FTSE 250’s best and worst shares of 2024
Some familiar names are on 2024’s list of worst-performing FTSE 250 stocks, while the strongest came from sectors including construction and finance.
24th December 2024 11:00
by Graeme Evans from interactive investor
A 50% Club featuring fallen Close Brothers Group (LSE:CBG) and Aston Martin Lagonda Global Holdings Ordinary Shares (LSE:AML) was offset by progress for Currys, Just Group and Morgan Sindall during a tougher 2024 for FTSE 250 index investors.
London’s mid-cap benchmark rose 28% between October 2023 and the end of July, only to then weaken 5% as the UK economy began to slow and UK-focused companies counted the cost of higher-for-longer interest rates and a rising wage bill.
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The increased economic uncertainty facing the UK and Europe was seen in declines of 30% or more for the cyclical trio of recruitment firms SThree (LSE:STEM), Hays (LSE:HAS) and PageGroup (LSE:PAGE).
Their falls accelerated in the autumn, culminating in the warning by STEM recruiter SThree that it expects conditions to remain challenging throughout its 2025 financial year.
About 55% of FTSE 250 revenues are generated overseas, with China’s ongoing slow economic recovery a factor in this year’s latest lacklustre performance by animal genetics firm Genus (LSE:GNS).
China-facing automotive supplier Dowlais Group (LSE:DWL) and the luxury car maker Aston Martin Lagonda have faced additional headwinds due to global supply chain volatility.
The latter finished the year worth £1 billion after a fall of more than 50%, a performance that came despite high-profile vehicle launches including a new V12 flagship Vanquish.
Other members of the FTSE 250’s 50% Club of fallers included Close Brothers, which has lost 70% of its value due to uncertainty over its potential motor finance compensation bill, and John Wood Group (LSE:WG.) after a turbulent year for the energy services firm.
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Wood’s shares fell more than 60% to their lowest in two decades at 66p, a level that compares with the 230p tabled by Dubai-based engineering firm Sidara through the fourth of its takeover proposals. It walked away in August citing geopolitical risks and financial market uncertainty.
There were fresh setbacks for the shares in the autumn, including in November after the board disclosed an independent review following earlier write-downs on projects.
Grocery technology stock Ocado Group (LSE:OCDO) and Burberry Group (LSE:BRBY) began the year as FTSE 100 stocks before their relegations in June and September respectively.
The luxury goods group ended the year about a third cheaper at 950p, although shares had been as low as 575p prior to November’s launch of a turnaround plan by new chief executive Joshua Schulman.
Other high-profile fallers in the FTSE 250 index included Pets at Home Group (LSE:PETS), which ended the year about a third lower at a five-year low after reporting in November that it faced an “unusually subdued” pet retail market.
On the brighter side of the retail sector, Currys (LSE:CURY) shares had a much-improved year.
A series of profit warnings meant the electricals chain began 2024 down by two-thirds on its level of April 2021, blighted by ultra competitive conditions for its Nordic operations.
A stronger margin performance for Elkjøp and encouraging sales trends in the UK and Ireland mean shares have recovered 85% to their highest level in over two years.
Sixteen stocks rose by 50% or more, led by three whose reward for doubling in value during 2024 included promotion to the FTSE 250 index. CMC Markets (LSE:CMCX) made its return in April after an absence of six months, while Metro Bank Holdings (LSE:MTRO) is back after five years.
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The lender’s mid-cap status was restored in November, the same month it disclosed underlying profitability. Having sold a portfolio of mortgages to NatWest, the bank has benefited from its pivot towards higher yielding areas more suited to its relationship banking model.
The resumption of dividend payments and a doubling of its share price highlighted the progress of a “leaner and more agile” Greencore Group (LSE:GNC) during 2024. It joined the FTSE 250 in May.
Shares in the supermarket sandwiches and ready meals supplier, which is run by former Morrisons boss Dalton Philips, were also 50% higher in 2023.
Customer reviews platform Trustpilot Group (LSE:TRST) continued its progress, having rejoined the FTSE 250 at the end of 2023.
Its triple-digit share price improvement in 2024 included an autumn acceleration after it reported strong half-year growth in North America, driven by customer wins with companies including LexisNexis, Chime, Coinbase and Verizon.
XPS Pensions Group (LSE:XPS) joined the FTSE 250 in June, having hit a series of record highs in the year as changes in regulation fuelled demand for its consulting and administration services.
Ground engineer Keller Group (LSE:KLR) and construction and materials firm Morgan Sindall Group (LSE:MGNS) also hit new peaks during the year.
Keller’s rise of more than 60% followed a material step-up in its operational and financial performance since 2023, underpinned by North America exposure. The group has a record order book, although weakness in the European residential and commercial sectors meant the shares posted a softer finish to 2024.
Morgan Sindall, the fit-out and urban regeneration business, rose by about 72% to extend gains since the autumn 2022 mini-Budget to about 180%. Its fortunes in the most recent year have benefited from the government’s affordable home and social infrastructure plans.
Hochschild Mining (LSE:HOC) has been a beneficiary of the record gold price, as well as May’s start of commercial production at its Mara Rosa mine in Brazil.
The shares are at a four-year high, having almost doubled in 2024 on top of the 52% improvement seen in 2023. It has been able to repay debt and advance growth projects, while a resumption of dividend is under review for next year.
Retirement products business Just Group (LSE:JUST) outperformed the rest of the UK life sector in 2024, having said in August that it now expects to substantially exceed previous guidance of doubling 2021’s £211 million operating profit in three years.
The shares rose by about 90% to above 160p but analysts at Panmure Liberum said recently that the business remains materially undervalued after increasing its price target to 219p.
Meanwhile, photo booth firm ME Group International (LSE:MEGP) rose 65% after it reported a record profit haul thanks to continued strong growth at its laundry machines division.
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