Thursday March 27, 09:33 AM
UK smal caps open firmer; Ardana rebound on bid approaches
LONDON (Thomson Financial) - UK small caps were firmer in early trade, underpinned by strength in blue chip issues, with Ardana (LSE: ARA.L - news)
in front on the back of bid approaches.
The FTSE Small Cap index was 1.9 points up at 3,006.8 by 9.05 am, while the FTSE 100 was 59.3 ahead at 5,719.7.
Recently hard-hit Ardana gleaned top-spot among risers, rebounding 2-3/4 pence to 12-1/4 as the pharmaceutical company confirmed it has received a number of approaches which may or may not lead to an offer for the company, and said the sale process has generated significant interest in potential licensing opportunities for its products.
It (Frankfurt: A0MLX5 - news) is progressing these licensing discussions in parallel with the sale process. However, it will only pursue a licensing deal if it does not negatively affect the value of the company in the view of potential acquirers.
The group sees no reason for the significant fall in its share price since the announcement of the proposed sale or merger of the company on Feb 19.
And an upbeat trading statement and AGM approval for the bonus issue provided support for property developer Your Space (LSE: YSP.L - news) , 12-1/2 higher at 106, while shares in Flomerics Group, the simulation software company, jumped 10 to 94 in the wake of a bullish update.
Cosentino Signature Wines (LSE: MCOZ.L - news) sparkled with a gain of 3-1/2, at 24-1/2, following news of a swing to full-year profits, accompanied by a confident statement.
Again on the upside, Airsprung Furniture (LSE: APG.L - news) improved 4 to 39-1/2 after the company said current indications are that full-year group sales and operating profits will be ahead of the previous year's. Meanwhile, Airsprung has resumed interest payments on its preference shares.
Buyers came for Allied Gold, 5-1/2 up at 40, following news that Barrick Gold Corporation, the world's largest gold producer, will fund up to 20 mln aud in order to gain a 70 pct interest in the exploration licence that encompasses Big Tabar and Tatau Islands.
Barrick will subscribe for 17.6 mln ordinary shares in Allied Gold at 0.85 aud a share, thereby injecting 15 mln aud into Allied Gold.
Interest was also shown in Northern Bear (LSE: NTBR.L - news) , 5 better at 96-1/2, as the holding company for a portfolio of Northern-based building services businesses said it expects full-year turnover and pretax profits to be at the upper end of market expectations.
Laura Ashley perked up 2 to 21-3/4 as traders responded to a 62.3 pct increase in full year pretax profits. This was mainly due to a successful store expansion and realignment programme, improved product offering and continued focus on operational efficiency.
Petrolatina Energy (Frankfurt: A0D9AP - news) , the Colombia-focused oil and gas company, celebrated news of a one-for-five share consolidation with a rise of 3/4 to 6-3/4.
Business Direct Group (LSE: BDG.L - news) edged up 0.13750 to 0.25 following news that the company has signed a three-year deal with Parcelforce Worldwide, part of the Royal Mail group, for access to Business Direct's network of over 4,200 ParcelXchange intelligent locker secure drop-boxes.
Modest progress was also seen in William Ransom, 0.125 firmer at 9.875, after the natural healthcare company confirmed the appointment of Ivor Harrison as chief executive. Harrison was previously managing director of Maximuscle, where he repositioned the brand, and was responsible for a significant improvement in financial performance which led to a successful exit for private equity investors.
By contrast, punters made for the exit in IT services company Xploite, 9 pence lower at 41-1/2, an in-line trading update being offset by news that possible offer talks have ceased.
Also heading lower, Wolfson Microelectronics (LSE: WLF.L - news) retreated 30 to 112 after the company revealed it has failed to win a media player design contract from a major customer. However, it still expects to meet the market's full-year revenue forecasts, thanks to growth in other areas.
Wolfson said the impact on second-half revenues, stemming from the loss of the contract, is expected to be mitigated by stronger than expected growth across its customer base and from other applications.
Still with the walking wounded, shares in Enova Systems (LSE: ENVS.L - news) , which makes electric and hybrid drive systems for vehicles, dropped 53 to 215 as full-year net losses widened and the company disclosed plans to raise 4.2 mln stg before expenses via a placing at 195 pence a share with institutional and other investors.
Another company hungry for cash was Avanti Screenmedia, 0.6250 adrift at 2.750. The digital screen media company revealed widening half-year losses and said it is exploring ways to raise further immediate funding.
Finally, news of increased losses also upset the market in Oxus Gold (LSE: OXS.L - news) , 2 off at 20, and Cyan Holdings (LSE: CYAN.L - news) , 0.250 lower at 4.6250.
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