London equity markets experienced a downturn on Tuesday, with the FTSE 100 index closing 1.27% lower. This decline was primarily triggered by a drop in energy heavyweights due to falling oil prices, alongside Canada and China’s announcements of countermeasures against newly imposed US tariffs. Domestically, investors are keenly anticipating the release of the final composite output PMI report scheduled for Wednesday.
Analysts at Daiwa Europe project that the report will indicate 'only a limp pace of expansion' in economic activity for February. In the arena of corporate earnings, Intertek Group, a significant player in assurance, testing, and certification, reported a substantial annual profit increase attributable to equity holders.
The company’s profit surged to £345.4 million, up from £297.4 million in the previous year, spurred by 'robust' revenue growth. This impressive performance led to a 4.46% rise in shares, making Intertek the top gainer on the FTSE 100 index at the market close. André Lacroix, the Chief Executive Officer, expressed optimism about the company’s future, stating, 'We are entering 2025 with confidence that the Group will deliver a robust performance, expecting mid-single digit LFL revenue growth at constant currency, margin progression, and strong cash flow performance.
Share buybacks will continue to be a pivotal strategy in our capital allocation policy.' Conversely, Ashtead Group faced a significant decline, with shares dropping 8.23% following a report of lower attributable profits. The company’s profit for the fiscal third quarter, ending January 31, fell to $309.7 million, down from $332.3 million year over year, amidst a backdrop of lower revenue figures.
Brendan Horgan, CEO of Ashtead Group, addressed the situation, stating, 'In North America, the strength of mega projects and hurricane response efforts have more than offset the lower activity levels in local commercial construction markets. These local markets have been pressured by the extended higher interest rate environment.
However, underlying demand remains robust, and we anticipate a recovery in this segment as interest rates stabilize.'.