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

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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.