FTSE 250 movers: Thomas Cook leads market as it returns to profit

The Government’s autumn statement and spending review didn’t do anything to stop the FTSE 250 start to reverse the week’s falls.

The market was up 147.84 points (0.87%) to 17,097.81 by mid-afternoon Wednesday.

Thomas Cook Group led the market after it reported its first annual profit after tax since 2010 and said it had got off to a positive start to the next year as well. The travel and leisure business saw a marginal 1% lift in group revenue over the previous year, to £7.83bn, with underlying EBIT up 11% to £310m.

Profit after tax was where the real news lay, with a £177m increase to sit at £19m for the year. The firm put the improvement down to a positive response to its “differentiated holiday offering”, with underlying EBIT in its UK business specifically up 42%.

NMC Health came in a close second by mid-afternoon Tuesday following the announcement it will acquire a majority stake in an Abu Dhabi and Dubai-based in vitro fertilisation (IVF) provider for the equivalent of £125m. Still smarting from its impotent effort to buy rival Al Noor Hospitals, NMC has satisfied itself with a 51% stake in fast-expanding Fakih IVF Group, which it said it could increase over time. With fertility treatments one of the leading drivers of medical tourism in the UAE, NMC said the addition of Fakih IVF to its existing ownership of Clinica Eugin fertility care provider in Europe will position the group as the "destination of choice for fertility treatments".

Shares in oil and gas exploration company Ophir Energy rallied following a report that it has received informal takeover and merger interest from several parties as a drop in crude oil prices forces independent operators to consolidate. Bloomberg cited people familiar with the matter as saying that Ophir has attracted interest from both companies and financial investors. Ophir was said to be evaluating the proposals although deliberations are at an early stage and it may decide against a deal.

And traders believed RPC Group’s "Vision 2020" strategy is paying off, with the company posting a 36% increase in revenue for the first half of the year and the share price rising by over 4%. Revenue increased to £799.8 from £588.9m the previous year, and adjusted profit before tax was up 38% from £54.9m to £75.8m. The company said its growth came down to its long term strategy through both organic and acquisition-led growth. It also said the integration with Promens is progressing well, with expected steady state cost synergies increasing to €50m (£35.3m) per annum, up from €30m.

However traders weren’t happy with pub group Mitchells & Butlers after it said sales in the first eight weeks of the year have been soft, with total sales down 1.3% and like-for-like sales 1.6% lower, reflecting an increasingly competitive market. The company attributed the softer start to poor weather over the summer, which meant beer gardens did not see the benefit of any sustained period of sunshine. However for the year ended 26 September, pre-tax profit nudged up to £126m from £123m in 2014 as total revenue rose 6.6% to £2.1bn. In addition, the company said it was reinstating its dividend – having not paid one last year – declaring a 4p per share final dividend.

FTSE 250 - Risers

Thomas Cook Group (TCG) 107.20p 9.00%
NMC Health (NMC) 870.00p 7.41%
Ophir Energy (OPHR) 90.40p 6.86%
Serco Group (SRP) 109.70p 6.71%
RPC Group (RPC) 709.50p 4.19%
Crest Nicholson Holdings (CRST) 512.50p 3.54%
Enterprise Inns (ETI) 102.60p 3.53%
Betfair Group (BET) 3,600.00p 3.42%
Ocado Group (OCDO) 353.50p 3.00%
SIG (SHI) 129.30p 2.95%

FTSE 250 - Fallers

Aldermore Group (ALD) 242.00p -6.60%
Mitchells & Butlers (MAB) 328.80p -4.50%
OneSavings Bank (OSB) 353.50p -3.97%
Home Retail Group (HOME) 103.00p -3.29%
BBA Aviation (BBA) 172.80p -3.14%
Paragon Group Of Companies (PAG) 385.70p -2.90%
Indivior (INDV) 189.70p -2.72%
Drax Group (DRX) 238.00p -2.30%
Pets at Home Group (PETS) 269.20p -2.04%
Poundland Group (PLND) 213.10p -1.80%