Shares round-up: Beazley, Intertek, Domino’s Pizza, Hilton Foods

Changes at the helm of struggling Domino's Pizza Group (LSE:DOM) and Hilton Food Group (LSE:HFG) today got a mixed response as investors also focused on top-line disappointment at Beazley (LSE:BEZ) and Intertek Group (LSE:ITRK).

Specialist insurer Beazley sank to the bottom of the FTSE 100 index after it said premium growth is at the low end of its full-year guidance and below the level of the first half.

• Invest with ii: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

The group continues to prioritise rate adequacy and long-term profitability over short-term income, resulting in an improvement in its key measure of combined operating ratio.

Chief executive Adrian Cox said: "Market conditions are evolving at pace across several of our lines and we've maintained the same disciplined approach we set out at the half year.”

His focus on profitability over volumes failed to prevent shares from falling 69.6p to 740.4p as Beazley unwound the recovery seen since an earlier warning on the growth outlook in August.

It has also chosen to deploy $500 million (£380 million) of capital to build out a new Bermuda-based platform, dealing a blow to City expectations for a buyback of shares.

Beazley pointed out that the expansion into the alternative risk transfer market will allow it to drive growth while maintaining margin.

• The only UK bank share to make this top six for 2026
• ii view: Domino’s Pizza rolls the dice on chicken demand
• Stockwatch: two oversold shares or a warning sign?

Intertek shares joined Beazley at the bottom of the FTSE 100 index after the testing and inspection group reported 4.1% like-for-like revenues growth in the third quarter.

This was slower than City expectations for a rate similar to the first half’s 4.5%.

Intertek reiterated guidance for the year and said that it is well positioned to deliver a strong performance in 2026, including mid-single digit like-for-like revenue growth and progression towards its 18.5%-plus margin target.

The shares are broadly flat this year at 4,644p but UBS has a price target of 6,250p, believing the company is undervalued on about 17 times forecast 2026 earnings.

In the FTSE 250 index, the pressure on Domino’s Pizza shares continued following the surprise announcement that chief executive Andrew Rennie had left the business. He had been due to outline progress on operational initiatives at a City presentation on 9 December.

This has been cancelled, with chief operations officer Nicola Frampton placed in temporary charge while chair Ian Bull leads the search for a permanent chief executive.

The shares are down by more than 45% this year to their lowest level in a decade as the company and its franchisees grapple with the challenge of higher wages and employee taxation costs at a time of low consumer confidence.

Bull today highlighted brand strength and a resilient business model, adding that Domino’s continues to gain market share despite the challenging external environment.

He added: “The board believes that there are a number of opportunities to drive further growth and value creation in Domino’s core business.”

• eyeQ: a stock for the Budget watchlist
• Insider: three CEOs exploit weak share prices
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Peel Hunt today cut its price target from 350p to 275p, which it said equates to about 15 times earnings. It notes that this and the current price/earnings (P/E) multiple of nine times are below the post-Covid average of about 17 times.

The broker said: “The reduction reflects weak market sentiment. The shares and P/E rating remain correlated to like-for-like sales, which should benefit from the roll-out of new products and the loyalty programme in 2026.”

Hilton Food is also searching for a new chief executive after announcing the departure of Steve Murrells in the wake of a poor run for shares.

Interim results on 3 September triggered the FTSE 250 slide as Hilton said the reduced availability of white fish led to raw material inflation and therefore softer UK demand.

It added this month that inflationary pressures and continued disruption at its Foppen smoked salmon business would limit profit progression in the next financial year.

Board chair Mark Allen, who led Dairy Crest for 12 years, will provide strong executive leadership while the search for a permanent leader takes place. Former Co-op boss Murrells had been at the helm of the supermarket industry supplier since July 2023.

The shares rallied 13.5p to 496.5p following the change as Hilton reiterated its strong financial position and confidence in long-term prospects.

Peel Hunt highlighted Allen’s strong record at Dairy Crest, having addressed strategic issues through the sale of dairies to Muller and delivering for shareholders with the acquisition of the company by Saputo for £1 billion.

The broker added: “The current rating shows a lack of confidence in delivery. This is an important first step in restoring shareholder value.”