FTSE 250 movers: Interserve tumbles on impairment; CapCo up on trading update

London’s FTSE 250 index was down 0.3% to 16,608.19 in afternoon trading, as investors digested a weaker-than-expected non-farm payrolls report.

Interserve suffered heavy losses after saying expectations for its UK construction division have taken a significant hit due to a further deterioration in its Glasgow energy from waste contract.

As a result of issues relating to the design, procurement and installation of the gasification plant, along with continuing challenges with the supply chain that will result in further cost overruns and delays, it now anticipates a £70m exceptional contract provision to be taken in the first half of 2016.

Man Group was also firmly under the cosh after Citigroup cut its stance on the stock to ‘sell’ from ‘buy’, saying the shares were fully valued.

Clarkson fell after warning the short-term outlook remains “very challenging” and risks to the full-year outcome have increased, putting a heavier weighting on the second half.

In a statement to be made at the company’s annual general meeting in London, chairman James Hughes-Hallett said global shipping markets have continued to be challenging this year, with the ClarkSea Index – a weighted average index of earnings for the main vessel types in shipping – down 25% for the same period year-on-year and 24% on the quarter.

On the upside, Centamin was the standout gainer after RBC Capital Markets lifted its price target on the stock and pointed out the company was delivering above-peer group free cash flow yield and dividend yields.

Capital & Counties was also in the black after reporting strong trading activity in the year to date as its redevelopment of the Covent Garden and Earls Court areas in central London continued.

Morgan Advanced Materials rose after saying trading was in line with expectations in the first three months of the year.

The firm’s board said trading was unchanged from its outlook in February, with the transition to a new global organisation structure now successfully completed as part of the implementation of the group’s strategy.

Risers

Centamin (DI) (CEY) 119.70p 7.64%
Capital & Counties Properties (CAPC) 345.10p 3.60%
Cranswick (CWK) 2,376.00p 3.44%
IMI (IMI) 974.00p 3.23%
McCarthy & Stone (MCS) 225.00p 3.16%
Cobham (COB) 162.50p 3.11%
Morgan Advanced Materials (MGAM) 231.60p 2.93%
JRP Group (JRP) 137.90p 2.76%
Inchcape (INCH) 685.50p 2.54%
Supergroup (SGP) 1,253.00p 2.54%

Fallers

Interserve (IRV) 322.30p -18.24%
Man Group (EMG) 129.90p -8.78%
Tullow Oil (TLW) 237.00p -7.78%
Clarkson (CKN) 2,159.00p -4.81%
BBA Aviation (BBA) 188.50p -4.65%
Vedanta Resources (VED) 368.70p -4.61%
UK Commercial Property Trust (UKCM) 80.00p -3.38%
Ibstock (IBST) 190.40p -3.25%
Amec Foster Wheeler (AMFW) 448.30p -3.20%
Virgin Money Holdings (UK) (VM.) 329.40p -2.52%