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London pre-open: Stocks seen steady; UK economy grows more than expected

Thu 15 May 2025 07:45 | A A A

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(Sharecast News) - London stocks were for a steady open on Thursday as investors mulled the latest UK GDP data.

Figures released earlier by the Office for National Statistics showed that the economy grew more than expected in the first three months of the year.

Gross domestic product rose 0.7% in the first quarter, up from 0.1% growth in the final quarter of last year and ahead of consensus expectations for 0.6% growth.

ONS director of economic statistics Liz McKeown said: "The economy grew strongly in the first quarter of the year, largely driven by services, though production also grew significantly, after a period of decline.

"Growth in services was broad based, with wholesale, retail and computer programming all having a strong quarter as did car leasing and advertising. These were only slightly offset by falls in education, telecoms and legal services."

In corporate news, discount retailer B&M said it had appointed Tjeerd Jegen as chief executive.

Jegen will take over from Mike Schmidt, currently interim CEO on June 16.

He previously held leadership roles at Ahold Delhaize, Metro, Tesco, Woolworths, HEMA and Takko Fashion, B&M added.

Enterprise software firm Sage extended its share buyback plan by 200m after a strong first half. Underlying total revenues rose by 9% year-on-year to 1.24bn in the six months to 31 March, while underlying operating profits jumped 16% to 288m, helped by a 1.4 percentage-point improvement in the underlying operating profit margin to 23.2%.

The company also maintained its growth guidance for the full year despite a "more volatile and uncertain macroeconomic environment", continuing to expect full-year organic revenue growth of "9% or above".

National Grid reported a 2% rise in underlying earnings per share to 73.3p for the year ended 31 March, slightly ahead of guidance, supported by strong performance in its regulated US businesses.

The FTSE 100 company said it had advanced major infrastructure projects, including offshore wind connections and transmission upgrades in both the UK and US, while securing supply chains for a 60bn investment plan.

Looking ahead, it said it expected underlying earnings per share growth of 6% to 8% annually through 2029, with capital investment and asset growth underpinned by regulatory agreements and a stable balance sheet.

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