FTSE 100 Falls as UK Stocks End Winning Streak
British stocks closed lower on Thursday, ending their recent rally as broader European markets weakened and the pound slipped against the dollar.
The benchmark FTSE 100 declined 0.6%, while the GBP/USD pair fell 0.3% to 1.3448.
Across Europe, Germany’s DAX dropped 1%, and France’s CAC 40 lost 0.4%, reflecting a broader pullback in regional equities.
Rio Tinto Beats Earnings Expectations
Mining giant Rio Tinto reported underlying earnings of $10.87 billion for 2025, slightly ahead of analyst forecasts despite weaker iron ore prices.
The world’s largest iron ore producer maintained earnings at 2024 levels, supported by stronger copper and aluminum volumes and improved cost control. Bloomberg estimates had projected earnings of $10.81 billion.
However, net profit attributable to shareholders fell 14% to $9.97 billion, reflecting higher debt levels and one-off acquisition-related costs.
Centrica Posts Loss as Energy Prices Weigh
Centrica PLC, owner of British Gas, reported a statutory loss of £72 million for 2025, compared with a £1.33 billion profit the previous year.
The company suspended its share buyback program after adjusted earnings more than halved due to lower energy prices affecting returns from gas and nuclear assets.
Results were impacted by £508 million in asset impairments and a £345 million loss on energy derivatives.
Mondi Revenue Rises, Margins Under Pressure
Packaging group Mondi PLC posted a 3% increase in full-year revenue to €7.7 billion, driven by higher sales volumes and contributions from the Schumacher acquisition.
However, underlying EBITDA declined 5% to €1.0 billion, with margins narrowing to 13.1% from 14.1% a year earlier due to a challenging trading environment.
Leadership Changes and Activist Pressure
Engineering software specialist AB Dynamics appointed Andrew Lewis as interim Chief Financial Officer as it continues the search for a permanent CFO following a recent leadership transition.
Meanwhile, activist hedge fund Elliott Investment Management is urging London Stock Exchange Group to conduct a portfolio review and launch a £5 billion share buyback program over the next year.
The fund is calling for a reassessment of LSEG’s complex structure, which includes data operations, exchange services, and a majority stake in Tradeweb Markets.
Other Corporate Highlights
Self-storage operator Safestore Holdings reported 6.3% year-over-year revenue growth in the first quarter at constant exchange rates. Occupancy levels improved to 77.8%, approaching the 80% threshold typically associated with stronger growth potential.
Retail group Debenhams Group, formerly known as Boohoo Group, raised £40 million through an oversubscribed equity offering. The capital raise exceeded its initial £35 million target due to strong investor demand.
Outsourcing firm Capita plc secured a £137 million contract renewal in its Pension Solutions division, extending the agreement for up to 10 years starting in early 2026.
