Smaller companies report: Tuesday close

By This Is Money
Updated: 11:43 EDT, 28 March 2006

SMALL caps closed near session lows, tracking the broader market's caution while Playtech showed a strong performance on its market debut, dealers said.

At the close, the FTSE Small Cap index was down 14.1 at 3,593.4. Among the gainers, a healthy premium was established by

Playtech, an international designer, developer and licensor of software for the gambling industry, as trading got underway on Aim.

The shares climbed to 273p from a placing price of 257p in heavy volume of 36.30m. The placing raised £265m, was five times oversubscribed and is the biggest stock market flotation so far this year.

Meanwhile, NWD Group was the strongest gainer among the minnows, up 0.85p or more than 130% at 1.47p after the marketing services group completed the refinancing of outstanding bank borrowings which were repayable on demand.

On the company results front, Smallbone added 5p to 88½p as the supplier of luxury kitchens and floors revealed record full-year numbers, while Lo-Q added 1.25p to 10.25p after the virtual queuing design and operation company produced satisfactory results.

A swing to full year profits, after four years of losses, and the intention to restore regular dividend payments lifted packaging group Macfarlane 3¾p to 39½p.

Roeford Properties also made modest progress, up a penny to 8p after posting a maiden second-half pre-tax loss of £133,000, while adding it sees further profitable ventures coming up as the group identifies further opportunities and investments.

Elevation Events Group was also on the up, 0.75p higher at 6.75p after posting a maiden pretax loss in the first 17 months. The group added it is now progressing well.

Buyers came for Surface Technology Systems, 6p better at 47p, following news that the plasma process technologies concern has won an order worth over 2m stg from a major manufacturer for Micro-Electro-Mechanical Systems (MEMS) production equipment.

Pan Andean also advanced, up 0.75p to 10.25p after the US oil & gas producer disclosed that a third well has been successfully drilled by Gryphon Exploration on High Island 52.

News of an approach lifted DCS Group 2¾p to 21½p after the company confirmed the recent movement in share price came on the back of a bid approach which may or may not lead to an offer.

Brandon Hire also soared, up 27½p to 211½p in response to an agreed £71.9m, or 212p a share, bid from heating and plumbing supplies group Wolseley.

Elsewhere, positive newsflow from contracts and collaborations lent support to the stocks. SR Pharma shares added 2½p at 22½p after announcing that Merck signed an agreement to in-license know how from SR Pharma's subsidiary Atugen AG.

Belgian genomics-based drug discovery company Galapagos jumped 27½p to 652½p following news that its service division, BioFocus, has entered into a new three-year collaboration with Roche.

Among the main fallers, shares in Scott Tod softened 3p to 12½p after the distributor and processor of ATMs revealed widening losses at the half-way mark.

SVB Holdings lost 4¾p at 32p after the Lloyd's underwriter posted full-year pretax profits below market expectations. The figures were accompanied by a £103m rights issue for a new insurance company called NICL, prompting a downgrade to 'reduce' from 'hold' by KBC Peel Hunt due to the scale of the rights issue.

Advance Visual Communications eased 0.01p to 0.09p for the same reason, while Emerald Energy dropped 6p to 246p following the company's decision to plug and abandon exploration well Agueda No 1 in the El Algarrobo block in Columbia after flow tests showed no hydrocarbons.

Bodisen Biotech shares were also hurt, slipping by 132½p to 907½p after the group posted disappointing full-year losses.

News that HIT Entertainment had pulled out of the bid race for Chorion sent the stock 17½p lower at 427½p. HIT was given an April 4 deadline to make a firm bid for Chorion.

Finally, Ottakars fell 9p at 330p in the wake of full-year losses, while UKbetting eased 3¼p to 67¼p as traders realised gains following maiden full-year profits.