided guidance on cash flow timing. The online grocery technology firm said it expects to achieve positive free cash flow during the second half of 2026, and to be cash flow positive for the full year 2027. Group revenues for the second half of 2025 were 4.5% above analyst expectations, while EBITDA exceeded consensus by 4.2%. For the full year 2025 the company reported an underlying cash outflow of 213 million, slightly above its prior guidance of around 200 million.
CVS Group posted 5.8% revenue growth for the first half of 2026, meeting market expectations with sales of 356.9 million versus consensus of 357 million. The veterinary services provider delivered like-for-like sales growth of approximately 2.7%, an improvement from 2.5% at the four-month point and a recovery from negative 1.1% growth in the first half of 2025. UK revenues were 320.6 million while Australia contributed 36.3 million.
Derwent London reported a net asset value of 3,225 pence per share for fiscal year 2025, representing a 2.4% increase. The company recorded earnings per share of 98.4 pence and declared a dividend per share of 81.5 pence. During FY25 Derwent signed new leases totaling 11.3 million at a level 9.9% above estimated rental value. Year to date the company has secured 1.5 million in additional leases and has 14.4 million under offer, including all offices at Network, with 4.4 million currently in negotiations.
Howden Joinery Group reported a fiscal 2025 profit beat and announced a 100 million share buyback program. The company delivered pre-tax profit of 344.9 million and earnings before interest and taxes of 355.3 million for fiscal 2025, representing a roughly 4% beat versus consensus expectations and prior guidance. Consensus had anticipated pre-tax profit of about 331 million and EBIT around 340 million based on the company's November 2025 update.
Greencoat UK Wind disclosed a net asset value per share of 133.5 pence as of Dec. 31, 2025, reflecting a total return of -4.9% for the year. The NAV figure factors in the impact of RPI/CPI rebasing of subsidies and is down from a previously announced 136.1 pence that did not include that adjustment. The shares traded at 93.45 pence, representing a 29.8% discount to NAV. Because the shares traded at a discount greater than 10% during the reporting year, a continuation vote will be held at the upcoming annual general meeting.
Man Group delivered record organic growth in assets under management, which reached $227.6 billion at Dec. 31, 2025, up 35% from $168.6 billion a year earlier. Growth was driven by net inflows of $28.7 billion and positive investment performance of $21.4 billion. The firm said its net inflows were 19.3% ahead of the industry on an asset-weighted basis, marking the sixth consecutive year of market share gains. Systematic long-only strategies attracted $22.5 billion in net inflows, including a single client subscription of $13.2 billion, while discretionary long-only strategies drew $12.0 billion.
Drax Group reported record levels of renewable power generation for the 12 months ended Dec. 31, 2025, producing 6% of UK power and 11% of UK renewables. Adjusted EBITDA totaled 947 million, down from 1,064 million in 2024, primarily reflecting lower achieved power prices. Operating profit fell to 241 million from 850 million, largely due to non-cash impairment charges totaling 378 million. Drax completed a 300 million share buyback program in October 2025 and has started a 450 million three-year extension, supported by approximately 0.5 billion in working capital inflow expected from the end of the Renewables Obligation scheme in 2027.
Tate & Lyle issued a trading statement for the nine months ended Dec. 31, 2025, reporting that third-quarter operating performance matched expectations and remained consistent with the first half of the year. Group revenue for the three months to Dec. 31, 2025, increased 15% on a reported basis and in constant currency, reflecting the combination with CP Kelco on Nov. 15, 2024.
Note on market context - Early trading moves were modest, with the FTSE 100 maintaining proximity to record highs despite the mixed corporate newsflow. Currency moves - the pound's 0.2% decline to $1.3533 - and international headlines, including talks between the U.S. and Iran and continued attention on AI themes, provided additional context for investor positioning, according to market commentary cited above.
Investors will continue to monitor corporate updates, buyback and dividend announcements, and guidance figures that could influence sector-level flows and the broader market near term.