FTSE 100 Live Tuesday
- Shell makes LNG focus of new strategy
- Kingfisher guidance hits shares
- Segro unveils £1bn data centre plan
Market update: Kingfisher falls back in FTSE 100, Shell strategy cheer
10:22 , Graeme EvansLacklustre profit guidance today caused the shares of B&Q owner Kingfisher to skid 11% during an otherwise robust session for the FTSE 100 index.
The retailer surrendered recent gains by falling 31.5p to 248.2p, even though its chief executive said his company “is in its best operational shape for years”.
Thierry Garnier highlighted market share growth in all key regions for the first time in over six years as Kingfisher’s adjusted profits fell 7% to £528 million in the year to 31 January.
Sales of £12.8 billion represented a fall of 1.7% on a like-for-like basis.
The retreat for shares came amid disappointment over 2025/26 profit guidance in a wide range between £480 million and £540 million.
It faces £145 million of additional operating costs in the year but said it expects to fully offset these through margin and operating cost mitigations.
The FTSE 100 index had been expected to struggle but instead rose 0.4% or 37.65 points to 8675.66.
London’s top flight was helped by Shell after it unveiled an updated strategy built around lower capital expenditure, increased cost savings and higher shareholder distributions.
In a briefing to the City, Shell said it would become the “world's leading integrated gas and LNG business and most customer focused energy marketer and trader”.
It plans to enhance shareholder distributions to 40-50% of cash flow from operations through the cycle. The company will continue to prioritise share buybacks, while maintaining a 4% a year progressive dividend policy.
Shares rose 2% or 52.3p to 2,777.3p, taking this year’s advance to about 10%.
Among other big risers in the FTSE 100, the warehouse investor Segro lifted 4% or 25.2p to 716.2p after announcing £1 billion plans for a 56MW data centre “capable of handling next-generation cloud and AI workloads”.
The London facility is being developed as a 50:50 joint venture with Pure Data Centres Group, which is owned by Canadian backed asset manager Oaktree.
It is expected that the Park Royal site will be pre-let to a hyperscaler on a long-term lease of at least 15 years before it is completed in 2029.
Other stronger blue chips included the industrial conglomerate Smiths Group, which lifted 39p to 2036p after reiterating its twice-raised 2025 outlook for 6-8% organic revenue growth and margin expansion of 40-60 basis points.
The FTSE 250 index fared well, improving 0.5% or 96.70 points to 20,019.41.
Construction services firm Morgan Sindall rose 7% or 200p to 3240 after it boosted the outlook for 2025 profits thanks to an acceleration in trading momentum in its fit out division.
Online electricals business AO World also cheered 3p to 99p after it said profits for the year to March are expected to be around the top end of its previously upgraded guidance range of £39 million to £44 million.
And housebuilder Bellway lifted 36p to 2448p on the back of an update showing it remains on track to deliver volume output of at least 8500 homes in the financial year to 31 July.
Interim results revealed growth in completions of 11.9% to 4577 homes at an average selling price of £310,581. Pre-tax profits rose 19.9% to £140.8 million while the interim dividend has been lifted 31.3% to 21p a share.
Segro unveils £1bn London data centre plan
09:09 , Graeme EvansOne of London’s biggest data centres is to be built at the Park Royal industrial estate near Acton, FTSE 100-listed Segro revealed today.
The £1 billion project will create a 56MW data centre “capable of handling next-generation cloud and AI workloads” and generate hundreds of local jobs.
The facility is being developed as a 50:50 joint venture between UK warehouse investor Segro, and Pure Data Centres Group (Pure DC), which is owned by Canadian backed asset manager Oaktree.
It is expected that the data centre will be pre-let to a hyperscaler on a long-term lease of at least 15 years before it is completed in 2029.
Fevertree results highlight US progress, shares up 6%
09:06 , Graeme EvansThe AIM-listed shares of Fevertree Drinks have risen 6% or 42p to 787p after the tonics firm reported strong US sales growth and significant margin progress.
Underlying earnings for 2024 rose 66% to £50.7 million as brand revenue growth accelerated to 7% in the second half, resulting in a 4% rise across the year.
Co-founder and chief executive Tim Warrillow said the brand performed well in 2024, despite the subdued consumer environment.
UK sales fell 3% to £111.1 million, while in the US the company extended its market leadership position in ginger beer and tonic water as sales lifted 9% to £128 million.
Fevertree recently unveiled a strategic partnership with Molson Coors, giving the brewer exclusive sales, distribution and production rights for the brand in the US.
Warrillow said the collaboration marked a step change for the company’s presence in the world's largest premium drinks market.
He has already warned 2025 will be a transition year for the US business, leading to expectations of low single digit group revenue growth and 12% adjusted margin.
Shell boss paid £8.6 million for 2024
08:42 , Graeme EvansShell today disclosed that chief executive Wael Sawan received total remuneration of £8.6 million in relation to the oil giant’s 2024 performance.
The annual report, which was published a few minutes after the strategy update, showed Sawan got an annual bonus of £2.9 million based on 80.5% of the maximum.
The award of cash and deferred shares follows a strong operational performance, with $54.7 billion of cash flow from operations above the target of $46 billion.
The 68% vesting of long-term incentives contributed £3.9 million to the overall figure.
The total compares with £7.9 million during Sawan’s first year in charge in 2023. His base salary for this year has increased 5.5% to £1.5 million.
Shell higher in robust FTSE 100, Kingfisher shares down 11%
08:27 , Graeme EvansThe FTSE 100 index has posted a stronger-than-expected performance, lifting 0.3% or 27.86 points to 8665.87.
Shell rose 2% or 48p to 2773p after a strategy presentation to the City included a plan to enhance shareholder distributions to 40-50% of cash flow from operations.
Housebuilders were also stronger on the read-across to results by Bellway, with Persimmon up 16.5p to 1209p and Taylor Wimpey 1.3p higher at 115p. Bellway rose 3% or 64.5p to 2476.5p in the FTSE 250.
Kingfisher shares slid 11% or 32.4p to 247.3p amid results-day disappointment over profit guidance for the current financial year.
Among other companies reporting today, Fevertree Drinks lifted 6% or 43p to 788p, construction firm Morgan Sindall surged 290p to 3330p and AO World added 1.1p to 97.1p.
Bellway backs full-year target, profits up 20%
07:51 , Graeme EvansHousebuilder Bellway today said it remains on track to deliver volume output of at least 8500 homes in the financial year to 31 July, up from 2024’s 7654.
Interim results published today showed growth in total housing completions of 11.9% to 4577 homes at an average selling price of £310,581.
Pre-tax profits rose 19.9% to £140.8 million while the interim dividend has been increased by 31.3% to 21p a share.
Chief executive Jason Honeyman said:"Bellway has delivered a strong first half performance with good growth in volume output and profits.
“Underlying demand for our homes is healthy and we have been encouraged by the improvement in customer enquiries and reservations since the start of the new calendar year.”
Kingfisher hails progress despite profits decline
07:42 , Graeme EvansB&Q and Screwfix owner Kingfisher today reported a 7% drop in annual profits but said “it is in its best operational shape for years”.
The decline in adjusted profits to £528 million for the year to 31 January followed a 1.5% fall in sales to £12.8 billion, or 1.7% on a like-for-like basis.
The group, which is focused on the DIY markets of UK, Ireland, France and Poland, expects a surplus between £480 million and £540 million in the new financial year.
Chief executive Thierry Garnier pointed out the group had grown its market share in all key regions for the first time in over six years.
He said: “Looking to the year ahead, the recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term.
“With this in mind, we remain focused on what is in our control - progressing our strategic objectives at pace to deliver further market share gains, and continuing to manage gross margin, costs and cash effectively.
“Kingfisher is in its best operational shape for years, and we remain confident about the growth opportunities in our business."
IG chief market analyst Chris Beauchamp said Kingfisher’s French business continues to be a drag on performance, but that with market share growing in all regions it looks like the overall business is on the right track.
He added: “Consumers in the UK and France look set for further tough times, which will crimp performance, which leaves the business to continue focusing on cost-saving and boosting trade sales.”
Shell vows to focus on “competitive strengths” in new strategy
07:23 , Graeme EvansEnergy giant Shell today set out an updated strategy that will see it deliver “more value with less emissions”.
It intends to grow in areas where it has competitive strengths and provide a “compelling investment case” for its shareholders.
The plan will see Shell reinforce its leadership position in liquefied natural gas (LNG) by growing sales by 4-5% per year through to 2030.
It also intends to grow production across its combined upstream and integrated gas business by 1% a year to 2030. This will sustain its 1.4 million barrels per day of liquids production to 2030 with increasingly lower carbon intensity.
Shell adds that it plans to enhance shareholder distributions from 30-40% to 40-50% of cash flow from operations through the cycle. The company will continue to prioritise share buybacks, while maintaining a 4% a year progressive dividend policy.
Chief executive Wael Sawan said: “‘We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production.
“Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders.’’
FTSE 100 seen lower despite US bounce, Hang Seng index struggles
07:01 , Graeme EvansHopes that Donald Trump’s tariff plans will be more targeted than first thought last night fuelled a strong session for US stocks.
The Dow Jones Industrial Average rose 1.4%, the S&P 500 index by 1.8% and the tech-focused Nasdaq Composite by 2.3%.
Among Magnificent Seven stocks, Tesla shares rebounded 11% and Nvidia lifted 3%.
In contrast, the FTSE 100 failed to make headway on Monday despite an early rise.
London’s top flight finished slightly lower at 8638 and is forecast to open today’s session down about 24 points. The Hang Seng index is also 2% lower this morning.
