FTSE 250 movers: RPC buckles in the heat; Transport stocks on the move
Shares in plastics manufacturer RPC fell as the company saw revenue growth slow in the first quarter and warned that its acquisitive growth plans were being constrained.
Europe’s biggest plastics packager said that revenues in the first three months of the year came in at £964.7m, a 5.8% improvement on the same period last year, helped by organic growth of 2% and the 2016 acquisition of Astrapak. However, this is down from revenue growth of 33% in the past full year, when organic growth was 2.8%.
Chairman Jamie Pike said RPC had made “further progress” during the period and that he was pleased with the trading performance of the group’s core businesses.
But he added: “However, pressure on the company’s market valuation and differing investor views on the appropriate level of leverage is constraining the group’s ability to pursue some attractive opportunities for growth and your board is working to resolve this.
FirstGroup shares rose a day after the bus and train company said it was considering all its options to boost its value.
Chairman Wolfhart Hause said yesterday ahead of the company's annual meeting that the board was examining "all appropriate means to mobilise the considerable value inherent in the Group, and to deliver shareholder value in a sustainable way while enhancing the services we provide to our customers and communities".
The shares helped sector peers Go Ahead and Stagecoach to rally.
Inmarsat shares took off after VT Systems yesterday said the satellite firm had awarded it the ground infrastructure contract for Inmarsat’s fifth Global Xpress (GX-5) high-speed, broadband communications satellite.
In separate news Inmarsat and the European Space Agency said they had successfully completed the first test flight using the world’s most advanced aviation satellite technology for their Iris programme in support of European air traffic modernisation.
NewRiver was up as it updated the market on its first quarter performance on Wednesday, reporting that it completed a number of acquisitions in core sectors at “attractive” entry prices, with opportunities for further value creation.
The real estate investment trust took over Hawthorn Leisure in May for £106.8m , representing a net initial yield of 13.6%.
Market Movers
FTSE 250 (MCX) 21,010.07 0.67%
FTSE 250 - Risers
Go-Ahead Group (GOG) 1,555.00p 6.14%
FirstGroup (FGP) 91.75p 5.46%
Inmarsat (ISAT) 555.40p 5.03%
Stagecoach Group (SGC) 166.20p 4.53%
Vietnam Enterprise Investments (DI) (VEIL) 422.00p 3.94%
Aggreko (AGK) 679.80p 3.50%
Alfa Financial Software Holdings (ALFA) 172.40p 3.48%
Centamin (DI) (CEY) 121.05p 3.42%
Equiniti Group (EQN) 217.40p 3.28%
Elementis (ELM) 267.47p 3.27%
FTSE 250 - Fallers
RPC Group (RPC) 740.60p -4.44%
On The Beach Group (OTB) 471.00p -3.48%
Premier Oil (PMO) 122.30p -2.00%
Millennium & Copthorne Hotels (MLC) 539.00p -2.00%
Dairy Crest Group (DCG) 475.00p -1.90%
Beazley (BEZ) 564.00p -1.83%
Contour Global (GLO) 246.00p -1.60%
TalkTalk Telecom Group (TALK) 117.10p -1.35%
esure Group (ESUR) 196.90p -1.30%
Wetherspoon (J.D.) (JDW) 1,243.00p -1.27%