UK Economy Stalls; Companies Show Mixed Performance

This stagnation was primarily driven by a 0.1% fall in production, offsetting stable services activity. Despite the economic slowdown, the UK's trade deficit narrowed significantly by GBP5.1 billion over the three months to January, boosted by stronger exports and a widening services surplus.

The London market reacted negatively, with the FTSE 100 called down and the GBP weakening against the dollar. Amidst this macroeconomic backdrop, several companies reported mixed financial results and outlooks. Housebuilder Berkeley Group reaffirmed its annual profit guidance of GBP450 million, citing resilient trading despite geopolitical tensions.

Wheaton Precious Metals reported sharply higher 2025 earnings and increased its dividend, while Irish housebuilder Glenveagh Properties also saw increased revenue and profit from record home completions. Conversely, Vaalco Energy experienced lower revenue and a pretax loss, though it exceeded production guidance and advanced drilling programs.

Stelrad, a radiator manufacturer, also reported lower revenue and profit but maintained confidence in its market position. Atome secured significant debt financing for its low-carbon fertiliser plant in Paraguay, marking a key step towards construction.

This diverse corporate performance highlights sector-specific resilience against broader economic headwinds.