Premier Farnell demoted in FTSE 250 reshuffle
RASPBERRY PI manufacturer Premier Farnell has dropped out of the FTSE 250 after a torrid quarter that saw its market value drop by one-third.
Chief executive Laurence Bain left in the wake of an announcement that adjusted operating profit would be down around 10% in the first half figures that are due to be released in September.
The markets responded badly, with Premier Farnell losing £100m in value that day, which was added to by a further £100m throughout the rest of the quarter.
After a meeting of the FTSE committee, Premier Farnell’s demotion from the FTSE 250 was confirmed, alongside Lonmin and James Fisher & Sons.
They were replaced by Circassia Pharameuticals, P2P Global Investments and Sophos Group.
Premier Farnell share performance in the three months to September 1, 2015 (source: Google Finance):
In the FTSE 100, Weir Group is to be replaced by Berkeley Group. Morrisons remains Yorkshire’s sole representative on the leading index, although it remains in a precarious position as it will have the second lowest market value on the list once Weir Group departs.
Croda International and Provident Financial are on the six-strong FTSE 100 reserve list should an existing company on the index be delisted or suspended, for example if it is bought or forms part of a merger.
If a replacement is required during the quarter, the company with the largest market capitalisation will be chosen. Currently DCC are at the top of the reserve list, with Provident second and Croda fourth.
The changes take effect from Monday, September 21.
