FTSE 100 Live Wednesday
- Raspberry Pi outlook lifts shares
- Topps TIles sales accelerate
- Pier owner plans AIM exit
Market update: FTSE 100 lower ahead of tariffs, Bakkavor up 7%
10:32 , Graeme EvansGSK and AstraZeneca today shed as much as 3% of their value as Liberation Day trade war jitters swept through the FTSE 100 index.
The pharmaceuticals industry is seen as a potential target when Donald Trump unveils new tariffs from the White House at 9pm UK time.
Few details have been released in advance, with the lack of clarity fuelling investor anxiety and pushing gold to record highs above $3,100 per ounce.
AJ Bell investment director Russ Mould said: “Keir Starmer has focused a lot of his energy on keeping the conversation going with Trump.
“If that approach doesn’t prove fruitful, we could see heightened volatility among shares in companies linked to the pharma, food and drink, aviation, chemical and automotive sectors – the biggest sources of British exports to the US.
“It is telling that GSK, AstraZeneca, Rolls-Royce and Melrose are among the top fallers on the FTSE 100, given they are in the firing line if Trump doesn’t give the UK special treatment.”
GSK shares dropped 50p to 1419p and AstraZeneca fell 264p to 11,102p, while Hikma Pharmaceuticals weakened 29p to 1919p and Smith & Nephew eased 11p to 1075.5p.
Among the other fallers, Rolls-Royce lost 21.4p to 758p, Rentokil Initial eased 10.1p to 346.1p and GKN Aerospace business Melrose Industries declined 10p to 472.4p.
The FTSE 100 index fell 0.4% or 38.20 points to 8596.60, while Wall Street futures also pointed lower.
Diageo, which is another stock at risk of tariffs, rose 37p to 2060p after Berenberg backed the Guinness and Smirnoff firm with a Buy recommendation and 2372p target price.
Advertising and marketing group WPP also cheered 9.8p to 570p after a poor start to this year.
An update by SSE helped its shares lift 12.5p to 1593p as the renewables firm tightened 2024/25 earnings per shares guidance to between 155p and 160p and reiterated expectations for 175p-200p by 2026/27.
The FTSE 250 index fell 93.67 points to 19,497.19, with Bakkavor among the best performing stocks after fellow convenience foods firm Greencore said it had agreed the terms of a £1.2 billion takeover.
A successful swoop for Bakkavor creates a company supplying the major supermarkets with sandwiches, salads, pizzas and ready meals with a combined turnover of £4 billion.
Bakkavor rose 7% or 11.8p to 189.6p, while fellow FTSE 250 listed Greencore lifted 1.6p to 180.2p.
Raspberry Pi also rallied 9% or 43.2p to 514p after the FTSE 250 newcomer forecast “solid and sustainable sales growth” in 2025.
The shares listed last June at 280p before a surge to 766p at the end of January took the low-cost computer maker’s valuation above £1 billion.
Raspberry Pi earnings fall, outlook boosts shares recovery
09:25 , Graeme EvansThe shares of FTSE 250-listed Raspberry Pi have risen 9% - up 42.4p to 513.2p -after it posted its first set of annual results since joining the stock market in June.
The low-cost computing platform reported a 2% fall in annual revenues to $259.5 million (£201 million), while adjusted earnings dropped 15% to $37.2 million (£28.8 million).
The performance reflected an industry-wide inventory correction, meaning it sold seven million single board computers and compute modules compared with 2023’s 7.4 million.
The company anticipates a steady build-up in demand throughout the year, which together with the timing of embedded design wins strengthens its confidence in “solid and sustainable sales growth” in 2025.
The shares listed at 280p and surged to 766p by the end of January, leaving its valuation above £1 billion.
Chief executive Eben Upton said the stock market listing had “undoubtedly extended awareness” of Raspberry Pi, including among chief executives of major original equipment manufacturers.
He added: “In the second half we released more products than in any prior full year, despite the potential distraction of the IPO, continuing to excite our enthusiast and embedded communities.
“That flexibility helped us to meet market expectations in a year dominated by the widely reported inventory correction throughout our industry and following an exceptionally strong comparable previous financial year.”
The IPO enabled the Raspberry Pi Foundation to raise $180 million (£139.4 million) towards its work in curriculum development, teacher training, non-formal learning, and research.
Brighton Pier owner plans AIM delisting
08:47 , Graeme EvansLondon’s junior AIM stock market suffered another setback today when Luke Johnson’s leisure group Brighton Pier said it planned to cancel its listing.
The move by the owner and operator of the 126-year-old Brighton Palace Pier follows last month’s delisting move by model railway and Scalextric company Hornby.
Brighton Pier said factors in the decision included the “disproportionate” £250,000 to £300,000 annual cost and red tape burden in maintaining the listing.
It also highlighted the lack of liquidity in the shares as well as changes in the small cap market since the company’s flotation in 2013, including “a lack of visibility” amongst analysts, media and potential investors.
The group joined AIM in November when it was known as Eclectic Bar Group before changing its name following the acquisition of Brighton Pier in April 2016.
It also owns five bars nationwide, eight indoor mini-golf sites and the Lightwater Valley Family Adventure Park in North Yorkshire. Former Pizza Express chair Luke Johnson has led the board since 2015.
The shares, which were above 80p in summer 2022, today halved to 8.5p.
GSK and AstraZeneca struggle in weaker FTSE 100
08:34 , Graeme EvansPharmaceutical stocks have been impacted by the tariffs uncertainty, leading to share price falls of 28p to 1441p for GSK and 178p to 11,188p for AstraZeneca.
Hikma Pharmaceuticals declined 30p to 1918p and medical devices business Convatec shed 3.6p to 255.8p.
Other blue-chip fallers included Rolls-Royce with a retreat of 18.4p to 761p.
The FTSE 100 index has dropped 0.2% or 19.57 points to 8615.23, while the mid-cap FTSE 250 benchmark is down 31.49 points to 19,559.37.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “’Investors are on tenterhooks as the clock ticks down what’s expected to be the biggest wave of tariffs on US trading partners.
“It’s been dubbed Liberation day by President Trump, but it’s more like entrapment day, with more countries set to be tangled up in a web of fresh duties.
“The internationally focused FTSE 100 is on the back foot in early trade as concerns swirl about the effect on growth prospects for economies around the world.”
On the FTSE 100 risers board, BP lifted 4.9p to 437.9p and advertising group WPP rallied 10p to 570.2p.
Topps Tiles sales accelerate, wage costs jump £4m
08:24 , Graeme EvansTopps Tiles has reported an acceleration in sales in its most recent trading quarter.
Excluding the CTD Tiles business it rescued from administration last year, revenues rose 4% to £127.7 million across the six months to 29 March.
Underlying sales growth improved to 4.4% in the second quarter from 3.3% in the three months to December, driven by a strong March performance.
While homeowner sales remain subdued, the company said trade business was strong and that progress with digital initiatives continued at pace.
Alongside the sales update, the tile and flooring chain warned it will face an extra £4 million in costs due to this month’s wage and national insurance increases.
The FTSE All-Share company’s shares fell 5% or 1.7p to 32.3p.
SSE renewables output up 17%, trims earnings guidance
08:00 , Graeme EvansSSE today said renewables output increased 17% in its 2024/25 financial year.
This compares with the increase of 26% reported for the nine months to 31 December and 45% at the half-year stage.
In a brief update, the energy giant said the annual performance reflected the impact of capacity additions and variable weather conditions.
The FTSE 100 company expects earnings per share for 2024/25 of between 155p and 160p, having forecast 154p-163p in its most recent update.
The previous year’s figure was 158.5p. It continues to target between 175p and 200p in 2026/27.
The company’s operations include onshore and offshore wind farms, hydro, electricity transmission and distribution network.
Liberation Day uncertainty hits markets
07:45 , Graeme EvansGlobal financial markets are braced for significant volatility once Donald Trump unveils sweeping new tariffs from the White House Rose Garden at 9pm UK time.
Few details have been released in advance of the Liberation Day announcement, including which countries will be targeted.
IG Index said: “Investors, already rattled by months of tariff-related headlines, remain deeply uncertain about the scope, scale, and targets of the measures, which could include a 25% tariff on auto imports and reciprocal duties against countries taxing US goods.”
The lack of clarity is fuelling investor anxiety, pushing gold to record highs above $3,000 per ounce as a safe haven. Wall Street futures are also pointing lower for later today.
Greencore unveils Bakkavor merger deal
07:20 , Graeme EvansSupermarket sandwiches supplier Greencore today said it had agreed the key terms of a merger deal with ready meals business Bakkavor.
The planned tie-up creates a leading UK convenience food business with a combined revenue of about £4 billion.
Greencore’s cash and shares proposal, which values fellow FTSE 250 stock Bakkavor at £1.2 billion, is subject to due diligence and regulatory clearance.
Bakkavor supplies about 3500 products across meals, pizza & bread, salads and desserts to grocery retailers in the UK and US, as well as international food brands in China.
About 85% of revenues are from the UK, with key customers including Tesco, M&S and Sainsburys.
The unveiling of fresh US tariffs later today is set to mean a nervous start for European markets, with the FTSE 100 index seen about 25 points lower.
Leading Asia markets are close to their opening marks, having rallied from initial losses. Gold, meanwhile, continues to trade at record levels above $3100 an ounce.
On Wall Street, the Dow Jones Industrial Average closed slightly lower while the S&P 500 index rose 0.4% and the Nasdaq Composite rallied 0.9%.
London’s top flight last night put back a chunk of Monday’s heavy losses by adding 51.99 points to 8634.80.
The announcement of US tariffs is due to take place at 9pm UK time.
