FTSE 250 movers: Babcock slides, IG Group leaps
By Duncan Ferris
Date: Wednesday 22 May 2019
(Sharecast News) - London's FTSE 250 was down 0.31% at 19,376.45 in afternoon trade on Wednesday, with Babcock International leading the index lower.
The government contractor's shares tumbled after the company said operating profit and revenue for the financial year ahead were set to drop, partly due to contract step-downs.
Analysts from Peel Hunt lowered their recommendation for the stock from 'add' to 'hold' as they commented that it was "currently difficult to envisage a catalyst to positively rerate the shares" after a long series of estimates downgrades.
Housebuilder Galliford Try dropped back after a sharp rise on Tuesday following confirmation that it was cutting 350 jobs at its troubled construction division following a strategic review, adding that it expected its full year results to be in line with its own forecasts.
Close Brothers dropped as it reported that client activity through its asset management business remained subdued in the third quarter of its financial year, though the company still expects a "solid" result for the full year, while Dixons Carphone edged lower after analysts at Goldman Sachs cut the stock's target price from 155p to 148p
IG Group rose sharply after the online trading platform said it was expecting a drop in full-year net trading revenue and operating profit but outlined plans to drive growth, with the results also sending its contemporary Plus500 upwards.
Analysts at Numis said: "Trading conditions have been difficult for IG for the entire year and this combined with last year being so strong and the introduction of ESMA regulation has created almost the perfect storm for the group. IG reported that Q4 revenues are expected to be £115m, taking full year revenue to £475m and the operating profit to £190m. This compares to our forecasts of £470m for revenue and £185m for operating profit."
Retailer Pets at Home was a high riser after it posted a 6% jump in underlying full-year pre-tax profit and a 6.9% increase in revenue, while Intermediate Capital Group also climbed as it reported a jump in assets under management and a 50% increase in dividend payout, though annual profits dipped due to a change in loan note valuation.
Finally, Royal Mail was in the green as its full-year results were in line with consensus and the lower end of the guidance range, both of which were cut after the company's profit warning in October.
Market Movers
FTSE 250 (MCX) 19,376.45 -0.31%
FTSE 250 - Risers
IG Group Holdings (IGG) 539.40p 13.61%
Metro Bank (MTRO) 776.00p 9.99%
Pets at Home Group (PETS) 161.60p 9.19%
Intermediate Capital Group (ICP) 1,287.00p 7.52%
Royal Mail (RMG) 225.40p 6.62%
Plus500 Ltd (DI) (PLUS) 625.20p 5.01%
Sophos Group (SOPH) 424.70p 4.89%
Homeserve (HSV) 1,206.90p 3.42%
Convatec Group (CTEC) 142.25p 2.86%
Stobart Group Ltd. (STOB) 115.00p 2.50%
FTSE 250 - Fallers
Babcock International Group (BAB) 469.80p -7.37%
Just Group (JUST) 59.00p -5.68%
Galliford Try (GFRD) 590.50p -4.60%
Restaurant Group (RTN) 128.50p -4.53%
Stagecoach Group (SGC) 131.00p -4.24%
Close Brothers Group (CBG) 1,437.00p -3.88%
Balfour Beatty (BBY) 226.60p -3.66%
Woodford Patient Capital Trust (WPCT) 77.95p -3.53%
Dixons Carphone (DC.) 119.75p -3.47%
Travis Perkins (TPK) 1,324.00p -3.43%
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