FTSE 250 movers: IWG expansion concerns investors, Pets at Home signals recovery
(ShareCast News) - The FTSE 250 was 0.16% lower in afternoon trade on Tuesday as earnings season rumbled more quietly towards its conclusion, with IWG leading the fallers after it reported decreasing profits.
The office space group, formerly known as Regus, was down over 9% in the afternoon after showing a 6% drop in its profits for the first six months of 2017 as management prioritised growth over short-term profits, near-doubling new growth capital expenditure to £180m.
IWG chief executive Mark Dixon said: "Against the backdrop of improving sales trends we have made the decision to invest in our network to deliver additional earnings growth and shareholder value creation over the medium-term. In this regard, we decided to opportunistically acquire properties as well as further accelerate our growth."
Also in trouble was AA, after Credit Suisse downgraded the stock to 'underperform' from 'neutral' due to perceived operational challenges at its roadside division. Credit Suisse cut the insurance firm's target price to 175p from 235p.
Gold producer Acacia Mining was also at the wrong end of the index despite the strong price for the yellow metal. Acacia is has been losing around $1m a day due to a dispute with the Tanzanian government.
Pets at Home purred at the top of the FTSE 250 following its second-half earnings report, which saw a 5% jump in the company's revenue for the period. The pet supplies firm was 6.3% higher in the early afternoon off the back of the release of better financial results that look to have ended a disappointing couple of years that have seen its stock fall from above 300p to below 160p last month.
Mike Ashley-owned Sports Direct was another of the better performers after Japanese sports brand Asics said it was partnering with the company to set up its own stores within the UK chain.
FTSE 100 (UKX) 7,526.26 -0.08%
FTSE 250 (MCX) 19,949.64 -0.19%
techMARK (TASX) 3,433.47 -0.25%
FTSE 100 - Risers
Associated British Foods (ABF) 3,167.00p 1.67%
Taylor Wimpey (TW.) 193.60p 1.10%
Direct Line Insurance Group (DLG) 410.30p 1.03%
Kingfisher (KGF) 308.10p 0.88%
Royal Mail (RMG) 402.20p 0.88%
Next (NXT) 4,369.00p 0.88%
Marks & Spencer Group (MKS) 331.00p 0.79%
Ferguson (FERG) 4,705.00p 0.75%
Royal Dutch Shell 'A' (RDSA) 2,212.50p 0.68%
Smith & Nephew (SN.) 1,344.00p 0.67%
FTSE 100 - Fallers
Paddy Power Betfair (PPB) 7,210.00p -4.50%
InterContinental Hotels Group (IHG) 4,240.00p -3.88%
Burberry Group (BRBY) 1,780.00p -1.60%
Sainsbury (J) (SBRY) 246.00p -1.60%
Rio Tinto (RIO) 3,583.50p -1.47%
Provident Financial (PFG) 2,041.00p -1.40%
BHP Billiton (BLT) 1,380.00p -1.15%
Vodafone Group (VOD) 224.70p -0.84%
Merlin Entertainments (MERL) 474.20p -0.84%
Rolls-Royce Holdings (RR.) 949.00p -0.84%
FTSE 250 - Risers
Pets at Home Group (PETS) 183.20p 6.33%
Sports Direct International (SPD) 410.50p 3.32%
PayPoint (PAY) 890.50p 2.89%
Nostrum Oil & Gas (NOG) 418.80p 2.57%
Thomas Cook Group (TCG) 118.80p 1.97%
Evraz (EVR) 265.80p 1.64%
Genus (GNS) 1,780.00p 1.60%
Serco Group (SRP) 110.90p 1.46%
Sophos Group (SOPH) 489.30p 1.45%
Supergroup (SGP) 1,552.00p 1.44%
FTSE 250 - Fallers
IWG (IWG) 312.80p -8.80%
AA (AA.) 185.60p -7.66%
Acacia Mining (ACA) 175.10p -5.50%
Hikma Pharmaceuticals (HIK) 1,372.00p -3.99%
Just Group (JUST) 147.10p -2.97%
CLS Holdings (CLI) 204.00p -2.86%
SIG (SHI) 165.90p -2.70%
Essentra (ESNT) 548.50p -2.40%
Petrofac Ltd. (PFC) 456.40p -2.25%
QinetiQ Group (QQ.) 236.40p -2.23%