FTSE 250 movers: Stagecoach drives the market down as Paris attacks hit demand

The FTSE 250 continued to slump on Tuesday, with the second tier market down 45.21 points (0.26%) to 17,146.69 by mid-afternoon Wednesday.

Transport operator Stagecoach was the biggest faller after it revealed the Paris terror attacks in November has discouraged people from travelling and led the company to slightly revise full year earnings downwards. Interim turnover at the bus and rail firm rose 27% £1.97bn, while pre-tax profits fell to £90.8m from £90.3m. “Since mid-November, we have seen a reduction in the rate of revenue growth in parts of our rail and inter-city coach operations in the UK and continental Europe,” Stagecoach said. “We believe that revenue has been adversely affected by the terrorist attacks in Paris discouraging people from travelling to major cities. We currently anticipate a recovery in those revenue growth rates.”

Victrex also fell after J.P.Morgan Cazenove revised its target price for the company down from 1,950p to 1,800p. It noted that while the company performed strongly, headwinds may limit the company next year. It comes after the polymer and bio-materials solutions company announced its preliminary results for the year to 30 September on Tuesday. Revenue rose from £252.6m in 2014 to £263.5m, driven by a strong performance in the first half of the year but relatively flat sales in the second half. Gross profit rose 3% from £163.2m to £168.2m, and declared a 4% increase to the final dividend of 35.09p. The company also revealed its new formal capital framework, which will give approximately 50% of net cash back to investors in the future through special dividends.

Bringing the market back up was Peppa Pig owner Entertainment One after it confirmed that the company continues to trade in line with full year underlying earnings expectations, as it responded to recent weakness in its share price.The stock has been under pressure since the company announced a refinancing deal that will increase its interest payments. It said on Wednesday that the combination of its new non-amortising, fixed rate debt financing and revolving credit facility provides the company with a long-term capital structure appropriate for its strategic ambitions. In addition, the refinancing permits greater flexibility by relieving constraints and costs the group historically suffered when undertaking acquisitions and other corporate activity, and allows it to react swiftly to commercial opportunities, whilst also removing other restrictions typical of bank loan-based financing structures.

Also in the risers was Moneysupermarket.com after Jefferies upgraded the stock from ‘hold’ to ‘buy’. The investment bank issued a note on Wednesday, saying it had been too cautious this year and the company had performed well. “It is one of the few online marketplace models we have not wholeheartedly gotten behind.” It also highlights that consensus expectations for the company ate modest, with year-on-year revenue growth forecast for 7% in 2016 and 2017. Jefferies also noted that the company has only recently taken on the 'data driven insight' mantra. “The upside from leveraging data to provide business intelligence is real, specifically to enhance customer acquisition and to inform the development of value add customer proposition.”

FTSE 250 - Risers

Entertainment One Limited (ETO) 165.60p 17.53%
Polymetal International (POLY) 529.50p 5.37%
Moneysupermarket.com Group (MONY) 336.40p 5.16%
Petra Diamonds Ltd.(DI) (PDL) 63.65p 4.17%
Tullow Oil (TLW) 178.10p 3.97%
SIG (SHI) 135.30p 3.68%
Acacia Mining (ACA) 189.30p 2.88%
Cairn Energy (CNE) 141.80p 2.75%
CLS Holdings (CLI) 1,825.00p 2.53%
Ophir Energy (OPHR) 89.05p 2.36%