Kingfisher warns of UK, France budget impacts; Smiths Group reports solid figures, new acquisition

Stocks to watch

B&Q owner Kingfisher said it expected adjusted earnings of £480m to £540m this year and warned of the impact of budgetary measures in the UK and France on consumer sentiment and costs in the short term. The company, which also owns Brico Depot and Castorama in France, posted a 7% fall in adjusted pre-tax profit to £528m and announced a £300m share buyback.

Smiths Group reported a strong set of half-year results on Tuesday, with 9.1% organic revenue growth, a 50 basis point margin expansion to 16.7%, and a 14% increase in headline earnings per share, while reaffirming full-year guidance. The FTSE 100 company said it was progressing with its strategy to unlock value, including the separation of Smiths Interconnect and Smiths Detection, as it focussed on high-performance industrial technology businesses. As part of the strategy, Smiths Group also announced the acquisition of Duc-Pac for $40.5m to strengthen its Flex-Tek division’s HVAC offering and expand its presence in the north-east US construction market.

Newspaper round-up

Consumers are cutting back spending on everyday items amid falling confidence in the UK economy before Rachel Reeves’s spring statement, according to a survey. As the chancellor prepares to confirm billions of pounds in cuts to welfare and government spending on Wednesday, the research by KPMG showed growing numbers of people in Britain believed the economy was heading in the wrong direction. – Guardian

The City watchdog is considering changing rules to allow people to receive clearer information from financial firms to make it easier for them to find and compare products. The Financial Conduct Authority (FCA) is exploring how it can simplify communications about savings accounts. The watchdog, which will announce its five-year strategy on Tuesday, will also review parts of its credit advertising rules, such as lengthy terms and conditions. – Guardian

HMRC could be forced to repay Uber £1.3bn after losing a key court battle over attempts to charge VAT on minicab fares. The tax authority is at risk of steep payments after failing to overturn a legal ruling against Bolt, Uber’s Estonian rival. This decision is likely to have implications for other ride-hailing apps, including Uber, which has been battling HMRC over the £1.3bn VAT bill it has been charged since 2022. – Telegraph

EU rules on ethical investing are blocking almost £100bn of funds from flowing into the defence industry amid a push by Britain and Europe to bolster military spending. Analysts at investment bank Morgan Stanley said regulations introduced by the EU four years ago had blocked “ethical” funds from investing in weapons. They said billions could be unlocked for European and UK defence if the rules were overturned. – Telegraph

Proponents of zonal electricity pricing are expecting “mass migration to windy places”, the boss of British Gas owner Centrica has claimed. Chris O’Shea has taken to social media to argue against proposals for a radical shake-up of Britain’s electricity market, which are being championed by British Gas’s rival, Octopus Energy. – The Times

US close

Wall Street rallied on Monday, buoyed by encouraging geopolitical and economic developments.

At the close, the Dow Jones Industrial Average was up 1.42% to 42,583.32, while the S&P 500 advanced 1.76% to 5,767.57.

The Nasdaq Composite outperformed, rising 2.27% to close at 18,188.59.

Investors responded positively to reports that the Trump administration could scale back the scope of its planned 'Liberation Day' tariffs set for 2 April.

The prospect of a more measured trade approach helped ease fears of a wider economic disruption.