Smaller companies report: Tuesday close

 

UK SMALL caps closed higher, having stayed positive throughout the day, outperforming lacklustre blue chips, with resource minnows in focus.

At the close, the FTSE Small Cap Index was up 7.1 points at 3,537.3, while the FTSE 100 retreated 1.2 points to 5,792.3.

Among resource stocks, Palladex firmed 1½p to 10p taking the top spot among the small caps.

The exploration company, which focuses on gold projects in the former Soviet Union, said results of bulk samples taken from Kyrgyzstan prove a strong grade of gold.

Palladex is in the process of completing a full data review that will include resource estimation and an exploration plan for 2006.

Maintaining its position near the top of the leader board high among the small cap gainers was Serabi Mining, with shares increasing by 7p to 48p following an increased resource estimate at the Palito Gold Mine.

And Alba Mineral Resources crept ½p higher to 8½p after the company said initial rock sampling at Bohaun in Ireland has verified high grade gold mineralisation.

IDC will invest up to around $10m to fund a bankable feasibility study on the project. The study is scheduled to be completed in 2007.

Away from resources, Nipson Digital Printing was a strong feature in afternoon trade, gaining 6½p to hit 41½p, as dealers suggested a large seller of stock had been taken out of the market. There was a chase for 75,000 shares at a price that dealers said 'would probably not be met'.

Patsystems ticked up ½p to 13¾p after the Aim-listed global supplier of electronic trading technology revealed a swing to normalised full-year profits and said it proposes the payment of a dividend subject to a satisfactory performance in 2006.

And solid full-year numbers, moves to streamline the board and a confident statement boosted Matrix Communications 5p to 98½p.

The telecoms and IT services company reported adjusted pre-tax profits of £3.81m, up from £1.26m, following a string of acquisitions. Trading in the fiscal first quarter has been in line with expectations, and the group enters the second quarter with a 'significant' order book, he added.

NETeller, the online payment system, shed some weight in late trading, dropping 70p to 668p. It coincided with FTSE 100 issues earlier in the day when shares in PartyGaming were under pressure, leading the online gaming sector lower, amid concerns that US anti-internet gambling legislation is gathering steam, dealers said.

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In a research note published by Morgan Stanley on Friday, the US broker noted that despite a generally upbeat mood at last week's online gaming conference, companies were taking a 'slightly more cautious view of the regulatory environment in the US'.

LiDCO slipped 1.75p to 18.75p after the cardiovascular monitoring company warned that certain key capital sales orders have taken longer to achieve than previously predicted and are now expected to occur in the current financial year.

As a consequence, total revenue for the period is expected to be up to 15% below market expectations of £4m.

Panmure Gordon cut its 2006-07 pre-tax loss estimate to £300,000 from £1m, and advised clients to 'buy'. And Ricmore shares fell back 0.25p to 1.87p after yesterday's reverse takeover news.