Smaller companies report: Thursday close

By This Is Money
Updated: 12:53 EDT, 25 May 2006

UK small caps closed higher in line with the broader markets which bounced back in afternoon trading today.

At the close, the FTSE Small Cap index added 25.5 points at 3,379.1, while the blue chip index climbed 90.6 at 5,677.7. Among the positives was a return to profitability in the first half fuelled Advanced Power Components's 2.37p rise to 12.87p.

The electronic components distributor also said it is undertaking a review of its capital structure to enable the resumption of dividend payouts as soon as possible.

Nanotech Energy pared earlier gains but remained almost 20% higher, up 0.22p at 1.37p, as it returned to trade following the reverse takeover of Impact Funding for £3.15m.

Oil exploration and production company Imperial Energy added 33p at 893p after revealing a new significant discovery of oil at Snezhnaya, Block 77, Tomsk, Western Siberia.

Another strong performer was QXL Ricardo, which rose 1,359p at 11,934p, after the online group posted full year sales up 59%, with pretax profit of £2.05m.

Walker Greenbank moved up 1½p to 27p after The Times' Tempus column suggested the stock could be just the thing to paper over those cracks in investors' portfolios. Tempus's Richard Irving suggested that, if wallpapers are coming back in vogue then the shares look cheap at anything below 36p.

Reflec was another gainer, edging up 0.10p to 0.95p after the firm revealed a swing to full-year profits from previous losses. Trading results since February 28 2006 have been satisfactory, and exceeded budget, the company said. The board is anticipating further growth in 2006-07.

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First Artist closed up 0.87p at 9.62p after confirming it is currently in 'various stages of discussions' with a range of potential acquisition and joint venture targets.

The group added that it is experiencing positive trading across all of its divisions. Stanelco crept ¾p firmer at 10p, after revealing that FDA compliance for its new material, Wrap 100, has now been confirmed by Pira International (the UK approved testing house for the FDA) for food contact approval.

Contentfilm's ½p rise to 8½p came on the back of a bullish update, which claimed that trading has remained strong from the company's library of film and television rights during the Spring market period encompassing the Berlin, MIP and Cannes festivals.

However, these positive movers contrasted with several big fallers, including lead casualty Ramco Energy, which slumped over 40%, or 9¼p to 13½p, after the group warned that moves being made by plaintiffs in ongoing litigation in courts in Texas and Scotland are threatening its ability to trade and it may even need to call in administrators.

Belgravium Technologies was fast on Ramco's heels, trading over 31% lower after losing 5p to 11p. The company warned that it is unlikely to meet expectations for sales and profits for the full year.

It added that there has been no significant upturn in the second quarter and that it has become evident that the contracts needed to achieve anticipated sales are currently taking longer to negotiate and close.

Equator Exploration slipped 24p at 116p on the back of yesterday's reports of hedge fund selling. Alexon Group lost 27p at 180p after a disappointing AGM trading update, with its like for like sales for the 16 weeks to March 20 down 5.6% year-on-year. The clothing retailer also told investors that the climate in which it operates has continued to be challenging across all four divisions.

Alterian also declined, down 14½p at 97½p, as investors took profits following the firm's swing to full year pretax profits and its announcement that it is buying a US-based online marketing software company for up to $5.5m.

And Vigilant Technologies dropped to 38½p, down 5½p, after revealing that 2006 sales are likely to fall year-on-year as several tenders are taking longer to complete than the group expected.