Daily market update: Ashtead, B&M, RC Fornax, Warpaint London

“The UK stock market saw broad-based losses, with only six FTSE 100 stocks in positive territory. BP and Shell were among the rare risers as oil prices held firm after a recent rally,” says Russ Mould, Investment Director at AJ Bell.

“Middle East tensions are showing no signs of easing back, putting investors on high alert.

“Germany’s Rheinmetall was the biggest faller on the Dax index as investors locked in profits after a strong run for the defence group. With so much uncertainty across financial markets, it wouldn’t be a surprise to see profit taking in other stocks or assets that have done well this year.

“Direct Line is set to disappear from the UK stock market in a fortnight after Aviva cleared most of the hurdles to buy the insurer. The competition watchdog still needs to report back on its investigation into the deal, but Aviva seems confident there won’t be any issues. It will mark the end of an era for a stock that was historically popular with income investors thanks to generous dividends.”

Ashtead

“It may have endured a sticky spell over the last 12 months but one area in which Ashtead has regularly delivered for shareholders is on dividends.

“In its last set of results as a FTSE 100 company, before it moves its primary listing to New York and changes its name to Sunbelt, it remained true to this tradition as it hiked the dividend yet again.

“This was underpinned by a record year for rental revenue, even if headline turnover was a smidge lower thanks to a reduced level of sales of used equipment. Profit was also a touch lower but free cash flow was materially higher.

“The company is on track to complete its switch to the US in the first quarter of 2026 where it will hope to be rewarded with a more generous valuation.

“The backdrop may prove an obstacle to this aspiration with the company’s conservative guidance reflecting a tricky US commercial construction market which is being affected by supply chain challenges and continuing high interest rates.

“With its North American operations accounting for the lion’s share of revenue and a move across the Atlantic imminent, the spotlight may fall on the position of the UK operations within the group. These could be sold off to generate capital to invest in boosting its footprint in the US and Canada.”

B&M

“B&M’s new chief executive Tjeerd Jegen has aligned himself with shareholders’ interests after spending more than half a million of pounds on shares in the value retailer. It sends a positive signal to the market that he’s serious about turning the business around. Failure to do so would hurt his wallet as well as his reputation.

“Investors often take director share purchases to be a positive sign. Many large companies require CEOs to buy a minimum value of shares within a certain period after taking the top job, so they have skin in the game. B&M is no longer a FTSE 100 member so Jegen may not be forced to buy stock, yet the fact he’s already done so in his first week has been taken positively by the market.”

RC Fornax

“It’s a cardinal sin to issue a revenue or profit warning in the first year of being a listed company as it can cause investors to distrust management. One of 2025’s rare UK IPOs, RC Fornax has been put in the sin bin after saying full-year results will be ‘significantly’ below market expectations. What makes this situation even worse is that RC Fornax operates in the one sector that’s got big tailwinds: defence. Investors are annoyed, to put it mildly, with the share price halving on the news.

“RC Fornax has blamed the recent Strategic Defence Review for causing existing and potential clients to delay contract decisions. It continues to see long-term potential for growth, but the pressure is now on to steady the ship and be first in line to bag contracts once clients start spending again.”

Warpaint London

“The lipstick effect, the idea that people will still splash out on small indulgences like their favourite make-up in tough times, has not been much in evidence for Warpaint in 2025.

“The company has been buffeted by tariff headwinds and broader consumer uncertainty, with the glow-up in the company’s share price since 2022 leaving it vulnerable to even minor blemishes in its trading.

“In its first-half results, the market has seized on weak like-for-like sales in its second quarter as US business has suffered thanks to the introduction of tariffs.

“Investors can take some comfort from the fact sales are being completed at a materially higher margin than in its previous financial year.”

These articles are for information purposes only and are not a personal recommendation or advice.