Smaller Companies report: Wed close

By This Is Money
Updated: 12:33 EDT, 5 April 2006

UK small caps closed higher tracking gains across the broader market with an upbeat trading statement from Henry Boot and speculative gains in Legendary Investments helping the market recover from earlier lows.

At the close, the FTSE Small Cap Index was 0.9 stronger at 3,639.8, higher after reaching lows of 3,635.3 while the FTSE 100 was 39.4 stronger at 6,044.1.

Buyers came for South China Resources, 3p better at 17¾p, as the company executed an agreement with the Xi'an Institute for Geology and Mineral Resources to evaluate a 207km2 area which includes the Lingkou copper-molybdenum region in Luonan County, Shaanxi Province.

Contentfilm edged up ¾p to 5¾p, after the company said it expects to meet market expectations for the year to 31 March 2006. Revenues for the period are expected to be approximately £10.5m, an increase of 72% from 2005. The company is expected to report positive EBITDA before exceptionals of about £1.1m for the period.

Meanwhile, record full-year numbers provided the spur to Henry Boot, 80p ahead at 772½p. The property development, land trading, construction and plant hire group disclosed a 30% increase in pre-tax profits, a 12% rise in net assets per share and said the new year has started well and that it is on course to meet 2006 targets.

Bumper full-year numbers boosted Absolute Capital Management 11½p higher to 262p, while satisfactory preliminary results lifted Cobra Capital 2½p better to 2½p.

Shares in Manganese Bronze Holdings, manufacturer of London black cabs, hardened 5p to 207p in the wake of doubled half-year profits and dividend.

Elsewhere, Legendary Investments soared, up 50% or 0.04p at 0.12p, despite a statement by the company that they could not explain the share price movement.

Sarantel Group 'A' issues perked up 4p to 40p after the supplier of filtering antennas for mobile and wireless devices disclosed it expects sales for the six months to 31 March 2006 to be not less than £2m. This compares with £1m in the same period last year.

A solid premium was established by Goldenport Holdings as dealings got underway on AIM Inc. Shares in the international shipping company advanced to 262p from a placing price of 235p with 625,653 traded.

Another newcomer, Pantheon Resources, climbed to 113½p from a placing price of 100p in volume of 679,847.

Modest progress was also seen in RC Group, 2¼p firmer at 48p, following news that the international security systems provider has entered into collaboration with Sony to provide an integrated security solution encompassing technologies from both RCG and Sony.

And Bango advanced 10p to 217½p, after the mobile content enabler signed a collaboration with mBlox, the mobile transaction network, to allow users to preview and pay for content without having to send a separate SMS message.

Shares in Rockhopper Exploration moved up &frac12p; to 32p following the signing of a Letter Of Intent with CGG Marine to conduct a 3D seismic survey on its North Falkland Basin acreage.

Finally, Formjet ticked up 0.13p to 2¾p after the AIM-listed alternative software vendor launched a new suite of software solutions designed specifically to address the needs of SME's and home PC users.

Premier Direct Group remained under pressure, losing 33p at 129½p as the Newcastle-based shopping-at-work company disclosed a slight dip in first half profits, and warned that 'difficult' market conditions since Christmas could see the company miss its full year expectations. The group returned first half pre-tax profits of £2.4m against £2.5m.

Elsewhere, profit-takers moved in on MonsterMob, sliding 28½p at 324½p, after the mobile phone content developer revealed a strong set of 2005 results, boosted by a string of takeovers, and said that trading in the current year had started well.

Lower-than-expected nine month numbers also weakened FirstAfrica Oil, 0.33p adrift at 4.10p after the company disclosed nine-month losses and said it is in the process of considering the funding needs for the continuing development requirements in respect of its assets.