A gradual improvement in the housing market throughout 2024 helped Rightmove post a robust set of final results, with the positive momentum set to continue. The FTSE 100-listed property portal said its underlying operating profit for the year rose 4 per cent as revenue increased by 7 per cent.
The company said the improvements came as its estate agency and new homes developer partners continued to increase their use of digital products and renewed contracts. Looking ahead Rightmove said it expects revenue growth of 8 per cent to 10 per cent in 2025.
Having rebuffed bid interest from Rupert Murdoch's REA vehicle last year, Rightmove's numbers went some way to reassure investors that its strategy is working and it rewarded them with a 7 per cent hike in the final dividend to 6.1p. In response, Rightmove shares gained 4.3 per cent, or 23.8p, to 671p, also helped by data from mortgage lender Nationwide showing house prices had continued to grow in February.
At the end of a divergent week for the UK's biggest indexes, the FTSE 100 closed up 0.6 per cent, or 53.53 points, at 8809.74, but the FTSE 250 index slid 0.4 per cent, or 88.35 points, at 20326.38. Moving in the right direction: Looking ahead Rightmove said it expects revenue growth of 8 per cent to 10 per cent in 2025.
Among the day's other blue-chip results, Pearson rose to a ten-year high, up 2 per cent, or 26p, to 1361.5p, as the educational publisher reiterated its current year guidance after its 2024 profits rose by 10 per cent, boosted by AI offerings, and it launched a £350m share buyback.
Elsewhere, engineer IMI gained 5.8 per cent, or 110p, to 2002p after delivering record full-year profits, driven by good organic growth and strong cash generation. Pumps maker Weir Group took on 6.3 per cent, or 144p, to 2430p as it reported resilient 2024 results, with strong after-market demand and improving margins. The firm also announced the strategic acquisition of mining software provider Micromine for £657m.
After a big drop in the previous session after results, advertising giant WPP lost another 0.2 per cent, or 1.2p, to 644p as analysts at Barclays cut their rating for the stock to 'equal weight' from 'overweight'. But Rolls-Royce, which soared 15 per cent higher on Thursday following results, rose a further 1.7 per cent, or 12.4p, to 744p as analysts at both JP Morgan and Bank of America increased their price targets for the aero engines maker.
Natwest gained 1.7 per cent, or 7.9p, to 478.8p on news the Government's stake in the lender has fallen below 6pc, as the Treasury continues to reduce its shareholding in the rescued group, down from nearly 40 per cent in December 2023. On the second line, Morgan Advanced Materials dropped 16.2 per cent, or 41.5p, to 214.5p as the advanced ceramics engineer said demand in a number of its end-markets was uncertain and that it expects a mid-single-digit organic revenue decline in 2025.
And Spectris slipped 0.1 per cent, or 4p, to 2878p as the precision instruments group said it is too soon to say whether it is in the middle of a sustained recovery, even as it hailed a robust finish to the year. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
