Smaller companies report: Tuesday close
SMALL caps closed lower after a day of heavy losses across the wider market. A prominent feature throughout the session was Provalis hard-hit by widening first-half losses and asset disposal moves, dealers said.
At the close the FTSE Small Cap index was a down a massive 26.4 points at 3,589.5, down from a day's high of 3,609.9, while the FTSE 100 was off 40.4 at 5,857.4.
The days biggest losing feature was Provalis after widening interim losses clipped 0.35p from the stock knocking it to 1.40p.
Provalis said it is in talks with a number of interested parties regarding the possible sale of its medical diagnostics division. If the division is sold the company would return the cash remaining within the group to shareholders as part of a solvent winding-up of the group.
Sellers were about in Empyrean Energy following a drilling update, with the shares dropping 31½p to 127p.
Conister felt the squeeze of stiff competition, down 9p at 50½p. The company said its core business is being hard hit by increasing downward margins, intense competition and an uncertain economic outlook and warned that it expects a significant reduction in earnings for 2005 compared with 2004.
Shares in Wogen were also on the backfoot, sliding 19½p to 148½p after the international specialty metals and minerals trader cautioned that trading conditions since the year end have been more challenging.
Turnover has remained in line with the its expectations, but the company has seen a fall in prices for a number of key trading metals. Margins on trading activities so far this year have been towards the lower end of the board's and analysts' expectations.
Bridgewell Securities analyst Geoff Miller continued to recommend long-term investors regard any weakness in Wogen shares on the back of the update as a buying opportunity. Miller downgraded his earnings forecasts, but he still expects a return on equity in excess of the company's long-term average.
On the upside, buyers came for Marchpole Holdings, 6¾p firmer at 19¾p, as the designer and manufacturer of clothing and accessories for major brands expressed confidence about meeting market expectations of a pretax profit of £5m in the current financial year.
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The company is to propose a share buyback as it believes its current share price does not adequately 'reflect the strong future prospects of the business'. The company also announced the completion of the acquisition of Moda America LLC, the US licensee for Emanuel Ungaro.
Springboard made solid progress to close better by 18p at 131p, given a helping hand by Nova Capital when its Scottish division, Nova Capital Scotland, mopped up 1,165,450 of its shares pushing the group's holding up to 15%.
Construction company Tolent proved of interest, up 23p at 224p, after it reported a 7.5% rise in full-year pretax profit to £4.3m, and said it plans to raise its total dividend by 53% to 11.5p.
The company said it entered 2006 with a record order book of 121m, and looks forward to another profitable year. It added that property investment activities in 2006 should again be profitable.
Solid progress was seen in IndigoVision Group, 45p higher at 525p, after the company revealed earlier-than-expected maiden profits in the first half, led by a 132% surge in sales during the period. Trading since the first half has been well ahead compared with the same period last year, the group said.
And shares in business-to-business trade exchange concern Bartercard nudged up ½p to 13p following a deal with Texaco which will allow Bartercard members purchase fuel from all Texaco outlets at a discount.
A swing to profits from losses at the half-way mark boosted Cheerful Scout, the multi-media specialist 1.10p to 0.05p, while Zest Group, the production company, record label and music publisher, ticked up 0.25p to 3.50p after the company accompanied full-year results with news that it has bought Greensleeves records for £3.25m.
Visual Defence was also in favour with punters as the provider of integrated IP solutions to the security and defence markets said it has been awarded a video control and monitoring deal from Boston's Massachusetts Bay Transportation Authority. Shares were better 1½p at 33p.
Full-year results saw Hydro International move up 6p to 121p, while Minorplanet added 1½p to 53p in the wake of an upbeat trading statement.
Finally, Landore Resources improved 0.5p to 11.5p following a drilling report.
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