Friday May 16, 12:07 PM
UK small caps stay lower at midday; Van Dieman Mines slumps on fundraising fears
LONDON (Thomson Financial) - UK small caps remained slightly lower at midday, bucking strength among blue chips, with Van Dieman Mines (LSE: VDM.L - news)
shedding 22 percent as it warned it may see a 'modest' financial shortfall from delays at its Scotia project.
At 11:45 a.m., the FTSE Small Cap index was 4.4 points down to 3,218.8, while the FTSE 100 index rose 96.4 points to 6,348.2.
Miner Van Dieman Mines dropped 2.375 to 8.375 as it cautioned that it cannot rule out a 'modest' shortfall in its working capital requirements after announcing further delays in the commissioning and the ramp-up to full production at its Scotia project.
It is reviewing a range of options to source additional working capital and is in advanced discussions with a number of banks and financial institutions.
Vision Media (LSE: VMG.L - news) fell 0-1/2 a penny to 5-1/4, as it said it is holding an extraordinary general meeting on June 2 to seek shareholder approval for a share capital reorganisation to help it raise future capital.
Computacenter (LSE: CCC.L - news) slumped nearly 10 percent on warning it sees first half pretax profits being lower than last year, which prompted Piper Jaffray to cut the stock to a 'neutral' from 'buy', pending improved second-half visibility.
NXT dropped 1-1/2 to 19 as the sound technology provider cautioned that second-half sales progress will be determined by the company gaining additional new licenses and increased consulting revenues.
However, it said trading between Jan. 1 and May 15 has been broadly in line with expectations and it is in sight of breaking even on expected sales growth and a reduced cost base.
In other numbers news, sharply higher first-quarter losses took 7 from Frontera Resources (LSE: FRR.L - news) , on 111.
Macro 4 fell 5 to 112-1/2 as it said it sees full-year revenues of 28 to 29 million pounds, with Panmure Gordon noting the sales were shy of its target.
The broker cut its price target to 113 pence from 126 pence, keeping a 'hold' rating on the stock.
Finally among fallers, resource company Carnegie Minerals (LSE: CME.L - news) stayed 0.125 a penny off on 2.625 following news non executive director Grant Mooney will be leaving the board due to other pressing business interests.
But gaining this morning was software company Mediasurface (LSE: MSR.L - news) , up 2-1/2 to 13-3/4, following an agreed 18.1 million pound cash and shares bid from Alterian (LSE: ALN.L - news) , still 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.
In other news, an operational update boosted Mediterranean Oil & Gas 20 to 181-1/2, while Rift Oil (LSE: RIFT.L - news) climbed 0-3/4 a penny to 6-3/4, although the company said it knows no reason for the share price rise.
Elixir Petroleum took on 1-1/4 to 11-1/2 as it told investors that the first two wells already on stream at the Pompano gas field in the Gulf of Mexico are believed to be holding proved and probable reserves of around 17.1 billion cubic feet of gas and almost 50,000 barrels of condensate.
Freedom4 Communications climbed 7 percent, up 0.12 a penny to 1.78, as Collins Stewart (LSE: CLST.L - news) initiated coverage on the stock with a 'buy' rating and 260 pence price target.
It outweighed news of widening full-year losses.
Paddy Power (Dublin: PLS.IR - news) was 0.2 a penny up on 24.3 as it extended Thursday's gains following a better-than-expected trading update, which prompted Citigroup (NYSE: C - news) to up its stance to 'hold' from 'buy'.
Johnson Service Group (LSE: JSG.L - news) dropped off earlier gains but was still 0-3/4 a penny better off, to 29-3/4, as it was learned that director Kevin Elliott has snapped up 132,270 shares, or 0.22 percent, at 30 pence apiece.
Similarly, DRS Data & Research Services hardened 1 to 20-1/2, as shareholder John Rockliff upped his stake in the company to 3.61 percent, or 1.25 million shares, from 750,000 shares.
In deal news, Biocompatibles International rose 2-/4 to 29, as it signed an agreement with Eisai Co (Frankfurt: 855526 - news) . to licence drug-eluting bead products.
In numbers news, a first quarter profit swing took Nautilus Minerals Inc (NUS.TO - news) . 0-1/2 a penny firmer to 116-1/2.
Reacting, Numis Securities kept its 'buy' rating.
Bloomsbury Publishing (LSE: BMY.L - news) hardened 5-1/4 to 149-1/2 on an upbeat trading statement, which led Numis Securities to keep a 'buy' rating.
Vislink (Dublin: VSF.IR - news) advanced 2 to 33-1/4, after the supplier of microwave radio and satellite transmission products said 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.
In a similar vein, solid full-year numbers lifted BB Holdings 15 to 262-1/2.
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