UK smaller companies: Monday close

By This Is Money
Updated: 04:12 EDT, 31 January 2006

SHARES in UK small companies closed higher thanks to stellar gains in Constellation Corporation and Symphony.

The FTSE Small Cap index closed 5.3 points higher at 3,488.6, while the FTSE 100 was down 7 points at 5,779.8.

Constellation topped the risers with a 60% leap, up 0.03p to 0.08p, after announcing that it has received interest about new funding options.

In terms of trading, the group said fees were ahead of expectations in the second half of 2005.

Shares in Howle Holdings were also in demand, up 33.59%, recouping all and more of Friday's falls with an 0.88p advance to 3½p.

Howle shares dropped 28% in value at the end of last week after the engineer disclosed a swing to full-year losses.

Elsewhere, shares in Symphony Plastic Technologies added 2p at 11¼p after the group announced that it has been awarded its full costs after EPI Environmental Products lost an appeal against Symphony in

December, and said the court ordered an immediate settlement of 600,000 as an interim award.

On 19 December last year, the court of appeal ruled in favour of Symphony, which makes degradable plastics. EPI's appeal concerned a December 2004 High Court ruling in favour of Symphony.

EPI had claimed that Symphony had breached a number of agreements regarding EPI's degradable additives, concerning alleged passing off and misuse of confidential information.

And hopes for an impending offer gave a boost to outdoor advertising group Maiden, up 8½p at 68½p.

Meanwhile shares in Chaco Resources added 2.20p at 12.40p after the Times' 'rumour of the day' on Saturday said the group is believed to have been awarded 55% of a field in Primavera, thought to contain the equivalent of 400m barrels of oil.

Fellow resource stocks African Copper and Aricom were also both gainers.

African Copper shares rose 9p to 91½p after saying its Matsitama belt exploration returned high grade copper-silver drill intersections.

Aricom rose 2¼p to 28p following the acquisition of a 49% interest in the Bolshoi Sejm ilmenite and magnetite deposit in Russia's Far East. Aricom is paying $3.8m for the stake.

And shares in Gulfsands Petroleum added 10p at 122½p after the company revealed that its Tigris reservoir on Block 26 in Syria is estimated to contain over 500m barrels of oil equivalent in resources.

According to a study conducted by independent petroleum engineering firm Ryder Scott, Tigris is believed to be holding 722m boe in probable, possible and prospective reserves if it is primarily a natural gas accumulation and 563 mmboe if it is mainly an oil reservoir.

Gulfsands is operator of Block 26 with a 50% stake, while Emerald Energy holds a 50% working interest through its wholly owned subsidiary SNG Overseas. Emerald Energy shares gained 18¾p at 220¼p.

Among the fallers, shares in Filtronic topped the smallcap leaders board, down over 30% in value with a 73½p drop to 171p.

The wireless communication equipment maker today announced the departure of its CEO John Roulston as it posted a swing to first-half losses.

• This is Money offers a free service where we send you official annual reports for listed companies. So to see how Filtronic earns its money, click here.

For the six months to Nov 30, Filtronic recorded a pretax loss of £5.6m compared to a profit of £3.5m a year ago.

Elsewhere, shares in troubled record company Sanctuary dropped over 25%, down 0.27p to 0.78p after confirming it is close to making a £110m equity fundraising.

Sanctuary warned it would be at a 'substantial discount' to its current share price and its size would significantly dilute current shareholders' stakes in the company.

Also among the fallers, Expomedia shares lost 25p to 115½p after revealing its 5%-owned Polish operation ran the exhibition centre in Katowice which collapsed on Saturday killing at least 66 people.

Polish authorities are attempting to identify the cause of the accident. In a statement, Expomedia confirmed it carries insurance policies which are currently being assessed.

Expansion news saw shares in Xpertise Group lose 0.10p at 0.85p after the IT training company announced it has acquired Waterman's People and Organisational Development business.

Xpertise said it has paid an initial £220,000 for the business satisfied by £170,000 in cash and £50,000 in ordinary shares.

Telecom services provider IDN Telecom slipped 0.32p lower to 2.64p after its full-year profits failed to excite.

IDN saw its pre-tax profits rise to £904,000, up from £659,000, on the back of a 10% rise in sales to £14.3m. IDN also proposed a maiden full-year dividend of 0.025p per share.