LONDON (ShareCast) - (Sharecast News) - London's FTSE 250 was down 0.63% at 18,491.58 in afternoon trade on Friday, with Kier taking a dive after announcing debt reduction plans.
Construction, services and property group Kier plummeted on news that it is tapping shareholders for around £264m to accelerate net debt reduction plans and assist with strengthening the infrastructure services firm's balance sheet.

In the company's statement, directors warned that as a number of lenders have indicated plans to reduce exposure to the construction and related sectors, that potential clients and customers are "increasingly" demanding service provider have a strong balance sheet and that it has received "increasing pressure" to shorten supply chain payment terms.

All of which combined to put pressure on the likes of Balfour Beatty, Keller and Ibstock elsewhere in the wider construction sector, as well as Capita as a fellow government contractor.

Elsewhere in the building trade there were also struggles for residential specialists, with Redrow under pressure after the latest survey from Nationwide revealed an uptick in annual house price growth in November but said that prices still fairly subdued and the outlook less than rosy.

Nationwide's chief economist Robert Gardner said: "Looking forward, much will depend on how broader economic conditions evolve. In the near term, the squeeze on household budgets and the uncertain economic outlook is likely to continue to dampen demand, even though borrowing costs remain low and the unemployment rate is near 40-year lows."

Amigo Holdings, the guarantor lender which floated this summer, was hit by a 'sell' note from broker Goodbody. On the upside the company has enjoyed a period of exceptional growth, with its loan book expanding from £272m in 2015 to almost £700m at the half-year stage.

"However, while we see management deliver on its high-teens and mid-teens net loan growth for FY18F and FY19F, we see a substantial slowdown thereafter as the scope to keep increasing its addressable market becomes more challenging - with redemptions remaining elevated following a supernormal growth phase. We also project rising, though manageable, impairments owing to its pilot lending experience and risks associated with repeat lending dependency and higher average loans."

With Amigo's target price set at 204p, the valuation "looks stretched", said the broker.

Tour operator Thomas Cook ended the week with another fall after analysts at Berenberg downgraded it to 'sell', citing continued weakness in its operational performance and a "structurally challenged" business model. The company also looks likely to drop out of the FTSE 250 next week.

"With TCG's bond yields now over 10%, operational performance weak and cash generation anaemic, the risk that the company will need fresh equity is, in our view, back on the agenda. Given this heady cocktail, we think that TCG shares are currently uninvestable," Berenberg analysts said.

Go-Ahead continued to climb a day after the public transport provider released a well-received trading update, while aerospace parts maker Senior and On the Beach also made gains days after their trading updates.

Greene King crept upward after Canaccord reiterated its 'buy' rating with a target price of 600p, stating that results released on Thursday showed that the pub chain is now "on track".

"The hot summer weather and the soccer World Cup have been helpful but Greene King is taking market share, from a tighter cost base. The +£4.0m of SE orientated freehold assets on the balance sheet underpins valuation, supported by plenty of transaction evidence; the dividend is sustainable, in our view," said a note from Canaccord analysts.

Plus500 was boosted by a glowing write-up in the Evening Standard.

Market Movers

FTSE 250 (MCX) 18,469.01 -0.75%



FTSE 250 - Risers

Plus500 Ltd (DI) (PLUS) 1,526.00p 4.02%
Go-Ahead Group (GOG) 1,722.00p 3.99%
On The Beach Group (OTB) 418.50p 3.85%
Rank Group (RNK) 158.60p 3.26%
Greene King (GNK) 549.40p 2.58%
IP Group (IPO) 117.12p 2.20%
IntegraFin Holding (IHP) 302.35p 2.09%
Millennium & Copthorne Hotels (MLC) 469.50p 1.95%
Greggs (GRG) 1,392.00p 1.90%
Spirent Communications (SPT) 129.00p 1.90%

FTSE 250 - Fallers

Kier Group (KIE) 516.50p -31.36%
Thomas Cook Group (TCG) 30.76p -8.68%
Amigo Holdings (AMGO) 249.05p -5.38%
Balfour Beatty (BBY) 253.30p -5.27%
Capita (CPI) 103.55p -5.26%
AA (AA.) 89.88p -4.53%
Keller Group (KLR) 586.29p -4.51%
Quilter (QLT) 116.04p -4.42%
Spire Healthcare Group (SPI) 125.00p -4.07%
Ibstock (IBST) 213.00p -3.97%

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