Footsie threat to Inchcape

INCHCAPE, the beleaguered car distributor, is set to be banished from the FT-SE 100 (the Footsie) index of blue-chip companies after its share price fell by almost a fifth last week, wiping more than pounds 270m off the company's stock market value.

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."

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate