Beyond the Footsie: Friday close

13 April 2012

SHARES in UK smaller companies closed lower, in line with the rest of the market, weighed down by a weaker-than-expected US labour market report. The FTSE SmallCap index closed down 9.2 points at 2,455.6.

Transware was the steepest faller, losing almost half of its value after it unveiled plans to de-list from AIM in a bid to win funding from the US.

The software company warned a poor trading environment had left it in dire need of funds, and that potential US investors regard the company's quotation on AIM as a liability rather than an asset. Transware closed down 1.37p at 1.50p.

Nestor slumped 87 1/4p to 225 1/2p after the private healthcare staffing agency warned that next year's profits are expected to fall short of market expectations. Nestor blamed problems with a major contract and new pricing policies in the NHS, both of which are decimating profit margins.

A weak set of financial results saw Park Group drop 2 1/2p to close at 27 1/2p. The company posted a pretax loss of £3.6m, widening from the loss of £2.7m a year ago, even as sales rose to £26.7m from £23.4m last year.

Mitigating the widening losses was the mail-order specialist's higher dividend and positive outlook statement.

Surface Transforms rallied more than 50% on the back of a prestigious contract win. The shares jumped 30p to 88 1/2p after the company signed a contract with Dunlop Aerospace, a supplier of aircraft braking systems and services to the aerospace industry.

Surface Transforms, which develops carbon fibre reinforced ceramic friction materials, said it was its most significant contract to date.

Deal news also boosted Millfield 11p to 82 1/2p. The financial products group has secured a £10m investment from Norwich Union that will transform the group's Lifetime business.

The news accompanied Millfield's interim results showing turnover up 65% to £23.5lm, with losses narrowing by £200,000 to £5.7m. The group said it made a small operating profit in September, the last month of the reported period.

Elsewhere, GW Pharmaceuticals added 19p to 177 1/2p after broker Evolution Beeson Gregory repeated 'buy' advice, and told clients that recent falls had been overdone.

It expects regulatory approval early next year for Sativex, GW's treatment for multiple sclerosis, which it saw boosting shares by up to 50%.

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