FTSE 250 movers: Galliford Try powers ahead while Redrow drags its feet

The FTSE 250 was just above the line in afternoon trading on Wednesday, as commodities provided a boost and investors took heart from solid jobs data.

Galliford Try led the risers, after it proposed a bumper final dividend after it reported a record annual profit thanks to strong growth and a positive outlook at its housebuilding, affordable housing partnerships and construction arms.

On revenue up 10% to £2.67bn in the year to 30 June, profit before tax was increased 18% to £135.0m, with earnings per share up 17% to 132.5p.

The final dividend was hoisted 22% to 56p to lift the total 21% to 82p per share.

Homeware retailer Dunelm was little changed after reporting a rise in full-year profit and revenue as it grew its market share despite increasing competition, and lifted its dividend.

On the downside, Ocado traded sharply lower on Wednesday afterExane BNP Paribas downgraded the stock to ‘underperform’ from ‘neutral’, keeping the price target at 215p, as it pointed to margin pressure and said the market’s expectations for profitability were too high.

The bank said its gross margin assumption was the most important it makes in its Ocado model and once again, it expects it to be down in the second half.

Housebuilders including Redrow were lower after new housing minister Gavin Barwell gave a strong indication of a material shifting in housing policy, hinting that controversial Starter Homes scheme will be scrapped and the government will pursue policies to expand the public sector and private sector rental markets.

Analyst Robin Hardy at Shore Capital, who pointed out that housebuilders instead used the various government stimulus measures to create a golden trading environment with substantial benefits for margins, returns, cash flow and dividends, said the new policy direction "likely to see a change in the dynamics of the house builders’ profitability especially if there is any adjustment to the scope and scale of Help-to-Buy".

FTSE 250 - Risers

Galliford Try (GFRD) 1,203.00p 6.37%
Genus (GNS) 1,974.00p 4.61%
Hochschild Mining (HOC) 265.10p 3.68%
Softcat (SCT) 328.90p 3.20%
Ultra Electronics Holdings (ULE) 1,752.00p 2.64%
Just Eat (JE.) 544.50p 2.54%
Polymetal International (POLY) 997.00p 2.31%
Aberdeen Asset Management (ADN) 327.80p 2.12%
AO World (AO.) 165.70p 2.09%
Vectura Group (VEC) 135.10p 1.81%

FTSE 250 - Fallers

Ocado Group (OCDO) 254.00p -8.63%
PayPoint (PAY) 995.50p -4.28%
CYBG (CYBG) 249.60p -3.63%
Shawbrook Group (SHAW) 235.10p -3.41%
Debenhams (DEB) 58.55p -3.30%
Sports Direct International (SPD) 303.90p -3.00%
Redrow (RDW) 390.10p -2.98%
Countrywide (CWD) 230.40p -2.58%
Virgin Money Holdings (UK) (VM.) 289.10p -2.36%
McCarthy & Stone (MCS) 174.70p -2.24%