Our updates usually focus on company specific developments across our FTSE Investor positions, but the past two weeks have been dominated by the escalating conflict in Iran. Macro headlines have pushed much of the normal corporate newsflow into the background and when geopolitical events take centre stage in markets it becomes difficult to ignore them entirely, even in a stock focused update like this one.

At this stage, investors are less focused on the day to day military developments and more on how the situation feeds through the financial system. Energy prices, inflation expectations and bond markets tend to be the key transmission channels, and those ultimately determine whether an event remains a short lived headline shock or something that shapes the broader economic outlook.

Periods like this can create the impression that everything simply trades together and that company specific news matters less. History suggests the opposite is often true. Once the initial macro shock fades, markets tend to refocus quickly on earnings, cash flow and balance sheet strength, which is why we continue to highlight the key developments across the portfolio below.

Admiral: Strong underwriting drives record profits

Admiral (ADM) reported a strong set of full year results, with profit before tax rising 16% to £957.9m and earnings per share increasing by the same amount. The core UK motor insurance business once again did the heavy lifting, generating more than £1bn of profit for the first time while total insured risks increased 7% to 11.8m.

Strategically the focus remains on strengthening Admiral’s long term competitive advantages. Continued investment in data, technology and artificial intelligence sits alongside expansion into adjacent insurance markets. The proposed acquisition of digital fleet insurer Flock reflects that strategy and suggests management sees further opportunities to extend the group’s underwriting expertise beyond personal motor.

Themes: Full year results

What we are watching next: Pricing trends in UK motor insurance and the pace of profit growth in the newer business lines.

Diageo’s dividend reset overshadows mixed results

Diageo (DGE) delivered a mixed first half update, with organic net sales declining 2.8% as weaker performance in North America and Chinese white spirits weighed on overall results. Growth in Europe, Latin America and Africa provided some support, but it was not enough to offset the slowdown in the group’s largest markets.

Despite the near term pressures, Diageo remains one of the world’s largest premium spirits businesses with a portfolio of globally recognised brands. The immediate focus is improving operational efficiency and adjusting the product mix to reflect shifting consumer spending patterns, particularly in the United States.

Themes: Interim results

What we are watching next: Whether weakness in US spirits demand proves temporary or becomes a more persistent headwind.

Drax energy transition strategy continues to evolve

Drax (DRX) reported solid underlying results despite a headline decline in operating profit. Adjusted EBITDA reached £947m while earnings per share increased to 137.7p, supported by share buybacks and lower finance costs. Operationally the group produced record levels of renewable generation during the year.

Themes: Full year results

What we are watching next: Progress on flexible generation investments and the long term earnings impact of the new CfD framework.

ITV remains in talks with Sky whilst delivering impressive profit

ITV (ITV) moved higher after the company reported 2025 operating profit of £534m, slightly ahead of expectations. Advertising remains under pressure, although management indicated that the decline in the first quarter should be more modest than previously feared.

Meanwhile ITV Studios continues to provide an important growth engine. The production business has expanded its scripted and unscripted output and maintains relationships with major global streaming platforms and broadcasters, helping diversify revenues beyond traditional advertising.

Themes: Strategic review

What we are watching next: Whether discussions with Sky progress and how any transaction might reshape ITV’s structure.

Morgan Advanced Materials: Strategy execution in a softer market

Morgan Advanced Materials reported a resilient performance despite weaker conditions across several end markets. Revenue declined modestly to £1.03bn as demand softened in semiconductor and European industrial markets, though management noted that conditions stabilised during the second half of the year.

Portfolio optimisation also remains a key priority. The disposal of the Molten Metal Systems business simplifies the group structure, while a strategic review of the Thermal Products division is now underway as management looks to further improve the company’s margin profile.

Themes: Full year results

What we are watching next: The outcome of the Thermal Products strategic review and signs of recovery in semiconductor demand.