27th Nov 2024 09:49
(Alliance News) - Vistry Group PLC is set to be demoted from the FTSE 100, with retailers Frasers Group PLC and B&M European Value Retail SA leaving with it, after a pair of warnings rocked investor confidence in the housebuilder.
In a set of indicative index changes published by FTSE Russell after the market close on Tuesday, new investment titan Alliance Witan PLC, miniature wargames firm Games Workshop Group PLC and wealth manager St James's Place PLC are set to replace the trio. It will represent a return to the top table for St James's Place, after a demotion in June, and a debut in the FTSE 100 for both Games Workshop and Alliance Witan.
Those set to exit the FTSE 250 are clean energy technology developer Ceres Power Holdings PLC, bank, broker and asset manager Close Brothers Group PLC, Carex owner PZ Cussons PLC and oilfield and engineering services provider John Wood Group PLC.
Replacing them could be food delivery firm Deliveroo PLC, US-focused natural gas producer Diversified Energy Co PLC, National Express operator Mobico Group PLC and DNA and RNA sequencing specialist Oxford Nanopore Technologies PLC.
Vistry's possible demotion comes after a pair of profit warnings that have knocked nearly 50% off its market value since early-October. Around a month after it spooked the market with a worrying update on development costs, the housebuilder was at it again earlier in November, cutting guidance on woes in its South division.
Vistry earlier this month said the total full-life cost projections for completing 9 out of 46 developments in its South Division, including some large-scale schemes, have been understated by around 10% of the total build costs.
The increase in potential costs meant a reduction in Vistry's guidance for adjusted pretax profit. It cut its forecast to around GBP300 million from GBP350 million
In October, it was cut from GBP430 million previously.
Conversely, Games Workshop last week Friday said that recent trading was better-than-expected. The Nottingham, England-based miniature wargames maker and retailer said it anticipates pretax profit for the six months to December 1 to stand at GBP120 million, a rise of 25% from GBP96.1 million a year ago. Shares have surged 43% over the past six months.
Retailers B&M and Frasers, set for the FTSE 100 chop, are down 36% and 8.4% over the past six months.
Among those set to exit the FTSE 250, Close Brothers is down 55% over the past six months, with concerns over motor financing arrangements hitting the stock.
John Wood has plunged 72%, meanwhile. Earlier this month, the firm said it has turned to Deloitte to perform an independent review after exceptional contract write-offs.
The probe will be focused on "reported positions on contracts in projects, accounting, governance and controls". The review will also look to determine whether any prior results need to be restated.
"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, and in conjunction with the auditor's ongoing work, the board, in response to dialogue with its auditor, has agreed to commission an independent review to be performed by Deloitte," Wood Group explained.
A noteworthy possible FTSE 100 promotion, meanwhile, is Deliveroo. Deliveroo last month sealed a slight re-jig in its listing arrangement in London, making it FTSE Index eligible.
The indicative changes are based on data as of Friday. The final index review is announced next week Wednesday, based on data as of the market close a day prior.
By Eric Cunha, Alliance News news editor
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