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This analysis examines the Q3 2021 reshuffle of the Financial Times Stock Exchange (FTSE) 350 companies, as published by the global index provider, FTSE Russell, in its latest quarterly review.

FTSE Russell announced its final of 2021 on 1 December, which saw two changes to the FTSE 100 and four changes to the FTSE 250.

Changes to the FTSE 100 index

Veterinary products business, Dechra Pharmaceuticals plc, and electronics products distributor, Electrocomponents plc, have been promoted to the FTSE 100, replacing AI cyber security company, Darktrace plc, and chemicals and sustainable technologies company, Johnson Matthey plc.

Darktrace’s admission to trading in May 2021 saw the tech company float with an opening price of £2.23bn, and subsequent inclusion in the FTSE 250 following the global index provider’s September 2021 quarterly review. The company was promoted to the FTSE 100 a month later, following the high-profile acquisition and delisting of Wm Morrison Supermarkets plc by Clayton Dubilier & Rice LLC. However, the end of the company’s 180 day investor lock-up period saw Darktrace’s share price by 58% from a high point of £9.85 per share on 23 September, to £4.09 as of 8 December 2021, as rumours circled regarding the company’s prospects and investors moved quickly to waive lock-up arrangements and cash in on the company’s initial success. On 6 December 2021, Darktrace a share buyback programme to be completed on or before 31 December 2022. Unfortunately, the news has had a on market sentiment, with the share price continuing to decline.

Johnson Matthey is another FTSE 100 scalp to be claimed in the Q4 FTSE 350 reshuffle. The specialty chemicals company has had a rough couple of weeks, with its shares going into freefall after the company declared that it was abandoning its costly plans for battery technology development, as it concluded that potential returns from its battery materials business would not be adequate to justify further investment. Simultaneously, Johnson Matthey’s long-standing chief executive, Robert MacLeod, that he was to retire from the company’s Board as of 8 February 2022, to be succeeded by Liam Condon. Since these dual announcements on 11 November 2021, the FTSE 100 stalwart’s share price has more than 25% as of 8 December 2021.

Meanwhile, industrial and electronic product distributor Electrocomponents crowned a stellar year by celebrating a long-awaited return to join the heavy hitters in the FTSE 100. The company, which was last ranked in the premier index in 2002, is ticking the right corporate social responsibility boxes, having released its in early November 2021, which, among other things, announced the establishment of a new ESG Leadership Committee and committed the company to reaching net zero greenhouse gas emissions across its global operations by 2030, and across its wider value chain by 2050. Similarly, veterinary drug experts Dechra Pharmaceuticals topped off an exceptional year with its admission to the highest ranks of the blue-chips. A successful strategy, well timed acquisitions, and a large and growing niche market share saw its share price increase by almost 56% during 2021.

Changes to the FTSE 250 index

In the FTSE 250, AO World plc is set to fall out of the index. During the coronavirus (COVID-19) pandemic and ensuing lockdowns, the electrical retailer’s share price to the lofty heights of 429p in January 2021, with its chief executive, John Roberts, ‘I believe we've seen ten years of change in ten months, and experienced our strongest ever peak trading period’. However, the company has since fallen to pre-pandemic levels of around 100p, as it from the ongoing disruption in the global supply chain and increased competition in the German online market.

Investor in alternative asset managers, Petershill Partners plc, which only started trading on the London Stock Exchange in September 2021, enters the FTSE 250 this quarter, along with sub-prime lender, Provident Financial plc. The latter, which saw its share price fall approximately 76% during the second half of 2017 due to a and an investigation by the Financial Conduct Authority into one of the company’s products, has seen a in recent months.

Risers and fallers

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