The London market opened on a firmer footing on Wednesday, with the FTSE 100 edging higher despite a mixed set of corporate updates. Gains in consumer healthcare and retail offset sharp losses for Associated British Foods, while investors also weighed fresh economic and regulatory news.
Fitness chain Gym Group jumped nearly 9% to £148.6 million after unveiling a robust half-year performance. Adjusted earnings rose 24% to £27.4 million for the six months to June 30, helped by revenues continuing to outpace cost inflation.
Momentum carried into July and August, with management confident of delivering 3% revenue growth for the year. Profits are now expected at the top end of forecasts.
Chief executive Will Orr said the group remains on track to open 14-16 new gyms in 2025, all funded through free cash flow.
Shares in Associated British Foods (AB Foods) slumped 9% to £2034 after warning of weaker European trading, despite stronger demand at Primark stores in the UK.
The company expects second-half sales to fall about 2% year-on-year, while its sugar division is forecast to post a full-year loss. Primark’s UK performance was supported by womenswear and better weather, but consumer caution across Europe dragged on results.
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In the FTSE 250, housebuilder Vistry posted a one-third drop in half-year profits to £80.6 million, in line with expectations. Completions fell 12% to 6,889, pushing revenues down 6% to £1.8 billion.
Despite the decline, Vistry reiterated full-year guidance, pointing to an order book of £4.3 billion, 88% of which is already sold for 2025.
Chief executive Greg Fitzgerald also noted progress on debt reduction, with borrowings cut 9% to £293.1 million. Shares fell over 3% to £586.7.
The FTSE 100 index rose 23.74 points (0.3%) to 9266.27, supported by a 2% gain for consumer healthcare firm Haleon. Wickes also climbed to £199 after reporting a 16.7% rise in profit.
Meanwhile, the Financial Conduct Authority (FCA) launched a consultation on raising the £100 contactless card limit, giving providers more flexibility. On housing, new City minister Lucy Rigby urged lenders to use looser mortgage rules under July’s “Leeds reforms” to help first-time buyers.
Overseas, sentiment stayed upbeat with Wall Street closing higher. The S&P 500 and Nasdaq Composite set fresh records, while Asian markets traded positively. Commodities also firmed, with Brent crude up 1% at $67.12 a barrel and gold 0.4% higher at $3641 an ounce.