Smaller companies report: Tuesday close

By This Is Money
Updated: 12:59 EDT, 18 April 2006

UK small caps closed lower following a slack day in the City. The main loser was Medisys, hard hit by news of plans to turn itself into a medical investment company. At the close the FTSE SmallCap index was 3.3 points adrift at 3625.2, however the FTSE 100 index was 14.7 points ahead at 6044.1.

Medisys, 3.15p off at 2.95p, is to sell all its operating businesses for $42.8m, and turn itself into a medical investment company. The disposal to Japanese diagnostics company Arkray comprises mainly the group's Hypoguard blood glucose monitoring business and its urine chemistry business. Medisys said intensifying competition in this market had placed 'severe constraints' on its working capital.

It plans to invest or co-invest in companies operating in the areas of medical devices, diagnostics, biopharmaceuticals and healthcare.

Bio fertiliser company, Bodisen Biotech was hit by profit-taking as the company reaffirmed 2006 market forecasts expecting it to report record first-quarter financial results. The shares fell 140p to 868p.

Thor Mining dipped 0.12p to 3.25p as the mineral exploration and development company disclosed it is evaluating a proposal to dual list its ordinary shares on the Australian Stock Exchange while continuing to trade on Aim. The proposal is part of the strategic planning for a future fund raising planned in late 2006 to finance the development of the Molyhil Project.

Black Rock Oil & Gas (up 0.33p at 1.47p) has placed 131m new shares at 1p each, raising £1.3m before expenses. It said it will use the proceeds to fund its operations in Colombia. The group had previously indicated that it plans to steam flood the Arce Oil Field.

Nexus Management rose 0.12p to 0.67p as the provider of specialist IT managed services disclosed that unaudited full-year net profits are more than double the broker forecast at £93,000 to March. Nexus says it has set a target of

£500,000 for the year ending September 2007.

Fortune Oil hardened 0.80p to 6.05p. The explorer is to take a 60% interest in a company formed to develop coal bed methane gas reserves in the Liulin block in Shanxi Province, China. Empyrean Energy rose 11p at 137½p after an update on drilling at the Eagle North-1 well in California. And Taghmen Energy rose 4p to 54p, after confirming it will buy Colombia's Petroleos del Norte for $32m.

Contract news lifted portable multimedia systems supplierDesigner Vision 0.25p to 4.18p. It is to supply a major US retailer with 24,000 'Designer Vision' MP3 players. The initial order is valued at $1.2m.