Vistry set for FTSE 100 exit after profit warnings

Vistry Group is set to be removed from the FTSE 100, alongside retailers Frasers Group and B&M European Value Retail SA, following two profit warnings that have shaken investor confidence in the housebuilder.

Vistry set for FTSE 100 exit after profit warnings

FTSE Russell published indicative changes to the index after Tuesday's market close, revealing that investment giant Alliance Witan, miniature wargame maker Games Workshop Group PLC, and wealth manager St James's Place will replace the three companies. This marks a return to the FTSE 100 for St James's Place, which was demoted in June, while Games Workshop and Alliance Witan will make their debut in the index. In addition, several companies are set to exit the FTSE 250, including clean energy firm Ceres Power Holdings PLC, financial services group Close Brothers Group PLC, Carex brand owner PZ Cussons PLC, and oilfield services provider John Wood Group PLC. Replacing them in the FTSE 250 could be food delivery company Deliveroo PLC, US-based natural gas producer Diversified Energy Co PLC, transport operator National Express Group PLC (Mobico), and DNA/RNA sequencing firm Oxford Nanopore Technologies.

Other changes

Vistry’s potential demotion follows two profit warnings that have led to a nearly 50% drop in its market value since October. After initially alarming the market with an update on rising development costs, the company issued a further downgrade in November, citing challenges in its South Division. Vistry revised its full-year adjusted pre-tax profit forecast down to £300 million from £350 million, and a prior estimate of £430 million in October. In contrast, Games Workshop reported better-than-expected recent trading, forecasting a 25% increase in pre-tax profit for the six months to December 1. Shares in the Nottingham-based company have surged by 43% over the past six months. Retailers B&M and Frasers, which are set to exit the FTSE 100, have fallen by 36% and 8.4% respectively in the past six months. Among the FTSE 250 exits, Close Brothers has dropped 55% amid concerns over its motor financing division, while John Wood has plunged 72% after the company turned to Deloitte for an independent review of its accounts following substantial contract write-offs. Meanwhile, Deliveroo could be a notable addition to the FTSE 100. The company recently made changes to its listing structure, qualifying it for inclusion in the FTSE Index. These proposed changes are based on data from Friday, with the final index review set to be announced next Wednesday, following market close the day prior.