Smaller companies report: Tuesday close

 

SHARES in small caps mirrored losses on the broader markets, and Elixir Petroleum remained the main laggard following a disappointing drilling report.

The FTSE Small Cap index lost 38.37 at 2956.12 after reaching intra day highs of 2994.73. Meanwhile, the FTSE 100 was 84.4 adrift at 5,791.5.

Shares in Elixir Petroleum were the main losers among the minnows, down 19¾p at 26¼p after announcing that drilling on its the Jaguar prospect of the North Sea had so far failed to find commercial hydrocarbons.

Peer CDS Oil & Gas shed 1½p to 6¼p after confirming it was disappointed with initial drilling results from its first well in Paraguay.

Sellers were also about in NXT, 9p down at 56p, as in-line half-yearly numbers were overshadowed by the sound technology provider's note of caution about H2 sales.

Following the statement, Bridgewell Securities reduced his full-year unit forecasts by a hefty 39% to £6.8m with a consequent impact on revenues of 17%. This gives full-year revenues of £3.5m against his original estimate of £4.2m. Nevertheless, the analyst retained his 'neutral' stance on the stock.

Phynova also suffered, shedding 12½p to 120p on the share's second trading day after a sparkling debut session on Aim yesterday.

Elsewhere, Surface Transforms haved off 1p to 16p after the group widened its pretax loss in the first half to £478,588 vs £238,839 as sales fell to £68,302 from £208,422 a year earlier, mainly due to the loss of the development contract with Dunlop Aerospace.

Small cap stock tips

• Read this week's small cap share tips, selected by the UK's leading smaller companies investment analysts

Meanwhile, Conroy Diamonds & Gold shares were 0.38p weaker, down to 4.37p, after saying it is considering various options for financing further exploration and development programmes, including bringing in a joint venture partner or the raising of further capital.

On the winner's side, Milestone Group rallied in late trade, adding 0.87p to 3.87p after announcing the completion of the disposal of a controlling stake in Rugby Broadcasting Company.

Offshore Hydrocarbon Mapping was strong, adding 16p to 103½p after the company disclosed that trading has exceeded the board's expectations for the six months to 28 February 2006.

The company said its cash resources are slightly ahead of the £4.4m reported at the end of the August. The directors anticipate that first half turnover and operating profit will be in excess of that achieved for the full year to 31 August 2005.

News of a disposal plan worth around £24.5m in cash lifted Inflexion shares, 2½p stronger to 20¾p .

Bumper interims and a positive statement also spurred Trace Group, 3½p better at 99p. The company, which provides software to the financial, insurance and property markets, said it is optimistic about the current year after it raised pretax profit in the six months to 30 Nov 2005 to £415,000 from £235,000. The company added its fundamentals remain good and it is in a healthy financial position.

Ormonde Mining edged up 0.4p to 11.75p as the company entered into an option agreement to acquire the Barruecopardo Tungsten Tailings Project, located in the permit area of the Company's Salamanca Gold Project in Western Spain.

Contract news supported Itrain shares, ¼p higher to 4.37p as the group will provide online procedural training for a large German health insurance company in a contract worth more than 100,000 euros.

2 Ergo Group shares gained 7p to 229½p winning a US distribution partnership with Belo Corp, one of America's largest diversified media companies.