FTSE 250 movers: Metro Bank dives, Capita racks up gains

London's FTSE 250 was down 0.61% in afternoon trading on Wednesday, as Metro Bank once again found itself under the cosh.

Having pushed its full-year results out quietly after the close on Tuesday and confirmed a £350m cash call, the challenger bank also stated overnight that it had received notification that the PRA and FCA plan to investigate the circumstances and events that led to its risk-weighted adjustment announced last month.

A note from analysts at Olivetree said: "The market expected either a capital raise, or slower growth, but not both; and we think they are effectively raising £500m. We believe this is enough for now, but not definitively so. We estimate their revised growth and ROE ambitions mean they have halved their earnings targets and are likely to miss FY20 consensus estimates by 50%. This leaves the stock looking extremely expensive on >20x FY20 P/E, three times the multiple of peers."

Meanwhile, Ted Baker slid as the fashion retailer warned that profit for the financial year ended 26 January 2019 will be down on the previous year as it takes a hit from currency movements, additional costs following the transition to new systems and a writedown in the value of aged stock.

Recruitment outfit Pagegroup dropped ahead of the release of its full-year results next week, while engineering business Meggitt dropped after being cut to ‘neutral’ at JPMorgan.

Capita was the top riser on the index, with Playtech following close behind after it signed a new long-term agreement with GVC Holdings to provide its services and products to all GVC brands in existing and new markets.

A broker note from Berenberg said: "This is a win/win deal for both companies, with GVC benefiting from faster cost synergies and more products for its brands, and Playtech extending and lengthening a relationship with a key client."

Finally, Weir Group edged upward after reporting that its full-year pre-tax profits rose by 22% to £310m as orders increased 15% on a like-for-like basis to £2.5bn.

Market Movers

FTSE 250 (MCX) 19,153.32 -0.61%

FTSE 250 - Risers

Capita (CPI) 122.80p 4.33%
SIG (SHI) 126.00p 3.70%
Playtech (PTEC) 430.40p 3.34%
Plus500 Ltd (DI) (PLUS) 794.50p 2.78%
Galliford Try (GFRD) 746.31p 2.37%
TalkTalk Telecom Group (TALK) 101.20p 2.27%
Rank Group (RNK) 166.00p 2.22%
Weir Group (WEIR) 1,631.50p 2.16%
Polypipe Group (PLP) 415.40p 1.91%
TI Fluid Systems (TIFS) 185.20p 1.76%

FTSE 250 - Fallers

Metro Bank (MTRO) 1,015.55p -21.88%
Ted Baker (TED) 1,760.00p -12.00%
Pagegroup (PAGE) 442.80p -4.16%
Centamin (DI) (CEY) 93.08p -3.96%
Dechra Pharmaceuticals (DPH) 2,364.00p -2.88%
Meggitt (MGGT) 535.20p -2.87%
Contour Global (GLO) 173.00p -2.81%
JD Sports Fashion (JD.) 471.90p -2.66%
Merlin Entertainments (MERL) 355.00p -2.47%
Ascential (ASCL) 357.20p -2.40%