Trainline shares were down heavily on Thursday after the ticketing app announced full-year results that highlighted a slowdown in ticket sales growth.

Net ticket sales grew 13% in the first half of FY 2025, and revenue increased 16% compared to the same period a year prior. For the full year, ticket sales growth and revenue growth have slowed to 12%.

Investors will be concerned about lower revenue growth as Trianline faces the looming threat of the government launching Great British Rail and a single app for booking tickets. This isn’t an existential threat for Trainline, but it will present stiff competition in the UK market where Trainline has enjoyed a large market share for many years.

The UK accounts for around two-thirds of Trainline’s ticket sales, so overseas revenue will have to increase dramatically to plug any lost sales in the UK. The problem is international sales only rose 4% last year.

Trainline shares were down 13% at the time of writing despite announcing a fresh share buyback of up to £75m.

“Investors in Trainline will be hoping the online ticket operator is not running out of steam,” said Mark Crouch, market analyst at eToro.

“Despite reporting record net ticket sales for the third year in a row, recent ticket sales have shown signs of slowing down. While adoption of digital ticking has seen revenue and consumer sales continue to grow, this was at the lower end of guidance. The announcement of a £75m share buyback this morning will hopefully add some fuel to the furnace for the share price.

“Threatening to further derail Trainline’s momentum is government plans to launch a state-backed rival to the online ticket operator. Exactly how much of a threat this might pose to Trainline is still up for debate. Trainline’s track record of delivering efficiency and value to customers are fundamental to its success – traits not typically associated with government services. Nevertheless, investors are weary, and after this morning’s underwhelming update, they have good reason to be.”

The FTSE 100 gained on Wednesday as investors tentatively dipped their toes back into stocks in early trade after another poor finish to yesterday’s trade.

Gains accelerated after a softer-than-expected US CPI raised hopes of a Fed rate cut. Consumer prices rose 2.8% in February, compared to estimates of 2.9%.

After days of sharp declines in Europe and the US, equities showed signs of stabilisation on Wednesday. But as we’ve seen already this week, these gains could be short-lived should Trump decide to attack another trading partner with a fresh tariff.

“The winds keep blowing in different directions on tariffs that it is impossible for markets to establish the lay of the land,” said Russ Mould, investment director at AJ Bell. 

“Donald Trump keeps moving the goal post and investors are getting fed up. Metal tariffs are today’s special on the menu and they’ve been a major catalyst for many of America’s trading partners to retaliate with tariffs on other goods.”

It’s difficult to call the 0.6% gain in London a rebound, as it barely retraces yesterday’s losses. It certainly doesn’t put a dent in losses since the FTSE 100 flirted with all-time highs just last week. 

Nonetheless, the rise in London’s flagship index will be welcomed by equity traders who have been battered by Trump’s outlandish trade policies.

That said, Donald Trump’s change of approach to Ukraine could be seen as a major positive for stocks after Ukraine-US talks resulted in the commitment to a cease-fire.

FTSE 100 movers

Most industry sectors were higher on Wednesday, with banks and financials among those rising on the day.

The best performers were Melrose and Spirax as bargain hunters picked the shares up after heavy losses for the pair following soft updates. Melrose was the top riser with and eye-catching 8% gain.

The biggest drag on the index were retailers who dropped in sympathy with poor results from Spanish Inditex’s downbeat assessment of the industry. 

“JD Sports, Primark-owner Associated British Foods and Next retreated after negative read across from Inditex’s results. Fears of a slowdown in the retail sector were to blame,” Russ Mould said.

AB Foods was the top faller, losing 4%.

Investors will be pleased with Balfour Beatty’s results. They will not be pleased that the person who drove the strong performance will soon step down.

Despite a tricky economic backdrop, the company reported strong revenue growth and a growing order book during the 2024 full-year period. The strong performance resulted in a 9% increase in the dividend.

“Balfour Beatty’s results underline why CEO Leo Quinn will be such a hard act to follow,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“He has masterminded the company’s turnaround from a struggling firm to an industry leader focused on high margin contracts. Investors have clearly been concerned about whether the firm, under new CEO Philip Hoare can maintain momentum.”

This concern may be why Balfour Beatty shares dropped on Wednesday. Results were strong, and the dividend combined with share buybacks are reason enough to like the stock.

“Full year revenue came in at £10 billion, beating broker forecasts of £9.4 billion, and it’s hailed a high-quality order book providing not just robust short-term opportunities but significant medium to long-term potential,” Streeter said.

“Investors are being rewarded by a 9% increase in the full year dividend and a £125 million share buyback programme. The company has also made it clear that Philip Hoare won’t be flying solo just yet, with Quinn set to stay in a strategic advisory role to help him bed in, which will provide some reassurance.”

Cake Box Holdings has announced its intention to acquire Ambala Foods Limited, a well-established manufacturer and retailer of Asian sweets with deep roots in British Asian communities dating back to 1965.

The deal comes amid strong organic growth for Cake Box, which is also expanding the number of its own brand stores.

The acquisition, valued at £22 million, represents a strategic expansion for Cake Box, which has built its reputation as the UK’s largest retailer of fresh cream celebration cakes.

The deal includes £16 million for Ambala itself and an additional £6 million for Ambala’s manufacturing facility located in Welwyn Garden City.

Cake Box will fund the deal through a proposed placing at an issue price of 180 pence per share, aiming to raise gross proceeds of £7 million before expenses. The remainder of the acquisition cost will be covered by a new £15.2 million Term Loan Facility, with any balance coming from Cake Box’s existing cash reserves.

Additionally, the company is undertaking a Retail Offer to existing retail shareholders in the UK with the goal of raising up to an additional £0.2 million.

The acquisition of Ambala Foods brings 22 stores into the Cake Box fold, comprising 19 owned stores and three franchised locations. Ambala, which has remained family-run since its inception, specialises in Mithai, traditional Asian sweets.

“We are pleased to announce the acquisition of Ambala Foods Ltd, a leading manufacturer and retailer of Asian confectionery in the UK since 1964. This strategic acquisition represents a significant opportunity to leverage the strengths of both brands to expand our market presence and accelerate our growth,” said Sukh Chamdal, Chief Executive Officer of Cake Box.

“Ambala’s rich heritage and established customer base complement Cake Box’s values and commitment to quality and innovation. By adding Cake Box’s expertise and resources to Ambala, we aim to create a unique blend of traditional and contemporary delicacies that appeal to a diverse audience, ultimately driving growth and profitability.

“We are confident that this acquisition will resonate with Cake Box’s existing customer base and to its commitment to quality products and customer service.”

Recent Cake Box trading

The acquisition comes after a period of robust trading for Cake Box. In a trading statement released alongside the acquisition news, Cake Box has reported continued year-on-year improvement in sales since its interim results to 30 September 2024 and celebrated record sales during the recent festive period.

Furthermore, Cake Box remains on track to open more than 25 new stores by the end of its financial year on 31 March 2025.

The board has expressed confidence that Cake Box will meet market expectations for the current financial year, suggesting that the positive trading conditions have continued despite the broader economic challenges facing UK retailers.