Wednesday March 26, 12:15 PM
UK small caps stay lower at midday; Metal-Tech slides on profit warning
LONDON (Thomson Financial) - UK smaller companies remained lower at midday, matching slight weakness in the top-tier, with Metal-Tech remaining hard-hit following a full-year profit warning.
At 11.45 am, the FTSE Small Cap index was
12.6 points lower at 3.001.3, while the FTSE 100 index dropped 24.4 points to 5,664.7.
Metal-Tech was sharply lower, down 42 pence to 59 pence -- nearly a 42 pct slump -- as it issued a profit warning despite meeting its revenue targets, prompting Panmure Gordon to place its 'buy' recommendation and estimates under review.
The group said it will fall significantly short of its full-year profit expectations as a falling US dollar raised cost of sales and operating costs.
Bateman Litwin fell 47 to 185 following a cautious outlook statement and expectation of fewer contract awards at a new unit.
It (Frankfurt: A0MLX5 - news) offset an otherwise positive first-half update, and prompted Investec (LSE: INVP.L - news) to review its 'buy' rating and 370 pence price target on the group.
Topps Tiles (LSE: TPT.L - news) dropped 4-1/2 to 118-1/4 as it said it sees lower first half pretax profit, dragged down by a hedging charge, with like-for-like sales to show decline.
It prompted WH Ireland and Seymour Pierce to both downgrade the stock, the former to 'marketperform' from 'outperform' and the latter to 'hold' from 'outperform'.
Meanwhile, Altium Securities initiated coverage on the stock with a 'sell' rating.
Mobile Streams (LSE: MOS.L - news) dipped 0-1/2 of a penny to 4-1/2 in reaction to sharply higher full-year losses.
Elsewhere, Regen Therapeutics (LSE: RGT.L - news) dropped 5 to 35 after announcing it has entered into an equity credit facility agreement of up to 2 mln stg with Duke Holdings Corp Ltd to provide a drawdown of capital in exchange for shares in the company.
Uniq (LSE: UNIQ.L - news) stayed under pressure, with a fall of 11-1/4 to 96 following yesterday's final dividend omission and warning of delays in its recovery plan.
Finally among the fallers, EAG slid back 8 to 78 as it said its chief executive David Lahar and non-executive director Jim Cowart are no longer considering a possible offer for the company.
But among risers, Cap-XX leapt 44 pct, up 9 to 29-1/2, as it said it has signed a letter of intent with Murata Manufacturing Corp of Japan to establish a partnership to provide high performance supercapacitors to a range of sectors, notably the mobile handset industry.
SMC Group (LSE: SMC.L - news) stayed 2-1/2 higher on 9.125 in the wake of an upbeat trading statement, in which the architectural and design company said it expects 2007 second-half underlying EBITDA of 3.7-4.0 mln stg, up from 1.2 mln stg reported in the first half.
Numbers news also boosted Libertas Capital 2-1/2 to 21-1/2, Autoclenz 6 to 55 and Concurrent Technologies 2-1/2 to 32.
Nationwide Accident Repair Services (LSE: NARS.L - news) rose 1-1/2 to 134 as it posted a 15 pct jump in full-year pretax profit, prompting Daniel Stewart to keep a 'buy' rating on the stock.
Tribal Group (LSE: TRB.L - news) edged up 1 to 135 on a swing to pretax profit, which saw Landsbanki keep its 'buy' rating on the stock.
And Robotic Technology Systems climbed 0.875 of a penny to 8-3/4, as the company disclosed in-line full-year losses, recommended a special 2 pence final dividend and gave an upbeat assessment of prospects.
News of increased exploration activity and Puntland Government initiatives gave a boost to Range Resources (NYSE: RRC - news) , 3-3/4 up at 14, while 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.
Motive Television (LSE: MTV.L - news) rose 0.20 of a penny to 1.175 as it said its Manchester (MNCS.OB - news) -based TV production unit, Scarlet Television Ltd, is expecting additional revenues of about 900,000 stg from its latest orders from SKY TV and ITV (LSE: ITV.L - news) .
Deal news boosted telematics service provider CybIT Holdings 4 to 48 as it said it has won new business, contract renewals and extensions for its Fleetstar Vehicle Tracking System worth over 1.2 mln stg.
The group added it is confident of further new business wins.
Drug discovery company Henderson Morley (LSE: HML.L - news) rose 0.075 of a penny to 1.15 after signing a second collaborative research and material transfer deal with the Australian Centre for Vaccine Development, part of the Queensland Institute of Medical Research.
Finally, Angus & Ross rose 1 to 12-1/2 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.
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