Investing.com -- British stocks reversed course on Thursday afternoon, recovering from earlier losses and closing higher, as data showed the U.K. economy grew more than expected in Q1, and major firms including National Grid , 3i , and Aviva reported earnings.
The blue-chip index FTSE 100 gained 0.5%, while the British pound rose 0.2% against the dollar to 1.3290.
DAX index in Germany rose 0.7%, the CAC 40 in France gained 0.2%.
U.K. economy grows 0.7% in Q1
The U.K. economy gained momentum in the first quarter of 2025 following a sluggish close to 2024.
Figures published Thursday by the Office for National Statistics revealed that gross domestic product expanded by 0.7% between January and March, an improvement from the 0.1% growth seen in the final quarter of 2024 and slightly above expectations of a 0.6% rise.
U.K. manufacturing slips more than expected in March
The United Kingdom (TADAWUL:4280) manufacturing output fell by 0.8% month-on-month in March 2025, a sharper decline than the expected 0.5% drop.
This followed an upwardly revised 2.4% gain in February.
ITV shares slip as Q1 revenue dips
ITV PLC (LON:ITV) shares dropped 1.3% after the broadcaster posted first-quarter figures that largely met market forecasts.
The company reported a 1% dip in total revenue to £875 million, while advertising revenue remained flat over the first four months of the year.
Advertising income fell 2% in Q1 but was steady compared to the same January-April period in 2024.
Premier Foods profit beats estimates
Premier Foods PLC (LON:PFD) announced on Thursday a trading profit of £187.8 million for the fiscal year 2025, slightly surpassing analysts’ forecast of £185.2 million.
The firm achieved its sixth straight year of growth, with trading profit rising 6% compared to the previous year.
National Grid beats profit forecast
National Grid PLC (LON:NG) reported stronger-than-expected annual profits on Thursday, driven by solid performances in its UK electricity transmission and New York divisions.
The utility company also reiterated its plans for major infrastructure spending. It aims to invest £60 billion ($79.74 billion) in energy networks through March 2029.
Shares rose 3%.
Aviva posts rise in Q1 premiums
Aviva PLC (LON:AV) reported a 9% rise in general insurance premiums for the first quarter, driven by robust growth in both personal and commercial lines in the U.K.
The increase was supported by the Probitas deal and the launch of new ventures. The insurer said it remains confident in achieving its 2026 targets.
Shares closed 3.4% higher.
3i Group misses FY25 estimates
3I Group PLC (LON:III) released its full-year results, reporting a total return of £5.0 billion for FY25, coming in below analysts’ expectations of £5.7 billion.
The company also posted a diluted net asset value per share of 2,542p, missing the projected 2,610p figure, in part due to a 27p per share hit from foreign exchange losses.
Shares fell 4.2%.
Greencore to buy Bakkavor in £1.2 bln deal, both firms raise outlook
Greencore Group (LON:GNC) said Thursday it has reached an agreement to purchase fellow U.K. fresh food manufacturer Bakkavor Group PLC (LON:BAKK) in a transaction worth £1.2 billion ($1.59 billion).
The announcement came as both companies reported earnings and lifted their full-year forecasts.
Greencore shares climbed 0.3%, while Bakkavor saw a gain of about 1.7%.