FTSE 250 movers: Amec tumbles as it slashes dividend; Supergroup shines on strong sales

London’s FTSE 250 was down 0.4% to 17,120.80 at 1440 GMT, as investors digested the Bank of England’s decision to stand pat on interest rates and its asset-purchase programme.

On the downside, shares in Amec Foster Wheeler tumbled after the oil and gas engineering services company announced it was cutting its dividend by half amid tough market conditions and lifted its cost-savings target for the year.

Amec said that in light of ongoing weakness in the oil and gas markets, it has taken “the prudent step” to reduce its future ordinary dividend payments. It now expects to recommend a final dividend for 2014 of around 14.2p, which is half the equivalent declared last year.

The stock was hit further by a downgrade to ‘neutral’ from buy’ from Bank of America Merrill Lynch.

“The weak macro environment is posing problems, and the reduction in the dividend is a hindrance to the investment case. Whilst increased cost savings is a positive, they are unlikely to offset other negative factors influencing the cash flow generation capability,” the bank said.

Travel company Thomas Cook was under the cosh after Prime Minister David Cameron decided late on Wednesday to ground all UK-bound flights from Sharm el-Sheikh in Egypt following the Russian plane crash in the Sinai desert last week. Investors were concerned that the move could reduce demand for holidays in Egypt.

Hunting was lower after Canaccord Genuity cut its price target on the stock to 325p from 400p following the company’s trading update on Tuesday. It pointed out that Thanksgiving is on 26 November this year, and the US oil industry is now widely anticipated to start the seasonal holiday then. “This means that we think the US rig count will likely drop even further, and that suppliers to the industry - like Hunting - will see very little work over the period and likely close to zero gross margin.”

On the upside, clothing retailer Supergroup was the standout gainer after it said sales grew 22.4% in the first half, although it warned comparatives throughout the second half were more challenging. Sales in the first half to October 24 rose to £254.9m on the back of positive growth in existing retail and wholesale channels and a healthy new store pipeline. Total revenue in Retail was up 30.9% to £172.2m, while Wholesale revenue increased 8% to £82.7m.

Howden Joinery was a high riser after saying it remains well positioned to achieve its expectations for the full year as it reported a good sales performance so far in the second half. The supplier of kitchens and joinery said total revenue at its UK depots rose 12.8% in the second half of the year to 31 October despite the toughening comparators that have been seen since June.

Just Retirement was also on the front foot as it posted a 41% increase in first quarter sales and lifted its sales forecast for pension products. For the three months ended 30 September, which make up the first quarter of its 2015/2016 financial year, total new business sales came in at £359.9m from £255.1m in the same period a year ago. The figure beat consensus expectations of around £279m.

Challenger bank Shawbrook advanced as it posted a sharp rise in underlying profit in the first three quarters of 2015, boosted by higher demand for loans for small businesses. In the nine months to the end of September, it registered a 68% year-on-year increase in underlying profit to £54.5m, while the bank’s loan book rose 23% to £2.9bn.

Risers

Supergroup (SGP) 1,609.00p 8.57%
Howden Joinery Group (HWDN) 496.20p 8.15%
Lancashire Holdings Limited (LRE) 732.50p 4.27%
Redrow (RDW) 447.90p 4.11%
Bellway (BWY) 2,517.00p 2.69%
Drax Group (DRX) 287.80p 2.60%
Just Retirement Group (JRG) 164.50p 2.49%
Shawbrook Group (SHAW) 365.00p 2.47%
Pets at Home Group (PETS) 286.90p 2.43%
Just Eat (JE.) 446.70p 2.38%

Fallers

Amec Foster Wheeler (AMFW) 581.00p -22.22%
Thomas Cook Group (TCG) 111.60p -7.77%
Premier Oil (PMO) 81.75p -7.10%
Petra Diamonds Ltd.(DI) (PDL) 75.55p -6.84%
Petrofac Ltd. (PFC) 817.00p -6.47%
Hunting (HTG) 351.40p -5.77%
Ashmore Group (ASHM) 263.50p -5.52%
TalkTalk Telecom Group (TALK) 224.00p -5.12%
Tullow Oil (TLW) 221.30p -5.02%
Kaz Minerals (KAZ) 114.70p -4.89%