FTSE 250 movers: Moneysupermarket surges on fintech plans, Babcock tumbles
London's FTSE 250 was down 0.4% to 20,891.13 in afternoon trade on Thursday, but Moneysupermarket bucked the trend as investors welcomed plans for a new mortgage fintech.
Price comparison website Moneysupermarket surged as it posted a rise in interim profit and revenue and announced plans for a new mortgage business.
In the six months to 30 June, profit after tax and revenue rose 5% to £42.5m and £173.7m, respectively, with sales driven by increased energy switching in the period and a solid performance in the insurance business.
The group also announced that it has joined forces with the founders of HD Decisions to launch a new mortgage business.
Liberum, which rates the stock at 'hold', said: "Mortgages are likely to be a key part of potential future growth and is a clear area of opportunity."
On the downside, Babcock International tumbled as it said delays in defence activity will hold back its underlying revenue growth to low single digits this year.
The engineer said aviation sector growth is expected to be strong and having begun the process to sell off two low-margin "non-strategic" businesses and make other smaller disposals of non-core businesses through the year, said it was still confident of hitting its full year earnings and debt targets.
Sports Direct suffered heavy losses after it reported a 73% slump in annual profits as it took an £85.4m hit on its Debenhams holding. Still, EBITDA increased 12.2% to £306.1m and adjusted pre-tax profit rose 34.5% to £152.9m, which was well ahead of consensus forecasts for £295m.
RBC Capital Markets kept its rating on the stock at 'underperform' with a 325p target price and said it believes "it will be challenging to execute on its strategy to upgrade its brand and store portfolio in the UK and SPD may face dollar sourcing pressure again later next year owing to the recent fall in the £ versus the USD".
Lee Wild, head of equity strategy at Interactive Investor, noted the shares are up 10% in the past two weeks, meaning it's unsurprising that sellers have emerged following the results.
"While the numbers are at the top end of expectations, the shares now look expensive, and traders will have demanded even more to justify further buying at these prices," he said.
FTSE 250 - Risers
Moneysupermarket.com Group (MONY) 331.30p 7.11%
McCarthy & Stone (MCS) 105.60p 5.07%
Ferrexpo (FXPO) 170.15p 4.45%
Hikma Pharmaceuticals (HIK) 1,541.00p 4.44%
Stagecoach Group (SGC) 169.82p 3.42%
Superdry (SDRY) 1,359.00p 2.80%
esure Group (ESUR) 200.00p 2.25%
Rank Group (RNK) 179.70p 2.22%
Greencore Group (GNC) 178.60p 2.17%
Greene King (GNK) 537.00p 2.01%
FTSE 250 - Fallers
Babcock International Group (BAB) 717.40p -10.66%
Sports Direct International (SPD) 400.12p -8.25%
Contour Global (GLO) 232.00p -4.92%
Bank of Georgia Group (BGEO) 1,805.00p -4.90%
AA (AA.) 109.30p -4.21%
Elementis (ELM) 259.00p -4.15%
Thomas Cook Group (TCG) 97.35p -3.99%
IntegraFin Holding (IHP) 388.00p -3.24%
Energean Oil & Gas (ENOG) 533.00p -3.09%
TalkTalk Telecom Group (TALK) 112.40p -2.94%