UK small caps rally to close firmer, Thomas Walker jumps on upbeat results
Life Style Extra, UK
LONDON (AFX) – UK small caps managed to close higher, reversing early losses, thanks to a largely positive set of corporate announcements and a firmer broader market, dealers said.
The FTSE Small Cap index closed 3.6 points higher at 3,640.30, while the FTSE 100 index was up 20.4 points at 6,149.6.
On the upside, Thomas Walker shares remained the top riser, jumping nearly 58 pct, up 13 pence to 35-1/2 after announcing better than expected full-year results shortly before the close yesterday.
The group, whose December 2005 acquisition of Leslie Group has materially swung the balance of its activities from the manufacture of garment accessories to the stamping and finishing of brass components, announced more than trebled full-year profits.
Antonov shares were another firm feature, soaring 37.8 pct, up 12-1/2 to 45-1/2, amid reports that the gearbox maker is enjoying positive feedback from the SEMA (Specialty Equipment Market Association) in Las Vegas this week.
Elsewhere, LPA Group attracted fresh support, climbing 3 more to 27 as the board again advised shareholders to reject the tender offer from Andrew Perloff for up to 28.39 pct of the issued share capital, at 25p per share.
The board pointed out that the end-March 2014 net asset value of 55.2p per share does not take into account any uplift through the revaluation of the company’s freehold property assets.
RDF Group was also in demand, moving up 7 to 62-1/2 as the IT services group, with offices in Brighton, Bristol, Edinburgh and London, disclosed a 13 pct increase in profits at the half-way mark and said it has a healthy pipeline of ongoing work.
Buyers also came for Tinopolis, 4-1/2 better at 36-1/2, after the producer of new media and TV programming said it expects to report results in line with market expectations, with a 351 pct increase in revenues from continuing operations to 47.0 mln stg, compared with the same period to September 2005.
Panmure reiterated its ‘buy’ recommendation and 50 pence target.
Elsewhere, traders delved into Dobbies Garden Centres, 32-1/2 higher at 1,155 following news that trading conditions in the second half improved and that like-for-like sales for the 52 weeks ending Oct 29 rose 1.9 pct.
Like-for-like sales for the 26 weeks ending Oct 29 rose 6.2 pct.
On the downside, UK radio and music company Chrysalis Group lost nearly 8 pct after warning that there has been no recovery in the advertising market since the end of August.
Releasing slightly weaker-than-expected full-year results, the owner of Heart and LBC stations said turnover at its Radio business plunged 12 pct in September and October,compounding the effects
of a ‘challenging summer’.
The news sent shares in the company plunging 10-1/2 pence to 125.
Shares in property group Nadlan were also under pressure, falling 0.05 to 0.32 after the property group disclosed sharply higher full-year losses and said it is seeking ‘significant levels’ of new funding. A share placing is being considered.
Elsewhere, fears of an equity issue undermined Subsea Resources, 3 pence adrift at 15.
The board believes the sale and leaseback of its survey vessel, The John Lethbridge, is now unlikely to proceed.
The sale and leaseback was due to raise 4.5 mln stg for the company with a further 3.0 mln being raised as a debt obligation secured on the company’s other assets. Thus far only the 3.0 mln debt element of the transaction has been completed.
BTG shares were also weaker, closing 3-3/4 pence lower at 129, amid talk that Morgan Stanley placed 6.5 mln shares in the technology group at 126 pence each.
Sellers were also about in Provexis, 0.25 off at 4.25 pence, after the company warned that talks to license its Fruitflow bioactive food ingredient to a major international brand owner will now extend into 2014, due to the extension of the technical development timetable.
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