UK small caps close near day's low; Paros top slider as shareholder cuts stake

UK small caps close near day's low; Paros top slider as shareholder cuts stake

	Published : Thu, 22 Nov 2007 17:42 By : Agencies Print this Story

LONDON (Thomson Financial) - UK smaller companies closed near to their day's low today, where they have remained all day, bucking the buoyancy of the wider market, with Paros sliding as Imperial Innovations cut its stake in the company.

At the close, the FTSE Small Cap index was 26.80 points down to 3,384.30, after a low today of 3,383.50, while the FSTE 100 index closed 84.40 points up on 6,155.30.

Paros slid 0.085 a penny to 0.35 a penny as it said Imperial Innovations Group now holds 26.78 mln shares or about 5.66 pct of Paros's issued share capital, after it sold 4.5 mln shares in the company, equivalent to 0.95 pct.

Psion, today's earlier top faller, backtracked 20-1/2 pence to 102-1/2 as it said it sees full-year sterling revenue only modestly ahead of last year's 190.6 mln stg on continued weakness in demand from North America in the second-half.

Also failing to hit the target was Dart Group, trailing by 10-3/4 pence to 54-3/4 pence also on numbers woes.

Its first-half adjusted pretax profit declined, and Dart warned its underlying profitability for the year will be significantly reduced from last year, reflecting the investment made in growing the scheduled airline operations.

The same fate beset Trio Finance, ending back 0.675 of a penny to 4.2 pence, as it reported a net loss of 28.4 mln usd for the year to Sept 30 due to impairment charges of 42.8 mln usd, and said its focus remains on distributing cash to shareholders.

Meanwhile, Phoenix IT finished 53-3/4 pence down on 314 pence, despite posting a higher first-half underlying pretax profit, as it said its CEO will step down, prompting Altium Securities to stay positive and keep its 'buy' rating on the stock.

Elsewhere, Energy Technique gave away 1-3/4 pence to 13-1/2 pence as it warned it expects trading in the second half of the year to be hurt by the global credit crunch, while Brazilian Diamonds lost 0.625 of a penny to 5-3/4 pence as Hamilton Capital Partners Ltd -- a company with which its chairman Kenneth Judge is associated -- exercised its option to buy shares in Hidefield Gold held by BSG Investments Inc, a wholly-owned unit of Brazilian Diamonds.

Other sliders were Pinewood Shepperton, which closed 26 pence adrift on 239 pence as it said today that one of its contracted customers has decided to immediately shut down production of a major film during the current Writers' Guild of America strike, which will hit its ancillary film revenues by about 3 mln stg, mainly in 2008.

And England's disappointing exit from the Euro 2008 football tournament saw Umbro shares close 4 pence lower at 170-1/2 pence.

Umbro cautioned that reduced levels of England Home jersey sales in 2007 and the team's qualification failure will have some effect on revenues in the current financial year.

However, there was reason to smile over at Oxonica, making a 25 pct gain, up 5 pence to 25 pence, as it said it has raised 4.2 mln stg, before expenses, through a placing of about 20.07 mln shares at 21 pence each.

The nanomaterials group said the funds raised from the placing will be mainly used to strengthen its diagnostics business, continue the development of its Solacor technology, and to increase the investment in the engine test programme for its Envirox catalyst.

Regency Mines followed it with a 23 pct gain, up 0-3/4 a penny to 4 pence, as it said it has entered into a 'Memorandum of Investment and Co-operation' with an Asia-based investment group which could lead to a substantial investment in the company and in one of its projects.

Ptarmigan Property ended the day 15-1/2 pence firmer at 118-1/2 pence, as it called an extraordinary general meeting to consider returning cash to shareholders as it sees the current turmoil in the financial markets having a negative effect on its capital value, while jewellery maker Abbeycrest was a late mover, gaining 2-3/4 pence to 20-3/4 pence as it said HSBC Bank sold its entire stake of 2,508,885 shares in the company, representing 9.64 pct, on Nov 20.

In a separate statement Abbecrest said that on the same date, Agilo Ltd

purchased 2,508,885 shares.

This, representing 9.64 pct in Abbeycrest, is Agilo's entire shareholding.

Elsewhere Anglesey Mining extended its gains to 2 pence, up to 22-1/2 pence, on news its total indicative market capitalisation for its Labrador Iron Mines Holdings Ltd unit will be 149 mln cad if the over-allotment option is exercised.

At the offer price of 4 cad per unit, Anglesey said the derived value of its interest in LIM is about 37 mln stg.

And metals and minerals trader Wogen closed 4-1/2 pence better off to 84 pence, on full-year results which are in line with the results from the first half, putting them ahead of market expectations.

The company -- which is expected to announce its full-year results to Sept 30 on Jan 17, 2008 -- said trading continues to be satisfactory.

Vyke Communications closed higher, moving up 7-1/2 pence to 137-1/2 pence, although it said it knows no reason for the share price movement, adding that its board continues to be encouraged with trading, while ending proceedings today is Mediwatch, 0.375 a penny better off at 10 pence, as it signed a 2 mln stg contract to supply a range of diagnostic urological products to US-based Accelerated Care Plus Corp.

After a late swing to a loss Worthington Nicholls Group recovered to close 0-1/4 a penny higher at 20-3/4 pence, where it had been for most of the day, as investors appeared encouraged by news that David Levis, Stephen Mulligan and Christopher Neilson have resigned as directors of the company with immediate effect.

The air conditioning and heating systems group said it has appointed Rodney Mann deputy chairman, Simon Beart chief executive and William Good as group finance director.

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