FTSE 250 movers: McCarthy & Stone builds gains, Dechra shares drop on results
London's FTSE 250 was steady at 20,671.27 in afternoon trade on Monday.
Retirement housebuilder McCarthy & Stone was the day's big riser ahead of its year-end update on Thursday, despite rumblings that the firm will be downgraded to the FTSE small cap, according to Hargreaves Lansdown senior analyst Laith Khalaf.
"McCarthy & Stone seem likely to get dropped from the FTSE 250 after a profit warning in June sent shares tumbling to their lowest levels since the retirement housebuilder floated on the stock market in 2015. Shares have recovered a little since then, but the company’s still lost a third of its value in the last year," said Khalaf.
Dixons Carphone's shares were on the rise ahead of the electronics retailer's first-quarter update on Thursday.
Attractions operator Merlin Entertainment received a boost after Citi reiterated its 'buy' rating and target price of 500p.
"Merlin’s value proposition is robust, which we think underpins its ongoing site rollout and earnings growth. Importantly early indications of the performance of the important London market through the key Q3 period have ticked better in recent weeks. We think this underpins our Buy recommendation," said a note from the broker.
On the downside, veterinary pharmaceutical business Dechra Pharmaceuticals slumped as its full-year revenues fell short of expectations.
The firm reported revenue growth of 13.9% to £407.1m for the year ended 30 June, with underlying operating profit growing 24.0% to £99.2m, and warned about the fast pace of change in the industry.
Despite investor concern, Jefferies repeated its 'buy' rating and 2,726p target price for shares in the company, citing the "impressive growth" in North America during the veterinary products manufacturer's last trading year.
Alfa Financial's shares tumbled ahead of its half-year results on Tuesday after being slated for demotion to the FTSE small cap by Khalaf, while gambling firm Just Group also saw its shares fall before the upcoming release of its interims on Thursday.
Pub chain JD Wetherspoon lost ground after Citi downgraded it from 'hold' to 'sell' as it expects "continued tough times" for British consumers due to rising household debt.
FTSE 250 - Risers
McCarthy & Stone (MCS) 115.10p 3.32%
Dixons Carphone (DC.) 170.00p 2.84%
Tullow Oil (TLW) 239.30p 2.75%
Hays (HAS) 208.40p 2.46%
Dunelm Group (DNLM) 531.50p 2.21%
RHI Magnesita N.V. (DI) (RHIM) 5,030.00p 2.03%
Fisher (James) & Sons (FSJ) 1,826.00p 1.78%
Kaz Minerals (KAZ) 473.80p 1.67%
Merlin Entertainments (MERL) 378.10p 1.67%
Bank of Georgia Group (BGEO) 1,680.00p 1.63%
FTSE 250 - Fallers
Dechra Pharmaceuticals (DPH) 2,660.60p -14.72%
Alfa Financial Software Holdings (ALFA) 157.45p -5.72%
Wetherspoon (J.D.) (JDW) 1,180.00p -5.22%
Playtech (PTEC) 508.39p -4.44%
Dairy Crest Group (DCG) 456.60p -3.91%
Caledonia Investments (CLDN) 2,792.15p -3.39%
Rathbone Brothers (RAT) 2,554.00p -3.04%
FDM Group (Holdings) (FDM) 920.00p -2.65%
Just Group (JUST) 88.60p -2.53%
Howden Joinery Group (HWDN) 481.00p -2.37%