UK equity markets cooled on Thursday as the benchmark FTSE 100 opened lower, following softer starts across continental Europe. At 08:25 GMT the index was down 0.4%, while the British pound strengthened modestly, with GBP/USD up 0.07% to 1.3513.
European peers were also weaker at the open. Germany's DAX fell 0.3% and France's CAC 40 declined 0.4%.
Corporate newsflow dominated market attention, delivering a mixed set of results and strategic moves that influenced sector sentiment.
Rio Tinto reported unchanged underlying earnings of $10.87 billion for 2025, a level consistent with the prior year. The result beat market expectations, with Bloomberg forecasts sitting at $10.81 billion. The company was able to offset softer iron ore prices through higher copper and aluminium volumes alongside tighter cost control measures. Despite the steady underlying earnings, net profit attributable to shareholders fell 14% to $9.97 billion, affected by increased debt and one-off items tied to acquisitions.
Centrica PLC, owner of British Gas, disclosed a statutory loss of £72 million for 2025, reversing from a profit of £1.33 billion a year earlier. Management has suspended the share buyback programme after adjusted earnings more than halved, a development the company attributed to lower energy prices that reduced returns from its gas and nuclear assets. The loss also included substantial charges: £508 million in asset impairments across nuclear and gas field holdings and a £345 million net loss on derivative energy contracts.
Mondi PLC posted a 3% rise in full-year revenue to €7.7 billion for 2025, supported by stronger sales volumes and the contribution from the Schumacher acquisition. However, underlying EBITDA declined 5% to €1,001 million as margins came under pressure in a challenging trading backdrop. The underlying EBITDA margin slipped to 13.1% from 14.1% a year earlier.
AB Dynamics appointed Andrew Lewis as interim chief financial officer with immediate effect. The company is continuing its search for a permanent CFO following the promotion of Sarah Matthews-DeMers from CFO to CEO. The firm said the interim appointment reflects expected lead times for any permanent hire due to notice periods, and that the search is progressing as planned.
London Stock Exchange Group PLC is facing pressure from activist investor Elliott Investment Management, which has urged the exchange to conduct a portfolio review and to implement a £5 billion share buyback over the next 12 months, according to a Bloomberg report. Elliott, led by Paul Singer, is asking LSEG to examine its complex structure, which currently spans a data business, exchange operations and a 51% ownership stake in US-listed Tradeweb Markets Inc.
Safestore Holdings Plc reported 6.3% year-on-year revenue growth at constant exchange rates for the first quarter, driven by both like-for-like performance and the contribution of new stores across all markets. Like-for-like revenue rose 4.2% to £31.66 per square foot, while closing occupancy reached 77.8%, up 1 percentage point from the prior year and approaching the 80% threshold often associated with stronger growth potential.
Debenhams Group completed an oversubscribed equity fundraise, securing £40 million via a placing and subscription at an issue price of 18 pence per share, which represented a 5% discount to the closing price of 19 pence on February 17. The raise exceeded the initial target of £35 million after strong investor interest. The company placed 200 million new ordinary shares and received subscriptions for an additional 22.2 million shares, producing net proceeds of approximately £38.7 million after expenses.
Capita plc won a contract renewal for its Pension Solutions business with an existing UK client. The contract is valued at £137 million and can run for up to 10 years, becoming effective from Q1 2026. Capita said the renewal will underpin the implementation of new technology designed to streamline transactions, expand capacity and improve customer experience.
Market participants will be watching how the mix of firm-level results and activist pressures translates into broader FTSE momentum over the near term. The session’s data and corporate announcements spanned resource extraction, energy, packaging, storage and services, underlining a cross-sector set of drivers affecting the UK market.