FTSE 100 movers: Meggitt disappoints with falling profits, airlines drop
Shares in Meggitt dropped sharply after it said profits dropped in the first half, reflecting the impact of currency headwinds and disposals on revenue. Underlying pre-tax profit sank 21% to £143.8m, well below analysts' forecasts.
Airline peers IAG and Easyjet were reeling in afternoon trade on rumours that Russian authorities are exploring the possibility of imposing a ban on European carriers' ability to fly over Siberia. Reports of a passenger plane being escorted by military jets to Manchester Airport may also have weighed on sentiment.
InterContinental Hotels was also firmly lower after missing forecasts in the first half. The hotels group gave an upbeat outlook but said underlying operating profits rose 6% to $301m, missing the $305m consensus estimate.
Royal Mail's stock was dented by comments from Credit Suisse, which said it sees "no near-term positive catalysts" for the postal company. The bank slashed its target price for the shares from 460p to 360p as it kept an 'underperform' recommendation, saying it expects Royal Mail to miss its margin targets.
Leading the risers was Intertek after JPMorgan Cazenove lifted its rating for the stock from 'neutral' to 'overweight', saying that the product testing group has reached an inflexion point for organic growth.
Meanwhile, engineer Weir was boosted by an RBC Capital Markets upgrade from 'outperform' to 'top pick', saying that the stock "should be valued at a greater premium".
Temporary power and temperature control group Aggreko gained as it kept its full-year guidance after good underlying growth in the first half, though reported results were weaker due to the "significant adverse impact" from currency movements.
Strong net inflows helped Standard Life grow assets under administration 4% to £254.1bn in the first half of the year, with revenues, profits and cash all increasing, pushing the stock higher..
FTSE 100 - Risers
Intertek Group (ITRK) 2,788.00p +3.03%
Weir Group (WEIR) 2,597.00p +2.85%
Standard Life (SL.) 370.60p +1.70%
Pearson (PSON) 1,132.00p +1.62%
Friends Life Group Limited (FLG) 327.10p +1.30%
Imperial Tobacco Group (IMT) 2,564.00p +1.26%
Centrica (CNA) 310.80p +1.17%
Associated British Foods (ABF) 2,791.00p +1.16%
Hargreaves Lansdown (HL.) 1,007.00p +1.16%
Royal Dutch Shell 'B' (RDSB) 2,567.00p +1.14%
FTSE 100 - Fallers
Meggitt (MGGT) 472.20p -6.22%
International Consolidated Airlines Group SA (CDI) (IAG) 314.50p -3.82%
InterContinental Hotels Group (IHG) 2,283.00p -3.47%
Barratt Developments (BDEV) 334.00p -3.16%
Royal Mail (RMG) 408.10p -3.00%
easyJet (EZJ) 1,245.00p -2.35%
Persimmon (PSN) 1,220.00p -2.09%
Travis Perkins (TPK) 1,676.00p -1.59%
BG Group (BG.) 1,203.50p -1.47%
Rolls-Royce Holdings (RR.) 1,025.00p -1.35%
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