Funding Circle and Metro Bank ejected from FTSE 250
The falls of Funding Circle, Metro Bank and Marks & Spencer catch the eye among this quarter’s review of the UK’s largest listed companies.
Britain’s largest peer-to-peer lender and one of the country’s first challenger banks were ejected from the FTSE 250 index.
The peer-to-peer business lender, led by chief executive and co-founder Samir Desai (pictured), has seen the value of its stock fall by more than 75 per cent since it floated last October at 440p as it cut growth forecasts by half. It was at 106p in morning trading.
Metro Bank, founded nine years ago, has seen its shares tumble over 90 per cent over the last year after an accounting error forced it to raise £375m from investors in May.
Neil Woodford’s listed Woodford Patient Capital Trust also dropped out of the FTSE 250, after the former star stockpicker froze his flagship fund in June following a rush from investors who withdrew their money.
Other notable ejections from the country’s second tier of quoted firms on Wednesday, include guarantor loans business Amigo Holdings and fashion retailer Ted Baker.
The FTSE 250 is regarded as a truer measure British business, as the larger FTSE 100 reflects firms that make most of their cash from international sales.
High street stalwart Marks & Spencer dropped out of the top tier and into the FTSE 250 for the first time since the index was created in its current form in 1984. The retailer has struggled to keep pace with low-cost grocers such as Aldi and Lidl as well as online retailers.
In the FTSE 100 index, Hikma Pharmaceuticals, Meggitt and Polymetal International joined the country’s largest listed firms, while Direct Line Insurance Group, Micro Focus as well as Marks & Spencer drop into the second tier.
FTSE Russell said its “impartial quarterly reviews”, based on market capital values, “ensure the indexes continue to portray an accurate reflection of the market they represent”.