UK equities moved higher in early trading on Wednesday after fresh data showed a slowdown in inflation, while sterling slipped against the US dollar following a strong performance in the previous session. European markets also traded mostly higher, adding to the positive tone.

By 0825 GMT, the FTSE 100 was up around 1%, while the pound had fallen 0.7% against the dollar to 1.33. Elsewhere in Europe, Germany’s DAX rose 0.2% and France’s CAC 40 edged 0.05% higher.

UK inflation falls to eight-month low

Data released earlier showed the annual UK inflation rate eased to 3.2% in November from 3.6% in October, marking its lowest reading in eight months. The decline could give the Bank of England additional flexibility ahead of its final policy decision of the year.

On a monthly basis, inflation fell by 0.2%, reversing the 0.4% increase seen in October. Core inflation, which strips out energy and food prices, also slowed to 3.2% year-on-year from 3.4%, while monthly core CPI declined by 0.2%.

Despite the improvement, inflation remains above the Bank of England’s 2% target. However, the continued downward trend indicates progress in reducing price pressures across the economy.

Bunzl flags steady FY25, cautious outlook for FY26

Bunzl PLC (LSE:BNZL) issued a trading update confirming that its FY25 revenue and operating margin remain in line with previous guidance and market expectations.

The group reported “good momentum” in the fourth quarter, supported by new contract wins in North America. Bunzl expects FY25 revenue growth of 2–3% on a constant currency basis, with reported revenue broadly flat. Adjusted operating profit is forecast to be “in-line with expectations,” delivering a margin of 7.6%, while leverage is expected to be around 2x by year-end.

Looking ahead, the company said FY26 should deliver “moderate revenue growth excluding foreign exchange effects,” supported by modest organic growth and a limited contribution from acquisitions.

Serco upgrades profit outlook

Serco Group (LSE:SRP) raised its profit guidance for 2025 and outlined upbeat targets for 2026, citing strong trading across its operations.

The outsourcing specialist now expects underlying operating profit (EBITA) of £270 million for 2025, up from prior guidance of £260 million and around 3% above analyst expectations. Organic revenue growth guidance was maintained at 1%, with total revenue forecast at £4.9 billion.

Games Workshop declares new dividend

Games Workshop Group PLC (LSE:GAW) announced a dividend of 50 pence per share, taking total distributions for the year to 375 pence.

The payout represents an increase of more than 40% compared with the same point last year, when dividends totalled 265 pence per share.

IntegraFin beats expectations, targets margin gains

IntegraFin Holdings PLC (LSE:IHP) reported FY25 underlying profit before tax of £75.4 million, beating consensus estimates by 1.7% and rising 7% year-on-year.

Earnings per share came in at 17.4p, 3% ahead of forecasts, while the dividend was increased by 9% to 11.3p. Following a detailed cost review, the company outlined plans to improve operating efficiency, targeting administrative cost growth of just 3% in FY26 and FY27, compared with market expectations of 4–5% and after 9% growth in FY25.

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