Next lifts profit guidance, IMI organic revenue declines
By Josh White
Date: Thursday 08 May 2025
(Sharecast News) - London open
The FTSE 100 is expected to open 55 points higher on Thursday, having closed down 0.44% on Wednesday at 8,559.33.
Stocks to watch
UK fashion retailer Next lifted annual profit guidance after reporting forecast-busting first-quarter sales, citing warmer weather which boosted purchases of summer clothing, but held annual estimates of flat revenues. Group sales in the three months to April 26 rose 11%, or £55m, compared with forecasts of a 6.5% increase. Pre-tax profit guidance was lifted by £14m to £1.08bn. "It is likely that some of these sales have been pulled forward from Q2. So, despite the strength of Q1, we are not increasing our sales guidance for Q2, or the rest of the year."
IMI reported a 3% year-on-year decline in organic revenue for the first quarter of 2025 on Thursday, with group margins improving despite foreign exchange headwinds and a cyber incident affecting automation. The FTSE 100 company said orders in process automation rose 7% organically, with strong aftermarket growth, while the transport segment saw a 16% revenue decline and was placed under strategic review. Full-year guidance for adjusted earnings per share of 129p to 136p was reconfirmed, supported by strategic progress and resilience against global economic pressures.
Newspaper round-up
The world's biggest wind power developer has cancelled plans for one of the UK's largest offshore wind farms, in a significant blow to the government's green energy targets. The Danish wind power company Ørsted said the Hornsea 4 project no longer made economic sense because of soaring costs in the industry's global supply chain, after it won a government contract last year. - Guardian
Crops are already failing in England because of drought conditions this spring, farmers have said. People should start to ration their water use, the Environment Agency said, as water companies prepare for a summer of drought. The government has also asked the water CEOs to do more to avert water shortages, and the EA said hosepipe bans are on the horizon if a significant amount of rain does not fall. - Guardian
HSBC is facing the prospect of a major desk shortage at its new City of London headquarters after forcing staff back into the office three days a week. Senior managers at the lender are predicting a shortfall of up to 7,700 desks when workers move into the bank's new offices near St Paul's Cathedral in 2027. - Telegraph
Tens of thousands of uninsurable homes risk being built on flood plains across the UK under Angela Rayner's housing blitz, experts have warned. The Association for British Insurers (ABI) said the Government's efforts to build 1.5m homes over the next five years could include houses built in some of the UK's highest-risk areas. - Telegraph
The largest oil and gas producer in the North Sea has blamed government policy as it prepares to cut 250 jobs. Harbour Energy criticised the "punitive" fiscal regime in oil and gas and the slow pace of progress on carbon capture projects. - The Times
US close
Wall Street stocks finished higher on Wednesday as a calm and measured statement from Federal Reserve chair Jerome Powell eased fears, along with increased optimism regarding trade talks between the US and China.
Despite a temporary sell-off after the Fed decision, markets erased losses by the close as the Dow rose 0.7%, the S&P 500 gained 0.4% and the Nasdaq rose 0.3%.
Rate-setters in Washington D.C. stood pat on interest rates, as expected, while conceding the difficulty of pursuing its goals in the current climate.
In its policy statement, the Federal Open Market Committee said that the economy was continuing to expand at a solid pace, notwithstanding swings in imports, and that the jobs market remained "solid" too.
In his post-meeting press conference, Powell said that whether or not interest rate cuts would be needed over the remainder of 2025 would depend on how the current disruptions to trade finally play out.
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