FTSE 250 movers: Provident Financial powers ahead; Aston Martin retreats

Wed 15 Jan 2020

LONDON (SHARECAST) - (Sharecast News) - London's FTSE 250 was down 0.2% at 21,715.83 in afternoon trade on Wednesday.
Provident Financial rallied as the doorstep lender said profits for 2019 were set to meet market expectations following a solid performance from Vanquis Bank in the fourth quarter. Investors also cheered news that it had agreed a bilateral securitisation facility with NatWest Markets to fund Moneybarn business flows. The new facility provides up to 100m of initial funding and is expected to grow to 275m over the next 18 months.

Hochschild Mining was higher as it maintained its 2020 production forecasts.

Capita racked up solid gains after Goldman Sachs reiterated its 'buy' rating on shares of the outsourcer, hiked the price target to 240p from 200p and added the stock to its 'Conviction List'.

GS said the first-half results saw the company reach a trough in terms of organic revenue declines given the improving momentum on the order book, especially in the software division.

"With the UK elections now behind us, we think the macro overhang on the stock has been removed and focus should shift to the core equity story viz. growth driven by consulting-led, digitally enabled software solutions and services," it said.

Going the other way, Rathbone Brothers fell after an initiation at 'underperform' by Jefferies.

Aston Martin Lagonda was under pressure as Jefferies said the luxury car maker would need to raise "at least" 400m of fresh equity.

The bank, which rates the stock at 'hold' with a 475p price target, added that in itself, this may not ensure sustained profitability.

"Given the challenges of the supercar industry, we must assume that the aspiring AML investors are considering a transformational deal, and not just funding AML. Scaling up super cars is hard to do, as we also see at McLaren, where low margins seem to be a function of low volume, while AML is more challenged on mix/price," Jefferies said in a note.

Diploma retreated despite saying it traded in line in the first quarter and backing its expectations for the full year.

FTSE 250 - Risers

Provident Financial (PFG) 453.70p 7.54%
Spirent Communications (SPT) 245.00p 4.93%
Centamin (DI) (CEY) 122.45p 3.46%
Pennon Group (PNN) 1,095.00p 3.01%
Clarkson (CKN) 2,990.00p 2.93%
Avast (AVST) 524.00p 2.75%
Hochschild Mining (HOC) 168.30p 2.56%
Barr (A.G.) (BAG) 558.00p 2.39%
Capita (CPI) 173.85p 2.26%
Marshalls (MSLH) 832.50p 1.90%

FTSE 250 - Fallers

Just Group (JUST) 71.75p -7.66%
Tullow Oil (TLW) 56.10p -5.20%
Rathbone Brothers (RAT) 2,010.00p -4.29%
IP Group (IPO) 65.10p -3.84% Group (MONY) 321.50p -3.45%
Aston Martin Lagonda Global Holdings (AML) 446.80p -2.91%
Hunting (HTG) 370.80p -2.73%
Diploma (DPLM) 1,850.00p -2.68%
Games Workshop Group (GAW) 6,780.00p -2.59%
Galliford Try (GFRD) 154.34p -2.48%
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