The supermarket will be joined in the FTSE 250 by outsourcing giant G4S and aerospace and defence firm Meggitt.
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Morrisons is reportedly in danger of relegation from the FTSE 100 list of the UK’s biggest companies. In the event that an organization is in the FTSE 250 and moves into the main 90 organizations, it can enter the FTSE 100.
Morrisons is the UK’s fourth-largest supermarket chain, behind Tesco, Sainsbury’s and Asda in annual sales.
Graham Spooner, investment research analyst at The Share Centre said: “Supermarket retailer Morrisons has been fighting relentlessly to maintain market share but strong competition in the sector led to the company reporting a decline in profits and a warning that restructuring costs will continue to impact in the future”.
The following quarterly survey of the list happens on Wednesday, with security firm G4S and aviation firm Meggitt likewise liable to be downgraded. Goldman Sachs advised clients to sell the stock earlier this year, citing slowing growth in emerging markets and the likelihood of increased spending as the industry modernises.
But with recent new issue, payment processor Worldpay, door step lender Provident Financial and Irish investment company DCC all looking likely to gain entry to the top flight, Morrisons would be in pole position to drop out of the Footsie as well.
Meggitt will also leave the top flight after its shares tumbled around 20% on the back of a profit warning in late October due to falling orders. The payment processing group priced its initial public offering at 240p and has since seen its stock rise above £3.
Supermarkets group William Morrison is again facing the possibility of dropping out of the FTSE 100 index after the latest indices review, due this week, having only been saved from ignominious demotion by a late plunge from engineer Weir Group last time out.
DCC runs a variety of businesses that include operating unmanned petrol stations, distributing electronics to retailers such as Argos and John Lewis, and the manufacturing of body butters for the Body Shop.
Further down the list of Britain’s biggest companies, estate agent Foxtons was the most high-profile of the firms to drop out of the FTSE 250.
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The final decision on Morrisons’ demotion will be made by the London Stock Exchange’s executive committee on December 2, based on the previous day’s closing price.
