Major companies Rolls-Royce and Shell propel a surge in the London stock market, taking the lead in the FTSE 100 index.
Headline: FTSE 100 Stalwarts Shine: London Stock Exchange Group and Smith & Nephew Report Increased Profits and Positive Earnings
In the bustling world of London's financial district, two FTSE 100 companies, London Stock Exchange Group (LSEG) and Smith & Nephew, have stood out for their impressive financial performances in the first half of 2025.
London Stock Exchange Group (LSEG):
LSEG, the UK's flagship stock market, reported a year-over-year increase of 30.7% in operating profit, reaching £1,061m, and a 20.1% rise in adjusted earnings per share. The company has shown increased confidence in its profitability growth, raising its 2025 EBITDA margin guidance to an improvement of 75-100 basis points from a previous 50-100 basis points. LSEG also forecast organic total income growth of 6.5-7.5% excluding recoveries and free cash flow of at least £2.4 billion, signaling a strong guidance upgrade ([1], [2]).
Smith & Nephew:
Meanwhile, medical technology company Smith & Nephew reported a 43% rise in pretax profit to $362 million for the first half of 2025, on a 4.6% revenue growth to $2.96 billion. The company expects underlying revenue growth of around 5% and has maintained its full-year guidance, including an anticipated expansion of trading profit margin to between 19% and 20%. Smith & Nephew also announced a $500 million share buyback program, reinforcing shareholder returns alongside positive earnings and a steady outlook ([3]).
Other FTSE 100 companies, such as Cap-XX, have shown positive developments but are not currently part of the FTSE 100 index.
Elsewhere in the market, oil giant Shell was among the risers, managing to skim past analyst earnings expectations despite difficult trading in oil and gas services. Rolls-Royce hiked its operating profit guidance to between £3.1bn-£3.2bn and recorded a 50 per cent rise in profit to £1.73bn in the first six months of the year. Rentokil, on the other hand, reported an 8.7% hit to adjusted profit before tax, with it sitting at $418m (£316m), but topped the risers with a 11% surge to 385.10.
The FTSE 100 edged up in early trading on Thursday, with London's flagship stock market rising 0.5% to 9.182.34. Rolls-Royce was up over ten per cent, and Rentokil topped the risers. The mid-cap FTSE 250 was up 0.8, led by an explosive 67 per cent rise from Just Group, following a £2.4bn deal with Canadian asset manager Brookfield. Endeavour Mining, however, saw a 2.4% dip, despite hitting a record $150m in dividends in the first half of the year.
[1] Source: LSEG H1 2025 Results [2] Source: LSEG Trading Update [3] Source: Smith & Nephew H1 2025 Results
- Positive performances in the first half of 2025 have set London Stock Exchange Group (LSEG) and Smith & Nephew apart in the London stock market, with both companies showing significant growth in their respective sectors.
- Besides LSEG and Smith & Nephew, other FTSE 100 companies like Rolls-Royce and Rentokil have also displayed encouraging results, with Rolls-Royce raising its operating profit guidance and Rentokil experiencing a significant surge in shares.
- The strong financial performances by FTSE 100 companies like LSEG and Smith & Nephew have contributed to a positive outlook for the economy, encouraging investment and growth in the business and finance sectors, including the stock market.
