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Johns Lyng Group (ASX:JLG) has seen a sharp shares selloff through Monday trade after it was confirmed the insurance repairer would be removed from the ASX 200 when the index reshuffles a little later this month.
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The ANZ company has lost as much as 12.1% in market value since open, to the tune of -34 cents; Johns Lyng was priced at $2.46 a share just before close.
The loss of status comes after Johns Lyng shaved as much as 57% in value in half a year.
Today, its market capitalisation is $697M, ranking it 404th on the Oz bourse.
Today’s selloff likely comes after Australian investors who had JLG shares parked in their portfolios were updated that it had dropped so badly; the S&P 500 Dow Jones Indices announced its rebalancing plans on Friday.
With the weekend to ruminate, traders may have decided they wanted to skip the repairer’s journey – or maybe they caught up on its narrowed FY25 guidance.
On that front, Johns Lyng had a 6.1% drop in revenue year over year at $573 million while its catastrophe insurance revenue plunged by 67.7%, to $38.8 million. Pre-tax earnings ($54.2 million) and net profit ($20.8 million) were both down too.
Following the tough first-half results, the company confirmed for shareholders it would have a full franked dividend of 2.5cps; an investor payout of 49% net profit.
All in all, it’s been pretty rough reading for Johns Lyng Group for some time now.
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Also caught up in the ASX 200 rebalancing has been slumping Aussie companies like Collins Foods Limited (ASX:CKF) and The Star Entertainment Group (ASX:SGR), which is holding for dear life as it (quickly) runs out of money.
DigiCo Infrastructure (ASX:DGT) and Capstone Copper Corp (ASX:CSC) – which I covered earlier – were among the companies to be added to the 200 index.
HotCopper forum darling Imugene (ASX:IMU) will be dropped from the ASX 300.
Near the front, Pro Medicus (ASX:PME) and Sigma Healthcare (ASX:SIG) cracked the top 50.
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