FTSE 100 Update: Significant Market Movements as Close Brothers Faces Losses
Close Brothers records £103 million first half loss amid legal provisions; Trustpilot and H&T report strong earnings.
The FTSE 100 index experienced fluctuations on 18 March as Close Brothers reported a notable financial loss while several other companies posted gains.
Close Brothers Group has reported a first half loss of £103 million, primarily due to a provision of £165 million set aside for potential costs related to a motor finance commission scandal.
The provision aimed to cover operational and legal expenses as well as potential remediation for affected customers, following a Court of Appeal ruling in October that allowed for claims against car loan providers regarding undisclosed commissions to car dealers.
Business conditions for Close Brothers' Winterflood securities division also remained difficult, leading to an operating loss of £800,000 for the period.
Subsequently, shares fell by 13%, or 45.8p to 299.6p, down from 551p in August of the previous year.
Analyst guidance implied a potential decline of 11-12% in consensus group adjusted profit for the remainder of the financial year.
Conversely, food retailers saw modest recoveries within the FTSE 100 after fears of a sector price war had impacted stock prices in preceding sessions.
Tesco's shares increased by 2.5p to 326.7p, Sainsbury’s shares rose by 2.8p to 235.2p, and Marks & Spencer gained 4.4p to close at 325.1p.
Additionally, mining stocks saw upward movements, attributed to dollar weakness that bolstered commodity prices, with Anglo American's shares increasing by 43p to 2387p and Antofagasta rising by 27p to 1920.5p.
Endeavour Mining shares gained 24p to 1733p amid a record gold price of $3025 per ounce.
BP also saw a 4.75p increase to 436.6p as Brent crude oil traded close to $72 per barrel after three consecutive sessions of price growth.
Trustpilot shares surged by 12% to 309.2p in the FTSE 250, following improved earnings guidance for 2025 that exceeded market expectations.
The company reported adjusted earnings of $24.1 million for 2024, an increase from $15.5 million in 2023. Notably, bookings grew by 23% overall, reaching $239 million, with a 25% increase in the UK, where major customer acquisitions included easyJet, HSBC, and P&O Cruises.
Trustpilot forecasts high teens percentage revenue growth in 2025, supported by strong bookings.
In international markets, Hong Kong’s Hang Seng Index reached a new three-year high, rising by 2.3% due to positive sentiment surrounding China’s economic stimulus.
Japan’s Nikkei 225 rose by 1.2%, contributing to a generally optimistic outlook as European futures indicated a positive start to the trading day.
Looking at the broader financial landscape, the FTSE 100 index increased by 0.3% or 30.05 points to 8710.34, extending a winning streak of four days as investors anticipated central bank meetings and monitored developments regarding international relations and economic policy.
Close Brothers Group has reported a first half loss of £103 million, primarily due to a provision of £165 million set aside for potential costs related to a motor finance commission scandal.
The provision aimed to cover operational and legal expenses as well as potential remediation for affected customers, following a Court of Appeal ruling in October that allowed for claims against car loan providers regarding undisclosed commissions to car dealers.
Business conditions for Close Brothers' Winterflood securities division also remained difficult, leading to an operating loss of £800,000 for the period.
Subsequently, shares fell by 13%, or 45.8p to 299.6p, down from 551p in August of the previous year.
Analyst guidance implied a potential decline of 11-12% in consensus group adjusted profit for the remainder of the financial year.
Conversely, food retailers saw modest recoveries within the FTSE 100 after fears of a sector price war had impacted stock prices in preceding sessions.
Tesco's shares increased by 2.5p to 326.7p, Sainsbury’s shares rose by 2.8p to 235.2p, and Marks & Spencer gained 4.4p to close at 325.1p.
Additionally, mining stocks saw upward movements, attributed to dollar weakness that bolstered commodity prices, with Anglo American's shares increasing by 43p to 2387p and Antofagasta rising by 27p to 1920.5p.
Endeavour Mining shares gained 24p to 1733p amid a record gold price of $3025 per ounce.
BP also saw a 4.75p increase to 436.6p as Brent crude oil traded close to $72 per barrel after three consecutive sessions of price growth.
Trustpilot shares surged by 12% to 309.2p in the FTSE 250, following improved earnings guidance for 2025 that exceeded market expectations.
The company reported adjusted earnings of $24.1 million for 2024, an increase from $15.5 million in 2023. Notably, bookings grew by 23% overall, reaching $239 million, with a 25% increase in the UK, where major customer acquisitions included easyJet, HSBC, and P&O Cruises.
Trustpilot forecasts high teens percentage revenue growth in 2025, supported by strong bookings.
In international markets, Hong Kong’s Hang Seng Index reached a new three-year high, rising by 2.3% due to positive sentiment surrounding China’s economic stimulus.
Japan’s Nikkei 225 rose by 1.2%, contributing to a generally optimistic outlook as European futures indicated a positive start to the trading day.
Looking at the broader financial landscape, the FTSE 100 index increased by 0.3% or 30.05 points to 8710.34, extending a winning streak of four days as investors anticipated central bank meetings and monitored developments regarding international relations and economic policy.
