Today in the UK stock market: Easing tensions and positive outlooks drive stock gains; Vistry plunges due to profit margin warning

Investing.com - On Wednesday, the UK stock market turned higher after an early decline, following weekend outbreaks of war in the Middle East, while broader European markets also rose slightly on hopes that tensions might ease.

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According to informed officials, Iranian agents have directly contacted the CIA to discuss potential conditions for ending the war, The New York Times reports this as an attempt to open negotiations. This contact marks a notable diplomatic development in the conflict, although specific details of the proposed discussions have not been disclosed.

As of 12:23 GMT, the blue-chip FTSE 100 rose 0.6%, the GBP/USD exchange rate increased 0.1% to 1.3373. Germany’s DAX index gained 1.4%, and France’s CAC 40 rose 0.8%.

UK Market Overview

John Wood Group PLC (LON:WG) shares fell 0.9% after the UK Financial Conduct Authority ended its investigation into historical financial reporting matters.

Vistry Group PLC (LSE:VTY) shares dropped over 17%, despite the housebuilder reporting FY2025 adjusted pre-tax profit roughly in line with guidance. However, the company warned that profit margins in 2026 will decline due to the use of price incentives to boost open market sales. The company reported adjusted pre-tax profit of £268.8 million for 2025, up from £263.5 million in 2024. Revenue fell 4% year-over-year to £4.15 billion from £4.33 billion. Total completions decreased 9% to 15,658 units from 17,225, partly offset by a 3% increase in average selling prices.

Weir Group PLC (LON:WEIR) shares declined over 8% after the mining equipment manufacturer announced FY2025 results in line with expectations. The stock has risen 38% over the past year. The Glasgow-based company reported adjusted operating profit of £518 million, consistent with analyst consensus. Revenue was £2.57 billion, up 6% at constant currency. Adjusted EPS was 123.8 pence, as expected. For 2026, Weir expects organic revenue to grow in the mid-single digits, with profit margins expanding by 50 basis points.

SIG (LON:SHI) shares fell despite the building materials distributor reporting a 28% increase in full-year underlying operating profit, though harsh weather impacted early 2026 trading. SIG reported FY2025 underlying operating profit of £32.1 million, up from £25.1 million last year, within its guidance range of £30-£35 million. Revenue declined 1% to £2.59 billion, with same-store sales flat year-over-year. The company reported statutory pre-tax loss of £61.7 million, compared to a loss of £44.8 million in 2024, including £29.7 million of non-cash impairments and £9 million of restructuring costs.

Beazley PLC (LON:BEZG) announced FY2025 pre-tax profit of $1.1465 billion, down 19% from $1.4235 billion in 2024, as the specialty insurer faces a softening in the insurance rate environment. The company has achieved over $1 billion in profit for three consecutive years. Gross written premiums were $6.1007 billion, slightly below analyst expectations, down 1% year-over-year from $6.1641 billion.

Quilter PLC (LON:QLT) reported record net inflows and a 6% increase in adjusted pre-tax profit to £207 million for 2025, along with a £100 million share buyback program and a new distribution policy. Total assets under management and administration grew 18% year-over-year to £141.2 billion, reflecting net inflows of £8.7 billion and positive market contributions. Core net inflows were £9.1 billion, representing 8% of assets at the start of the period, up from 5% in 2024.

Metro Bank Plc announced FY2025 basic pre-tax profit of £98 million, the highest in the bank’s 15-year history, surpassing cost-cutting guidance. Net interest income increased 22% to £460 million, driving core revenue up 16% to £585 million. The full-year net interest margin reached 2.98%, up 107 basis points year-over-year, with an exit margin of 3.17%, in line with guidance. Operating costs fell 7% year-over-year to £473 million, exceeding the bank’s 4-5% reduction target.

According to data from S&P Global, the UK services sector has recorded growth for the tenth consecutive month in February, despite weakening new orders and ongoing layoffs. The S&P Global UK Services PMI Business Activity Index for February was 53.9, slightly below the five-month high of 54.0 in January. A reading above 50 indicates expansion. Service providers reported an improvement in business activity supported by gradually improving demand. Rumors suggest that improved client confidence this year has supported business activity and released pent-up demand.

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