Entain and Aston Martin set for FTSE exit as reshuffle looms

The London market indices are about to undergo their quarterly reshuffle, and two high‑profile names are on the chopping block. Entain, the owner of Ladbrokes, is slated to fall out of the FTSE 100, while luxury‑car maker Aston Martin faces removal from the FTSE 250.

Betting firm faces tax squeeze

Analysts say the move reflects a bruising period for the betting sector, compounded by a series of tax hikes aimed at remote and online gambling. "Dan Coatsworth, head of markets at AJ Bell, said the company ‘has battled with high UK gambling taxes, increased competition, and slower than expected growth in the US.’"

Entain warned that the new 25 percent betting levy, due to start in April 2027, could shave roughly £100 million from its 2026 earnings and £150 million a year thereafter, even after cutting marketing spend.

The levy follows a 2026 increase in the remote gaming duty, raised by former chancellor Rachel Reeves from 21 percent to 40 percent. The combined effect threatens to erode Entain’s profitability at a time when the company is already contending with intensified competition from online rivals.

Luxury carmaker under pressure

Across the mid‑cap index, Persimmon is also expected to be demoted after a slump in the UK property market, a trend Dan Coatsworth described as “a sign of the times amid a depressed property market”. Earlier this year the housebuilder flagged inflationary pressures in its supply chain that could dent second‑half earnings.

Meanwhile, Aston Martin has been wrestling with a 52 percent jump in net losses to nearly £500 million. The firm announced a 20 percent workforce cut, about 600 jobs, after blaming “extremely disruptive” US tariffs and “extremely subdued” demand in China, the world’s biggest car market.

“Aston Martin continues to struggle on the stock market as investors worry about the state of its finances,” said Dan Coatsworth.

Who will take their places?

Two firms are poised to step into the vacant slots. Energy player Ithaca has benefited from a rally in oil prices, driven by heightened tensions in the Middle East as seen in recent market moves. The other entrant is low‑cost carrier Easyjet, whose shares surged ahead of a £5.7 billion acquisition by asset manager Apollo. The deal will see Easyjet lifted onto the main market, replacing one of the departing names.

The reshuffle will be based on closing prices from the 1 September trading session, with the final list announced the following day. Investors will be watching how the index changes affect fund allocations and the broader perception of UK market health.