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Merlin Facing Potential FTSE Exit

Mon, 30th May 2016

Merlin Entertainments - the owner of Alton Towers - is facing the potential of being pushed out of the FTSE 100 in the next reshuffle, which is due to take place on Wednesday. The theme park giant has went through a difficult time over the last several months. Last summer, a crash on its well-known Smiler rollercoaster left five visitors with serious injuries, proving to be a PR disaster. The theme park owner has suffered from falling visitor numbers, too - in part because of the weaker Euro.

The group runs 110 attractions, spread across 23 countries, and has seen shares fall by 12.4 percent over the last year. Profits have increased slightly - but only by 0.3 percent, underperforming expectations.Theme parks are just a part of Merlin Entertainments’ business - the group also runs other tourist attractions such as the Sea Life Centre, the London Dungeon, and Madam Tussauds.Another company that could be facing relegation is Intu Properties. The company owns 18 shopping malls in the UK, but is facing increasing competition, and has been struggling in a world where bricks and mortar retailers are being forced to reinvent themselves to cope with the challenges presented by online retailers. Inmarsat is another company likely to face relegation.The reshuffle will be based on the rankings for companies at the close of trading on Wednesday, and the new rankings for the FTSE 100 and FTSE 250 will be based on the market capitalization of the companies listed at that tim.
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