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Morning Report - 25 February 2025

Yesterday’s UK 100 Leaders Price (p) % Chg
Centrica PLC 151.1 4.1%
BAE Systems PLC 1,305.0 3.9%
Vodafone Group PLC 68.4 3.3%
Imperial Brands PLC 2,743.0 2.2%
SSE PLC 1,526.0 2.1%

 

Yesterday’s UK 100 Laggards Price (p) % Chg
Entain PLC 707.0 -4.2%
Endeavour Mining PLC 1,674.0 -3.8%
Polar Capital Technology Trust PLC 351.0 -3.6%
Scottish Mortgage Investment Trust PLC 1,074.0 -3.1%
Antofagasta PLC 1,769.5 -2.8%

 

Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 8,659 0.0% 12.4%
DOW JONES INDUS. AVG 43,461 0.1% 11.1%
DAX INDEX 22,426 0.6% 28.7%
NIKKEI 225 38,238 -1.4% -2.2%
S&P/ASX 200 INDEX 8,252 -0.7% 8.0%

 

Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 70.84 0.20%
Brent Crude (ICE) USD/bbl. 74.87 0.12%
Gold Spot USD/t oz. 2,935 -0.6%
Copper (Comex) USd/lb. 453 -0.7%

 

The UK 100 called to open -20 points at 8,638

4 Hours; 12 Months

Click graph to enlarge

Markets Overview:

The UK 100 called to open -20 points at 8,638.  A fall this morning comes after continued selling pressure in the US yesterday saw pre market gains wiped out.

Asia markets also struggled today as the Hang Seng index has fallen by 1.6% and the Nikkei 225 by 1.4%.

The S&P slid Monday as the market failed to bounce back from Friday's steep sell-off.  The broad market index lost 0.5%, closing at 5,983.25. The Nasdaq fell 1.21%, ending the session at 19,286.92. The Dow Jones eked out a narrow gain of 33.19 points, or 0.08%, to close at 43,461.21.

 

Company News & Broker Comments:

Company News:

Croda International reported a slight decline in sales for 2024, with revenue falling one per cent at constant currency to £1.63bn.  Excluding Covid-19-related lipid sales from 2023, underlying sales rose two per cent, led by strong growth in the consumer care business. Consumer care sales rose seven per cent at constant currency, driven by demand from local and regional customers and strong growth in fragrances & flavours.  Life sciences recorded a 14 per cent decline but returned to growth in the second half of the year, supported by a recovery in crop protection. Industrial specialities sales increased by two per cent.  The company’s profitability also took a hit, with adjusted operating profit down 8.2% to £279.7m, as margins contracted to 17.2% from 18.9%.  The decline was attributed to the absence of high-margin Covid-19-related sales from 2023. However, margins improved in the second half of the year as operational efficiencies and higher sales volumes began to take effect.  Free cash flow rose 9.4% to £181.1m, supported by strong working capital management.

 

Smith & Nephew boss Deepak Nath today said the medical equipment maker’s transformation is on track after reporting a strong finish to 2024.  The UK 100 company, which is under pressure from activist investor Cevian, said fourth quarter revenues rose 8.3% on an underlying basis.  The full-year figure of $5.8 billion came in 5.3% higher, while the trading profit margin improved to 18.1% from 17.5% in 2023 amid Nath’s 12-point plan to make S&N a higher growth company.  He expects the margin to strengthen in the second half of this year as the impact of China headwinds reduce and operational savings are delivered.

 

Unilever Hein Schumacher to step down as CEO. Co re-affirms outlook & medium term guidance

 

Unite Group reported a strong financial performance for the year ending December 2024, with a 16% increase in adjusted earnings to £213.8 million and a 5% rise in adjusted EPS to 46.6p. The company attributes its success to sustainable rental growth, high occupancy rates, and strategic investments in its portfolio. Looking ahead, Unite is optimistic about 2025/26, driven by increasing student demand and a supportive policy environment for international students.

 

 

Broker Comments:

No New Broker Comments

 

 

Reporting Today:

UK

 

Croda International (CRDA)

Lion Finance Group* (BGEO)

Smith & Nephew (SN.)

UNITE Group (UTG)

 

US

 

Keurig Dr Pepper (KDP) PMO

The Home Depot (HD) PMO

AMC Entertainment (AMC) AMC

Intuit (INTU) AMC

Lemonade (LMND) AMC

Lucid Group (LCID) AMC

 

Reporting Tomorrow:

UK

 

Aston Martin Lagonda Global Holdings (AML)

Hammerson* (HMSO)

Hikma Pharmaceuticals (HIK)

Morgan Sindall (MGNS)

Rathbone Brothers (RAT)

 

US

 

Marathon Digital (MARA) AMC

NVIDIA (NVDA) AMC

Salesforce (CRM) AMC

Snowflake (SNOW) AMC

Synopsys (SNPS) AMC

Teladoc Health (TDOC) AMC

In Focus Today:

German Gross Domestic Product

BoE's Pill speech

US Housing Price Index

US Consumer Confidence

 

This Week's Ex-Dividends:

UK 100 companies going ex-dividend on 27th February 2025:

 

Barclays

Diageo

Unilever

Alliance Witan

UK 250 companies going ex-dividend on 27th February 2025:

 

Plus500

Ashmore Group

BlackRock Throgmorton Trust

Diversified Energy Company

PayPoint

Hays

Scottish American Investment Company

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