Warhammer maker earns place in FTSE 100 while Frasers drops off top index

Retailers Frasers Group and B&M have dropped off the UK’s FTSE 100, while consumers flocking to the sci-fi market have helped Warhammer maker Games Workshop earn a place in the top index.

The latest reshuffle of the London Stock Exchange has seen three companies demoted from the FTSE 100, leaving three to step into their place.

Analytics group FTSE Russell confirmed the changes, which are based on share prices at the end of the day on Tuesday and will come into effect on December 23.

Nottingham-based Games Workshop has climbed the ranks of the London Stock Exchange and will join the FTSE 100.

It follows a strong year for the company, which sells figurines and miniatures online and in shops across the UK for the hobby Warhammer, a wargame usually played in groups.

It also gets money from selling its intellectual property to entertainment and gaming companies who use the brand for spin-off shows and products.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Games Workshop is a one-stop wonder shop when it comes to tabletop miniature gaming and its prowess at the full sweep of production design, manufacturing, distribution and retail has made it a global leader.

“The science fiction and fantasy market is huge and Games Workshop keeps fans entertained every step of the way, drawing in collectors of miniature to paint their own models to play at home or at big events.”

Wealth manager St James’s Place will return to the FTSE 100 after being kicked off earlier this year, having seen its share price surge by more than 70% over the past six months.

Meanwhile, Mike Ashley’s retail group, which owns brands including Sports Direct, Frasers and Flannels, will drop out of the top league after seeing its share price weaken by more than 15% over the past six months.

The group has been in the spotlight recently over its strategy, having been seeking to grow its control in a number of brands it holds investments in recently, including Boohoo and Mulberry.

Ms Streeter said: “Frasers Group’s attempts to wrestle more control of companies it’s invested in, notably Mulberry and Boohoo, has been watched closely, and the constant rebuffing has also caused some extra volatility in the share price.”

She added: “Its low-cost Sports Direct chain does offer resilience, pulling in more than half of total revenues last year.

“However, the chain is also having to contend with the ongoing shift from bricks and mortar to online and falling footfall for department stores.”

Fellow retailer B&M European Value Retail will also be demoted to the FTSE 250 in the latest reshuffle, despite the budget supermarket chain opening 30 new shops in the UK during the first half of its financial year.

Stripping out the impact of new shops, the retailer saw its sales dip over the latest period.

Ms Streeter said “relying on growth from new store openings is far from ideal”, adding that investors had been “rattled” by sales falling on a like-for-like basis.

Shares in B&M have tumbled by more than a quarter over the past six months.

Elsewhere, housebuilder Vistry has also lost its place in the FTSE 100 after a challenging period for the industry, with its share price halving over the past six months.