FTSE 250 movers: Mitie slumps on revenue warning; energy stocks decline

London’s FTSE 250 index was down 0.9% to 16,730.80 at 1425 GMT, as weak oil prices outweighed a slightly better-than-expected reading on UK retail sales.

Outsourcer Mitie slumped after it warned that full year revenues will be below the current range of market expectations, although profit will fall within.

The company said it has experienced revenue shortfalls in the second half of the year as some work has been delayed or cancelled due to increased economic pressures and uncertainty.

Still, Mitie has been managing its cost based and focusing on maintaining margins while continuing to invest for the long term, so profits will be in line.

“Due to current macroeconomic factors, we anticipate modest growth in the next financial year. Our focus remains on generating profits backed by strong cash flows, whilst maintaining a robust balance sheet and margins within our target range,” the company said.

Engineering firm Renishaw was under the cosh after it issued a profit warning.

The company said revenue last year benefited from a number of large orders in the Far East, which had not been repeated to the same extent in the current year.

Renishaw’s board said it had now received information indicating it was unlikely to achieve the trading levels previously anticipated in its half-year report in January.

Energy-related stocks were also under pressure as oil prices slid, with Tullow Oil, Petrofac, Weir and Ophir all in the red.

West Texas Intermediate was down 3.1% to $38.56 a barrel while Brent crude was 2.4% weaker at $39.50 after a report from the US Department of Energy showed crude stockpiles rose by 9.4m barrels in the previous week – a much bigger increase than analysts had expected.

On the upside, specialty chemicals firm Synthomer was still feeling the benefits of the $226m (£156m) acquisition of Hexion Performance Adhesives & Coatings it announced earlier in the week.

It said the purchase - to be funded through existing cash and additional credit facilities – will strengthen Synthomer's position in the performance adhesives and coatings market by adding Hexion's range of dispersions, additives, powder coatings and specialty monomers.

Risers

Fidessa Group (FDSA) 2,407.00p 3.08%
Euromoney Institutional Investor (ERM) 900.50p 2.74%
Hikma Pharmaceuticals (HIK) 1,916.00p 2.68%
Vesuvius (VSVS) 326.60p 2.54%
Circassia Pharmaceuticals (CIR) 265.40p 2.00%
Vectura Group (VEC) 160.80p 1.64%
Hansteen Holdings (HSTN) 104.70p 1.55%
Synthomer (SYNT) 365.80p 1.47%
Regus (RGU) 311.50p 1.47%
Phoenix Group Holdings (DI) (PHNX) 949.00p 1.44%