FTSE 250 movers: Investors lose appetite for Restaurant Group, but Cairn surges

London’s FTSE 250 index was down 0.2% to 16,620.44 at 1415 GMT, as investors digested better-than-expected data on manufacturing and industrial production.

Leading the index down, Restaurant Group shares tumbled as investors reacted to its downbeat outlook for 2016. Although the company served up a solid set of 2015 results, like-for-like sales have faltered as the challenging trading conditions from the end of last year continue into 2016 and look set to linger for longer.

Despite total sales having risen 6% in the 10 weeks of trading in 2016, like-for-like sales have been down by 1.5% and the softness is "likely to persist".

G4S was also sharply lower after the security firm posted a drop in 2015 pre-tax profit and revenue, mainly on the back of onerous contracts and restructuring costs.

Pre-tax profit fell to £78m from £128m in 2014 as the company took a hit from a £66m impairment charge related to a business in Estonia and a number of businesses held for sale, onerous contract provisions and restructuring costs.

G4S highlighted onerous contract provisions of £65m, restructuring of £44m, losses on businesses being sold or closed of £40m and non-cash charges of £106m relating to the amortisation/impairment of goodwill.

Specialist building products company SIG slumped as its 2015 results disappointed. Revenue grew 3.7% on a constant currency basis, but dipped 1.4% in real terms, to £2.57bn from £2.6bn in 2014.

Meanwhile, underlying operating profit was down 11.2% to £98.7m and underlying pre-tax profit shrank 11.8% to £87.4m.

On a statutory basis, operating profit grew to £65.9m from £53.2m, and basic earnings per share were 6.1p, compared to 5.6p last year.

Among the risers, Cairn Energy put in a stellar performance after the oil and gas exploration and development company said it was “delighted” with the results of a second successful test well out of three drilled offshore Senegal, with oil flowing at rates that bode well for the wider field.

Oil from the SNE-3 appraisal well flowed at a maximum rate of 5,400 barrels of oil per day, with a second well gushing at around 5,200 bopd.

NMC Health was in the black a day after it officially opened the largest private health facility in the UAE this week, NMC Royal.

Risers

Cairn Energy (CNE) 185.00p 9.08%
Wizz Air Holdings (WIZZ) 1,829.00p 3.80%
Euromoney Institutional Investor (ERM) 948.00p 2.60%
NMC Health (NMC) 930.50p 2.42%
Grafton Group Units (GFTU) 682.00p 2.40%
Auto Trader Group (AUTO) 369.00p 2.39%
CLS Holdings (CLI) 1,653.00p 1.97%
Howden Joinery Group (HWDN) 466.20p 1.95%
DFS Furniture (DFS) 316.60p 1.90%
Henderson Group (HGG) 247.60p 1.85%

Fallers

Restaurant Group (RTN) 437.60p -19.41%
G4S (GFS) 183.00p -13.96%
Mitchells & Butlers (MAB) 270.10p -6.86%
SIG (SHI) 134.80p -6.84%
TalkTalk Telecom Group (TALK) 240.90p -4.40%
Centamin (DI) (CEY) 89.65p -3.91%
Acacia Mining (ACA) 264.30p -3.47%
Evraz (EVR) 91.60p -3.27%
Morgan Advanced Materials (MGAM) 229.50p -3.16%
Bodycote (BOY) 569.00p -3.15%