UK Small Caps

LONDON (ShareCast) - Hydraulic platform specialist Lavendon (LSE: LVD.L - news) wants to raise almost £81m from a placing and open offer at 70p a share after warning that full-year results could be at the bottom end of expectations.

The group announced a firm placing of 38.5m shares plus a placing and open offer of 77m shares, which will bring in £76.8m after costs. The price represents a 45% discount to last night's closing price of 128p.

"The board has concluded that it is in the best interests of the group and its shareholders as a whole to reduce the group's debt, renegotiate the financial covenants to restore headroom and establish a more appropriate capital structure for operating the business in the current market environment," read a statement.

Separately, Lavendon said revenue, excluding equipment sales, were 11% lower in the ten months ended 31 October than the same time last year, and down 17% on a constant currency basis.

"Overall, we expect the group to deliver a trading result for the year at the lower end of our expectations, and to have made solid progress in reducing our net debt level," said the firm.

Titanium Resources (LSE: TXR.L - news) has conditionally raised $25m (£15.1m) via a placing at 10p a share to help boost production and processing capacity at its Sierra Rutile mine.

About $20m will go towards building Dredge D3, which the firm estimates will add 30,000 tonnes per annum of rutile production in its first full year of operation and take a year to complete.

Another $2m will be spent on upgrading Dredge D1 wet plant processing equipment to increase rutile recovery by about 5,000 tonnes a year and ilmenite recovery by 1,000 tonnes.

What's left will help complete an upgrade to the group's Land Plants aimed at increasing the plant's processing capacity to up to 280,000 tonnes per annum

Management remains confident it is on track to hit targeted production of 65,000 tonnes of rutile, used in the production of titanium metal and as a white pigment in paints, plastics, paper and foods, and 8,000 tonnes of zircon concentrate in 2009.

"The funds raised will assist us in delivering the strategy set out in the company's interim results to increase production levels at Sierra Rutile," said chief executive John Sisay.

"We are focussed on realising the significant value that exists in the company given the infrastructure currently in place and the world class nature of the Sierra Rutile deposit."

Entertainment One (LSE: ETO.L - news) , the firm behind the Twilight vampire films, saw more red in the first half with losses up to £7.9m from £5.5m, as higher interest charges and write-offs offset higher revenues.

Turnover rose by 25% to £164m (2008: £131m) with underlying profits 38% higher at £9.3m. Operating cash flow rose to £28.6m (2008: £5.5m).

Entertainment One added that the second half will see a significant increase in major network shows for TV while the second in the Twilight series kicks off at the weekend.

"We are excited by the quality of our film release slate and TV delivery schedule in the second half of the year, which should see the Group releasing over 120 movies across all of our markets in the current financial year. This weekend sees the widely anticipated release in the UK and Canada of The Twilight Saga: New Moon, the sequel to the international box office success Twilight," it said.

Drug device combination products developer Biocompatibles has snapped up the inventory and intellectual property assets of Astron Clinica from the administrator for £200,000.

Astron's principal products, MoleMate and MoleView, will broaden the product portfolio of Biocompatibles' Oncology Products Division.

Both products are non-invasive melanoma visualisation, diagnostic and data storage systems that are sold to general practitioners (GPs), dermatologists and cancer screening clinics.

Pubs 'n' Bars said it continues to experience difficult trading conditions and a lack of supplier credit to the business which is having an adverse effect on its working capital.

The group said its bankers are currently supporting the business 'on a day to day basis' and discussions with them regarding the group's future funding are ongoing.