Provident Financial Group PLC (LON:PFG) is expected to be ousted from the FTSE 100 after a profit warning in August sent its share price tumbling.
The FTSE Russell will release its quarterly reshuffle decision of FTSE constituents after the market closes on Wednesday with the changes to become effective at the start of trading on Monday, 18 September. The final switches will be based on the closing prices of listed companies on Tuesday.
Provident is likely to be knocked down to the FTSE 250 while NMC Health may join the FTSE 100 in its place.
Shares in Provident have fallen about 68% in year to date. In August it issued its second profit warning in two months, announced the departure of chief executive Peter Crook, cancelled its interim dividend and said it was unlikely to pay a full year dividend following a “rapid deterioration” in the trading performance of its home credit business.
While its shares have recovered slightly since the announcement following its decision to replace the managing director the home credit business and to kick-start a review of the struggling unit, the damage to its market value has already been done before the results of the FTSE 350 review.
Carillion PLC (LON:CLLN) also looks set to be demoted in the reshuffle, moving from the FTSE 250 to the FTSE Small Cap index. The construction company’s shares have plummeted more than 80% in the year-to-date, weighed down by a profit warning in July when it also suspended its dividend and launched a strategic review.
Other demotions from the FTSE 250 to the small caps index are likely to include Petra Diamonds Limited (LON:PDL) and Northgate PLC (LON:NTG).
New entrants eligible to the FTSE 250 include 888 Holdings PLC (LON:888), Alfa Financial Software Holdings PLC (LON:ALFA) and Sequoia Economic Infrastructure Income Fund Ltd (LON:SEQI).
Hays to beat full year market forecasts
In corporate earnings, UK recruiter Hays PLC (LON:HAS) reports its full year results.
In a trading update in July, the company said annual operating profit will exceed analysts’ estimates of £209.5mln after delivering a record 7% like-for-like increase in total net fees in the final quarter to 30 June.
Net fee growth in the fourth quarter was boosted by an 11% like-for-like rise in both the Asia Pacific region and the Continental Europe and rest of the world divisions, offsetting a 5% decline in the UK and Ireland where Brexit uncertainty hit business confidence.
Liberum analysts said: “Fundamentally we see the group’s attractive exposure to contract recruitment (60% of net fee income), leading position in structural growth markets such as Germany, and attractive cash return profile as reasons to remain positive on the stock.”
The analysts expect the company to announce a full year dividend of 3.05p and a special dividend of 5p, bringing the total dividend yield to 4.8%.
Ex-dividend stocks to weigh on FTSE 100
Ex-dividend stocks are seen taking 1.2 points off the FTSE 100 index on Thursday, with Croda International PLC (LON:CRDA), G4S PLC (LON:GFS), Hammerson PLC (LON:HMSO), International Hotels Group PLC (LON:IHG), and St James’s Place PLC (LON:STJ) all trading without entitlement to their latest payouts.
Announcements due:
Interims: Alfa Financial Software Holdings PLC (Q2) (LON:ALFA), Arrow Global Group PLC (LON:ARW), Churchill China PLC (LON:CHH), Jimmy Choo PLC (LON:CHOO), Chesnara PLC (LON:CSN), Eddie Stobart Logistics PLC (LON:EXL), Exova Group PLC (LON:EXO), Grafton Group PLC (LON:GFTU), Ladbrokes Coral Group PLC (LON:LCL), Restaurant Group PLC (LON:RTN), Satellite Solutions Worldwide Group PLC (LON:SAT), STV Group PLC (LON:STVG), Total Produce PLC (LON:TOT)
Economic data: GfK UK consumer confidence; US weekly jobless claims; US personal income, spending; US Chicago PMI; US pending home sales