Footsie threat to Inchcape
Sunday 26 November 1995
The mauling leaves Inchcape worth just pounds 1.3bn, and makes it the most likely candidate to step aside for the National Grid, the UK power transmission company that will go straight into the FT-SE 100 index when official dealings start on 11 December.
A regular meeting of the Stock Exchange's UK committee on 6 December will almost certainly seal Inchcape's fate as the main criterion for FT-SE 100 membership is market worth. Inchcape's removal from the Footsie would mean the withdrawal of some index-tracking funds from the share, which could prompt further share-price weakness in the run-up to Christmas.
"I'm absolutely certain Inchcape will drop out of the Footsie in two weeks' time," says Nyren Scott-Malden, analyst at broker BZW.
He is one of many to slash results forecasts recently, after profit warnings this month from motor dealer Evans Halshaw and car-hire specialist Eurodollar, plus poor trading conditions in France and Hong Kong.
Worse, Inchcape is particularly vulnerable to a strong Japanese yen; every 5 per cent movement in the currency is estimated to hit the bottom line to the tune of pounds 13m, though the blow can be softened by hedging.
Brokers now expect pre-tax profits of around pounds 140m before exceptional charges for 1995, versus pounds 231m in 1994. Inchcape itself admits the omens are poor. "The situation isn't very promising," said a spokesman. "We will have to go some in the next few weeks to stay in the index."
- 1 Strictly Come Dancing 2014: Gregg Wallace joins line-up as final celebrities revealed
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 Saudi Arabia executes 19 in one half of August in 'disturbing surge of beheadings'
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...