FTSE 250 movers: Serco surges while Cobham crumbles

The FTSE 250 was higher in afternoon trading on Thursday, as the Bank of England cut interest rates and increased the size of its asset purchase programme.

Inmarsat gained as the satellite services group returned to growth in the second quarter thanks to growth from the aviation sector, government contracts and its deal to supply mobile network Ligado Networks.

Full-year guidance was maintained, as revenues in the six months to 30 June rose 2.1% on the previous period to $629.0m, with earning before interest, tax, depreciation and amortisation (EBITDA) up 7.5% at $368.4m.

However, profit before tax for the half year fell 7% to $154.4m and earnings per share fell 7% to 27 cents, though the interim dividend was upped 5% to 20.59 cents per share.

Serco shares surged after the group said it swung to a profit in the first half as it lifted its guidance for the year.

For the six months to the end of June, the company swung to a pre-tax profit of £58.1m from a loss of £16m in the same period last year, even though revenue dropped to £1.5bn from £1.6bn.

Underlying trading profit rose to £51m from £46.9m in the first half of 2015.

Cobham declined after the aerospace and defence group said it swung to a loss in the first half and cut its interim dividend.

For the six months to the end of June, the company posted a pre-tax loss of £38m from a profit of £4m the year before as revenue slid 13% to £917m.

The group said first-half trading reflects previously-announced first-quarter performance issues and “increased headwinds” in the aviation services business.

Cobham, which has issued two profit warnings in the past 12 months, declared an interim dividend of 2.03p per share, down from 2.585p in the first half of 2015.

Chief executive Bob Murphy said: “After a challenging start to the year we have delivered a significant improvement in trading performance in the second quarter.”

A number of other stocks on the index also sank as they went ex-dividend on Thursday, including Halfords and QinetiQ.

FTSE 250 - Risers

Serco Group (SRP) 133.30p 12.22%
Pets at Home Group (PETS) 258.60p 8.25%
AA (AA.) 258.30p 6.57%
Inmarsat (ISAT) 833.50p 6.34%
Hill & Smith Holdings (HILS) 1,135.00p 5.58%
Tullow Oil (TLW) 195.40p 5.44%
G4S (GFS) 188.60p 4.95%
Evraz (EVR) 171.10p 4.69%
Ladbrokes (LAD) 144.60p 4.05%
Stagecoach Group (SGC) 206.80p 3.97%

FTSE 250 - Fallers

CYBG (CYBG) 253.30p -2.54%
Halfords Group (HFD) 344.90p -2.29%
Cobham (COB) 164.40p -2.14%
QinetiQ Group (QQ.) 218.50p -2.02%
Indivior (INDV) 290.40p -1.66%
Vedanta Resources (VED) 529.00p -1.59%
Rank Group (RNK) 215.60p -1.51%
Kaz Minerals (KAZ) 159.00p -1.38%
Clarkson (CKN) 1,875.00p -1.37%
BBA Aviation (BBA) 253.10p -1.29%