Interim earnings news from defence and nuclear contractor Babcock this morning may have included news of a 25% increase in the half year dividend, but the market was seemingly underwhelmed by the otherwise pedestrian nature of growth seen by the business. Profits added 19% and the full year outlook remains on track with further margin improvement also being forecast, but investors were evidently underwhelmed. It’s worth bearing in mind that the stock has had a stellar run, more than doubling in value over the year so this could simply be a case of booking profits off the back of that. The Babcock share price was however 3% lower in early trade.
Full year results from the fast fashion company Asos were released this morning with group revenues down 14% but adjusted gross margins showing a 370bps improvement. The outlook was also positive with further margin expansion forecast, heading towards a target of 50% although again investors were left taking a pessimistic view of the update. The bounce seen off last week’s corporate update has also been largely unwound, with the Asos share price down 5% shortly after the open.
Not many shares finding much love this morning, but Frasers is ahead of the pack. After last night’s close the company announced that it had acquired the Braehead Shopping Centre in Glasgow as part of its Elevation Strategy. This adds a venue in the UK’s largest retail spend catchment outside of London to its portfolio. There’s no detail on the financials but given the market reaction, investors appear enthused by the news. The Frasers share price was 4% higher by 8.30am.
Most read news on Investegate this morning
Results for the six months ended 30 September 2025 - - Babcock International Group (BAB)
Initiation of litigation against AnaptysBio Inc - - GSK (GSK)
Selected for 710 MW of projects in Germany - - ITM Power (ITM)
