FTSE 250 movers: Serco results boost index

The FTSE 250 surged on Thursday, up 277.90 points (1.72%) to 16,395.40 by mid-afternoon.

UBM

1,080.00p

16:44 15/06/18

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Serco Group topped the risers after it reported a significantly narrower pre-tax loss for 2015.

For the year ended 31 December, the loss narrowed to £69.4m from £990.5m the previous year.

The much-improved performance came despite a fall in revenue to £3.2bn from £3.6bn, which Serco said was largely the result of the ending of contracts such as the Docklands Light Railway and National Physical Laboratory, as well as certain US intelligence agency support services and visa processing work.

Underlying trading profit for the period came in at £96m, down from 2014’s £113.2m but slightly better than the company’s guidance of £95m.

Meanwhile, net debt fell to £77.5m at the end of 2015 compared with £682.2m the previous year.

A rise in revenue across its fleet of divisions drove National Express’ profit before tax up over 87% and sent shares up nearly 10%.

The transport company said on Thursday that revenue for the year to 31 December 2015 surged from £66.5m in 2014 to £124.4m.

That was boosted by a 2.8% rise in group revenue, from £1.87bn to £1.92bn.

The company said it had an excellent first full year of the new c2c franchise, including posting record passenger numbers which in turn drove revenue growth of 9.5%.

It also secured a five-year "Bus Alliance” with local authorities in the West Midlands, which supported growth in operating profit.

Additionally, the company had a successful North American School Bus bid season, with an average price rise of 2.8% across all contracts, off-setting wage inflation.

National Express proposed a 10% increase to the full year dividend to 11.33p per share.

UBM's Events First strategy was looking like a winner in 2015, with the company reporting some impressive results on Thursday which boosted the share price, though some of its legacy businesses were flagging.

The events, publishing and business information company saw continuing revenue - which excluded the disposed PR Newswire - rise 39.9% to £769.9m. That change was 35.2% at constant currencies.

Its total revenue was £974.6m, a 30.6% rise, or 25.9% at constant currencies.

UBM's continuing adjusted operating profit was up 46% to £197.1m, or £40.5m at constant currencies.

Total adjusted operating profit was up 36.5% to £245.5m, or 31.4% at constant currencies.

On the other side of the ledger, Beazley shares fell on news that the board was recommending re-locating the management of the group to the UK from Ireland.

The insurer and Lloyd's of London underwriter, which is incorporated in Jersey with its tax residence in Ireland, said it believed legislative changes have now made the UK "the optimal location" for its base.

This would "simplify the management and decision making" and allow shareholders access to a UK dividend steam

Following legislative changes in the Finance Act 2012 relating to controlled foreign companies, Beazley expects no material change to its reported tax rate, or taxation paid if it moves headquarters.

Under the scheme of arrangement, all existing shares will be cancelled and replaced on a one-for-one basis with new shares.

FTSE 250 - Risers

Serco Group (SRP) 94.40p 15.54%
National Express Group (NEX) 324.80p 9.99%
NMC Health (NMC) 884.50p 9.20%
UBM (UBM) 575.00p 7.68%
Ocado Group (OCDO) 282.70p 6.76%
Petrofac Ltd. (PFC) 825.50p 6.17%
Vedanta Resources (VED) 255.70p 5.70%
Playtech (PTEC) 848.00p 5.54%
FirstGroup (FGP) 91.70p 5.46%
Amec Foster Wheeler (AMFW) 345.20p 5.37%