Beyond the Footsie: Wednesday close

SHARES in smaller UK companies bucked the weaker trend on the broader markets today, even as discount retailer

The FTSE SmallCap index rose 7.3 points to close at 2,512.9, while the FTSE 100 fell 32.2 to 4,473.0.

Brown & Jackson said it is unlikely to post a profit for the current year after a dismal festive period. The company, owner of the Poundstretcher chain of bargain shops, said like-for-like sales dropped 8.5% in December. For the 13 weeks to January 3, total sales were down 4.5% and like-for-like sales fell 6.3% from the year-earlier period.

'Overall, the difficult trading in December . . . will mean the group will fall significantly short of market expectations for the full year,' the company said.

Brown & Jackson slumped 22 1/2p to close at 63 1/2p as Seymour Pierce slapped a 'trading sell' tag on the stock and cut its price target to 45p.

Aerospace minnow Aim Group dropped 12 1/2p to 80p after announcing a fall into the red at the interim stage, scrapping its dividend and making a downbeat statement on its immediate outlook.

It blamed the £448,000 pretax losses on the unexpected loss of an aircraft galley contract, and on the erosion of margins in a declining market. Both these setbacks had been compounded by the weakness of the dollar on which much of its revenue is based, added the company.

Sports and entertainment specialist CSS Stellar fell 15p at 64 1/2p after warning that profits for 2003 would fall short of market forecasts as trading remained difficult in the second half of the year.

The company said it expects to report adjusted operating profits of around £2.4m for the year, and blamed the shortfall in earnings on the weak dollar and lower-than-expected contributions from its television division and the Stellar Financial Partners business.

Inventive Leisure was also marked lower after the company disclosed that sales on a like-for-like basis at its Revolution bars were down 7% year-on-year in the three weeks ending January 3. Inventive shares retreated 3p to 63 1/2p.

ServicePower Technologies was among the best performers, climbing 6 1/4p to 46 1/4p on news of a deal with General Electric which is expected to be worth £10m over a five-year period.

Aerospace and defence support services group UMECO climbed 15p to 392 1/2p after it announced a long-term contract with Bombardier Aerospace to provide components for regional and business jets.

Desire Petroleum rose 1 1/2p to 11 1/2p. It said a seismic survey of its fields in the North Falkland Basin will begin before the end of January 2004.