FTSE 250 movers: IPF plunges after profit dips

The FTSE 250 had undone the week’s gains on Wednesday, dropping 140.42 points (0.87%) to 16,088.78 by mid-afternoon.

Shares in International Personal Finance plunged after the company’s full year revenue and profit before tax dipped.

The credit business reported revenue dropped from £783.2m to £735.4m for the calendar year, however it rose 4.1% on a constant currency basis.

That in turn made profit before tax and exceptional items dip from £123.5m to £116.1m.

That was despite an increase in customers from 2.64m to 2.81m, and a small rise in credit issued from £1.022bn to £1.043bn.

Chief executive Gerard Ryan said it was a robust performance considering a number of significant regulatory matters impacting the business.

Hays shares dropped after it warned that conditions remained uncertain for its UK division, especially in the second half of the year.

The recruitment company said it came as increased risks regarding the macro economic outlook impacted negatively on private sector client and candidate sentiment, particularly toward the end of the half.

“Compounding this, conditions became increasingly challenging in the public sector, particularly in local government and Healthcare focused markets.”

The outlook was despite a rise in net fees and pre-tax profit for the six months to the end of December, helped along by a strong performance in Europe.

Pre-tax profit edged up 7% to £82.4m while net fees were up 8% from a year earlier to £396.9m.

Operating profit came in at £86.3m compared with £81.5m and the company lifted its dividend per share by 5% to 0.91p.

Man Group also took a hit after it revealed lower earnings in its full year trading financials published on Wednesday.

Funds under management at the firm grew 8% to $78.7bn (£56.18bn) during the calendar year, up from $72.9bn in 2014.

That included gross sales of $22.9bn, up 4.57%; redemptions of $22.6bn, up 21.5%; net inflows of $0.3bn, down 90.9%; investment movement of $2.4bn, down 33.3%; and foreign exchange translation effects and other movements of -$3bn, an improvement of 30.2%.

Its adjusted profit before tax was down 20.25% to $400m.

Man Group said its net management fee profit was broadly in line with 2014, though its net performance fee profit was down following a very strong year in 2014.

Meanwhile investors were pleased with Petrofac despite its profit sinking due to delays in getting production up and running at its Laggan-Tormore plant.

The company said on Wednesday that for the calendar year, it made a net profit of $9m (£6.4m), down from $581m in 2014.

That excluded exceptional items and certain re-measurements of $358m, primarily due to lower oil and gas prices.

Not incorporating the losses from the Laggan-Tormore plant, the company would have made a net profit of $440m.

Petrofac said even though the operating environment remains challenging, it is looking to make $90m in annual savings by the end of 2016 while focusing on its core areas of strength, maintaining its bidding discipline and delivering sector leading margins.

FTSE 250 - Risers

Petrofac Ltd. (PFC) 804.00p 8.36%
Entertainment One Limited (ETO) 146.90p 8.01%
Acacia Mining (ACA) 250.00p 5.31%
Interserve (IRV) 408.90p 2.95%
Centamin (DI) (CEY) 90.20p 2.79%
Dignity (DTY) 2,500.00p 2.54%
CLS Holdings (CLI) 1,455.00p 2.39%
Kier Group (KIE) 1,302.00p 2.36%
TalkTalk Telecom Group (TALK) 219.90p 2.28%
Countrywide (CWD) 343.70p 2.14%

FTSE 250 - Fallers

International Personal Finance (IPF) 222.50p -16.10%
Hays (HAS) 113.80p -8.37%
Vedanta Resources (VED) 238.20p -7.67%
Auto Trader Group (AUTO) 358.80p -7.31%
Man Group (EMG) 150.10p -7.06%
Amec Foster Wheeler (AMFW) 334.60p -7.00%
Tullow Oil (TLW) 148.90p -6.94%
Meggitt (MGGT) 399.90p -6.72%
Drax Group (DRX) 223.50p -6.17%
Capital & Counties Properties (CAPC) 322.40p -6.01%