2nd Mar 2026 07:59
(Alliance News) - The FTSE 100 was called lower on Monday, as conflict escalates in the Middle East. Meanwhile, Bunzl and Smith & Nephew have both reported revenue growth.
Israel bombarded Lebanon on Monday, expanding conflict across the region after the massive Israel-US attack on Iran that President Donald Trump launched to topple Tehran's ruling clerics.
Israeli forces pounded targets across Lebanon, including Beirut, after Hezbollah, the Tehran-backed armed Shiite Muslim movement, fired rockets towards Israel in retaliation for the killing of Iran's supreme leader, Ayatollah Ali Khamenei. "Large-scale strikes" were also ongoing in the heart of Tehran, Israeli forces said, as the US military widened its targets across Iran on Sunday.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 77.6 points, 0.7% at 10,988.15
GBP: lower at USD1.3378 (USD1.3458 at previous London equities close)
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ECONOMICS
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UK house prices rose more than expected on-year in February, Nationwide reported. The seasonally adjusted monthly index posted 547.0 points for February, up from 545.4 in January. The average house price, not seasonally adjusted, was GBP273,176, up from GBP270,873. UK house prices rose 1.0% on an annual basis in February, surpassing FXStreet-cited consensus for a 0.7% rise, and unchanged from January's growth rate. Prices rose 0.3% on-month in February, also unchanged from January, and in line with the consensus estimate. "This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget," commented Nationwide Chief Economist Robert Gardner. "Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic."
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BROKER RATINGS
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Jefferies cuts Centrica to 'hold' (buy) - price target 210 (200) pence
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RBC raises Ocado price target to 175 (155) pence - 'underperform'
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Jefferies raises Kingspan price target to 81.30 (72.30) EUR - 'hold'
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COMPANIES - FTSE 100
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Bunzl reports 2025 results. Revenue increases 0.6%, or 3.0% at constant exchange rates, to GBP11.85 billion from GBP11.78 billion in 2024, "driven by acquisitions; [and] underlying revenue growth of 0.4%, with 0.9% underlying revenue growth in the second half of the year". Pretax profit decreases 7.9% to GBP620.5 million from GBP673.6 million, with basic earnings per share down 5.4% to 141.5p from 149.6p. Total dividend is 74.1p for the year, up 0.3% from 73.9p. The international distribution and services firm also notes that it completed a GBP200 million buyback. Furthermore, it reaffirms its 2025 outlook for "moderate revenue growth at constant exchange rates" and for the operating margin to "slightly" decrease on-year.
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Smith & Nephew reports 2025 results, including underlying revenue growth of 5.3%. At reported rates, revenue rises 6.1% to USD6.16 billion from USD5.81 billion in 2024. Trading profit rises 16% to USD1.21 billion from USD1.05 billion. EPS surges 53% to 72.1 US cents from 47.2 cents. "I am pleased that a strong fourth quarter helped us meet or exceed our 2025 targets for revenue growth, profitability and cash generation," Chief Executive Deepak Nath says. "During the year, newer products drove strong broad-based performance, with underlying revenue growth above 5% for all three business units, and we look forward to a strong cadence of further new product introductions in 2026." The full-year dividend rises 4.3% to 39.1 cents from 37.5 cents. The medical technology firm adds that for this year, it expects underlying revenue growth of about 6% and organic trading profit growth of about 8%, an adjusted return on capital employed greater than 10%, and around USD800 million in free cash flow.
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COMPANIES - FTSE 250
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Fluid conveyance and thermal management company Senior reports 2025 results, following Advent International's Friday announcement that it is considering a possible takeover offer. Revenue increases 4%, or 6% at CER, to GBP738.2 million from GBP707.4 million in 2024. Pretax profit falls 9%, or 7% CER, to GBP34.1 million from GBP37.4 million, and basic EPS drops 18% to 6.60p from 8.01p. Total dividend rises 25% to 3.00p from 2.40p. Senior said 2026 trading is in line with expectations, that its outlook for the year is unchanged, and that it is on track to achieve its medium-term targets.
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Energean says it received notice from Israel's Ministry of Energy & Infrastructure on Saturday ordering the temporary suspension of production and activities of the Energean Power FPSO offshore Israel, "following the recent geopolitical escalation in the region." Says it "maintains a close dialogue" with the ministry and with "other relevant stakeholders", and hopes to "facilitate the safe resumption of production as soon as possible." Separately, Gulf Keystone Petroleum, a producer in the Kurdistan region of Iraq, announces it has "temporarily shut-in production operations," adding that its assets have not been impacted.
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OTHER COMPANIES
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The UK Competition & Markets Authority has launched an investigation into the suspected sharing of competitively sensitive information among the Hilton, IHG Hotels and Marriott hotel chains, using CoStar's STR hotel data analytics tool. Using such tools "can bring benefits including more intense competition, lower costs, and faster changes in prices to better match demand and supply in markets," the CMA explained. "However, when rival businesses share competitively sensitive information - including through a third-party data analytics provider - this reduces the uncertainty competing businesses normally have about how each other will act. This can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour." The CMA adds: "At this stage, no assumptions should be made about whether the law has been broken."
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Bank of Ireland reports "a strong performance for 2025". Net interest income "slightly exceeded expectations" at EUR3.37 billion. Pretax profit is EUR1.4 billion. Statutory return on tangible equity is 10.9%, compared to 14.1% in 2024. Ordinary dividend increases 11% on-year to total EUR667 million. For 2026 to 2028, the bank expects statutory RoTE exceeding 16% by 2028, with total income of over EUR4.75 billion. "The group enters the new strategic cycle with momentum, and from a position of strength across our franchise," says CEO Myles O'Grady. "Our Strategy 2028 will drive significant shareholder value through earnings growth, accelerating returns and strong capital generation, with continued momentum to 2030."
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By Emma Curzon, Alliance News reporter
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CentricaOcadoBank Of IrelandEnergean Oil & GasSmith & NephewBunzlSeniorInterContinental HotelsGulf Keystone Petroleum