FTSE 250 movers: Asos out of fashion, Computacenter says no

(Sharecast News) - FTSE 250 down 0.91% to 17,917.72 at 1540 BST.

Computacenter shares fell as the company said 2022 was set to be a year of "modest" growth in adjusted pre-tax profit following two "exceptional" years.

In an update for the third quarter to 30 September, the company - which provides computer services to public and private sector customers - said this will be achieved despite the substantial headwind of the unwinding of the Covid-19 cost and utilisation benefits it received in 2020 and 2021.

"We are benefiting from currency movements and the positive, but limited, contribution from our in-year acquisitions, but these are much smaller than the Covid headwinds," it said.

Computacenter hailed a "strong" performance in technology sourcing, adding that the US acquisition made in July has performed well.

The company's services businesses, meanwhile, were more challenged due to the effects of the Covid unwinding and ongoing cost and inflationary pressures. Nevertheless, Computacenter said some recent contract wins, which have not yet contributed, give it confidence.

"The supply chain challenges mean that our inventories remain much higher than last year for the reasons we have explained previously," it said. "We expect the supply constraints and the inventory levels to unwind as the year progresses but will not be substantially resolved until well into next year.

"As we look ahead into 2023, we look forward to another year of growth. The company continues to invest heavily in its future, particularly in its IT roadmap and, understandably, cyber security."

Computacenter said these investments will continue to hold back short-term profitability, but are essential to secure long-term success. "This commitment to invest for the long-term gives us confidence for the future," it said.

Shares in Asos fell 11% after a report that prominent hedge funds from both sides of the Atlantic have gone into battle with Frasers Group's Mike Ashley over his stake in the company by increasing bets against the online fast-fashion retailer.

Citadel, the Chicago fund founded by billionaire Ken Griffin, and Mayfair outfit Marshall Wace, are among a clutch of investors to have increased short positions in Asos since Mr Ashley's stake - made via Frasers Group - was revealed this weekend, the Daily Telegraph reported without citing sources.

Some 8.4% of Asos stock is on loan to short-sellers, the highest on record, and surpassing large bets placed against the company in 2016, according to regulatory filings.

The trades pit the hedge funds against Frasers, which has built a 5% stake in the business.

FTSE 250 - Risers

Drax Group (DRX) 515.50p 3.97% Indivior (INDV) 1,640.00p 3.27% Telecom Plus (TEP) 2,110.00p 2.93% International Public Partnerships Ltd. (INPP) 154.20p 2.66% Energean (ENOG) 1,443.00p 2.41% Quilter (QLT) 98.24p 2.21% Helios Towers (HTWS) 113.80p 1.97% Hammerson (HMSO) 19.81p 1.62% 3i Infrastructure (3IN) 315.00p 1.61% Petrofac Ltd. (PFC) 115.70p 1.58%

FTSE 250 - Fallers

ASOS (ASC) 574.50p -11.07% Hochschild Mining (HOC) 55.30p -6.98% Urban Logistics Reit (SHED) 131.50p -5.73% Computacenter (CCC) 1,803.00p -5.50% Genuit Group (GEN) 263.00p -4.71% Jupiter Fund Management (JUP) 104.70p -4.56% easyJet (EZJ) 327.50p -4.46% OSB Group (OSB) 398.00p -4.23% ITV (ITV) 66.66p -4.22% Bridgepoint Group (Reg S) (BPT) 211.00p -4.18%