The FTSE 100 index in London experienced a notable increase of 0.21% on Thursday, primarily driven by the strong earnings reports from heavyweight stocks that dominated financial headlines. Rolls-Royce Holdings has emerged as the clear leader, experiencing a remarkable surge of 15.18%. This sharp rise follows the company's announcement to reinstate dividends in 2024, coupled with a year-over-year increase in its full-year attributable profit.
Furthermore, the British aerospace and defense powerhouse reported robust revenue growth along with the initiation of a substantial £1 billion share buyback program. Baader Europe expressed enthusiasm over Rolls-Royce's fiscal performance stating, "Rolls Royce has kicked off FY-24 with impressive results, boasting a significant revenue increase of 17% and a remarkable 57% surge in operating profit.
The Civil Aerospace division shines with strong aftermarket performance, while Defence secures substantial orders. With an optimistic outlook for 2025 and upgraded mid-term targets for 2028, Rolls Royce is set for growth and ready to reward its shareholders." Following closely, the London Stock Exchange Group also celebrated a favorable turn, ranking as the second-best performer in the blue-chip index, up by 6.17%.
This rise was supported by an increase in adjusted attributable profit and revenue for 2024 compared to the previous year. In contrast, WPP faced significant challenges, experiencing a decline of 15.66% following disappointing profit and revenue results for 2024. Looking ahead to 2025, the communications giant anticipates that its like-for-like revenue, excluding pass-through costs, is likely to remain flat or could fall by up to 2%.
CEO Mark Read commented, "We expect some improvement in the performance of our integrated creative agencies in the year ahead. At the same time, we have comprehensive efforts underway to improve our competitive positioning through new leadership at GroupM, with further investment in AI, data and proprietary media." On a broader economic scale, analysts from BofA Global Research are forecasting a modest increase in consumer spending within the UK.
This prediction comes amid reactions from Europe to US President Donald Trump's proposals for 25% reciprocal tariffs on European automobiles and other goods. The analysts stated, "We expect consumption growth to recover modestly to 1.0% in 2025 on the back of real income growth and reduced monetary drag.
While inflation is anticipated to rise in the coming months, wage growth is likely to outstrip inflation, and we predict real income growth of 1.4% year-over-year in 2025.".