FTSE 250 movers: Micro Focus tanks on profit warning
The FTSE 250 was down 1.59% at 18,647.09 at 1400 BST.
Shares in IT group Micro Focus International tanked as the company said it would miss its full-year revenue target, prompting an accelerated operations review.
The stock fell by more than a third to a 16-month low at one point after the unscheduled update. The company cited weak sales execution and a deteriorating economic environment as it downgraded its revenue forecast for the year to October 31 to between minus 6% and minus 8%, compared with previous guidance of minus 4% to minus 6%.
“We have determined that it is appropriate to accelerate the undertaking of a strategic review of the group’s operations with a view to determining where performance can be improved and how the business can be better positioned to optimize shareholder value,” said chief executive Stephen Murdoch.
Royal Mail shares were down more than 5% on news that staff were balloting for industrial action over a 2% pay offer.
More than 115,000 postal workers will be balloted in the coming weeks on whether to take industrial action. Voting papers will be sent out on 28 June, with the result announced on 19 July.
FTSE 250 - Risers
Drax Group (DRX) 668.00p 4.70%
Auction Technology Group (ATG) 880.00p 2.33%
FirstGroup (FGP) 135.20p 2.11%
Direct Line Insurance Group (DLG) 247.70p 1.31%
Virgin Money UK (VMUK) 128.25p 1.30%
Biffa (BIFF) 403.00p 1.05%
Savills (SVS) 1,017.00p 0.99%
Hochschild Mining (HOC) 108.40p 0.84%
Pagegroup (PAGE) 402.80p 0.70%
SDCL Energy Efficiency Income Trust (SEIT) 118.80p 0.68%
FTSE 250 - Fallers
Micro Focus International (MCRO) 290.00p -18.88%
Vesuvius (VSVS) 307.20p -8.24%
Polymetal International (POLY) 178.75p -8.05%
RHI Magnesita N.V. (DI) (RHIM) 2,074.00p -7.33%
Baltic Classifieds Group (BCG) 140.20p -6.53%
Royal Mail (RMG) 265.70p -5.48%
HGCapital Trust (HGT) 343.50p -5.24%
Aston Martin Lagonda Global Holdings (AML) 507.20p -4.88%
Morgan Advanced Materials (MGAM) 277.50p -4.80%
Bodycote (BOY) 536.50p -4.62%