FTSE 250 movers: Entertainment One slumps; Amec jumps on refinancing

London’s FTSE 250 index was down 0.3% to 16,743.10 at 1445 GMT as investors weighed up weak data on UK construction against a better-than-expected ADP employment report from the US.

Peppa Pig owner Entertainment One was under the cosh after it posted a drop in sales and earnings for the nine months to the end of December, weighed down by weakness in the film division.

Revenues slipped 3% as strong 39% growth in television sales were offset by the film weakness. At the half year sales were up 2%, implying the third quarter has been down 13% on an arithmetic basis.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were 15% higher on a reported basis, which implies a major weakening in the third quarter as EBTIDA growth was 43% in the first half of the year.

Funeral provider Dignity was also on the back foot despite posting a rise in profit and revenue for 2015 on the back of an unforeseen jump in the death rate.

Revenues rose 14% in the year to 25 December to £305.3m, while underlying pre-tax profit was up 23% to £72.2m.

Peel Hunt noted Dignity shares have had a good run and are trading on a price-to-earnings ratio of 22x to Dec 2016 and EV/EBITDA of 15.6x.

Discount retailer Poundland was under pressure after it announced that former Dixons and Kingfisher finance director Kevin O'Byrne will replace chief executive Jim McCarthy when he retires in July.

Having mooted his intentions to the board last year, McCarthy confirmed he will retire at the age of 60, after 10 years in the job, on 1 July

Petrofac slid after Investec downgraded the stock to ‘hold’ from ‘buy’ saying investors should pause for breath following the recent strong rally in the share price, but lifted the price target to 940p from 780p.

Investec noted that Petrofac has a strong order backlog and good prospects for further contract wins in 2016, given its essentially 100% MENA exposure.

However, the ongoing farm-down process in Mexico may not result in a large cash release, it said.

Diversified miner Vedanta Resources bucked the trend as metals prices advanced.

Amec Foster Wheeler was also on the up after saying it has completed a £1.7bn refinancing of its main debt facilities.

The engineering services company said the new facility with a syndicate of 20 banks includes a three year £650m term loan, a five-year £650m term loan and a five-year revolving credit facility.

This replaces Amec’s existing revolving credit facility and the Foster Wheeler acquisition facility.

Virgin Money was a high riser as results from its first full year as a listed company impressed investors, with pre-tax profits much higher than forecast and a healthier balance sheet.

The 'challenger' bank lifted underlying profit before tax 53% to £160.3, well ahead of a consensus for £151m, as costs and impairments were both lower than expected.

Revenues of £268.7m were as expected, with underlying net interest margin rising 15 points to 165 basis points over the year.

Risers

Vedanta Resources (VED) 301.20p 8.74%
Amec Foster Wheeler (AMFW) 411.90p 5.75%
AO World (AO.) 170.30p 5.12%
CLS Holdings (CLI) 1,549.00p 5.09%
Shawbrook Group (SHAW) 299.80p 4.61%
Virgin Money Holdings (UK) (VM.) 355.20p 4.41%
Big Yellow Group (BYG) 759.00p 4.04%
Nostrum Oil & Gas (NOG) 267.10p 3.93%
International Personal Finance (IPF) 265.70p 3.79%
Lookers (LOOK) 162.60p 3.77%

Fallers

Entertainment One Limited (ETO) 149.40p -13.64%
Centamin (DI) (CEY) 91.10p -6.66%
Dignity (DTY) 2,431.00p -5.41%
Inchcape (INCH) 728.00p -3.45%
Bellway (BWY) 2,517.00p -3.12%
Greggs (GRG) 1,159.00p -3.09%
Poundland Group (PLND) 175.80p -3.03%
Petrofac Ltd. (PFC) 883.50p -2.97%
Playtech (PTEC) 844.50p -2.93%
esure Group (ESUR) 250.90p -2.71%