UK small caps close up at session highs; DDD Group higher after Samsung deal
UK small caps close up, at session highs, mirroring the trend in the wider market, with DDD Group gaining after announcing its software is going to be used in a new Samsung 3D mobile telephone.
By close, the FTSE Small Cap index was 10.3 points ahead at 4,047.5, while the FTSE 100 index was 33.30 ahead at 6,673.1.
DDD Group, was the top riser, up 6-1/2 at 12-3/4 as the 3D software and content company revealed that Samsung Electronics has launched a 3D mobile telephone in Korea incorporating the DDD MobileTM software library under license from DDD.
Elsewhere, Samedaybooks.co.uk gained 1.38 or 100 pct at 2.75 after the group said it has entered into preliminary negotiations to acquire Auction Assist Ltd, a company providing internet auction services.
Also in M&A activity, Pan African was 2.38 pence higher at 8.5, following the acquisition of 74 pct of Barberton Mines -- a move which will establish Pan African as a gold production company.
Rubicon Software Group also made good progress, advancing 1.37 to 4.87 after the provider of customer relationship management solutions in the UK financial services sector disclosed that recent trading has been strong, with several sizeable contract wins and newly-developed partnership channels making a contribution.
Both forward contracted revenues and the new business pipeline stand at record levels, the company said.
An upbeat trading update lifted Corsie Group 0.38 to 2.00. The AIM-listed specialist in the assembly and sale of products and services to the leisure market reported continued good progress across all divisions during the six months to June 30 2007.
The company has seen organic growth, with turnover and gross profit ahead of the prior period in all divisions across the company. Clean pretax profits are ahead of the same period last year, assisted by the overhead efficiencies achieved following relocation to Haddington.
Recently-weak Cosentino Signature Wines rallied 6 to 24-1/2 following news that the first half has seen strong improvement in trading and operations at the company's wineries, following the change in management in early February.
The Napa Valley-based wine company said revenues increased 62 pct year-on-year, against a slower first first half for the industry. Retail sales increased 24 pct, while the company's wine club has risen to 5,919 members from 4,571, it said.
Elsewhere, Umbro was up 6-1/4 at 164-1/4 after an in-line trading update, with Seymour Pierce reiterating its 'outperform' stance.
And Corin Group attracted support and rose 21-1/2 to 580-1/2 in response to news late last night that the maker of orthopaedic devices has gleaned approval from the US FDA to market Cormet, its resurfacing hip device, in the US.
The approval follows a positive FDA Advisory Panel recommendation for the device in February 2007.
Following the news, Bridgewell strongly advised investors to lock in profits. With little new newsflow expected over the next six months (barring the interim results which could highlight the increasingly competitive nature of Corin's home markets), the broker sees little opportunity for relative outperformance from this price and is, therefore, downgrading its recommendation to 'neutral' from 'overweight'.
By contrast, XSN shares were on offer and dipped 0.12 to 2.25 after the cash shell revealed that talks regarding a reverse takeover have now ended and that it may return assets to shareholders if it cannot identify a suitable opportunity.
The company said it will continue to explore suitable acquisition opportunities further.
Again on the downside, Brady ran back 3 to 64-3/4 as the commodity software provider disclosed it made a small profit, against losses at the half-way mark, and continues to trade in line with the board's expectations.
Also on the back foot, Robert Wiseman Dairies dropped 8 to 514-3/4 after the company warned that rising HDPE costs will impact its outlook unless these costs subside or Wiseman seeks recovery in the period ahead.
Meanwhile, sales volumes in the first three months of the new financial year are satisfactory and 5.9 pct ahead of the equivalent period last year.
Following the AGM statement, Panmure Gordon shifted its stance on the stock to 'sell' from 'hold' and lowered its 2008 EPS prediction to 33.4 pence.
Dicom Group ran back 5-3/4 to 178-1/2 after the communications group warned that full-year profits will be hit by an exceptional restructuring charge of around 3.0 mln stg.
Meanwhile, trading in the fourth quarter was broadly in line with expectations and the group continues to be strongly cash generative.
Last Updated: Wed, 04 Jul 2007 23:47:00
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