FTSE 250 movers: Builders feel Berkeley ripples; NEX soars on bid approach
Updated : 14:30
The ripples from FTSE 100 housebuillder Berkeley Group's attack on "market constraints" stopping it from building more homes were felt on the mid-cap as peers including Galliford Try, Crest Nicholson, Travis Perkins, and Kier all fell on Friday.
Pub group JD Wetherspoon shares fell as the company posted its preliminary half-year results on Friday, reporting a small 3.6% rise in revenue before exceptional items to £830.4m but adding that it "remains cautious" about the second half of the year.
The FTSE 250 company said its like-for-like sales were ahead 6.1% year-on-year in the 26 weeks to 28 January, while its profit before tax jumped 20.6% to £62m. Operating profit was 13.6% higher at £74m.
After exceptional items, profit before tax was up 36.1% at £54.3m, operating profit rose 13.6% to £74m, and earnings per share were 44.1% higher at 39.2p.
In a typically bizarre, politically charged, anti-EU statement, Wetherspoon chairman Tim Martin chose not to focus on his own company’s numbers, instead claiming that recent comments from economists and food retailers that food prices will rise as a result of Brexit were false.
“This is a fallacy - the EU is a protectionist organisation which imposes high taxes on food, clothing, wine and thousands of other items from non-EU countries - which comprise around 93% of the world's population.
Shares in outsourcing company Mitie were slightly lower as the company said it expected full operating profits to be slightly below the previous year after modest growth in sales.
The company said revenue growth should be in the range of 2% - 2.5% at around £2.2bn.
Chief executive Phil Bentley said the company had seen “limited impact” on the company in the wake of the collapse of sector peer Carillion, although he added this had raised “some fundamental questions about the outsourcing industry”.
A massive jump in NEX Group shares to an all-time high kept the market from deeper falls. The inter-dealer broker, formerly known as ICAP, confirmed overnight that it has received a preliminary approach by US giant CME Group regarding a potential takeover.
"Discussions are at an early stage and there can be no certainty that an offer for NEX will be made, nor as to the terms of any offer, if made."
Shares in NEX, where founder Michael Spencer sold the ICAP voice broking business for £1.3bn to Tullet Prebon to create TP Icap, rocketed 30%.
Broker Numis said the company is an appealing acquisition target as financial infrastructure businesses continue to consolidate. Analysts highlighted London Stock Exchange as being a strong candidate as a suitor or Deutsche Borse, or Singapore’s SGX, which could imply these talks may encourage other lurkers to make a move.
Numis said its 800p target price reflected "a possible offer, expected to be at a premium to the current share price" and that it would "await further developments".
Market Movers
FTSE 250 (MCX) 19,766.67 -0.31%
Nex Group (NXG) 872.50p 30.13%
Dignity (DTY) 1,008.00p 6.61%
Hochschild Mining (HOC) 198.55p 3.68%
Euromoney Institutional Investor (ERM) 1,292.00p 2.54%
Computacenter (CCC) 1,156.00p 2.48%
Cairn Energy (CNE) 202.40p 1.71%
Provident Financial (PFG) 957.60p 1.66%
Virgin Money Holdings (UK) (VM.) 263.10p 1.62%
Barr (A.G.) (BAG) 637.00p 1.59%
RHI Magnesita N.V. (DI) (RHIM) 4,445.00p 1.25%
FTSE 250 - Fallers
Polymetal International (POLY) 748.20p -4.22%
Galliford Try (GFRD) 964.50p -4.22%
Crest Nicholson Holdings (CRST) 449.60p -4.01%
Brown (N.) Group (BWNG) 183.20p -3.53%
Kier Group (KIE) 1,004.20p -3.26%
TalkTalk Telecom Group (TALK) 106.10p -3.02%
Assura (AGR) 59.80p -2.76%
Hiscox Limited (DI) (HSX) 1,483.00p -2.75%
Capita (CPI) 158.85p -2.73%
Travis Perkins (TPK) 1,271.50p -2.72%