FTSE 250 movers: Essentra boost for index; William Hill in the red

Shares in plastics supplier Essentra keep the FTSE 250 in positive territory on Friday as the company said it had returned to profit growth, unveiling a 7% rise in half-year pre-tax profits to £21m.

Revenue fell to £513.1m from £522.6m, but was unchanged on a like-for-like basis, the company said.

The interim dividend was held at 6.3p a share as Essentra reported margin growth in three of its four divisions.

"I am pleased by the group's continued transformation and the progress we have made on our strategic objectives in the first half of 2018, returning the company to profit growth while maintaining widespread stability across the organisation,” said chief executive Paul Forman.

“I believe we have now turned a corner in packaging, although there is still much to do. The sequential improvement in 2018 in both the revenue trend and profitability is testament to the significant efforts we have made to stabilise the business, to focus on doing the basics better and to become an increasingly valued partner to our customers.”

Cobham shares were on the up, despite sales slumping over the first half of the year as it ran into trouble with Boeing on the KC-46 tanker programme.

But following divestments during the period, management argued that the resulting company was now more focused and the balance sheet stronger. It maintained full year guidance.

On an underlying basis, sales over the six months ending on 30 June fell by 10.1% to £924.5m, with profits before tax retreating from £73.7m in the year ago period to £60.9m.

Earnings per share meanwhile slipped from 2.7p to 2.0p and free cash flow from £64.6m to £9.2m.

More positively, the sale of the AvComm and Wireless test and measurement businesses allowed Cobham to almost eliminate its debt pile, which decreased from £460.8m to £53.6m, for a net debt to EBITDA ratio of just 0.2.

Kaz Minerals climbed as HSBC upgraded its shares to 'hold' from 'reduce' after the miner's sharp fall the day before when it announced a $900m deal to buy a copper prospect in Russia that will need $5.5bn of investment to bring into production by the middle of next decade.

The analysts said: "We expect rotation of the shareholder base as the investment case realigns to growth from expectations of deleveraging and potential cash returns."

Bookmaker William Hill shares fell as it reported a big swing into the red as it took a £916m charge in the first half of the year after the government cracked down on fixed-odds betting terminals.

The FTSE 250 group reported a £819.6m loss before tax for the 26 weeks to 27 June, down from a £93.1m profit a year earlier. This included £882.8m non-cash impairment taken as a result of the government's triennial review into FOBTs and also £29.9m of exceptional costs relating to restructuring, which is expected to see further costs of around £15m in the second half.

During the period the company generated a 3% increase in revenue to £802.6m, with gross win from the World Cup of £11.0m in the half and more to come in the second half. While online gambling and the US delivered improved net revenue, betting shops saw weaker trends.

The long running saga at Stobart Group hit the shares as court papers filed on Thursday claimed former chief executive Andrew Tinkler had incurred millions of pounds in expenses including £1m on helicopter transport and £0.6m in private jet flights paid by Stobart to companies Tinkler owned. One invoice for helicopter costs was for £0.17m, Stobart alleged in its case against him.

Market Movers

FTSE 100 (UKX) 7,644.59 0.91%
FTSE 250 (MCX) 20,679.60 0.64%

FTSE 250 - Risers

Essentra (ESNT) 516.50p 7.25%
Cobham (COB) 129.65p 4.09%
Kaz Minerals (KAZ) 611.20p 3.98%
Inmarsat (ISAT) 558.51p 3.85%
Premier Oil (PMO) 123.00p 3.71%
Weir Group (WEIR) 1,923.50p 3.53%
Mediclinic International (MDC) 511.80p 3.19%
Coats Group (COA) 82.40p 3.13%
Alfa Financial Software Holdings (ALFA) 168.70p 3.12%
Spectris (SXS) 2,377.00p 3.08%

FTSE 250 - Fallers

William Hill (WMH) 269.13p -7.93%
TI Fluid Systems (TIFS) 250.00p -3.10%
Travis Perkins (TPK) 1,101.50p -2.78%
Hikma Pharmaceuticals (HIK) 1,623.50p -2.20%
Stobart Group Ltd. (STOB) 215.39p -1.87%
Energean Oil & Gas (ENOG) 508.00p -1.55%
Millennium & Copthorne Hotels (MLC) 517.00p -1.34%
Senior (SNR) 302.00p -1.18%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 318.00p -0.93%
IG Group Holdings (IGG) 927.00p -0.91%