FTSE 250 movers: BTG and CYBG punished, investors get Coats
London's mid-cap index could not keep up the pace with its big sister on Tuesday, with the FTSE 250 losing a little ground as the FTSE 100 gained points.
Specialist healthcare company BTG was the biggest faller, with its shares tumbling more than 10% to levels last seen more than a year ago despite issuing final results where earnings per share surged 42% to 32.9p, beating the consensus forecast of 29.8p. However, directors financial guidance for the new financial year might have disappointed some investors.
The board guided to 13-15% sales growth at constant exchange rates in the interventional oncology and vascular business, a flat to single-digit percentage CER decline in pharmaceuticals and a flat to single digit improvement in operational expenditure. Noting that consensus expectations for BTG's 2019 revenue had been for around £620m, analysts at Shore Capital said that assuming a circa 20% fall in licensing revenues and a minimal contribution from early stage Interventional Medicine assets, "we would estimate guidance suggests a FY2019 revenue range of £595m-£600m, which hence looks light versus consensus forecasts".
Investors were similarly harsh on CYBG, the owner of Clydesdale Bank and Yorkshire Bank, after it increased underlying profits in the first six months of its financial year but saw PPI misselling costs dragged it into statutory losses. Adjusted profit of £158m in the six months to end-March was a 28% increase on the same period last year but short of the average analyst forecast of £164m as total income only grew 1.2%.
Shore Capital said the interim results were "slightly below consensus at an adjusted pre-tax profit level but full year guidance for costs has been upgraded suggesting to us that there should not be a material change in full year forecasts".
Coats Group, the thread maker, was the highest riser a day ahead of an expected trading statement. At February's final results announcement, the company said it was beginning 2018 "in a strong position, with continued momentum in our apparel and footwear and hi-tech performance materials businesses" and, while conditions in the North American crafts business were expected to remain challenging, a new management team had put in place "a refocused strategy". Shares had lost ground since then.
Likewise, Computacenter was up ahead of its AGM on Friday and retirement-focused Just Group was higher as investors anticipate a pleasing first-quarter update on Thursday.
Train and bus operator FirstGroup was lifted by reports that it is facing a mounting campaign from activist investors to put itself up for sale in the wake of a failed takeover bid from American private equity firm Apollo. The Telegraph shared some of the contents of a letter sent by major shareholder West Face Capital to chairman Wolfhart Hauser, chastising the board for failing to address “chronic” underperformance and calling for it to examine a sale. The Canadian investment group, which has been an active shareholder for more than a year, believes that analysts do not "understand" First Group which has led to an undervaluation.
Market Movers
FTSE 100 (UKX) 7,722.98 0.16%
FTSE 250 (MCX) 20,784.92 -0.08%
techMARK (TASX) 3,478.57 -0.72%
FTSE 250 - Risers
Coats Group (COA) 83.50p 7.74%
Computacenter (CCC) 1,346.00p 4.67%
Just Group (JUST) 144.00p 4.58%
FirstGroup (FGP) 113.40p 3.47%
Capita (CPI) 130.10p 3.38%
Cairn Energy (CNE) 247.60p 3.00%
Polypipe Group (PLP) 424.20p 2.81%
Bellway (BWY) 3,433.00p 2.75%
Bovis Homes Group (BVS) 1,298.00p 2.69%
Wood Group (John) (WG.) 676.00p 2.61%
FTSE 250 - Fallers
BTG (BTG) 590.50p -10.87%
CYBG (CYBG) 305.00p -5.63%
Purecircle Limited (DI) (PURE) 341.50p -5.01%
Polymetal International (POLY) 685.40p -3.79%
Inmarsat (ISAT) 382.40p -3.43%
Ferrexpo (FXPO) 232.90p -3.36%
Wizz Air Holdings (WIZZ) 3,200.00p -3.24%
PZ Cussons (PZC) 245.00p -3.09%
Virgin Money Holdings (UK) (VM.) 342.10p -2.84%
Intu Properties (INTU) 195.35p -2.67%