FTSE 250 movers: Fidessa and Spectris rally; TalkTalk hit by CS note

London’s FTSE 250 was down 0.2% to 19,690.16 in afternoon trade on Monday, as investors paused for breath after last week’s gains and ahead of a busy week.

Trading and investment management software and services provider Fidessa rallied after it reported solid growth in its transforming markets in its final results, with revenue rising 7% to £353.9m.

Industrial instruments maker Spectris rose after it said full year pre-tax profit rose 12% to £218.4m, lifted by acquisitions and a recovery in US and key market demand. Revenues were up 13% to £1.53bn, or 6% on a like-for-like basis. The final dividend was increased by 9% to 56.5p.

On the downside, TalkTalk was weaker as Credit Suisse reiterated its ‘underperform’ rating on the stock and slashed the price target to 90p from 140p to reflect the company’s £200m share placing and cuts to its March18-20 EBITDA forecasts following the third-quarter update.

“At our target price TalkTalk would trade on around a sector calendar 2018E EV/EBITDA multiple of 6.3x, which we believe is now appropriate given TalkTalk now has similar low-single digit EBITDA growth per annum to the sector over the next few years after the one-off FY19E EBITDA boost from exiting UK mobile."

AA was under the cosh as Berenberg downgraded the insurer and roadside assistance company to ‘sell’ from ‘hold’ and cut the price target to 100p from 170p.

The bank argued that the short-term risks are greater than previously assumed, and the company will likely need to cut its dividend. In addition, it said the strategy update planned for 19 February is likely to significantly increase investment into the business, further pushing the possible deleveraging story into the outer years.

Acacia Mining lost its shine after confirming late on Friday that it had begun a process to explore the value of the sale of a stake in some or all of its Tanzanian operations.

Risers

Fidessa Group (FDSA) 2,780.00p 6.72%
Virgin Money Holdings (UK) (VM.) 272.70p 4.52%
Cairn Energy (CNE) 191.40p 4.31%
Spectris (SXS) 2,752.00p 3.97%
Merlin Entertainments (MERL) 354.60p 3.56%
Pets at Home Group (PETS) 176.10p 3.35%
BGEO Group (BGEO) 3,434.00p 3.25%
Intermediate Capital Group (ICP) 1,033.00p 2.79%
Ferrexpo (FXPO) 303.90p 2.63%
Crest Nicholson Holdings (CRST) 490.01p 2.51%

Fallers

Sophos Group (SOPH) 506.00p -4.98%
McCarthy & Stone (MCS) 142.92p -4.08%
TalkTalk Telecom Group (TALK) 103.00p -3.10%
Purecircle Limited (DI) (PURE) 430.00p -2.93%
AA (AA.) 115.48p -2.67%
Convatec Group (CTEC) 210.70p -2.14%
Indivior (INDV) 375.90p -1.85%
Marshalls (MSLH) 407.80p -1.83%
Acacia Mining (ACA) 160.05p -1.78%
IWG (IWG) 237.80p -1.78%