FTSE 250 movers: AA motors on as Inmarsat slips out of orbit
The market was flat on Friday ahead of US data, but there was still enough corporate news among FTSE 250 stocks for investors to pick over,
Satellite operator Inmarsat fell after saying it would be cutting its annual dividend to 20 cents a share as it cited “the lack of visibility” over future cash payments from US partner Ligado beyond the end of 2018 and the need to take advantage of the growing in-flight wi-fi market.
The company said it would pay a final dividend of 12 cents a share, making a total of 33.62 cents per share, adding future payouts would stay at the lower level "until the cash flow of the business rebuilds sufficiently to make an increase appropriate".
Fourth quarter earnings before interest, tax, depreciation and amortisation (EBITDA) fell 26% to $163.7m. For the full year EBITDA was 8% lower at $731.5m. Group revenue increased by 5.4% to $1.4bn.
Renewi slumped after the waste-to-products business said a review of contracts in its waste management division would lead to additional write-downs worth a £73m.
Building products supplier SIG dropped as it reported a 10% decline in underlying profits and cash flow shrinking by a third as the UK market becomes "increasingly challenging".
However, due to a more buoyant mood in Europe and Ireland, the FTSE 250 group "see considerable potential for a significant improvement in operational and underlying financial performance" for 2018.
On the upside, sports betting and gaming company GVC Holdings, which received shareholder approval for its merger with Ladbrokes Coral this week, rallied as posted a rise in full-year adjusted profit and net gaming revenue, thanks in part to the acquisition of Bwin.
In the year to the end of December 2017, adjusted pre-tax profit jumped 182% to €178.7m on a pro-forma basis while net gaming revenue increased 17% to €925.6m. Meanwhile, total clean earnings before interest, tax, depreciation and amortisation rose 33% % to €274.2m.
Shares in car recovery and motor insurer group AA were also up. The troubled company has been subject to speculation that a private equity investor may swoop to buy it.
Market Movers
FTSE 100 (UKX) 7,219.87 0.23%
FTSE 250 (MCX) 20,049.40 0.41%
techMARK (TASX) 3,394.32 0.11%
FTSE 250 - Risers
AA (AA.) 86.30p 7.93%
Rotork (ROR) 286.80p 4.56%
FDM Group (Holdings) (FDM) 978.00p 4.04%
Wood Group (John) (WG.) 655.40p 3.90%
GVC Holdings (GVC) 934.50p 3.78%
John Laing Group (JLG) 250.60p 3.58%
Sanne Group (SNN) 699.00p 3.56%
Sirius Minerals (SXX) 29.38p 3.38%
Petrofac Ltd. (PFC) 488.14p 3.33%
Hiscox Limited (DI) (HSX) 1,519.00p 2.98%
FTSE 250 - Fallers
SIG (SHI) 142.00p -5.21%
Inmarsat (ISAT) 440.09p -5.13%
Renewi (RWI) 85.90p -3.91%
Ferrexpo (FXPO) 291.60p -3.44%
Brown (N.) Group (BWNG) 194.40p -2.80%
Acacia Mining (ACA) 132.30p -2.79%
Alfa Financial Software Holdings (ALFA) 380.00p -2.31%
Fenner (FENR) 467.00p -2.06%
Serco Group (SRP) 95.03p -2.03%
Hill & Smith Holdings (HILS) 1,322.62p -2.03%