FTSE 250 movers: Autotrader motors on; Alfa Financial takes a battering
Auto Trader defied expectations on the FTSE 250 on Thursday and rallied even as its full-year revenue and pre-tax profit for the year fell short of City forecasts, as the company’s total dividend for the year came in better than expected.
However, the online retailer lifted revenue 7% to £330.1m as the average number of cars on its website increased 1% to 453,000, while profit before tax rose 10% to £210.8m as costs were controlled and car retailers and manufacturer adopted the company's new digital products.
Both revenue and PBT were basically in line with consensus forecasts of £330.5m and £211m.
Lifting Capita shares was a Citi upgrade to ‘buy’ for the first time in more than five years. "With earnings rebasement, a rebuilt balance sheet and another £105m costs savings targeted post 2018, Capita should have reached its nadir," analyst said, noting a discount to the expected earning of the rest of the business services sector. "While industry momentum remains soft, Capita has a reasonably solid revenue base into which new management can reconfigure the business."
On The Beach was also in the black after it was upgraded to ‘buy’ at Numis.
Alfa Financial Software Holdings led the fallers as investors continued to pummel the stock after last week's profit warning on the back of a major customer has paused installation of Alfa’s platform.
Kier Group slumped despite announcing the establishment of a joint venture with Homes England and Cross Keys Homes, to develop around 5,400 homes across the country over the next ten years.
Hitting the shares was a bearing write-up from analysts at Barclays, who initiated the stock with an ‘underweight’ rating and a 995p price target. "With a share price down over 25% in the past 12 months and consensus remaining 100% overweight, we seek to assess whether the decline is justified, or more simply a result of wider sector concerns," they said. Balfour Beatty shares were also lower as they were initiated at ‘equal-weight’ at Barclays.
Ascential was in the red as it said was trading in line with expectations for the full year but revealed tough times for its Cannes Lions event.
Prepared food producer Bakkavor was among the losers after its shares were downgraded to ‘underweight’ by Morgan Stanley.
Market Movers
FTSE 100 (UKX) 7,731.19 0.24%
FTSE 250 (MCX) 21,214.54 0.20%
techMARK (TASX) 3,535.67 -0.34%
FTSE 250 - Risers
Alfa Financial Software Holdings (ALFA) 199.00p 11.80%
Auto Trader Group (AUTO) 384.70p 8.67%
Ocado Group (OCDO) 972.40p 5.60%
Capita (CPI) 146.95p 5.30%
On The Beach Group (OTB) 507.90p 5.16%
Renewi (RWI) 85.70p 3.25%
Just Group (JUST) 142.80p 2.73%
Pennon Group (PNN) 774.40p 2.73%
JD Sports Fashion (JD.) 409.30p 2.33%
TI Fluid Systems (TIFS) 266.00p 2.31%
FTSE 250 - Fallers
Kier Group (KIE) 996.50p -7.82%
Ascential (ASCL) 414.20p -4.91%
Stobart Group Ltd. (STOB) 238.00p -4.03%
Marshalls (MSLH) 423.60p -3.55%
RDI Reit (RDI) 35.90p -3.10%
Ultra Electronics Holdings (ULE) 1,576.00p -3.08%
Bakkavor Group (BAKK) 198.00p -2.94%
William Hill (WMH) 313.40p -2.76%
Travis Perkins (TPK) 1,436.00p -2.68%
Balfour Beatty (BBY) 304.00p -2.28%