FTSE 250 movers: Carillion surges but Lancashire hit by CS note

London's FTSE 250 was up 0.4% to 19,603.64 in afternoon trade as investors digested the latest UK inflation figures.

Carillion - whose shares tanked last week on the back of a profit warning - was the standout gainer after it was awarded two government contracts worth a total of £158m.

IG Group rallied after reporting a 3% increase in full-year pre-tax profit, while Just Group gained as it posted a 3% rise in new business sales for the six months to the end of June.

Qinetiq and TalkTalk were both in the black a day before their first-quarter updates.

Dairy Crest was also on the front foot after it said first-quarter trading was in line with expectations and the company's outlook for the full year remains unchanged.

In a statement for the three months to the end of June ahead of its annual general meeting later in the day, the group said that combined sales of its four key brands - Cathedral City, Clover, Frylight and Country Life - are 7% ahead of the same period last year. Cathedral City, Clover and Frylight have all grown strongly but Cathedral City has seen the strongest growth, with volumes up 15% on last year.

The stock was also boosted by an upgrade to 'buy' from 'hold' at Investec.

Going the other way, Melrose Industries was hit by a downgrade from Exane BNP Paribas to 'neutral' from 'outperform'.

Lancashire Holdings was in the red as Credit Suisse initiated coverage of the stock with an 'undeperform' rating and 610p price target, saying the valuation looks demanding. The bank said that while it expects Lancashire to continue to pay attractive special dividends, it is materially below consensus expectations on earnings.

Risers

Carillion (CLLN) 75.35p 12.63%
IG Group Holdings (IGG) 618.00p 11.35%
Petra Diamonds Ltd.(DI) (PDL) 107.50p 3.97%
QinetiQ Group (QQ.) 274.00p 3.95%
Just Group (JUST) 128.70p 3.79%
CLS Holdings (CLI) 209.50p 3.66%
TalkTalk Telecom Group (TALK) 187.40p 3.54%
Dairy Crest Group (DCG) 575.50p 3.32%
Petrofac Ltd. (PFC) 475.30p 3.26%
Ascential (ASCL) 338.20p 3.24%

Fallers

Melrose Industries (MRO) 231.80p -3.62%
Ferrexpo (FXPO) 209.40p -2.65%
Acacia Mining (ACA) 279.60p -2.44%
Vedanta Resources (VED) 740.50p -2.12%
Wizz Air Holdings (WIZZ) 2,561.00p -1.95%
Entertainment One Limited (ETO) 232.20p -1.78%
BGEO Group (BGEO) 3,499.00p -1.77%
Stagecoach Group (SGC) 179.80p -1.64%
Lancashire Holdings Limited (LRE) 723.00p -1.57%
Wood Group (John) (WG.) 612.50p -1.45%