FTSE 250 movers: QinetiQ profit drives market up; Poundland drags the chain

The FTSE 250 continued on its streak of gains, sitting at 17,133.22, up 44.13 points (0.26%) by mid-afternoon Thursday.

QinetiQ Group was the biggest riser, after half year profits rose at the defence products company despite a severe fall in its order intake during the period. The group said pre-tax profits rose to £48.3m from £44.4m last time with revenues up to £370.9m from £365.6m. However, pressure on defence budgets saw a sharp slump in orders, with intake down to £228.4m from £320.5m, the majority due to the timing of multi-year contract awards.

Investors also had confidence in Investec after interim operating profits at the South African bank rose 16.5% year-on-year to £315m, despite the falling rand. Group results were negatively impacted by the 8.2% depreciation of the average rand/sterling exchange rate over the period, Investec said, adding that operating profits would have been 22% higher if the rand had not fallen. "We are well placed to continue our growth despite the rand weakness and market volatility," Investec chief executive Stephen Koseff said.

Drax also rebounded after earlier falls on Wednesday following Energy Secretary Amber Rudd’s new policy to phase out coal power by 2025. Shares in the company, which is the owner of Europe’s largest coal-fired power station, fell 4% after on the back of the news but rebounded today. Rudd said the move is part of the Government’s determination to cut carbon emissions and will make the UK one of the first developed countries to commit to taking coal power offline.

However it wasn’t all good news, with Poundland dragging the chain after a poor half-year result and a warning of "highly volatile" conditions in the third quarter. The single-price retailer’s underlying results for the period ended 27 September were largely disappointing, with like-for-like sales down 2.8% and EBITDA down 18.5% to £16.5m. Pre-tax profits were down a sizeable 26.3% to £9.3m. It also reported an improved balance sheet, however, with net funds of £66.1m up from net debt of £4.4m in 2014 and upped the interim dividend by 10% to 1.65p per share.

Bovis Homes Group also had a warning about its operating margin after it revealed its mix of homes for 2015 will be more weighted to existing sites than previously expected. The company said this was due to a number of unexpected planning delays attributable to a lack of subcontract labour availability. As a result of delays in delivering increased in production and the impact of higher costs, the group anticipated its operating profit margin for the year will be just marginally ahead than last year. However Bovis said it has made good progress with reservations for next year, which stand at around 1,650 homes, 18% higher than at the same point last year.

FTSE 250 - Risers

QinetiQ Group (QQ.) 255.60p 8.44%
Investec (INVP) 544.50p 6.56%
Acacia Mining (ACA) 168.00p 3.64%
Drax Group (DRX) 224.70p 3.50%
Just Eat (JE.) 428.00p 3.38%
Grafton Group Units (GFTU) 644.50p 3.37%
Petra Diamonds Ltd.(DI) (PDL) 59.85p 3.28%
Atkins (WS) (ATK) 1,526.00p 3.25%
Restaurant Group (RTN) 665.00p 3.10%
Mitchells & Butlers (MAB) 352.60p 3.07%

FTSE 250 - Fallers

Poundland Group (PLND) 228.90p -17.84%
Bovis Homes Group (BVS) 907.50p -8.24%
Aldermore Group (ALD) 259.80p -6.21%
Virgin Money Holdings (UK) (VM.) 352.00p -5.88%
Ophir Energy (OPHR) 91.75p -5.36%
Paragon Group Of Companies (PAG) 400.90p -4.86%
Spire Healthcare Group (SPI) 288.00p -4.26%
OneSavings Bank (OSB) 391.70p -3.43%
TalkTalk Telecom Group (TALK) 234.40p -3.18%
Tate & Lyle (TATE) 592.00p -2.47%