Financial services platform Hargreaves Lansdown is on course to leave the FTSE 100 index in the upcoming re-shuffle after market close on 29 November, the index provider FTSE Russell has announced today.
The company was promoted to the index in 2011 and has remained there since. Currently set to take its place is private equity investment firm Intermediate Capital Group. Its year-on-year revenue has grown 135.3% in September 2023 and shares have risen 38.8% over the past year.
The quarterly review of the FTSE UK Index Series will be conducted using data as at market close on Tuesday 28th November 2023, meaning there is still time for Hargreaves’ shares to rise and the firm to escape the drop.
The FTSE 250 could also be going through significative changes, with Liontrust Asset Management poised to leave the mid-cap index.
In its six-months results published last week, the asset manager announced a statutory loss of £10m due to impairments of intangible assets. However, Peel Hunt researchers continued to back it in a note released yesterday.
“Despite a 9% fall in gross profit to £99m, the company maintained the operating margin at nearly 36%, due to a 5% reduction in underlying costs, and management is taking effective actions at a time of downward AUM [assets under management] pressures,” they said.
“Liontrust has strong operational gearing into recovering markets and is trading cheaply. We keep our 750p target price and buy rating.”
Other businesses on course to leave the index are retailer Halfords Group, energy companies Hochschild Mining and Tullow Oil and the investment company Asia Dragon Trust.
New prospective additions are online betting and gaming company 888 Holdings, fintech specialist CAB Payments Holdings and real estate investment company CLS Holdings.