FTSE 250 movers: Ted Baker unwinds, Ferrexpo boosted by pellet prices

London's FTSE 250 was down 0.73% at 20,152.52 in afternoon trade on Thursday.

Shares in fashion retailer Ted Baker tumbled as it posted a rise in interim revenue thanks to a solid performance from its online segment but a 3.2% drop in reported pre-tax profit as it incurred exceptional costs of £600,000 related to debtor balances owed by House of Fraser which are not expected to be recovered following the department store chain's entry into administration in August.

Even so, Liberum reiterated a 'buy' with a target price of 3,100p as the broker was impressed by the "flexibility" of the retailer's business model. "Revenues are lower than we had hoped, but a variable cost model, management’s forward planning and the ability to flex sales through channels, have combined to deliver a commendable result," analysts said.

Spire Healthcare's shares fell as the healthcare provider was downgraded to ‘underperform’ and had its target price snipped from 160p to 115p by Jefferies, where analysts said that it was becoming “increasingly clear” that Spire's aims of reaching £200m in underlying earnings by 2022 were "likely to slip”.

The company had set out the targets at a capital markets day in April, alongside aims for 80% of sales to come from private patients and 100% of its hospitals rated good/outstanding by CQC on the same timeline.

Analysts also commented that the healthcare provider's private medical insurance and NHS segments were “lagging” and that a high concentration of rival insurers coupled with the uncertainty of Brexit had created a distinctly "unhelpful" environment for Spire.

Recruitment and human resources firm Hays also dropped in afternoon trade on Thursday ahead of its release of a trading statement next week.

Iron miner Ferrexpo stormed after it was boosted to ‘overweight’ at Barclays with a target price of 300p, raised from 140p, on the back of rising iron pellet premiums. "Significant increases in spot pellet premiums drive upgrades to our forecasts and price target for Ferrexpo, and should lead to consensus 2019 earnings per share estimates rising substantially, in our view," said a Barclays note.

Canary Wharf owners Brookfield is preparing a bid for shopping centre owner Intu Properties, trade title Estates Gazette reported just after the closing bell. It is understood that no formal offer has yet been made.

Healthcare company BTG advanced as it upgraded its full-year sales expectations thanks to strong products sales in the first half for its interventional medicine business. The company said it was upgrading forecasts for the combined vascular and oncology portfolios to 15%-17% growth for the year on a constant currency basis following the incorporation of varicose veins treatment.

RBC Capital Markets reiterated its 'underperform' rating of the company's shares with a target price of 510p.

Clydesdale and Yorkshire Bank owner CYBG and Virgin Money rose after they received approval by the financial conduct authority and prudential regulation authority for their £1.7bn merger. The former company announced its intention to buy Virgin Money with an all-share offer in June. Virgin Money shareholders, who approved the merger last month, will receive 1.2125 new CYBG shares for every Virgin Money share held and will own approximately 38% of the total business.

Electronics and industrial components distributor Electrocomponents rallied as it said it plans to invest more in the Asia Pacific region to "drive faster longer-term growth" after a half year where group profits are expected to grow 27%.

"In particular we plan to invest in Asia Pacific in both digital and customer acquisition to drive faster longer-term growth in this important region. We are also investing to further develop our capabilities in electronics and single board computing," said a statement from the company.

Liberum reiterated its 'buy' rating in the company's shares with a target price of 780p, commenting that the company's performance was "extremely encouraging" given the competition that it faces.

Market Movers

FTSE 250 (MCX) 20,152.52 -0.73%

FTSE 250 - Risers

Ferrexpo (FXPO) 226.70p 8.16%
Just Group (JUST) 80.66p 7.69%
BTG (BTG) 589.00p 5.27%
Equiniti Group (EQN) 246.00p 4.68%
Virgin Money Holdings (UK) (VM.) 384.20p 4.09%
Electrocomponents (ECM) 745.60p 3.76%
AA (AA.) 97.84p 3.51%
Indivior (INDV) 205.30p 3.35%
Greencore Group (GNC) 197.92p 2.92%
CYBG (CYBG) 318.00p 2.71%

FTSE 250 - Fallers

Ted Baker (TED) 2,100.00p -9.01%
BBA Aviation (BBA) 288.60p -5.93%
Hays (HAS) 192.30p -5.83%
Spire Healthcare Group (SPI) 139.04p -5.29%
Superdry (SDRY) 1,020.00p -3.95%
Inchcape (INCH) 641.50p -3.82%
Hammerson (HMSO) 439.20p -3.60%
Syncona Limited NPV (SYNC) 292.00p -3.47%
Pennon Group (PNN) 689.80p -3.42%
Genus (GNS) 2,386.00p -3.32%