Wednesday March 26, 09:47 AM
UK small caps open lower, with Metal-Tech hard-hit on FY warning
LONDON (Thomson Financial) - UK small caps opened lower, taking their cue from the wider market, with Metal-Tech plunging on the back of a full-year profit warning.
The FTSE Small Cap index was 8.3 points adrift at 3,005.6 by 9.20
am, while the FTSE 100 was 22.1 off at 5,667.0.
Metal-Tech led small-cap fallers, plunging 38-1/2 pence to just 62-1/2 -- a 38 pct decline -- after the company, which produces and recycles speciality metals such as Tungsten and Molybdenum, said it will fall significantly short of its full-year profit expectations as a falling US dollar raised cost of sales and operating costs.
Panmure Gordon placed its estimate and recommendation under review following the warning.
Also on the back foot, Bateman Litwin retreated 43 to 189 as the energy contractor warned H2 trading is being affected by capital market instability and expectations of reduced new contract awards at acquired unit Delta-T Corporation.
Meanwhile, the company reported a 135 pct jump in first-half pretax profits, and said it sees net income for the full year broadly in line with current market expectations.
Yesterday's final dividend omission and warning of delays in its recovery plan continued to unsettle Uniq (LSE: UNIQ.L - news) , 12 lower at 95-1/2, while Mobile Streams (LSE: MOS.L - news) dipped 1/4 to 4-3/4 in reaction to sharply higher full-year losses.
Top performer among small-cap risers was SMC Group (LSE: SMC.L - news) , which leapt 38 pct -- or 2.500 to 9.1250 -- in the wake of an upbeat trading statement.
The architectural and design company expects 2007 second-half underlying EBITDA of 3.7-4.0 mln stg, up from 1.2 mln stg reported in the first half.
It (Frankfurt: A0MLX5 - news) anticipates reporting a full-year EBITDA before exceptional items of 4.9-5.2 mln stg.
SMC (Frankfurt: 874794 - news) also sees second-half revenues of about 23.0 mln stg against its first-half sales of 21.1 mln stg, an increase of about 9 pct, giving 2007 full-year revenues of around 44.1 mln stg.
News of increased exploration activity and Puntland Government initiatives gave a boost to Range Resources (NYSE: RRC - news) , 3.75 up at 14.0, while satisfactory full-year numbers lifted Autoclenz 6 to 55.
Preliminary results also provided the spur to Concurrent Technologies, 3-1/2 firmer at 33.
Motive Television (LSE: MTV.L - news) made headway, climbing 0.250 to 1.2250 following news the media investment company's 50.6 pct-owned Manchester (MNCS.OB - news) -based TV production unit, Scarlet Television, has received four new orders from broadcasters.
Sky Broadcasting has ordered three primetime documentaries, while ITV1 has also commissioned an undisclosed one-hour documentary.
Additional revenues of around 900,000 stg will accrue to Scarlet from the four new programme orders.
Elsewhere, Henderson Morley (LSE: HML.L - news) made modest progress, moving up 0.0750 to 1.150, after the drug discovery company signed a second collaborative research and material transfer agreement with the Australian Centre for Vaccine Development, part of the Queensland Institute of Medical Research.
This collaborative research agreement will focus on the development of a prophylactic and therapeutic vaccine targeted at Epstein Barr Virus (EBV) and treating malignant disease caused by EBV -- one of the most important cancers of viral origin.
Buyers came for Robotic Technology Systems, 0.8750 up at 8.750, as the company disclosed in-line full-year losses, recommended a special 2 pence final dividend and gave an upbeat assessment of prospects.
Shares in Angus & Ross ticked up 1/2 to 12 following news that the Greenland Bureau of Mines and Petroleum expects to issue the Black Angel mining licence in June.
The project will achieve full production during the first year. It is then forecast to produce 230,000 tonnes of high grade ore in each subsequent year and over the first four years of operation to generate EBIT of 97 mln usd, free cash flow of 26 mln and deliver an internal rate of return of 43 pct.
A&R believes the project now requires 39 mln usd of capital expenditure and a further 11 mln usd of mine development costs, giving total development funding of 50 mln usd.
Solid progress was seen in CybIT Holdings, 4 higher at 48, after the telematics service provider disclosed it has won new business, contract renewals and extensions for its Fleetstar Vehicle Tracking System worth over 1.2 mln stg. Moreover, it is confident of further new business wins.
Finally, shares in Develica Deutschland (LSE: DDE.L - news) hardened 0.1125 to 0.65 eur as a director upped his stake in the AIM-quoted German property investment company to 1.45 pct of the equity.
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