FTSE 250 movers: Galliford Try builds up, Entertainment One trots lower
London's FTSE 250 was up 0.46% at 19,424.86 in afternoon trade on Tuesday, with Galliford Try leading the index higher.
The government contractor leapt after confirming that it was cutting 350 jobs at its troubled construction division after a strategic review, adding that it expected its full year results to be in line with its own forecasts.
Analysts from Canaccord said: "The market is likely to be relieved that the update does not contain any further negative surprises. Management is making a sensible decision to simplify and shrink the construction business. Less exposure to Scottish Infrastructure and a greater focus on core areas should result in a more stable performance going forward. Generally, underlying trading appears to be going well."
UDG Healthcare was on the rise as it announced two acquisitions and lifted its 2019 adjusted earnings per share guidance, while Electrocomponents rallied as it posted a 23.9% jump in full-year profit thanks to "strong" market share gains in EMEA and the Americas.
Home emergency repairs business HomeServe also made gains after it reported a 14% increase in full-year adjusted pre-tax profit on Tuesday, with a particularly pleasing performance in North America.
At the other end of the pitch, stock in Entertainment One retreated as the Peppa Pig owner said full-year pre-tax profit slumped 43% to £36.8m as it was hit by a one-off charge related to its home entertainment business.
Neil Wilson, chief market analyst at Markets.com, said: "Group reported underlying EBITDA rose 21% to £198m. Well done Peppa. But group reported profit before tax nearly halved to £37m from £65m a year ago. Revenues were also weaker, sliding largely because of a decline in Film. Peppa Pig is still the star attraction and driving the growth in Family & Brands. PJ Masks is doing its bit too, but you have to wonder just how long the Peppa Pig juggernaut lasts."
Merlin Entertainments was also on the way down after analysts at UBS cut the stock's target price from 275p to 295p, just a day after the stock fell sharply on the back of a downgrade to 'reduce' at HSBC, where analysts referenced the company's "sluggish" long term underlying performance as the reason behind their changed views.
Finally, convenience food producer Greencore edged lower after interim revenues dropped by 4.6% to £701.4m as it faced a "challenging" UK market, though adjusted pre-tax profits rose to £37.7m from £32.2m.
FTSE 250 (MCX) 19,424.86 0.46%
FTSE 250 - Risers
Galliford Try (GFRD) 613.50p 14.35%
UDG Healthcare Public Limited Company (UDG) 717.00p 9.38%
Electrocomponents (ECM) 656.80p 8.28%
Homeserve (HSV) 1,165.00p 6.68%
Saga (SAGA) 52.32p 6.51%
Funding Circle Holdings (FCH) 261.00p 5.45%
Metro Bank (MTRO) 689.00p 5.03%
Sophos Group (SOPH) 403.70p 4.59%
TI Fluid Systems (TIFS) 193.00p 4.32%
Acacia Mining (ACA) 155.80p 3.18%
FTSE 250 - Fallers
Entertainment One Limited (ETO) 425.60p -7.56%
Royal Mail (RMG) 217.00p -6.83%
Wizz Air Holdings (WIZZ) 3,190.64p -3.66%
Merlin Entertainments (MERL) 338.60p -3.26%
Meggitt (MGGT) 506.80p -3.17%
Ferrexpo (FXPO) 218.80p -2.67%
Sirius Minerals (SXX) 15.48p -2.64%
Stobart Group Ltd. (STOB) 111.00p -2.46%
Greencore Group (GNC) 217.50p -2.29%
Convatec Group (CTEC) 136.75p -2.29%