Companies set for a promotion include global payments processor Worldpay and lender Provident Financial.

The changes will take effect from the start of trading on Monday 21 December.

Here, Graham Spooner, investment research analyst at The Share Centre, delves deeper into the changes:

“Today the FTSE committee announced that Morrisons, G4S and Meggitt are to lose their places in the FTSE 100 due to a period of bad performances.

“Supermarket retailer Morrisons has been fighting relentlessly to maintain market share but strong competition in the sector led to the company reporting a decline in profits and a warning that restructuring costs will continue to impact in the future. This relegation is unlikely to come as a surprise to the market however, due to the fact the company only narrowly escaped demotion in the June and September reviews.

“Despite a small recovery recently, security firm G4S has also been given the boot as a result of a 13% fall in the share price over the past quarter alone. Meanwhile, shares in aerospace and defence company Meggitt fell by 20% on the back of a profit warning in October which is likely to be the reason for its downgrading.

“So the big question is – who has been given the green light? Global payments processor Worldpay, only joined the stock market in October this year. It has a market capitalisation of around £5.9bn, operates in 146 countries and has 400,000 customers worldwide. The group is joined by one of the UK’s leading suppliers of personal credit products Provident Financial, whose shares have risen 25% since the last review, and business support services firm DCC.”