Smaller companies report: Thursday close

By This Is Money
Updated: 11:34 EDT, 30 March 2006

DM and In Cup Plus propelled the small-cap index index to within a whisker of its all-time highs today.

The FTSE Small Cap index closed 10.9 points higher at 3610.6, a high for the session and just off its all-time peak. The FTSE 100 index meanwhile closed 56 points higher at 6015.2.

DM shares remained the London market's best performer, 3.5p higher at 12.25p, as the direct marketing group disclosed an 81% increase in full-year profits. It also announced the acquisition of Dodd Marketing for a maximum £9.0m in cash, of which £8.640m is payable on completion.

In Cup Plus also remained in demand, adding 0.75p to 4.12p after the Aim-listed drinks vending machine group revealed that trading to date in the current financial year is in line with market expectations.

In the first quarter of 2006, 23 machines have been sold to date. This compares favourably with a total of 41 machines sold during the year to 31 December 2005.

Elsewhere, Ardent Group shares were suspended at 18p, up 3p, after announcing that it is in advanced negotiations which could lead to a reverse takeover of the company.

Buyers also came for Tertiary Minerals, 2.25p ahead at 14.25p, after the company's Saudi partners signed a joint venture agreement for $7m of funding for feasibility studies in the country.

Intellego, meanwhile, jumped 0.63p to 4.25p after announcing that it has won a contract with BT Mobile.

Elsewhere, RC Group attracted support and rose 6¼p to 46p as the security solutions provider and biometrics product vendor revealed a 114% increase in annual profits and issued a bullish outlook.

Screen Technology Group was also in demand after announcing that trading has remained in line with current market expectations since its trading update given in November 2005 and the company's cash position remains strong Alpha Airports Group shares were wanted and added 4½p to 72½p as the aviation support services company notched up a 6.3% gain in full-year profits and disclosed that trading at the start of the year is slightly ahead of the comparable period.

And Ottakar's shot up 25p to 350p as the UK's Competition Commission gave provisional clearance to the takeover of the specialist bookseller by HMV Group's Waterstones chain.

On the bid front, venture capital company Springboard sprang up 8½p to 145½p following an agreed 144p-a-share cash offer from Nova Capital Management Ltd, a wholly-owned unit of Nova. The bid values Springboard at around £11.9m.

On the downside, Parity Group plunged 3.13p, or 65.89%, to 1.62p after the UK IT services group accompanied full-year losses with plans to strengthen its balance sheet through a fully underwritten placing and open offer to raise around £14.7m, net of expenses.

Elsewhere, Portrait Software ran back 2¼p to 14p after the company warned that its results for the year to 31 March 2006 will be below market expectations.

Sharply higher full-year losses clipped 5½p from NetB2B2, at 42½p, while profit-takers move in on North Midland Construction, 15p lower at 325p, in the wake of improved full-year numbers.

Finally, a 26% setback to half-year profits and a warning of challenging markets saw consumer electronics concern Armour Group soften 2p to 51½p.