It has been a good year so far for many British companies.

The FTSE100 for example, 2025 has been a tumultuous year so far.

It is up 18% year to date and has repeatedly set modern all-time highs along the way. The FTSE250 increased by a more modest 7%, while FTSE All-Share increased by 16%.

Can things continue to look good – and perhaps this will continue to be the case after next month, when 2025 gives way to 2026?

A robust market in a mixed business environment

I think we can potentially expect stronger performances ahead of us.

After all, UK shares performed well overall in 2025, despite it not being a banner year for the UK economy.

Economic growth was sluggish, and many companies complained that rising tax and regulatory burdens were negatively impacting their profitability. Consumer demand is sluggish and there are many signs of belt tightening.

However, this did not prevent the British stock exchange from further development.

That’s why I think it can continue to do well even if the economy remains sluggish. If there are clearer signs of growth, it could assist keep the stock market even higher.

It is not immune to the global image

On the other hand, between now and the end of the year we could still observe the struggles on the stock exchange. 2026 may not be a good year.

Why? In addition to the British economy, the international situation is also weighing on the London market.

If there is weakness in global markets, it could damage investor confidence in the UK and damage British shares, even if the UK itself performs well.

We’ve already seen this in 2025. While it’s uncomplicated to focus on Footsie’s overall robust performance at this point in the year, it hasn’t been a polished ride. The shocking announcement of U.S. tariffs in April sent shockwaves through markets on both sides of the pond.

The global economy continues to look unstable. Geopolitical risks remain elevated. This may have a negative impact on the London market.

Here’s my take on 2026

It’s clear that no one knows for sure which direction the stock market might go.

Regardless of what happens to the broader market, some stocks may be costly and others affordable.

So rather than buying into the market, I’m looking for individual UK shares to add to my portfolio.

One I bought in recent months is a scientific instrument manufacturer Scientific Judges (LSE:JDG).

The global economic weakness and geopolitical risks I mentioned above hurt the judges. Demand in some markets, including China, remains subdued.

Some US educational institutions have seen budget cuts. I see this as an ongoing risk to judges’ revenues and profits.

However, this medium-sized British company has built a profitable business focused on a market where customers are willing to pay premium prices for top-quality products.

In the long term, demand for measuring instruments will continue. Judges were careful not to overpay for foreclosures. With centralized business services, it can escalate the efficiency of the miniature instrument manufacturers it purchases.

This helps explain why it consistently delivers double-digit annual dividend growth per share.

I like this business model and I see great opportunities for future development in the company.