FTSE 250 movers: Wood Group plummets after update, ITV disappoints

7th Nov 2024 14:43

(Sharecast News) - London's FTSE 250 was trading 0.8% higher on Thursday afternoon as markets bounced back after US election-related weakness the previous session, though big drops from the likes of Wood Group and ITV were limiting upside.

Wood Group was the standout mover of the day, with shares more than halving in value after the engineering services company announced an independent review of its business "following the exceptional contract write-offs relating to the exit from lump sum turnkey and large-scale EPC reported at the half year 2024 results".

A review by Deloitte will focus on reported positions on contracts in Projects, accounting, governance and controls, including whether any prior year restatement may be required, causing the stock to drop 56% to 55.45p.

News of the review came alongside an update for the third quarter, in which Wood said that its Projects business was hit by delayed awards in the chemicals business and continued weakness in minerals and life sciences.

ITV saw shares drop 10% after the broadcaster reported an 8% drop in revenue for the first nine months of the year as its Studios arm was hit by the US actors' and writers' strike. Total revenue at ITV Studios slumped 20% to £1.22bn.

Leading the risers was RS Group after the industrial and electrical products distributor said it had "executed well" during the first despite a "more challenging than anticipated" market environment. Shore Capital upgraded the stock from 'hold' to 'buy', saying interim results were "not as bad as feared".

Derwent London was also in favour after benefitting from solid demand for high-end office space in the third quarter, as it secured a number of new leases. "There is increased interest across the investment market and volumes are expected to pick up into 2025," said chief executive Paul Williams.

Telecommunications infrastructure firm Helios Towers fell despite raising its full-year outlook as it posted an uptick in third-quarter adjusted EBITDA. Full-year adjusted EBITDA is now seen at around $420m, up from a previous forecast of $410m to $420m.

Howden Joinery Group also underwhelmed with its outlook after saying that annual profits would come in at the lower end of forecasts, following "challenging" economic conditions and weak consumer spending dented sales.

Also flying lower was Wizz Air as the budget airline reported a 33% drop in first-half operating profits after being hit by engine-related aircraft groundings.

FTSE 250 - Risers

RS Group (RS1) 756.00p 10.93%

Burberry Group (BRBY) 872.40p 7.23%

Elementis (ELM) 134.80p 5.64%

Trainline (TRN) 417.60p 5.24%

Centamin (DI) (CEY) 156.40p 3.92%

Fidelity China Special Situations (FCSS) 220.50p 3.52%

Sirius Real Estate Ltd. (SRE) 88.25p 3.22%

Great Portland Estates (GPE) 307.00p 3.19%

Derwent London (DLN) 2,130.00p 3.10%

Rathbones Group (RAT) 1,670.00p 2.83%

FTSE 250 - Fallers

Wood Group (John) (WG.) 55.45p -55.50%

ITV (ITV) 64.90p -10.24%

Ashmore Group (ASHM) 183.00p -8.27%

Endeavour Mining (EDV) 1,552.00p -5.65%

Helios Towers (HTWS) 105.80p -2.58%

Carnival (CCL) 1,656.50p -1.49%

Bloomsbury Publishing (BMY) 690.00p -1.43%

Lancashire Holdings Limited (LRE) 661.00p -1.34%

Wizz Air Holdings (WIZZ) 1,365.00p -1.30%

Hilton Food Group (HFG) 929.00p -1.17%