Smaller companies report: Friday close

By This Is Money
Updated: 12:44 EDT, 26 May 2006

THE index of UK smaller companies closed higher, continuing its recovery from last week's large falls as investor confidence began to resurface. At the close, the FTSE SmallCap index was 62.2 points ahead at 3,441.3, while the FTSE 100 was 113.3 higher at 5,791.0.

News of director share buying boosted engineering company Widney 8p to 30½p. Chairman Joe Grimmond bought 65,000 shares, while group managing director Brian Stringer and finance director Graham Errington each bought 200,000, all at 22p each.

Elsewhere, contract news lifted Image Scan Holdings, 2½p to 24¾p. The company has won a contract worth a minimum of £500,000 to supply software and key hardware for x-ray baggage systems.

Persian Gold was 2p better at 19½p. The Aim-listed Iranian gold explorer has entered into an option agreement on the Chah-e-Zard gold project, located in Yazd, some 350 miles southeast of Tehran.

Meridian Petroleum moved up ¾p to 33½p in response to an independent review which indicates that the company's Coal Bed Methane prospect in the Black Warrior Basin in Alabama is commercially viable.

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Among the losers, CRC Group was 21p lower at 35½p, after the specialist technology repair company warned that it expects to report losses in the first half and full year. The company plans talks with its bankers about future funding needs for working capital and restructuring.

Sellers drove Ferraris Group, 15p adrift at 41¼p, as the troubled medical diagnostics concern - currently in the throes of selling off two of its businesses - revealed a swing to hefty first-half losses of £23.4m after writing down the value of the struggling units.

Fairground Gaming was also under pressure, resuming trading at 93p, down 31p, following the reverse takeover of all of the online gaming businesses and subsidiaries of The Spin Palace Group from Roundit.

On the new issue front, Cape Diamonds failed to sparkle as dealings got underway on Aim. Placed at 250p, the shares ran back to 235p.