FTSE 250 movers: Jupiter ascending, Coats dropped
The FTSE 250 finished up 1.14% at 19,399.65 on Friday, led by fund manager Jupiter.
Jupiter Fund Management surged as its final results came in a touch below consensus but the dividend was better than expected.
Broker Numis upgraded to an 'add' recommendation as it saw a number of pieces of good news, including management finding a way of mitigating the negative regulatory capital impact that was expected from the adoption of IFRS16, to keep the dividend broadly unchanged at a 90% total payout ratio, with surplus capital has actually slightly increased.
Second, the revenue margin "held up better than we had feared", there were actions to lower run rate costs in 2019 and analysts calculated that Dynamic Bond saw net inflows in February albeit the group as a whole was still net flow negative due to other funds.
Analysts believe the first three reasons "remove a reasonable degree of short term uncertainty that we feel had been overhanging the shares [...] We further note that the medium to long term strategic outlook/direction remains uncertain whilst we wait to hear from the new CEO (who only starts today) and whilst a new CFO is recruited."
Plastics group Essentra was up after recording an 8% increase in pre-tax profits from continuing operations to £80m as its components unit grew profits 13% and filters by 1.5%. Analysts at Peel Hunt praised the "good progress" followed the restructuring programme last year but noted that 2019 looked set to see "slower progress" due to macro headwinds and heightened investments into central resources.
Vivo Energy climbed as it completed a deal with Engen Holdings to add operations in eight new countries, and 230 Engen-branded service stations to Vivo Energy's network.
Engineering group IMI lost ground over the course of the day after reporting an adjusted pre-tax profit up 12%.
Among the fallers, William Hill was in the red after saying it swung to a full-year pre-tax loss of £721.9m from a profit of £146.5m in 2017. Management said the next few years “will require careful navigating and investment”, but felt that with a clear strategy and experienced leadership teams in place “we are ready to capitalise on the opportunities available to us”.
Coats Group was under the cosh as the thread maker suffered a drop in 2018 profit, even though this was mostly due to one-offs. House broker Peel Hunt said the results were in line with expectations, expecting the shares, now trading on a 15.4x p/e ratio to pause for breath after a strong run.
Hedge fund manager Man Group declined as its full-year funds under management dipped and adjusted pre-tax profits fell to $251m from the $384m a year ago. Boss Luke Ellis said: "Looking ahead, we have had a healthy number of new mandate wins but as clients respond to changes in the market and adjust their portfolios we have also seen a pick-up in redemptions."
Market Movers
FTSE 250 (MCX) 19,359.37 0.93%
FTSE 250 - Risers
Jupiter Fund Management (JUP) 363.90p 7.44%
Just Group (JUST) 108.50p 5.24%
JD Sports Fashion (JD.) 489.50p 5.11%
Spirent Communications (SPT) 157.40p 5.07%
Vivo Energy (VVO) 133.00p 4.48%
Essentra (ESNT) 393.40p 4.41%
Galliford Try (GFRD) 772.00p 4.39%
Morgan Advanced Materials (MGAM) 268.20p 3.95%
Electrocomponents (ECM) 575.40p 3.90%
Sophos Group (SOPH) 340.00p 3.72%
FTSE 250 - Fallers
Coats Group (COA) 79.70p -10.05%
Indivior (INDV) 103.45p -3.68%
Man Group (EMG) 133.75p -3.18%
Hochschild Mining (HOC) 193.05p -2.70%
William Hill (WMH) 182.90p -2.48%
Acacia Mining (ACA) 213.01p -1.48%
Ascential (ASCL) 363.40p -1.20%
Millennium & Copthorne Hotels (MLC) 465.00p -1.17%
Meggitt (MGGT) 533.20p -1.11%
Howden Joinery Group (HWDN) 487.40p -1.08%