FTSE 250 movers: Thomas Cook tanks; Restaurant Group surges on reports

London’s FTSE 250 index was down 0.7% to 16,769.36 in afternoon trading.

Shares in Thomas Cook tanked after the tour operated posted a narrower loss for the first half of the year but said summer booking were down 5% and underlying earnings for the year are expected to be at the lower end of market views.

The company posted a loss before tax for the six months to the end of March of £288m versus a loss of £303m in the same period last year, on revenue of £2.67bn versus £2.74bn.

It now expects underlying earnings before interest and tax for the full year of £310m to £335m. This compares to a current range of analyst estimates of between £310m and £359m.

Rathbone Brothers was under the cosh after it reported that net operating income fell in the first quarter by 0.7% to £58.9m.

The company saw closing funds under management grow in the three months to 31 March, to £26.15bn from £26.13bn in its investment management division, and to £3.2bn from £2.7bn in its unit trusts.

Total funds under management grew 1.6% by the end of the quarter, to £29.32bn from £28.86bn.

On the upside, the Restaurant Group surged as reports emerged of possible private equity interest in the lately troubled Garfunkel's and Frankie & Benny's owner.

Cinven, which previously owned Ask and Zizzi pizza restaurants, and US-based TA Associates, owner of the Cath Kidston lifestyle brand, were both said to have begun examining potential bids for the FTSE 250 group, according to sources cited by Sky News.

One City source indicated a takeout bid would need to be pitched above 500p.

Mitchells & Butlers was also a high riser after serving up improved first-half profits despite sales falling as the group looks to freshen up its under-invested pub estate with a major refurbishment plan.

Group sales fell 1.6% to £1.1bn in the 29 weeks to 9 April, as a like-for-like sales decline of 1.6% was only partially offset by new site openings.

Distribution group Electrocomponents rallied after it said full-year pre-tax profits fell 63.7% to £34.9m due to an exceptional restructuring charge of £41.9m, but added that underlying sales growth in the first six months of the new year had risen 3.5%.

Risers

Restaurant Group (RTN) 336.00p 5.63%
Virgin Money Holdings (UK) (VM.) 350.60p 2.34%
Mitchells & Butlers (MAB) 283.60p 2.31%
Electrocomponents (ECM) 265.50p 2.12%
Entertainment One Limited (ETO) 170.70p 2.03%
BTG (BTG) 630.00p 1.86%
Ibstock (IBST) 210.50p 1.64%
Just Eat (JE.) 424.70p 1.63%
Bovis Homes Group (BVS) 956.50p 1.54%
OneSavings Bank (OSB) 296.50p 1.47%

Fallers

Thomas Cook Group (TCG) 72.20p -19.33%
Evraz (EVR) 112.40p -10.15%
Centamin (DI) (CEY) 105.90p -7.19%
Tullow Oil (TLW) 245.20p -6.05%
Brewin Dolphin Holdings (BRW) 259.50p -5.91%
Vedanta Resources (VED) 368.40p -5.54%
Rathbone Brothers (RAT) 1,901.00p -5.23%
Redefine International (RDI) 44.28p -4.84%
Acacia Mining (ACA) 322.40p -4.76%
Polymetal International (POLY) 777.00p -3.96%