FTSE 250 movers: Ascential surges; AJ Bell hit by downgrade
London’s FTSE 250 was up 1.1% at 17,045.06 in afternoon trade on Monday.
Ascential was the standout gainer on the index after agreeing to sell its digital commerce business and its product design business, WGSN, for a combined £1.4bn.
The digital commerce business will be sold to Omnicom for around £741m, while WGSN will be sold to Apax Partners for up to £700m.
Once the deals complete, Ascential expects to return around £850m to shareholders, most likely by way of a special dividend, "although the quantum, timing and form of the return of value will remain at the discretion of the board".
AJ Bell was in the red as Citi downgraded the shares to ‘neutral’ from ‘buy’, saying it was awaiting "a better entry point".
"We are constructive on AJ Bell’s growth opportunity," it said. "Our AUA estimates are 1-3% above consensus, driven by higher net flows. Yet we have become increasingly concerned about margin risk."
It said the FCA’s Consumer Duty regime has been more disruptive than expected, and that it expects growing pressure for UK platforms to pass on higher interest to their customers.
Citi said it had reviewed risks to cash margins in detail and concluded "that AJ Bell is among the most exposed".
FTSE 250 - Risers
Ascential (ASCL) 266.60p 23.65%
CAB Payments Holdings (CABP) 55.15p 15.98%
Digital 9 Infrastructure NPV (DGI9) 44.00p 9.45%
Foresight Group Holdings Limited NPV (FSG) 358.00p 8.48%
Ithaca Energy (ITH) 171.30p 4.45%
Bank of Georgia Group (BGEO) 3,325.00p 4.40%
TBC Bank Group (TBCG) 2,735.00p 4.39%
PZ Cussons (PZC) 131.80p 4.27%
Wizz Air Holdings (WIZZ) 1,613.50p 4.10%
Just Group (JUST) 74.50p 4.05%
FTSE 250 - Fallers
NextEnergy Solar Fund Limited Red (NESF) 78.40p -4.97%
CLS Holdings (CLI) 85.30p -3.72%
AJ Bell (AJB) 248.60p -3.64%
W.A.G Payment Solutions (WPS) 91.00p -3.19%
Ceres Power Holdings (CWR) 191.00p -2.55%
Jlen Environmental Assets Group Limited NPV (JLEN) 88.00p -2.11%
Diversified Energy Company (DEC) 67.90p -2.09%
Paragon Banking Group (PAG) 454.40p -1.60%
The Renewables Infrastructure Group Limited (TRIG) 102.80p -1.53%
Baillie Gifford Japan Trust (BGFD) 640.00p -1.08%