Friday May 16, 09:25 AM
UK small caps open lower; NXT declines on H2 sales caution
LONDON (Thomson Financial) - UK small caps were lower in early trade, missing out on the wider market's fresh advance, with NXT on the back foot amid concerns about second-half sales.
At 9:02 a.m., the FTSE Small Cap index was 3.00 down at 3,220.20, but the FTSE 100 was 27.60 ahead at 6,279.40.
Among the losers, NXT declined 3 pence to 17-1/2, after the sound technology provider cautioned that second-half sales progress will be determined by the company gaining additional new licenses and increased consulting revenues.
Meanwhile, trading between Jan. 1 and May 15 has been broadly in line with expectations, and NXT says it is in sight of breaking even on expected sales growth and a reduced cost base.
Fund-rasing fears undermined Van Dieman Mines (LSE: VDM.L - news) , 1.375 off at 9.375. The miner said it can not rule out a modest shortfall in its working capital requirements following delays in commissioning and full production at its Scotia project.
The company, with 100-percent owned tin-sapphire mines in Tasmania, Australia, is reviewing a range of options to source additional working capital and is in advanced discussions with a number of banks and financial institutions.
Elsewhere, sharply higher first quarter losses clipped 14-1/2 from Frontera Resources (LSE: FRR.L - news) , at 103-1/2, while Carnegie Minerals Plc (LSE: CME.L - news) ., the resource company with advanced exploration in Senegal and strategic partnerships in the United States, dipped 0.125 to 2.625 following news that non executive director Grant Mooney will be leaving the board due to other pressing business interests.
Bid news provided some relief to flagging small-caps, with software company Mediasurface (LSE: MSR.L - news) climbing 20 percent -- or 2-1/4 to 13-1/5 -- in response to the agreed 18.1 million pounds cash and shares bid from Alterian (LSE: ALN.L - news) , 7 adrift at 153.
The offer is on the basis of 9 pence in cash and 0.0375 of a consideration share for each Mediasurface share.
Tower Resources (LSE: TRP.L - news) attracted fresh support and hardened 1/2 to 11-1/2 as traders warmed to Thursday's news that a seismic study had confirmed the presence of a giant structure offshore Namibia that could hold up to 10 billion barrels of oil.
Buyers came for Johnson Service Group (LSE: JSG.L - news) , 2 firmer at 31, following an announcement late Thursday that director Kevin Elliott has snapped up 132,270 shares, or 0.22 percent, at 30 pence apiece.
Dealers brushed aside news of widening full-year losses at Freedom4 Communications, whose shares ticked up 0.23 to 1.89 in response to the wireless communications services provider's move to return at least 17.5 million pounds to shareholders.
Also on the upside, Vislink (Dublin: VSF.IR - news) advanced 2-1/4 to 33-1/2, after the supplier of microwave radio and satellite transmission products disclosed that trading was in line with its expectations, with underlying revenues up 1.0 percent in the first quarter to March 31.
The order backlog at the end of the quarter had increased to 34.3 million pounds, up 14.7 percent from Dec. 31, 2007, while group orders received for the first quarter went up 4.0 percent on last year at constant exchange rates.
Solid full-year numbers lifted BB Holdings 15 to 262-1/2, while DRS Data & Research Services hardened 1 to 20-1/2, following Thursday's news that shareholder John Rockliff has upped his stake in the company to 3.61 percent, or 1.25 million shares, from 750,000 shares.
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