FTSE 100 movers: Whitbread jumps; Car insurers under the cosh

Shares in Premier Inn owner Whitbread on Wednesday jumped as the hotel and restaurant owner lifted its half-year dividend and said it would buy back an additional £100m in shares, despite a fall in earnings.

The company held annual guidance as pre-tax profit for the six months to August 29 fell 22% to £309m on flat revenue of £1.5bn. The dividend was increased 7% to 36.4p.

It also said it intended to grow profits by £300m over five years and generate £2bn for share buybacks and dividends.

Whitbread said the result reflected a weaker UK economic environment and investment in its five-year accelerated growth programme (AGP), offset by positive momentum in Germany which is becoming a key market for the group. Shares in the firm were up 5% on the news in London trade.

Housebuilders were mostly higher after the UK economic data was released, brightening the outlook for demand amid an anticipated reduction in mortgage rates. Taylor Wimpey and Barratt Redrow were among the FTSE 100's top performers.

Shares in UK motor insurance firms fell on Wednesday, after two investigations into the sector were announced simultaneously.

The Financial Conduct Authority is opening a competition market study into premium finance, which allows people to pay for motor and home insurance in instalments.

It will assess if people are getting "fair, competitive deals", including reviewing how aware customers are of financing options and the role of commission.

Meanwhile, the government announced it was launching a task force intended to tackle what it called the "spiralling costs" of car insurance.

A number of bodies - including the FCA, consumer group Which? and the Association of British Insurers - have been asked to review motor insurance premiums, including identifying why costs are rising and if consumers are getting fair value.

UK motor insurance premiums have surged by an average of 21% since June 2022. The government said that was well above rises seen in many comparative European countries, such as Germany and France.

Admiral Group and Aviva fell on the news.

Market Movers

FTSE 100 (UKX) 8,323.06 0.89%
FTSE 100 - Risers

Whitbread (WTB) 3,222.00p 4.88%
Barratt Redrow (BTRW) 490.50p 3.92%
Taylor Wimpey (TW.) 166.10p 3.72%
Severn Trent (SVT) 2,712.00p 3.43%
Fresnillo (FRES) 675.50p 3.21%
Entain (ENT) 701.80p 3.05%
Melrose Industries (MRO) 429.90p 2.97%
Antofagasta (ANTO) 1,848.00p 2.87%
Persimmon (PSN) 1,707.00p 2.71%
Rolls-Royce Holdings (RR.) 554.60p 2.59%

FTSE 100 - Fallers

Rentokil Initial (RTO) 338.50p -3.29%
Admiral Group (ADM) 2,717.00p -2.13%
Beazley (BEZ) 791.50p -1.31%
Diageo (DGE) 2,556.00p -0.91%
Mondi (MNDI) 1,390.00p -0.86%
Diploma (DPLM) 4,328.00p -0.78%
Tesco (TSCO) 354.50p -0.59%
Intertek Group (ITRK) 5,080.00p -0.49%
Convatec Group (CTEC) 230.00p -0.43%
Aviva (AV.) 479.10p -0.37%