FTSE 100 reshuffle 2025: Burberry, Games Workshop and British Land join as WPP, Frasers and B&M exit

2025 proved to be a rollercoaster year for the FTSE 100 (^FTSE), with London’s blue-chip index posting early losses before climbing past the 9,000 point mark and reaching 10,000 on the first trading day of 2026.

Over the year, the FTSE 100 gained 22%, outperforming the FTSE 250, which rose 9.0%, and the AIM All-Share index, up 6.4%. The index also outpaced the US blue-chip S&P 500, as some US investors grew cautious over the outlook for technology stocks.

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Dan Coatsworth, head of markets at AJ Bell, said: "Investors have faced considerable uncertainty, and many have looked away from the US for opportunities. They’ve focused on cheaper areas of the market, of which the UK is one.

"We’ve seen increased interest from foreign investors looking to diversify their holdings and the FTSE 100 has also shone during the more tumultuous periods thanks to its plethora of defensive-style companies.

"Lots of people have criticised the UK for being an old economy market, full of boring companies in the banking and natural resources sector. Yes, it lacks the excitement of go-go-growth stocks omnipresent in the US, but boring can also be beautiful when it comes to investing.

"The UK is a rich hunting ground for dividends, and it is also full of companies that have slow but steady growth and which are under appreciated engines for wealth creation.”

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Around 75% of FTSE 100 earnings come from overseas, making the index more a gauge of global economic prospects than investor confidence in the UK economy. The index’s composition, however, changed during the year through quarterly FTSE Russell reviews.

Advertising group WPP (WPP.L) would have been the worst performer in the FTSE 100, falling around 59%, if not for its removal from the index in December. British Land (BLND.L) returned to the FTSE 100 after renewed investor confidence in prime commercial property, with shares rising 17%, valuing the company at more than £4bn.

WPP’s demotion marked the end of an era for a company in the FTSE 100 since 1998. Once valued at roughly £24bn in 2017, the group is now worth £3.1bn after a prolonged decline in trading. Its share price fell by two-thirds in 2025, affected by client losses, stronger AI-enabled competitors and a slowdown in global marketing spending.

Cindy Rose, who became CEO in June, launched a strategic review and said the company had “not gone far enough or fast enough in adapting to the evolving needs of our clients.” WPP issued two profit warnings during the year, while France’s Publicis Groupe overtook it as the world’s largest advertising company by revenue. Analysts view WPP as a potential takeover target unless the new management can stabilise the business.

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Read more: FTSE 100 LIVE: London markets hit 10,000 points for first time as 2026 trading kicks off

Other index changes included British luxury fashion house Burberry (BRBY.L), which returned to the FTSE 100 following a period of recovery in the luxury sector.

Lale Akoner, global market analyst at eToro, said at the time: “Rejoining the FTSE 100 signals Burberry’s turnaround is gaining traction. The company has regained momentum at a time when much of the luxury sector is struggling, showing a turnaround story idiosyncratic to the group. In our view, the upgrade validates CEO Schulman’s strategy: the refocus on brand strength and core outerwear segment is paying off, and investors are rewarding it.”

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Greek industrial and energy firm Metlen (MTLN.L) listed in London in August, switching from Athens, and joined the FTSE 100 alongside Burberry in September. Coca-Cola Europacific Partners (CCEP.L) also joined the blue-chip index in March. CEO Damian Gammell described the inclusion as a “significant milestone”, reflecting the company’s strong performance and long-term commitment to the UK market.

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Games Workshop (GAW.L) entered the FTSE 100 in the final days of 2024 after a strong year for its Warhammer 40,000 franchise, aided by video game licensing and expansion into new media. St James’s Place (STJ.L) and investment trust Alliance Witan (ALW.L) were also added following corporate mergers and growth. Meanwhile, Mike Ashley’s Frasers Group (FRAS.L) and bargain retailer B&M European Value Retail (BME.L) were removed.

Homebuilders Taylor Wimpey (TW.L) and Vistry (VTY.L), alongside and student accommodation business Unite Group (UTG.L), were also relegated to the FTSE 250 (^FTMC).

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