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The FTSE 100 saw a modest return of just 5.8 per cent in 2024, despite a last-minute sell-off in the final weeks of December. Hopes for a 'Santa rally' were dashed as the index fell by 1.7 per cent in December. However, it still marked its best performance since 2021 when the blue-chip index returned 14.3 per cent, followed by a 0.9 per cent rise in 2022 and a 3.8 per cent increase in 2023. After reaching an all-time high on 15 May due to rate cut expectations, the FTSE 100 hovered around 8,200 in the second half of the year, as reported by City AM. Hopes for a repeat of this success in the summer were quickly quashed by fears of a US recession that surfaced in early August. A series of disappointing economic data and mediocre results from the Magnificent Seven sent global markets into a downward spiral during the summer. While most markets, particularly the US, bounced back quickly, the FTSE 100 was burdened by higher-than-expected inflation and sluggish economic growth. "UK performance pales in comparison to returns seen in tech-dominated markets across the pond," commented Matt Britzman, senior equity researcher at Hargreaves Lansdown. "It played second fiddle to the tech-fuelled US markets, where AI excitement sent the S&P 500 soaring," he added. The FTSE 100 experienced another dip amid Budget speculation in November, hitting its lowest point since April in the week following the fiscal event. The FTSE AIM 100 emerged as the worst performer of any UK index, experiencing a downturn of over six per cent across the year and tumbling to a 52-week low just yesterday. This trend was heavily influenced by the Budget's new policy to apply inheritance tax to AIM-listed shares, which incited speculative trading and triggered a near seven per cent fall in the third quarter. On the other hand, the FTSE 250, known for its alignment with domestic markets, grew by 5.7 per cent, reaching its apex since February 2022 in the summer months.

Professional Services

Bank of London appoints former Credit Suisse UK boss Christopher Horne as new CEO

2025-09-08 20:18:32

The Bank of London, a fintech 'unicorn' facing challenges, has today appointed the former UK head of Credit Suisse, Christopher Horne, as its new CEO. This move comes as the bank seeks to recover from a series of setbacks and the abrupt departure of its founder last year, as reported by City AM. The digital clearing bank announced that Horne, who previously led the unsuccessful Swiss lender's UK subsidiaries, would assume the role of CEO pending approval from the City regulator. "This is a unique opportunity to redefine what a bank can be — resilient, innovative, and aligned with the evolving needs of our clients and stakeholders," said Horne in a statement. "Together with the talented team at [Bank of London], I look forward to building a future that inspires trust and delivers lasting value." The Bank of London stated that Horne's appointment "highlights the bank’s commitment to innovation, governance, and long-term growth", adding that he would steer the company "into its next phase of growth and transformation". This recruitment marks the latest in a series of remedial actions taken by the firm after it was thrown into chaos last year following the exit of founder Anthony Watson. Days after Watson’s departure, City AM disclosed that the company had been served with a winding-up petition from HMRC over an unpaid tax bill, which it later settled. Shortly thereafter, investor Mangrove Capital spearheaded a £42m capital injection into the bank. Mangrove has since spearheaded a turnaround effort, appointing several new members to its board. High-profile figures including Peter Mandelson and Carlyle Group CEO, Harvey Schwarz, exited the board in October. Catherine Brown, chair of the firm’s UK Board, commented on Horne’s appointment today, stating it "reflects our commitment to building a leadership team that embodies excellence and vision". She added: "His wealth of experience will be instrumental in driving operational excellence and positioning the bank as a leader in the financial services sector."

Professional Services

IG Group boosts share buyback programme to £200m following Freetrade acquisition

2025-08-24 17:59:41

IG Group, the FTSE 250 firm, has announced plans to spend an additional £50m on share buybacks following its acquisition of trading app Freetrade. The company's six-month results up to 30 November revealed an extension of its previous share buyback programme from £150m to £200m, as reported by City AM. IG Group CEO Breon Corcoran stated: "It is pleasing to show how we can both invest in accretive growth and return capital at attractive equivalent rates of return on our buyback, all whilst safeguarding our robust balance sheet." The results showed a revenue increase of 11 per cent to £522.5m over the six months, with adjusted profit before tax rising 30 per cent from £205.7m to £266.8m. Despite IG Group's strong growth, analysts had mixed reactions to the results. Jefferies had predicted trading revenue would total £453m, but it only grew to £451.7m, although the analysts had forecast an adjusted profit before tax of only £242m. RBC, on the other hand, predicted a 12 per cent growth in revenue and a 40 per cent growth in earnings per share, compared to actual growth of 43 per cent. Corcoran added: "First half performance reflected more supportive market conditions, but we have work to do to grow active customers which will be necessary to deliver sustainably stronger growth," Last week, IG Group acquired stock trading app Freetrade for £160m, with the firm set to move to IG Group in mid-2025. The direct-to-consumer trading platform, which burst onto the scene in 2018, provides investors with commission-free options for shares, ETFs, and gilts. The announcement of its sale received mixed responses from investors, some of whom were vexed by a sale price that didn't match up to recent fundraising valuations. "CEO Breon Corcoran has re-energised the investment case for IG Group setting out the opportunity and identifying areas of improvement," remarked RBC analyst Ben Bathurst. On the positive side, IG Group's stock has seen a notable surge, climbing 25 per cent over the past half-year.

Professional Services

Bank of England to slash rates much faster than markets expect, Goldman Sachs says

2025-08-21 15:58:51

Goldman Sachs has posited that markets are significantly underestimating the likelihood of the Bank of England accelerating interest rate cuts. Traders currently foresee only two reductions this year, with an additional cut expected in 2026, which would bring the benchmark Bank Rate down to 4.0 percent from its present 4.75 percent, as reported by City AM. Despite concerns over persistent inflationary pressures within the UK economy and predictions of a headline rate surge to above three percent by spring, recent figures indicate private sector pay growth soared to 6.0 percent in the three months leading up to November, surpassing forecasts. The US investment bank acknowledged the "uncomfortably high" price pressures but noted "several indications" that the medium-term inflation outlook is easing. Citing factors such as a significant downturn in growth, a likely deceleration in household real disposable income, and the potential impact of escalating trade tensions, analysts including Sven Jari Stehn anticipate a modest 0.9 percent economic expansion for the UK in 2025, lagging behind the consensus estimate of 1.3 percent. Analysts also highlighted "notable signs of underlying cooling" in the labour market from various business surveys and recent unemployment data, suggesting this could help moderate wage increases. "We are sceptical that Bank Rate can stay above four per cent persistently – as priced by financial markets – without materially weakening the economy and thus inflation," they said. Goldman Sachs predicts a drop in interest rates to 3.25 per cent by mid-2026. "While it is possible that the BoE will slow the pace of cuts if underlying inflation fails to make progress, we believe that a step-up to a sequential pace of cuts in response to weaker demand is actually more likely," they argued. Investors are anticipating another rate cut from the Bank in February due to growing concerns about the economic outlook.

Professional Services

West Midlands Lloyds and Halifax branches to close

2025-08-17 07:34:11

A host of Lloyds and Halifax branches across Birmingham and the West Midlands have been tabled for closure over the coming months. The group is among 136 which the banking group has confirmed will be shut down. The first to close will be Lloyds and Halifax branches in High Street, Bromsgrove, at the end of May. They will be followed by Halifax, in Erdington's High Street in September, and Lloyds in Vicar Street, Kidderminster, just a few weeks later. Lloyds branches in Foleshill Road, Coventry, and High Street, Shipston-on-Stour, will both close in the first half of November and finally Halifax in Bearwood Road, Smethwick, will cease trading in March next year. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Across the wider region there are branches in Staffordshire, Shropshire and the East Midlands also earmarked for closure. In total, 61 Lloyds, 61 Halifax and 14 Bank of Scotland branches will shut their doors for good between May and March 2026. The closures come weeks after Lloyds Banking Group said it would allow customers of Lloyds, Halifax and Bank of Scotland to use stores across any of its brands for in-person banking. The group has blamed the move on customers shifting away from banking in person to using mobile services but stressed it would offer affected workers roles elsewhere in the company. A statement said: "Over 20 million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking. "Alongside our apps, customers can also use telephone banking, visit a community banker or use any Halifax, Lloyds or Bank of Scotland branch, giving access to many more branches. "Customers can also do their everyday banking at over 11,000 branches of the Post Office or in a banking hub." The announcement means that more than 1,700 bank branches have shut or announced their intention to close since February 2022 when a voluntary agreement saw the major banking groups commit to assessing the impact of every closure. This has included both Lloyds and Halifax branches in Birmingham city centre and elsewhere across the region. It works out at an average of around 50 closures announced per month, with around 289 branches expected to shut this year.

Professional Services

Saga anticipates higher profits and strong travel growth, plans to refinance £325m debt

2025-09-15 15:00:01

Saga, the over-50s financial services and travel provider, has announced that it anticipates reporting an underlying profit before tax higher than previous forecasts. In a recent trading update, the company predicted that the underlying profit before tax for the last six months of 2024 would be slightly higher than the previous year, as reported by City AM. Saga's travel division is expected to report an underlying profit before tax "in the high single-digit millions", compared to the £1.5m reported in the prior year, indicating revenue growth of 15 per cent and passenger growth of nine per cent. Over the past six months, Ocean Cruise achieved a load factor of 91 per cent, three per cent ahead of the previous year, while River Cruise reported a load factor of 89 per cent, with combined ticket prices and onboard revenue per passenger amounting to £327, a total increase of 15 per cent from last year. "We continued to generate strong demand for both our cruise and travel businesses," stated Saga CEO Mike Hazell. Last month, Saga announced a 20-year partnership with Belgian insurance giant Ageas for motor and home insurance, which will see Saga’s price-comparison website, pricing, claims and customer service activities taken over by the insurer. However, earlier this week, City broker Peel Hunt downgraded Saga’s stock rating, noting that the firm faced "a refinancing hurdle" this year. The funds from the partnership with Ageas will be utilised by the firm to refinance £325m of outstanding debt by spring this year. Following the deal, Peel Hunt reduced its price target for the stock to 120p. Since the beginning of 2025, Saga’s shares have declined by over nine per cent. Looking forward, Saga reported that both Ocean Cruise and River Cruise's booked load factors are surpassing last year's figures. The company's River Cruise division is scheduled to launch a new ship, the Spirit of the Moselle, in July 2025, which will boost capacity. Currently, the booked revenue for travel stands at £126m, marking a 10 per cent increase compared to the same period last year, with 39,000 passengers booked in, an 11 per cent rise from the previous year.

Professional Services

AJ Bell's trading update reveals boom in new customers and assets

2025-09-07 13:42:01

AJ Bell has reported a significant growth with assets under administration soaring to £89.5bn by the end of 2024, an indication of the investment platform's appealing eight per cent customer increase over the year. The trading platform enjoyed a 17 per cent surge in assets throughout the previous year, with a three per cent rise in the final quarter, according to its latest trading update, as reported by City AM. The customer base has nearly reached 561,000, largely owing to its direct-to-consumer platform, which saw a four per cent uptick in users during the year's last quarter. The rate at which advised customers expanded was more modest, experiencing a two per cent growth within the same period, bringing the total to 174,000. "During the quarter we continued to see the benefits of our dual-channel model and the high-quality propositions that we offer to both the advised and D2C market segments," commented AJ Bell's chief Michael Summersgill. The investment firm witnessed robust net inflows across both its platform and investments operations during the final quarter, achieving £1.4bn and £400m respectively. Particularly notable was the direct-to-consumer sector, which secured net inflows of £1.1bn, marking a hefty 57 per cent jump from the equivalent quarter in 2023. "Ahead of the October Budget, speculation around the tax treatment of pensions caused a short-term behavioural change among retail investors, which normalised quickly once the content of the Budget became known," Summersgill added. The company's chief executive stated: "The strong start to the year positions us well as we approach the busy tax year end period. We remain focused on the significant long-term growth opportunity that exists in the platform market. Our dual-channel approach and continued investments into our propositions and brand mean we are well-placed to continue our strong growth." AJ Bell recently received an upgrade from Shore Capital, moving from a Hold to a Buy rating, based on the weakness in its share price and the long-term need for people to save for retirement.

Professional Services

Trufin set for first ever full year profit as Balatro poker craze boosts finance company

2025-09-09 08:17:20

Financial services company Trufin is poised to report an adjusted profit before tax that is "significantly ahead of market expectations" buoyed by the success of its video gaming division's release of the indie sensation Balatro. The firm is on track to announce its first-ever full-year profit, achieving this milestone a year sooner than anticipated, as reported by City AM. While Trufin is predominantly recognised for its financial services, its subsidiary Playstack has carved out a niche in mobile game publishing. This year, Playstack launched Balatro, an independent title that quickly became a hit, clinching the titles of ‘Best Independent Game’ and ‘Best Mobile Game’ at the 2024 Game Awards, contributing to an "exceptional year-end performance" for Trufin. The poker rogue-like game generated over $1 million in revenue within its initial week on iOS and Android platforms, and reports suggest it amassed upwards of $4 million within two months post-launch. Playstack's operating profit is expected to have surged by over 20-fold, with revenues increasing by more than 440 percent. "The success of Balatro should not be underestimated and it has been a joy to watch it build throughout the year," commented Trufin CEO James van den Bergh. He added, "These achievements would not have been possible without our extremely disciplined and careful approach to building a robust and scalable games publisher." Thanks to Balatro's impressive performance, Trufin anticipates its adjusted operating profit for 2024 to exceed £7 million, a significant turnaround from the £3.5 million loss recorded in 2023. Meanwhile, Trufin, the specialist finance provider which debuted on the London Stock Exchange in 2018, has predicted its profit before tax to surpass £500,000—a striking shift from the £6.6 million loss seen the previous year. Revenue is also anticipated to have climbed significantly to around £54 million, almost tripling from £18.1 million reported in 2021. However, Trufin faced a substantial hiccup in July as shares tumbled over one-third following an early termination of an agreement with Lloyds by its subsidiary Satago Financial Solutions, leading to a marked drop in revenue projections—from £3.8 million to an estimated £2.4 million in 2024 for Satago. Despite this setback, the group's share price has rallied robustly, increasing 83 per cent over the past year. Oxygen Finance Group, another arm of the Trufin business, is set to report a 21 per cent increase in revenue and a sizeable 65 per cent surge in operating profits to £2.1 million.

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