FTSE 250 movers: Kier powers ahead, Stagecoach stuck in reverse

Property construction and services group Kier was among the top risers on the FTSE 250 on Wednesday, after it said earlier that it expected full year underlying profits to be in line with expectations.

The company added that the financial impact of its portfolio simplification programme together with other non-underlying items would result in a non-underlying charge of around £73m.

Net debt was anticipated to be £150m, at the lower-end of market forecasts, Kier said, adding that it was well-placed for 2018, with growing order books of approximately £9bn and 85% secured revenue position.

Petrofac was also still rallying after its pre-close trading update on Tuesday, when it claimed underlying net profit for the first half of 2017 was expected to be between $135m and $145m, with full year net profit expected to be weighted to the second half of the year.

The FTSE 250 company reported a new order intake of $1.7bn in the year to date, with a backlog of $13.0bn at 31 May.

Net debt was forecast to be around $1.1bn at 30 June, which would be in line with expectations.

“We have made a positive start to the year, driven by good project execution and financial discipline,” said group chief executive Ayman Asfari.

Also on the top side of the index was bookmaker William Hill, which racked up healthy gains on Wednesday as Stifel said the US Supreme Court's decision to hear the bid by New Jersey to legalise sports betting in that state should be seen a small positive.

Stifel pointed out that the case is unlikely to be resolved until next year and said that while legislative change is not certain, it could allow sports betting at casinos and racetracks in New Jersey.

"There is obviously smaller potential in New Jersey than Nevada, where William Hill an EBIT of £14.3m last year with a 26% market share. One should also note that since online casino gaming was permitted in New Jersey, growth has been below expectations with limited profitability."

On the bottom rung was passenger transport operator Stagecoach, whose share price was under pressure after it released its preliminary results for the year to 29 April on Wednesday, claiming adjusted earnings per share of 24.4p - down from 27.7p year-on-year, but in line with the board’s expectations.

The FTSE 250 company’s revenue was higher than the previous year, at £3.94bn compared to £3.87bn, while its total operating profit fell to £192.8m from £228.8m.

Profit before tax was also down significantly, at £158.7m compared to £187.4m.

Chief executive Martin Griffiths said the board and management team was “disappointed” to report losses at Virgin Trains East Coast.

“However, I am confident that we can return the business to profitability and build on the significant benefits we have delivered to date for customers and taxpayers.

”Overall, we believe in the long-term prospects for the business and public transport remain positive.”

Also facing share price losses was Petra Diamonds, which warned on Wednesday that its full-year results are likely to be below market expectations, with revenue around 8% to 9% below consensus on the back of lower production.

The company said it is on track to achieve record revenue and production figures in FY2017. However, slower-than-expected build-up of its expansion programmes across its operations means production is now estimated to be around 8% to 9% lower than guidance of approximately 4.4m carats.

Petra said it has now reached an operational run rate across the group which supports FY 2018 production guidance of around 5m carats. While the ramp-up of production from the sub level cave at Finsch took longer than expected, it is now operating at the required levels. At the new Cullinan plant, both mills and crushing circuits have now been commissioned, with the first mill and crushing circuit having been run very successfully for over a month.

FTSE 250 - Risers

RPC Group (RPC) 755.50p 4.21%
TalkTalk Telecom Group (TALK) 182.40p 3.93%
Hochschild Mining (HOC) 283.80p 3.35%
Kier Group (KIE) 1,255.00p 3.04%
Acacia Mining (ACA) 309.00p 2.56%
Nostrum Oil & Gas (NOG) 491.60p 2.48%
Petrofac Ltd. (PFC) 427.30p 2.32%
BTG (BTG) 713.50p 2.29%
William Hill (WMH) 256.00p 2.11%
Marston's (MARS) 124.70p 2.05%

FTSE 250 - Fallers

Stagecoach Group (SGC) 188.10p -7.66%
Petra Diamonds Ltd.(DI) (PDL) 105.30p -7.14%
Sophos Group (SOPH) 445.20p -5.48%
TBC Bank Group (TBCG) 1,558.00p -4.53%
IP Group (IPO) 126.90p -3.50%
Polar Capital Technology Trust (PCT) 982.50p -2.53%
Hill & Smith Holdings (HILS) 1,350.00p -2.39%
Sirius Minerals (SXX) 32.50p -1.99%
TP ICAP (TCAP) 465.40p -1.96%
Mitie Group (MTO) 280.30p -1.92%