FTSE 100 Slips as Pound Weakens; Lloyds and SSP Slide While Volution Beats Forecasts
British stocks traded lower on Thursday after reaching a record high in the previous session. The FTSE 100 index fell 0.3%, tracking losses across most of Europe’s markets, while the pound weakened, slipping below $1.34 once again.
The British pound (GBP/USD) dropped 0.7% against the dollar to just above 1.33, weighing on investor sentiment. In contrast, Germany’s DAX index gained 0.2%, while France’s CAC 40 dipped 0.1%, showing mixed performance across European exchanges.
Lloyds Banking Group Warns on Motor Finance Provision
Lloyds Banking Group (LON:LLOY) shares fell 3.3% after the bank cautioned it might need to set aside a material provision tied to motor finance regulation.
The lender is still analyzing the impact of the Financial Conduct Authority’s (FCA) recent consultation paper on the sector. Lloyds stated that “uncertainties remain” around how the proposals will be interpreted and implemented. The FCA’s review of motor finance practices could lead to significant costs for major UK lenders.
Volution Group Beats Expectations
Volution Group (LON:FAN) reported strong fiscal year 2025 results, surpassing analyst forecasts. The company posted £419 million in total revenue, up 21% year-on-year, driven by 7.2% organic revenue growth in the second half.
Organic revenue from ongoing operations rose 5.7%, slightly higher than Jefferies’ estimate of 5.1%. Management credited robust UK demand and operational efficiency for the strong performance.
Grainger Reports Record Occupancy
Grainger PLC (LON:GRI) posted an impressive 98.1% portfolio occupancy in its latest trading update ahead of its full-year 2025 results due November 20. The residential landlord also achieved 3.6% like-for-like rental growth, aligning with its medium-term guidance of 3% to 3.5%.
SSP Group Misses Sales Estimates
SSP Group (LON:SSPG) shares slipped after the travel food operator’s fourth-quarter sales rose 4% year-on-year, below the 6% consensus forecast.
Like-for-like sales increased 2%, missing expectations of 4%. For FY2025, SSP reported £3.7 billion in revenue and expects an operating profit of £230 million (pre-IFRS 16), at the lower end of guidance.
Johnson Matthey Nears Top of Profit Guidance
Johnson Matthey (LON:JMAT) said its full-year underlying operating profit should reach the upper end of its forecast range, supported by favorable platinum group metal prices and foreign exchange movements. The company expects stronger performance in the second half of FY2025, helped by an additional £10 million benefit from market conditions.
CMA Rejects Most Water Price Increases
In regulatory news, the UK Competition and Markets Authority (CMA) provisionally rejected around 80% of the water price hikes proposed by five utilities.
The CMA approved only £556 million of the £2.7 billion total requested, limiting the revenue increases these water companies can collect from customers.
Political Update: Starmer Backs Trump’s Gaza Peace Plan
On the political front, Prime Minister Keir Starmer welcomed the first stage of President Donald Trump’s Gaza peace plan, urging “full and immediate implementation” of the agreement.
