FTSE 250 round-up: records, Harbour Energy, Hikma Pharma, OSB
An impressive performance from the mid-cap index continues as popular stocks deliver encouraging updates and takeover news. City writer Graeme Evans has the details.
6th August 2026 13:30
by Graeme Evans from interactive investor
Photo: Thomas Fuller/SOPA Images/LightRocket via Getty Images.
The trends driving a record FTSE 250 index were in evidence today after Harbour Energy (LSE:HBR) and Hikma Pharmaceuticals (LSE:HIK) posted strong results and another mid-cap became a takeover target.
The UK’s second-tier index last night set an all-time closing high of 24,632, having rallied by 10% this year and by 17% since the end of March to beat September 2021’s previous record.
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A surge in merger and acquisition activity involving companies including Rotork (LSE:ROR), MITIE Group (LSE:MTO) and easyJet (LSE:EZJ) has boosted the recent performance, as well as signs that the impact on earnings from the Middle East war has not been as severe as first thought.
Deutsche Bank pointed out last month that it expects a 9% year-on-year increase in FTSE 250 half-year earnings, fuelled by stocks in the financials, basic materials and staples sectors. This represents a strong acceleration from the 2% decline in the second half of 2025.
Advertising and media group WPP (LSE:WPP) topped today’s FTSE 250 risers board after it reported early signs of turnaround progress, while land regeneration company Harworth Group (LSE:HWG) jumped 30.2p to 173.8p after it received a takeover approach worth £583 million.
The move by property group Peel Holdings values each Harworth share at 172.5p, which the bidder said was a 36% premium to the three-month volume-weighted average price.
Harworth is reviewing the proposal, having had no “substantive engagement” with Peel prior to today’s announcement.
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Among the other companies reporting, Harbour Energy shares rose 15.3p to 247.5p after it disclosed a 4% rise in first-half production to a record level above 500,000 barrels a day.
The performance has been boosted by February’s $3.2 billion (£2.4 billion) acquisition of LLOG Exploration, which marked Harbour’s entry into the US Gulf of America alongside its existing operations in Norway, the UK, Germany, Argentina and North Africa.
Higher commodity prices and stronger operational performance led to revenue growth of 20% to $6.4 billion and a sharp rise in free cash flow to $1.8 billion.
This has enabled Harbour to accelerate debt reduction, while it has announced a new $250 million share buyback as part of a plan to return at least $800 million in 2026.
Shareholders are due to receive an interim dividend of 8.05 US cents a share on 24 September, which is equivalent to $150 million and in line with guidance of 16.1 US cents for the year.
Harbour lifted the bottom end of its production guidance for this year to a range of 490,000 and 500,000 barrels of oil equivalent per day and said it was making good progress on longer-term growth projects, notably in Mexico and Argentina.
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The recovery of Hikma Pharmaceuticals continued as shares lifted another 148p to 1,719p, leaving them above where they were prior to February’s annual results and the start of the Middle East conflict.
The accessible medicines company generates about a third of revenues in the Middle East and North Africa, where it is a supplier of injectable and branded generic products.
It said today that it continued to absorb the limited cost impacts of the conflict, which have related primarily to shipping, insurance and fuel. It added: “Patients continue to need our medicines, and Hikma is there to meet that demand.”
The shares fell sharply after February’s results, when a forecast of revenues growth between 2% and 4% added to City disappointment following November’s reset of margin and investment expectations in the injectables division.
However, HIkma built confidence today with a solid first-half performance that included 9% growth in core operating profit to more than City forecasts at $405 million.
At the bottom of the FTSE 250, OSB Group (LSE:OSB) shares gave up the gains achieved since May after the specialist lender and retail savings business lowered net interest margin (NIM) guidance.
Strong competition for retail deposits and elevated funding costs mean OSB now sees NIM for this year at between 2.15% and 2.2%, compared with its previous forecast of 2.25%.
Return on tangible equity (RoTE) is set to be in the region of 12.5%, down from previous low-teens guidance, while management also cautioned that current funding pressures could have a modest impact on its hopes for a 2027 mid-teens RoTE.
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Guidance for loan growth and costs was unchanged as OSB reported a small fall in half-year pre-tax profit to £187.2 million.
The reverse from £192.3 million was due to a higher impairment charge and administrative expenses which more than offset an increase in net interest income.
Shares fell 65p to 504p, which compared with Peel Hunt’s new price target of 550p.
The City firm said: “With Paragon Banking Group (LSE:PAG) and Shawbrook Group (LSE:SHAW) recently reporting and reiterating guidance, this further illustrates our view that there are superior operating platforms, returns, and growth available elsewhere at a similar rating.”
The guidance marks a disappointing end to the tenure of chief executive Andy Golding, who has grown OSB’ balance sheet from £3 billion to £31 billion during 14 years in charge. He also oversaw the company’s stock market listing in 2014.
He will be replaced from 1 September by Enrique Alvarez Labiano, who has been head of retail and business banking at Santander UK.
Shareholders are due to receive an interim dividend of 11.8p on 18 September, an increase of 5% on a year earlier.
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