Smaller companies report: Monday close

 

SHARES in UK small companies closed at session highs, back above the 3600 level in tandem with good gains in the broader market, with International Medical Devices in demand on production run news.

At the close, the FTSE Small Cap index was 19.1 points higher at 3,609.9, the day's peak, having rallied from a low of 3,590.8. Meanwhile, the FTSE 100 index was 63.4 points firmer at 5,922.1.

International Medical Devices was a good small cap riser, adding 1.75p to 8.5p after the company confirmed that initial production runs of its ClipOn 'safe' needle device have begun for delivery to the NHS and also South Africa.

Sentiment in the stock was also influenced by comment in Saturday's Daily Telegraph. The newspaper's Questor Column described the shares as highly illiquid and risky, but still worth buying.

On the bid front, specialist engineering group Dickinson Legg made headway, gaining 2p to 17¼p after European Tobacco Development made an agreed 6.45m, or 17¾p a share, takeover.

Elsewhere, Portrait Software shares gained 2½p to 21p as the company dipped a toe in the Customer Analytics market with the launch of a new product set, 'Self-Service' Analytics.

And shares in Latitude Resources added a penny to 6.12p after announcing the appointment of Evolution Securities as its nominated advisor and broker. Well-received results helped drive Just Car Clinics shares 3p higher to 37¾p.

The group saw its year to December pretax profit before exceptionals rise by more than a half to £692,000, up from £460,000 a year ago. Just Car Clinics said trading in the first two months of the current year was in line with expectations.

Buyers also appeared for WSP Group, 20p better at 412p after the integrated services supplier revealed a strong set of preliminary results. In response, Altium Securities raised its rating for WSP to 'add' from 'hold', and looked to upgrade 2006 estimates by around 5%.

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On the new issue front, Sinosoft Technology made its Aim debut today, with the stock ending at 21p in volume of 808,735 shares traded. The company develops and provides software and IT solutions to Chinese regional and national government agencies and export enterprises in China.

Meanwhile shares in today's other Aim newcomer, KimCor Diamonds, went up to 17p from a placing price of 15p with 61,649 shares traded. The new diamond mining and exploration company raised about £3.35m before expenses via an institutional placing. The KimCor group owns two diamond projects located in the Kimberley district of South Africa.

On the downside, Alkane Energy shares dropped 40%, losing 15p to 22½p after the international energy company warned that results for 2005 will be below market expectations, showing an operating loss before exceptional items.

Trading in the second half in the UK was adversely affected by operational problems at a number of sites.

Abraxus Investments shares were also out of favour, losing 0.75p to 5.12p after the Aim-listed property company said it will sell its subsidiary, First AB Kft, including its Budapest hotel development, following funding problems caused by a shareholder dispute.

The company said the Austrian bank, which had previously given an 'in principle' loan commitment to develop the Budapest property, said it would withhold financing until the shareholder dispute was settled.

Elsewhere, Carpathian Resources shares shed 0.62p at 5p, reversing Friday's good gains following news that a recent pressure test on the Ja3a producing well indicated that the estimated gas-in-place has increased by some 250% on previous estimates to be in the range of 3.8-4bn cubic feet.

And Sheffield United shares lost 1¾p at 17p as the football club's quest for automatic promotion to the Premiership was dented again after a goalless draw against bottom-of-the-table Crewe.

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