FTSE 250 movers: Metro Bank crashes, Computacenter up loads
London’s FTSE 250 was down 0.51% at 18,587.21 in afternoon trade on Wednesday, with Metro Bank dragging the index downward as its shares plummeted by over 30%.
The challenger bank's shares were in free-fall after it warned that changes to its treatment of property loans meant risk-weighted assets had leapt by 20% and said underlying pre-tax profit for 2018 grew by 138% to £50m, falling short of analysts' expectations.
Russ Mould, investment director at AJ Bell, said: "A profit miss from Metro Bank has put a large dent in its share price and left the market wondering what’s gone wrong with the once-shining star in the banking sector. Full year pre-tax profit guidance of £50m is 15% below the consensus forecast among analysts of £59m. The fourth quarter saw a big drop in profit and the market will want a full explanation of what’s happened."
Other financials were in the red too, with Sanne tumbling as it updated the market on its financial year and announced the retirement of its chief executive and wealth manager Brewin Dolphin losing ground after it reported a 7.7% drop in total first-quarter funds amid falling markets.
The latter company had its price target cut from 394p to 344p by analysts at Liberum, who said they had reduced estimates of discretionary net flows to an annualised 5% from 7% after the "turbulent" quarter.
Fertiliser miner Sirius Minerals dropped further after having reported a day earlier that it was adjusting the terms of a planned $3bn (£2.3bn) funding round for its Yorkshire polyhalite project to reduce risk, while security services firm G4S was under pressure after it agreed to pay up to $130m to settle a class action in the US.
Computacenter was the top riser oafter it said trading had materially outperformed its expectations for the past calendar year and IG Group recovered after dropping yesterday on the back of a 17% decline in first-half pre-tax profit as stringent new rules were imposed by the European securities regulator.
RPC Group rallied as it finally confirmed that it has received a take-private offer from US private equity group Apollo, valuing the plastics company at £3.3m.
Finally, retailer WH Smith advanced as it posted a 6% rise in sales for the 20 weeks to 19 January as a solid performance from its travel business offset lacklustre high street trading.
Market Movers
FTSE 250 (MCX) 18,587.21 -0.51%
FTSE 250 - Risers
Computacenter (CCC) 1,118.00p 9.82%
IG Group Holdings (IGG) 607.00p 4.66%
RPC Group (RPC) 766.10p 4.37%
Bank of Georgia Group (BGEO) 1,578.80p 3.04%
TBC Bank Group (TBCG) 1,486.00p 2.62%
Coats Group (COA) 86.10p 2.14%
WH Smith (SMWH) 1,916.00p 2.13%
Go-Ahead Group (GOG) 1,783.00p 2.12%
Bovis Homes Group (BVS) 1,009.00p 2.00%
Acacia Mining (ACA) 181.05p 2.00%
FTSE 250 - Fallers
Metro Bank (MTRO) 1,396.00p -36.60%
Sanne Group (SNN) 451.50p -17.46%
Sirius Minerals (SXX) 19.84p -4.62%
G4S (GFS) 199.15p -4.02%
Brewin Dolphin Holdings (BRW) 302.40p -3.88%
Inmarsat (ISAT) 374.80p -3.40%
Dixons Carphone (DC.) 138.85p -2.87%
Premier Oil (PMO) 70.25p -2.63%
Hunting (HTG) 532.50p -2.47%
Superdry (SDRY) 520.50p -2.44%