London shares rebounded from a recent decline as the FTSE 100 index increased by 0.41% at Wednesday's close. This recovery comes in light of the UK government's actions addressing US President Donald Trump's implementation of hefty tariffs on steel and aluminum imports worldwide. The UK Business and Trade Secretary, Jonathan Reynolds, emphasized the government's commitment to a pragmatic approach, stating, 'We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.' This statement reflects an ongoing initiative to support the UK economy and its businesses affected by international trade policies. In the corporate sector, shares of Balfour Beatty, a prominent construction company, rose by 4.52% following the release of a favorable sector outlook.
Despite a drop in profit attributable to equity holders—falling to £178 million from £197 million year-over-year—Balfour Beatty reported a revenue increase to £8.23 billion, up from £7.99 billion. Group Chief Executive Officer Leo Quinn noted, 'Balfour Beatty is well positioned to continue its disciplined performance in the medium term, with strong order book visibility, attractive opportunities in our growth markets of UK energy, transport and defense, and US buildings, and our expert, highly engaged workforce positioning the Group for ongoing success.' This positive outlook reflects confidence in the company's strategic growth areas. Conversely, Legal & General Group experienced a decline, with its stock trading 2.29% lower at closing.
The financial services firm reported a significant drop in attributable profit, plummeting to £191 million from £457 million in 2024. In light of these developments, the British firm nonetheless declared a higher final dividend alongside the announcement of a £500 million share buyback initiative.
CEO António Simões stated, 'We stated at our Capital Markets Event that we intended to return more to shareholders and that is exactly what we are doing. Our clear capital allocation framework supports our plan to return over £5 billion over the next three years, through dividends and buybacks.' This demonstrates a commitment to shareholder value even amidst challenging profit margins..