FTSE 250 movers: Crest Nicholson slumps on warning; Indivior up on settlement

UK home builder Crest Nicholson lowered annual profit forecasts after a worsening of the housing market amid rising inflation and interest rates.

The company said it expected annual profits to be around £50m in a “challenging” market, down from prior forecasts of £73m, but predicted a fall in interest and inflation rates over the medium term.

“Against a backdrop of persistently high inflation and rising interest rates, trading conditions for the housing market have worsened during the summer of this year,” the company said on Monday.

“While pricing has remained resilient in a market with limited supply and few distressed sellers, the economic uncertainty is deterring prospective home movers.”

Crest Nicholson said higher borrowing costs for those looking to upgrade homes or with low levels of equity - notably first-time buyers - "has become significantly more expensive with no government support now in place to cushion this impact after the controversial "help to buy" scheme ended last year.

Addiction treatment specialist Indivior announced on Monday that its US subsidiary has entered into an agreement to settle the claims initiated by the end payor class in the ongoing multi-district suboxone antitrust litigation.

The FTSE 250 company said the agreement would resolve the claims filed by the end payor claimants against it, within the scope of the multi-district litigation.

For the agreement to take full effect, it required a preliminary nod from the US District Court for the Eastern District of Pennsylvania, after which there would be a designated notice period.

The agreement also remained contingent on the participation of a suitable number of end payors, and would eventually need the court's final approval.

Integral to the settlement, Indivior US was projected to disburse $30m to the end payor claimants.

That figure would come from the firm’s previously-earmarked provision of $188m for the multi-district litigation.

Preparations were underway for the settlement amount to be deposited into an escrow account dedicated to the end payor claimants' benefit by September, using Indivior’s available cash reserves.

Indivior said it was preparing for a trial set for 30 October pertaining to the unresolved claims of the direct purchaser class, although it said it remained open to a settlement there as well.

“We remain focused on helping those suffering from substance use disorders and mental illness,” said chief executive officer Mark Crossley.

“Resolving these legacy legal matters at the right value helps us further our mission for patients and creates greater certainty for our stakeholders.”

Market Movers

FTSE 250 (MCX) 18,039.48 -0.32%

FTSE 250 - Risers

Indivior (INDV) 1,806.00p 2.67%
TUI AG Reg Shs (DI) (TUI) 533.50p 2.60%
Bakkavor Group (BAKK) 102.50p 2.50%
W.A.G Payment Solutions (WPS) 87.00p 2.11%
Harbour Energy (HBR) 244.70p 2.00%
Greencoat UK Wind (UKW) 136.20p 1.64%
Wizz Air Holdings (WIZZ) 2,205.00p 1.57%
Ninety One (N91) 166.60p 1.52%
4Imprint Group (FOUR) 4,895.00p 1.45%
Syncona Limited NPV (SYNC) 140.00p 1.45%

FTSE 250 - Fallers

Crest Nicholson Holdings (CRST) 179.10p -7.68%
Ferrexpo (FXPO) 76.10p -4.28%
CLS Holdings (CLI) 120.60p -4.13%
Caledonia Investments (CLDN) 3,300.00p -3.23%
Future (FUTR) 737.50p -3.02%
Auction Technology Group (ATG) 677.00p -2.73%
Hammerson (HMSO) 24.52p -2.70%
Bytes Technology Group (BYIT) 467.80p -2.54%
Redrow (RDW) 454.60p -2.36%
Mitie Group (MTO) 92.40p -2.33%