Capita and Dixons Carphone have fallen out of the FTSE 100 in its latest reshuffle.
The Share Centre says consumer electronics retailer Dixons Carphone’s share price has been sliding due to rising competition in the sector, particularly from online names such as Amazon.
Investment research analyst Helal Miah adds: “Moreover, higher import costs which have been a result of the weaker pound, have hurt the group and in its latest update, Dixons informed the market that it was ‘preparing for all eventualities’ as a result of the increasing uncertain times ahead.”
Elsewhere, support services behemoth Capita has also seen its share price under pressure since the Brexit outcome as average contract lengths have come down from eight to seven years. The firm also issued a profit warning last September.
Capita’s pre-tax profit was down 19 per cent from £585.5m to £475.3m while earnings per share fell by 20 per cent from 70.73p to 56.67p.
Capita chief executive Andy Parker, who announced he would be stepping down later this year, says: “2016 was a challenging year and Capita delivered a disappointing performance. We are determined to turn this performance around.”
Miah adds: “The relegation cements investor’s views that the performance of the chief executive, Andy Parker, has not been good enough and we therefore feel that it is not too much of a coincidence that Capita have announced that he will step down.
Meanwhile pest control group Rentokil Initial has been promoted into the FTSE100, alongside Scottish Mortgage Investment Trust.