FTSE 250 movers: Biffa bounds ahead, Winterflood woes for Close Bros

The FTSE 250 was down 0.45% to 17,642.34 at 1410 BST.

Waste management company Biffa surged on Tuesday after it agreed to be bought by private equity firm Energy Capital Partners (ECP) for around £1.3bn.

Under the terms of the deal, ECP will pay 410p per Biffa share. This represents a premium of 28% to the closing share price on 6 June, which was the last business day before the start of the offer period.

Biffa announced on 7 June that it had received a series of unsolicited and indicative proposals from affiliates of ECP. It said at the time that following a period of discussion and negotiation, ECP had put forward a proposal of 445p per share in cash.

Biffa chair Ken Lever said on Tuesday that although the agreed price is lower, "the offer represents a compelling opportunity, particularly in a weakening economic environment, for shareholders to realise, in cash and with certainty, the potential for future value creation".

"ECP is an experienced investor in environmental infrastructure and sustainability assets and offers a supportive environment to accelerate the group's further development and growth as a leading enabler of the circular economy," Lever said.

Merchant bank Close Brothers fell after posting a decline in full-year operating profit, with the Winterflood business hit by a slowdown in trading activity.

In the year to the end of July, adjusted operating profits fell 13% to £234.8m. Close Bros said this mainly reflects lower income from Winterflood Securities and an increase in impairment charges. After adjusting items, statutory operating profit before tax was down 12% to £232.8m.

The bank said its securities business saw reduced trading opportunities in higher margin sectors and periods of volatility in falling markets. Following "exceptionally strong" trading and elevated market activity a year earlier during the pandemic, operating profit in the Winterflood arm fell 77% to £14.1m.

Chief executive Adrian Sainsbury said: "Against a backdrop of continued market uncertainty, we have delivered a solid performance. The banking division has performed well as we continued to see good demand across our lending businesses and strong margins. CBAM was affected by falling markets but continued to attract client assets.

"Winterflood faced declining markets and reduced trading activity, in sharp contrast to the exceptionally strong conditions in the prior year. Although we are aware of the pressures that the rising inflation and interest rates will have on our customers and colleagues, I am confident that our proven and resilient business model, strong financial position and deep expertise leave us well positioned to continue to support them now and into the future."

FTSE 250 - Risers

Biffa (BIFF) 408.00p 28.38%
Network International Holdings (NETW) 298.40p 4.63%
Clarkson (CKN) 2,635.00p 3.74%
HGCapital Trust (HGT) 350.50p 3.70%
Baltic Classifieds Group (BCG) 134.80p 2.90%
Polymetal International (POLY) 205.00p 2.76%
Bank of Georgia Group (BGEO) 2,100.00p 2.69%
Hammerson (HMSO) 19.25p 2.64%
ITV (ITV) 61.54p 2.64%
Diversified Energy Company (DEC) 125.90p 2.61%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 146.60p -8.38%
International Public Partnerships Ltd. (INPP) 140.60p -8.10%
Close Brothers Group (CBG) 950.00p -7.14%
SDCL Energy Efficiency Income Trust (SEIT) 98.90p -4.90%
Target Healthcare Reit Ltd (THRL) 89.90p -4.77%
LXI Reit (LXI) 120.80p -4.58%
HICL Infrastructure (HICL) 159.60p -3.97%
Synthomer (SYNT) 143.10p -3.90%
CLS Holdings (CLI) 144.00p -3.87%
Trainline (TRN) 304.80p -3.70%