FTSE 250 movers: Debenhams, Elementis sink on warnings

The FTSE 250 was trading just above the waterline on Wednesday afternoon, as investors remained cautious a day ahead of Britain’s referendum on EU membership.

Banks and financial services all featured among the top risers as all eyes in the City looked to the EU referendum on Thursday night, with Shawbrook Group and Virgin Money Holdings among the top risers.

It came as news emerged that a number of banks have started looking at office space in Frankfurt, in case a British exit from the European Union would necessitate the moving of some or all of their London operations.

London’s place as the primary location for euro-denominated trading could come into jeopardy in the case of Brexit, with the European Central Bank keen to ensure clearing houses outside the eurozone are barred from handling the currency - something the UK has so far managed to stop.

“I think a lot of people in Britain are creating illusions of what it will be like for the UK if it votes to leave the EU, and what it means for the City of London,” said Tarek Al-Wazir, economic minister in the German state of Hesse, in an interview with the Financial Times.

“They are unaware that banks are looking at the situation and asking: ‘where else could we go?”

Circassia Pharmaceuticals was also recovering, after its stock crashed more than 60% on Monday.

The biopharmaceutical development firm revealed first thing this week that its much-trumpeted cat allergy medication had failed against a placebo in phase three clinical trials.

Since then, the company has vowed to focus on its wider portfolio, including sales of its Niox portfolio of asthma management products, and advancing its pipeline of respiratory products.

On the downside sat Elementis, which warned before the session opened that its Chromium division was failing to live up to expectations in the first half.

The firm said that North American operations were performing in line, but weakness against the greenback - particularly in Eastern Europe - was dragging the division down internationally.

“As a result, sales and margins outside of North America for the year as a whole are expected to be materially lower than the previous year,” Elementis said in a statement.

Department store chain Debenhams was also under pressure, after revealing a 0.2% dip in like-for-like sales in the 15 weeks to 11 June, or 1.6% at constant currencies.

At the same time, the retailer revised its gross margin guidance for the year down to flat, though the management team said they currently anticipate full-year pre-tax profit “will be within the range of market forecasts”.

FTSE 250 - Risers

Circassia Pharmaceuticals (CIR) 101.00p 4.12%
Shawbrook Group (SHAW) 292.40p 3.61%
Lancashire Holdings Limited (LRE) 577.50p 3.59%
Aberdeen Asset Management (ADN) 301.90p 3.39%
BGEO Group (BGEO) 2,624.00p 2.94%
Cineworld Group (CINE) 584.00p 2.91%
Countrywide (CWD) 348.80p 2.89%
FirstGroup (FGP) 100.80p 2.86%
Amec Foster Wheeler (AMFW) 458.70p 2.85%
Virgin Money Holdings (UK) (VM.) 352.80p 2.74%

FTSE 250 - Fallers

Elementis (ELM) 205.70p -9.14%
Synthomer (SYNT) 338.00p -5.06%
Debenhams (DEB) 70.50p -5.05%
Domino's Pizza Group (DOM) 1,009.00p -3.17%
Sports Direct International (SPD) 372.30p -3.12%
Genus (GNS) 1,512.00p -3.01%
Restaurant Group (RTN) 331.00p -2.47%
Paysafe Group (PAYS) 384.50p -2.29%
Hastings Group Holdings (HSTG) 183.60p -2.18%
Worldwide Healthcare Trust (WWH) 1,760.00p -1.95%