FTSE 250 movers: Diploma surges on results; Thomas Cook slumps after Paris attacks

London’s FTSE 250 index was up 0.1% to 16,796.09 at 1400 GMT, with energy-related stocks sharply higher as oil prices rose amid air strikes in Syria following Friday’s terrorist attacks in Paris.

Technical instruments-to-wiring maker Diploma was a high riser after it reported a 4% jump in full year pre-tax profits to £51.8, although the weaker Australian and Canadian dollars impacted on results. Revenues were up 9% to £333.8m, while free cash flow rose 7% to £40.3m.

Chief executive Bruce Thompson said: “While the board remains cautious on the current macroeconomic backdrop, we remain confident that the group's resilient business model with a diverse geographic spread of activities and strong financial position, together with a more favourable environment for acquisitions will provide a good platform to deliver further growth in the coming year," he said.

Energy stocks surged as oil prices advanced amid air strikes in Syria, with Premier Oil, Tullow Oil and Petrofac all firmly higher.

In addition, Premier was boosted by news it has agreed to sell its Nowegian business, Premier Oil Norge AS to Det Norske for $120m (£79m), which will be used to pay down the company’s debt.

Tullow Oil got a lift after UBS upgraded the stock to ‘buy’ from ‘neutral’ and raised the price target to 240p from 230p as it called a bottom to the net asset value downgrade cycle. “This is a well-financed company with quality assets and a proven development track-record, offering long-term oil price exposure at the bottom of the cycle, yet well hedged at the front end (around 50% of 2016E production at $75/bbl),” it said.

Petrofac gained ground after announcing that it has been awarded a contract by Saudi Aramco to undertake the engineering, procurement, and construction of a sulphur recovery plant as part of the company’s Fadhili programme.

Engineering specialist Keller Group was in the black after saying it remains confident results for the year will be in line with current market expectations despite challenging conditions in many of its markets, thanks in part to strength in US construction, which is its main market.

Thomas Cook was under the cosh, tracking broader losses in the travel and leisure sector in the aftermath of the Paris terror attacks. Kepler Cheuvreux said the consequences of the Paris attacks were negative for the entire travel and leisure sector in Europe. “People only travel when they feel they are safe. If not, international tourism in particular can be hit hard considering that conventions, fairs or any other leisure trips can be postponed to a safer period,” it said.”

Shares in Restaurant Group slid as Nomura cut its rating on the stock to ‘reduce’ from ‘neutral’. The Japanese bank said the company had an impressive record of earnings growth, with a compound annual growth rate of 12%. However, it attributed its negative stance to the threat of the national living wage, set to be introduced next year. “Effectively a 10% increase from April 2016, we believe its potential to affect a labour-intensive business such as RTN is being underappreciated by the market.”

Risers

Diploma (DPLM) 705.00p 15.95%
Premier Oil (PMO) 73.55p 6.90%
Tullow Oil (TLW) 194.70p 5.64%
Petrofac Ltd. (PFC) 786.50p 5.64%
SIG (SHI) 126.50p 5.42%
BTG (BTG) 566.00p 4.62%
Keller Group (KLR) 818.50p 3.54%
Tullett Prebon (TLPR) 341.40p 3.45%
PayPoint (PAY) 1,016.00p 2.63%
Centamin (DI) (CEY) 61.00p 2.52%

Fallers

Enterprise Inns (ETI) 95.50p -4.88%
Thomas Cook Group (TCG) 102.00p -4.67%
Restaurant Group (RTN) 635.50p -3.86%
Kaz Minerals (KAZ) 77.25p -3.44%
Evraz (EVR) 76.30p -3.11%
Ocado Group (OCDO) 348.80p -2.60%
Spectris (SXS) 1,615.00p -2.30%
Card Factory (CARD) 361.60p -2.27%
Grafton Group Units (GFTU) 619.50p -2.13%
Home Retail Group (HOME) 97.30p -2.11%