MARKET REPORT: Pets at Home bid talk gets investors' tails wagging

There was a loud bark from investors in Pets at Home as takeover rumours sent it bounding higher.

Market chatter suggested that a European private equity firm may look at taking over the pet products retailer.

The reports mentioned that the potential bidder could have a similar business to Pets at Home in the US.

After a drop back at the end of last year, following a trading update that highlighted worsening market conditions, Pets at Home shares have put in a steady recovery this year. Yesterday, the bid rumours propelled it 7.7 per cent, or 17.8p, higher to 248.2p.

After a cagey start to the week, London markets moved up a gear.

The FTSE 100 rose 0.72 per cent, or 62.79 points, to 8731.46, while the FTSE 250 climbed 0.72 per cent, or 147.62 points, to 20,595.90.

Miners were among the FTSE 100 risers as copper prices rallied, with Chile-focused Antofagasta ahead by 3.6 per cent, or 61.5p, at 1791.5p, and Glencore up 2 per cent, or 6.3p, to 321.9p.

Meanwhile, lender Lloyds gained 4.6 per cent, or 3.14p, at 71.76p as brokers raised their price targets following recent quarterly results.

Convatec topped the FTSE 100 gainers, jumping 4.9 per cent, or 12p, to 259p as the medical products firm posted a leap in full-year profit and revenue and said it expects 2025 to be another year of strong strategic progress.

But Hikma Pharmaceuticals was the biggest blue-chip faller, shedding 6.2 per cent, or 142p, to 2154p as the generic medicines firm saw its core operating profits and weaker margins disappoint, despite a jump in annual revenues.

On the second line, Hammerson plunged 5.9 per cent, or 17p, to 272.4p as the owner of London’s Brent Cross shopping centres reported a tenfold increase in its losses for 2024, albeit with a stronger balance sheet.

And Morgan Sindall shed 1 per cent, or 35p, to 3500p after the construction and regeneration group said the UK housing market was subdued, even as it reported a record full-year performance.

Metro Bank gained 4.3 per cent, or 4p, to 97.8p as the mid-cap lender confirmed the sale of a portfolio of £584million unsecured personal loans to an unnamed purchaser.

And 4imprint rose 2.5 per cent, or 130p, to 5430p after analysts at Deutsche Bank started coverage of the promotional products marketer with a ‘buy’.

Meanwhile, Wickes added 1.3 per cent, or 2.2p, to 165.8p after analysts at Panmure Liberum upgraded their rating for the builders merchant to ‘buy’ from ‘hold’.

Among the small caps, Great Southern Copper gained 17.7 per cent, or 0.3p, to 2p as the mining minnow reported encouraging results from drilling at a mine in Chile.

Avingtrans added 3.6 per cent, or 12.5p, to 362.5p, with the buy-an-build engineer reporting higher revenue and profit for the first half, maintaining confidence in its full-year expectations.

But Image Scan dropped 22.4 per cent, or 0.65p, to 2.25p after the specialist in real-time X-ray imaging warned investors its financial year had started slowly in terms of sales and orders.