Reckitt Benckiser shares sank on Wednesday after the group posted disappointing Q1 trading figures that missed expectations.

Reckitt’s North American and European over-the-counter medicines business took a notable knock in the first quarter, with seasonal OTC revenue falling into the double digits as a weak cold and flu season left retailers cutting inventory throughout the period.

The softness dragged the region’s overall like-for-like net revenue down 0.9%, despite underlying volumes rising 1.5% and a strong showing from non-seasonal brands led by Lysol.

Low incidence rates through the tail end of the cold and flu season were the main culprit, compounding a sluggish category backdrop and prompting destocking by key retailers.

The weakness in seasonal OTC also weighed heavily at the group level. Core Reckitt like-for-like growth came in at just 1.3%, but strip out seasonal OTC and the underlying rate jumps to 3.1%, a gap that lays bare just how much the soft cold and flu season is masking.

The drop in Reckitt Benckiser shares on Wednesday means the share price has now given back 18 months’ worth of gains from September 2024 to March this year in less than two months.

“Reckitt Benckiser’s Q1 trading update delivered a disappointing start to the year, with shares opening down more than 5% this morning as investors reacted to the earnings miss,” said Adam Vettese, market analyst for eToro.

“Core Reckitt posted like for like net revenue growth of just 1.3%, well below consensus and the group’s 4-5% medium-term target. The weakness stemmed from a markedly soft cold and flu season, retailer destocking and tough trading in developed markets, where Europe/ANZ fell 4.2% and Household Care dropped 7.6%.”

Chief executive Kris Licht is pinning hopes for a recovery on the June launch of Mucinex 12 hour Cold and Fever, a product the company is billing as category-creating, alongside the lapping of last year’s Mucinex Sinus PE reformulation. Management expects a meaningful lift in seasonal OTC from Q2 as initial shipments hit shelves.

Beyond the medicine’s weakness, Emerging Markets did the heavy lifting with 7.6% like-for-like growth, led by double-digit gains in China and India, while Europe slipped 4.2% amid heightened promotional pressure in auto and its own weak cold and flu backdrop.

Reckitt held full-year guidance unchanged, targeting 4% to 5% like-for-like growth for Core Reckitt.

Bunzl reiterated its 2026 guidance on Wednesday after a steady first quarter of trading amid a tougher macro backdrop.

Revenue at constant exchange rates rose 1.5% in the three months to 31 March, with underlying revenue up 2.0%. Volume growth and tariff-related price rises supported the top line, though one fewer trading day in the period knocked 1.1% off the headline figure. Acquisitions net of disposals added 0.6%.

North America was the area of strength, with underlying growth running slightly ahead of the wider group as turnaround plans and new business won in the second half of 2025 fed through. Other regions delivered modest underlying growth in aggregate.

Adjusted operating profit came in line with management’s expectations for a more stable year in 2026.

Bunzl reiterated full-year guidance, pointing to moderate revenue growth at constant currency, helped by a small contribution from M&A, with operating margin expected to dip slightly year-on-year.

Frank van Zanten, Chief Executive Officer of Bunzl, said: “The Group continued to deliver underlying revenue growth in the first quarter, supported by actions taken to improve performance and our strengthened focus on organic revenue opportunities. While mindful of the current economic and geopolitical backdrop, the Group reiterates its full year guidance and expects 2026 to be a foundation for future profit growth.”

“Furthermore, there continues to be a significant consolidation opportunity; our pipeline is active and we see an improved outlook for acquisitions in 2026 compared to the prior year. I remain fully confident in our ability to generate long-term compounding growth and value creation for all of our stakeholders.”

The FTSE 100 ticked higher on Tuesday as investors held off on making big bets ahead of possible talks between the US and Iran.

Trading higher by 0.1% at 10,621, London’s leading index seems pretty comfortable in a range within touching distance of 10,600 as investors await a fresh catalyst.

This may come in the form of developments in talks between the US and Iran. With a ceasefire deadline set to expire tomorrow, Trump is warning that he will not extend the deadline, and Iran has alluded to ‘new cards’ to use on the battlefield, should the conflict resume.

But the market seems ambivalent to the risks of a return to fighting in the Middle East, which could prolong the oil crisis and spur inflation and is looking to possible talks in Pakistan as a reason to be positive.

“Oil prices remained below $100 a barrel which suggests cautious optimism that the Middle East conflict won’t intensify. However, the longer oil remains in the 90s range (currently $95), the higher the chance of an inflationary shock and a wobble to global economic activity,” said Russ Mould, investment director at AJ Bell.

Although oil prices were still close to $100, price action has calmed down, and that, in itself, is proving to soothe equity investors. Most FTSE 100 stocks were higher at the time of writing, with retailers and financials having a good session.

SSE was the FTSE 100’s top riser, up 4%.

British land was 2.2% higher after releasing positive rental and revenue growth in Q4 powered by fresh demand from AI-related tenants.

“The landscape is now evolving with more people returning to the office, and demand picking up from tech firms,” Russ Mould said.

“British Land is well placed to benefit, and that is evident from its bullish update. Upgraded earnings guidance implies strong momentum in the business. This is the type of news that’s needed to finally breathe some life back into its share price.”

Housebuilders were among the fallers as the sector fell in sympathy with a dismal update from Crest Nicholson, which fell 39% on Tuesday after slashing its outlook.

Persimmon was down 0.6%, and Barratt Redrow lost 0.3%.

AB Foods was the FTSE 100’s top faller on Tuesday after it released disappointing interim results and confirmed it would demerge Primark.

Robinhood UK lead analyst Dan Lane, said: “The headline figures paint a picture of flat revenues and profits under pressure but the real story is Primark about to stand on its own two feet.”

“Go back through previous results and you start to see Primark has been driving 50% of Group revenues but around 70% of profits so this gives the Group’s favourite child a chance to perform without the drag of some other slower-moving segments.

“But, while Primark is undoubtedly the jewel in ABF’s crown, if it is to be judged on its own merits soon, it will give up the supportive scaffolding of the other units. Yes, grocery has been consistently low margin, sugar volatile, and ingredients and agriculture too small to move the dial, but they have provided ballast when Primark hasn’t offered star power.”

AB Foods was down 3% at the time of writing.

Identity management software provider Intercede (LON: IGP) has won two contracts from existing clients worth $3.8m. The main one is a $3.6m upsell for new perpetual licences for MyID CMS to a US federal agency. The share price gained 13.1% to 99.5p.

Smart video technology company SEEEN (LON: SEEN) has acquired media library and streaming software provider MEDIAL for up to £1.2m in cash and shares issued at 6p each. The share price increased 12.5% to 4.5p. The acquired business made a pre-tax profit of £210,000 in the year to April 2025. SEEEN can sell its services to the acquired company’s customer base and offer training packages.

Drug delivery company CRISM Therapeutics (LON: CRTX) announced positive preclinical results for the Docetaxel-ChemoSeed implantable drug delivery technology, which showed significant anti-tumour activity, drug response and tolerability in prostate cancer. This shows the effectiveness of a localised chemotherapy approach. The share price added 10.6% to 13p.

Floorcoverings distributor Likewise (LON: LIKE) has raised first quarter revenues by 15%. It continues to gain market share. The current forecast for annual revenues is based on 7.6% growth. A £3m property has been bought in Leeds for a new distribution hub. A 2026 pre-tax profit of £4m is currently forecast. The share price improved 8.7% to 25p.

Musical instruments retailer Gear4Music (LON: G4M) improved sales by 30% in the year to March 2026. Net debt is £5m. This has sparked an increase in the 2025-26 pre-tax profit from £9.3m to £9.7m. A new warehouse is being fitted out, and this will cost £10.2m, of which £3.6m has been paid. The share price rose 9.28% to 265p.

Shares in Facilities by ADF (LON: ADF) recovered 6.67% to 12p. The latest figures should mark the bottom for the business. A full contribution from Autotrak was the main reason behind the rise in revenues from £35.2m to £41.3m, although there was also a stronger second half. The loss was reduced from £2.8m to £800,000. There was a sharp second half improvement in EBITDA before exceptionals and for the full year it rose from £7,2m to £9.2m. New management has not had time to have an effect on the business. There are plans for increased integration of the three core businesses and generating greater revenues from non-film customers.

FALLERS

Mercantile Ports and Logistics (LON: MPL) continues to try to regain control of the Karanja Terminal & Logistics subsidiary. Mercantile says it can repay the related debt, but the proposal was rejected by the consortium of banks. They prefer an alternative plan from Adani Ports and Special Economic Zone Limited and that has been approved by the courts. The company has appealed. The share price had been rising because of optimism about the outcome of the repayment proposal, and it has slumped 67.1% to 0.675p.

Internet of Things businesses investor Tern (LON: TERN) has launched a one-for-seven open offer at 0.6p/share. This could raise up to £644,000 for further investments in existing investee companies and cover overheads. The share price fell by one-fifth to 0.6p.

Capital equipment supplier Mpac (LON: MPAC) reported a rise in pre-tax profit from £10.6m to £13.5m, helped by acquisitions. The second half trading become more difficult. Earnings still rose by 2%. Trading conditions remain tough with projects being deferred and increasing competition on price. This year trading is expected to be more second half weighted. The share price declined 11.5% to 230p.

Meida analysis company Ebiquity (LON: EBQ) reported a slump in pre-tax profit from £6.5m to £1.1m, but results are expected to recover this year. Cash generation reduced net debt to £13.1m. Costs have been reduced, which should help pre-tax profit recover to £2.6m this year. AI investment will also help. The share price dipped  8.51% to 10.75p.

capAI shares surged on Tuesday after the AI services firm announced it was launching a number of offerings following a prolonged development period.

capAI says it is hitting a key inflection point, with multiple AI-powered platforms moving from development into live availability as the company says it shifts its focus towards user adoption and commercial validation.

This sparked a 60% rally in the stock that was trading near a 52-week low prior to today’s news.

Game42, the group’s generative game creation platform, is scheduled to go live this week. The tool allows users to turn inputs, from short text prompts to full-length books, into interactive game experiences. The company says this effectively democratises game development and opens the door to scalable user-generated content.

Alongside it, Creator42 will launch under the new name Movie42, converting text inputs into cinematic, trailer-style video outputs.

Author42, the company’s AI-native writing platform, is also progressing towards a hard launch, with expanded capabilities across fiction, memoir, editing and refinement. Management framed it as the connective tissue linking the broader Game42 and Movie42 ecosystem, supporting end-to-end content creation.

These all may sound impressive to the layperson, but the reality is that there isn’t much on capAI’s menu of offerings that can’t be easily completed through platforms such as Claude, ChatGPT, or Google’s Gemini. There are also numerous platforms that provide multi-model video creation, making it difficult to see where capAI has an edge.

capAI’s products may have gained some traction when they were first announced, but the world has changed dramatically since then, which may raise questions about how capAI can generate revenue at scale, given the plethora of AI tools it now has to compete with.

The proof will be in the pudding.

THG shares rose on Tuesday after delivering its best first-quarter revenue growth since the pandemic, with sales rising 7.0% on a continuing, constant-currency basis to £393.1m, as both Beauty and Nutrition gained momentum.

THG shares rose around 8% as the market digested a trading statement revealing growth across the board.

Beauty revenue grew 5.8%, accelerating on the 5.4% delivered in the second half of last year, driven by a strong performance in the US and 7% order growth in the core UK market.

Lookfantastic continued to outperform the UK prestige beauty sector, adding active customers and gaining share. In the US, Dermstore grew revenue and expanded market share on the back of a 10% increase in new customers and a new checkout partnership with Flex, allowing shoppers to pay with pre-tax health savings accounts. K-Beauty was a standout, with revenue more than doubling year-on-year.

Nutrition grew 8.8%, or 12.1% excluding Asia, where a deliberate shift to licensing with local manufacturing partners has created a near-term drag as the business rebuilds on higher-margin foundations.

The division is leaning heavily into categories beyond core protein powders, such as activewear, creatine, hydration and collagen, to offset record whey commodity prices.

Activewear now has an annualised run rate approaching £100m, with around 15% of active customers buying into the range in Q1 and those orders carrying average order values roughly 31% higher than the norm.

Myprotein’s retail footprint is expanding rapidly. The brand hit record UK market share in total sports nutrition and has a string of launches lined up for Q2 and Q3, including branded bays in Tesco stores nationwide, entry into 1,200 Kroger locations in the US, and expanded listings with GNC and Vitamin Shoppe.

Investors will have been pleased to see THG reiterate its full-year guidance. CEO Matthew Moulding said the better-than-expected start gives THG a stronger base heading into the rest of the year, even as the geopolitical backdrop remains uncertain.