Business

FTSE 100 closes lower as GKN drags down index from record highs

Market trader (file picture) Image copyright Getty Images

Shares in GKN weighed on the UK market after the engineering firm issued a profit warning.

GKN fell nearly 10% after it said full-year profits would be only slightly higher than last year.

It blamed "operational challenges" in its North American aerospace business and a £40m charge resulting from "two significant external claims".

GKN was the biggest faller on the FTSE 100, which closed down 20.80 points, or 0.28%, at 7,535.44.

On Thursday the index hit a record high.

On the FTSE 250, shares in Provident Financial jumped 12.8% after the troubled lender said it had put a recovery plan in place for its home credit business.

In August, shares in the company had dropped by two-thirds in one day after it issued a profit warning. Provident ran into trouble after an attempt to reorganise its door-to-door lending business failed to work.

On the currency markets, the pound was up 0.3% against the dollar at $1.3305 and 0.3% higher against the euro at €1.1240.