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FTSE 250 movers: Capita bounces back; investors disconnect from TalkTalk
The Capita revival continued on Monday as shares in one of the government's favourite outsources led the FTSE 250 risers.
Capita shares bombed last week after the company announced a £700m cash call, suspended the dividend and started an asset sell off.
It also came under fire from heavyweight shareholder Royal London Asset Management which accused the company of flouting corporate governance rules in the past, but welcomed boardroom changes in the past 18 months.
Royal London, which holds 0.4% of Capita, said it had been "privately raising concerns about Capita's weak governance for a number of years" and had repeatedly voted against pay deals.
The investor's corporate governance chief, Ashley Hamilton Claxton, said: "Until recently, Capita's board flouted one of the basic rules of the corporate governance code, with a small board primarily comprised of management insiders. The result was a board that lacked the independent spirit to rigorously assess whether the company was making the right long-term decisions."
"The sea change in the board over the past 18 months has been welcome and has addressed the key issue of independence. It will be up to the new chairman and the board to ensure that Capita does not repeat the mistakes of the past and that its strategy is fit for purpose during a particularly turbulent time for the outsourcing sector."
Electrocomponents gained after it said that its "strong" underlying revenue performance in the first half has continued into the first four months of the second half, with underlying revenue growth remaining stable at the 14% seen in the second quarter.
Petrofac leaked lower after it said its directors and employees will be interviewed as part of an ongoing SFO investigation.
The black cloud continued to follow beleaguered budget broadband provider TalkTalk as the shares fell sharply again on Monday. Fears of another dividend cut sent the stock plunging to an eight-year low last week.
Market Movers
FTSE 100 (UKX) 7,346.83 -1.30%
FTSE 250 (MCX) 19,660.88 -1.51%
FTSE 250 - Risers
Capita (CPI) 175.20p 7.95%
Cineworld Group (CINE) 236.60p 3.18%
Polymetal International (POLY) 816.00p 2.28%
IWG (IWG) 228.30p 1.47%
Electrocomponents (ECM) 617.40p 0.98%
Millennium & Copthorne Hotels (MLC) 538.00p 0.75%
Rank Group (RNK) 227.00p 0.67%
SSP Group (SSPG) 605.50p 0.58%
Vectura Group (VEC) 90.45p 0.56%
Spire Healthcare Group (SPI) 237.26p 0.53%
FTSE 250 - Fallers
Woodford Patient Capital Trust (WPCT) 76.70p -5.54%
BCA Marketplace (BCA) 176.40p -4.65%
Petrofac Ltd. (PFC) 502.00p -4.49%
TalkTalk Telecom Group (TALK) 117.40p -4.40%
Polar Capital Technology Trust (PCT) 1,078.00p -4.26%
Kier Group (KIE) 987.55p -4.21%
Vietnam Enterprise Investments (DI) (VEIL) 460.00p -4.17%
Just Group (JUST) 143.70p -4.14%
Unite Group (UTG) 765.00p -3.89%
Vesuvius (VSVS) 576.50p -3.76%