FTSE 100 Live 18 July: Reckitt Benckiser sells Cillit Bang, GSK shares slide
FTSE 100 Live Friday
Live updates
Market update: GSK falls 6% on FDA setback, Burberry continues progress
A setback for GSK after one of its late-stage pipeline assets failed to win the support of a US panel today triggered a 6% reverse for its FTSE 100-listed shares.
GSK recently identified multiple myeloma drug Blenrep as one of five major new Food and Drug Administration (FDA) product approvals expected this year.
However, an advisory committee of the FDA last night voted against Blenrep ahead of a formal decision on Wednesday.
GSK said it remained confident in the benefit and risk profile of Blenrep, adding that it will continue to work closely with the FDA as it completes its review.
Multiple myeloma is the third most common blood cancer globally and is generally considered treatable but not curable. Blenrep combinations are already approved in the UK and Japan.
GSK shares fell 90.5p to 1,322.5p, their lowest level since April.
AstraZeneca also declined 52p to 10,260p, while the progress of the FTSE 100 index was further held up by falls of about 1% for banking stocks including Barclays and NatWest.
London’s top flight rose by a smaller-than-expected 14.24 points to 8986.88, having initially traded near this week’s record high of 9016.98.
Reckitt Benckiser rose 2% or 80p to 5062p after the consumer goods giant secured a private equity buyer for a portfolio of brands including Air Wick and Cillit Bang.
Some of the proceeds from the Advent deal, which has an enterprise value of up to $4.8 billion, will be returned to shareholders.
The disposal forms part of Reckitt’s plan announced last July to reshape itself as a consumer health and hygiene company focused on 11 high-growth brands, including Dettol and Durex.
Other risers included BP, which lifted 7.05p to 404.3p after announcing the sale of its US onshore windfarm business.
In the FTSE 250, Burberry boosted its chances of a return to the top flight by reporting encouraging progress in a first quarter trading update.
Shares rose 51p to 1299p as the luxury goods group reported a 1% decline in comparable store sales compared with City expectations for a 2% fall.
Chief executive Joshua Schulman said: “Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see."
Since launching his plan in November, Schulman has focused on stabilising the business and repositioning the brand around outerwear and its British roots.
The shares have more than doubled since April.
Other FTSE 250 risers included Ocado, which continued its post-results momentum with a rise of 9% or 24.85p to 303.85p.
Components business Senior jumped 9% or 17.3p to 205.1p after it announced a deal to sell its aerostructures business to Sullivan Street Partners, a UK-based mid-market private equity investor, for a total value of up to £200 million.
Senior announced a £40 million share buy back alongside the deal, which has left it to focus on operations in fluid conveyance and thermal management.
BP sells US onshore windfarm business
BP is to sell its onshore wind business in the US after agreeing a deal with New York-based energy infrastructure firm LS Power.
The transaction, which includes 10 operating wind farms, is the latest step in BP’s $20 billion divestment program to simplify and focus the business.
BP director William Lin said “The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.”
Reckitt shares rally on Air Wick deal, GSK down 6%
Reckitt Benckiser shares have lifted 2% or 110p to 5092p after the consumer goods giant secured a private equity buyer for its Air Wick and Cillit Bang operations.
The FTSE 100-listed group said some of the proceeds from the Advent deal, which has an enterprise value of up to $4.8 billion, will be returned to shareholders.
London’s top flight lifted by a smaller-than-expected 10.37 points to 8983.01, with BP, Barratt Redrow and Rio Tinto up by more than 1%.
GSK shares slid 6% or 84.1p to 1328.9p after blood cancer drug Blenrep failed to gain the support of a US Food & Drug Administration advisory committee.
Barclays also lost 5p to 345.2p and Rolls-Royce dipped 10.8p to 999.2p after breaking the £10 threshold for the first time yesterday.
In the FTSE 250 index, Burberry shares were 19.5p lower at 1228.5p after its first quarter update.
Netflix lifts guidance after strong quarter, shares slip
Streaming giant Netflix last night reported second quarter revenues growth of 16% to $11.1 billion. Earnings per share jumped 47%.
Despite also upping full year revenue guidance to 15-16%, the group’s shares fell back 2% in dealings after last night’s closing bell.
Hargreaves Lansdown analyst Matt Britzman said: “This was yet another impressive quarter for Netflix, with robust ad revenue growth and a margin expansion that outpaced forecasts.
“Testament to how high the bar’s been set, shares are down a touch in overnight trading as investors had been expecting a slightly higher revenue number than the 16% delivered.
“Guidance was given a small kick higher, though markets won’t be getting too excited given most of the uplift is currency driven.
“Still, this is yet another clear signal that Netflix is dominating and any fears of slowing growth this year were unfounded.”
Reckitt agrees sale of Cillit Bang and Air Wick unit
A portfolio of Reckitt Benckiser brands including Air Wick, Calgon and Cillit Bang is to be bought by private equity investor Advent in a deal valued at up to $4.8 billion.
Reckitt said it will retain a 30% stake in the Essential Home business following the transaction, which is expected to complete before the end of the year.
The disposal forms part of Reckitt’s plan announced last July to reshape itself as a consumer health and hygiene company focused on 11 high-growth brands.
It will pay a $2.2 billion special dividend with share consolidation as part of its plans to return proceeds from the disposal to shareholders.
The Essential Home unit operates across the air care, surface, pest and laundry segments and generated £2 billion of net revenue in 2024 - about 14% of Reckitt's total. It made an adjusted profit of £490 million.
Burberry pleased with early turnaround progress
Burberry boss Joshua Schulman today said he was encouraged by the group’s progress after reporting a 1% decline in comparable store sales in the first quarter.
Under his Burberry Forward turnaround plan launched in November, Schulman’s has focused on stabilising the business and repositioning the brand around outerwear and its British roots.
He said in today’s update: “Our Autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores.
“Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see."
Currency was a 4% headwind in the quarter, meaning that reported retail revenues landed 6% lower at £433 million.
FTSE 100 seen back above 9000, S&P 500 sets new record
More records fell on Wall Street last night after the S&P 500 index lifted 0.5% to close at 6297 and the Nasdaq Composite advanced by 0.7%.
A robust start to the US earnings season helped sentiment as the Dow Jones Industrial Average added 0.5%.
Netflix shares rose 2% before surrendering these gains in post-market dealings, despite quarterly results ahead of forecasts and a bullish outlook statement.
In London, the FTSE 100 index is seen moving back towards this week’s intraday record of 9016.98.
London’s top flight rose 46.09 points or 0.5% to 8972.64 yesterday and is forecast by IG Index to open 0.3% higher at today’s opening bell.