FTSE 250 movers: Capco gains on update; broker notes hit Man and Halma

London’s FTSE 250 was down 0.6% to 17,501.72 in afternoon trade, with downbeat broker notes responsible for some of the fallers.

Man Group was under the cosh after Exane BNP Paribas downgraded the stock to ‘neutral’ from ‘outperform’.

“We see scope for a slowdown in flows as a consequence of flagging performance at AHL and at GLG. Performance issues are also likely to impact the long term outlook for management fee margins.”

The bank said the continued sluggish fund performance, impacting the outlook for performance fees and fund flows, prompts material downgrades to its earnings expectations, adding that the amount of surplus capital for materially accretive deals is limited.

Halma also declined as Liberum downgraded the stock to ‘sell’ from ‘hold’.

The brokerage said the company’s first-half results were solid and that defensive market exposure and well-respected management remain attributes.

“However, acquisitions are becoming harder to move the needle. Moreover, we expect multiple contraction as deflation has come to an end."

Restaurant Group was lower as HSBC initiated coverage of the stock at ‘reduce’ with a 290p price target, saying there is a gap between the current share price and the likely pace of recovery at the company.

The bank pointed out that Restaurant Group was one of the UK’s most successful restaurant operators for almost a decade, but recent issues caused by pushing hard on prices, inconsistent service levels and a confused proposition have resulted in a series of profit warnings.

Aberdeen Asset Management was in the red after saying annual profits fell by more than a quarter as its funds under management were hit by almost £33bn of outflows, which have continued in the new financial year but have begun to improve.

On the upside, Capital & Counties was the standout gainer as the property developer said it is on track to hit its estimated rental value target of £100m at Covent Garden by December next year as leasing activity has been positive.

In a trading update for 1 July to 28 November, the FTSE 250 property developer said that year-to-date at Covent Garden has set a new record for leasing activity, with 84 leases transacted representing £11.2m of income.

JD Sports Fashion gained as it announced the acquisition of outdoor pursuits retail chain Go Outdoors for £128.3m from owners that include private equity group 3i.

JD has paid £112.3m cash and assumed £16m of debt to purchase Sheffield-based Go Outdoors, which operates 58 stores, most of which are based in out-of-town retail parks.

Grainger was also in the black as the residential landlord agreed to acquire a private build-to-rent development in Bristol for £45.7m.

Grainger will forward fund the private rental sector project at Finzels Reach, while Cubex Land will be the developer and Willmott Dixon will be the contractor.

Risers

Capital & Counties Properties (CAPC) 279.60p +5.79%

CYBG (CYBG) 281.80p +3.72%

JD Sports Fashion (JD.) 330.00p +3.32%

Domino's Pizza Group (DOM) 357.70p +3.11%

Pennon Group (PNN) 830.50p +1.65%

Paragon Group Of Companies (PAG) 370.20p +1.59%

Marston's (MARS) 134.70p +1.51%

Telecom Plus (TEP) 1,230.00p +1.32%

Grainger (GRI) 223.20p +1.22%

CLS Holdings (CLI) 1,594.00p +1.21%

Fallers

Evraz (EVR) 243.10p -4.67%

Pets at Home Group (PETS) 212.80p -4.45%

Man Group (EMG) 118.80p -4.04%

International Personal Finance (IPF) 279.10p -3.63%

Halma (HLMA) 936.50p -3.45%

Ashmore Group (ASHM) 285.80p -3.25%

Cairn Energy (CNE) 183.20p -3.22%

Inmarsat (ISAT) 710.50p -3.20%

Aberdeen Asset Management (ADN) 277.10p -3.15%

Restaurant Group (RTN) 332.60p -3.09%