Smaller companies report: Monday close

By This Is Money
Updated: 12:26 EDT, 25 April 2005

At the close of trade, the FTSE Small Cap index was down 2 points at 2,886.5, while the FTSE 100 was 15.6 points higher at 4,864.9.

3DM Worldwide lost 12p to 56p after the group said its pre-tax loss in 2004 widened to £4m from £2.2m the previous year due to delays to its new robotic machine. The firm is a market leader in the development and licencing of innovative plastic technologies and moulding processes.

Elsewhere, Harvey Nash was hit by weak outlook comments, after reporting a swing into profits in the year to end-January. The global multi-service recruitment organisation cautioned that the current year will be held back by investment under the group's three-year plan.

The plan is designed to achieve better than average market growth through investment in headcount, infrastructure and new outsourcing services which will generate long term visible revenues, the group said. This investment is currently forecast to be £1m over the next 12 months. Harvey fell 13p to 62p.

Elsewhere, Cytomyx warned that the loss for the first half will be higher than previously anticipated. Chairman Dr Bill Mason said today that acquisition and restructuring expenditure has resulted in higher than expected costs within the company, which provides outsourced research and development facilities to the pharmaceutical industry.

In addition, sales in the second quarter from the US operation were below budget due to the relocation. Cytomyx fell 2p at 14½p.

Meanwhile, Sareum Holdings slid 0.38p to 1.87p after the drug disovery firm said the potential takeover offer it had until now been discussing with a party has been terminated.

Anglo Irish Bank fell 9.47p to 9.71p as a 2-for-1 share split became effective today.

On a more positive note, takeover hopes lifted shares in Edinburgh Oil & Gas 44½p to 294½p. The company confirmed it has received a joint approach from Netherland's Oranje-Nassau E&P Ltd and Dyas UK Ltd.

The Mail on Sunday reported that Oranje-Nassau Groep, a unit of France's Wendel Investissement, is pondering a £120m takeover.

Bridgewell said this announcement may drive out other interested candidates, but given the small stake in Buzzard, it expects interest to be limited to smaller firms. 'In the UK, we would highlight Paladin as a potential bidder,' the broker said.

Meanwhile, Your Space gained 0.38p at 2.5p after the serviced accommodation provider said it forecasts 'a much improved' trading position for the year to March 2006.

Oriel Resources was a strong performer after announcing it has made good progress on the Shevchenko nickel project. Its shares were up 3p at 37p.

Oriel said a number of significant positive milestones have recently been reached which suggest the Shevchenko project is on course to complete the definitive feasibility study by the middle of the third quarter 2005.

Next Fifteen Communications was also in good shape, up 5p at 61p as its subsidiary, Bite Communications, has won the coveted Sun Microsystems mainstream PR account in the US. In reaction to the news, Bridgewell upgraded its stance on the shares to 'buy' from 'overweight'.

AdVal Group jumped 0.75p to 2.25p on news that several of its directors have bought shares in the management consultancy. Deputy chairman Dennis Quilter bought 50,000 shares, finance director Richard Horsley bought 20,000 and chairman Dr Lars Ahrell acquired 50,000 shares.