SHARES STRONGLY UP/DOWN this week 12/12/05 (Master RSI)

UK small caps remain lower midday, with profits warnings weighing on sentiment

LONDON (AFX) - UK small caps remained lower midday, as a raft of profit
warnings weighed on sentiment, dealers said.
By 11.45 am, the FTSE Small Cap index was 5.1 off at 3,230.9, while the FTSE
100 was 13.8 points better at 5,521.0.
Actif Group was a hefty faller, sliding 0.75 to 2.00 - or 27 pct - after the
clothing retailer warned that the weak demand experienced in both the retail and
wholesale areas of the business has continued since October's trading statement.
As a result, the board expects to report a loss for the business for the
current financial year in excess of the loss reported for last year.
The company's return to profitability is being hampered by weak full price
retail sales on the high street and the level of wholesale orders as retailers
take a more pessimistic view of levels of consumer demand for Spring/Summer '06
ranges, it said.
Feedback, which makes electronic and electrical equipment used in training
engineers, ran back 1.00 to 6.50 after warning that its general financial
position could be "compromised" by costs related to its pension scheme.
The warning accompanied news of a swing into a loss of 32,600 stg in the
first half to Sept 30 after pension costs related to compliance with the new
FRS17 accounting rule, compared with a profit of 197,800 stg a year earlier.
A profits warning brought out the sellers in Michelmersh, although it
recovered some of its earlier losses, off 9-1/2 lower at 108-1/2.
The producer of handmade specification bricks and clay paviors pointed out
that energy prices are now around three times greater than at the time of the
company's May 2004 flotation, and twice what they were last year, with an
obvious impact on margins.
The company is adjusting production to prioritise cash management against
profit until prices increase in the industry to reflect the cost levels now
being experienced. This will impact upon profitability for this period and, if
current market conditions and costs prevail, will similarly affect next year as
well.
Meanwhile, Michelmersh has concluded an agreement with Persimmon Homes for
the residential development of 60 acres of land at the Company's Telford site.
In other news, Baggeridge Brick tumbled 11-1/2 pence to 148-1/2 as the UK's
4th largest brick manufacturer warned on current half-year profits and revealed
that lower demand and higher energy costs had reduced full year pretax profits
by 30.8 pct to 5.54 mln stg.
The group believes results for the first half of the current year will be
"well below" the same time last year due to extended Christmas factory shutdowns
prompted by volatile natural gas prices well above last year's levels.
Shares in specialist bookseller Ottakar's dropped 13 to 352 after the
company cautioned that trading so far in the second half has been challenging.
It said although the group has taken steps to cut costs, it is too early to
predict the likely result for the full year.
The group reported a fall in like for like sales of 3.4 pct over the 45 week
period to Dec 10 but noted the decline was a sharper 6.7 pct in the more recent
19 week period to the same date.
Widening losses at the half-way mark clipped 0.75 from Zoo Digital, at 9.25,
while Virotec International eased 1-1/4 to 28-3/4 as shareholders gave the green
light to the removal of the stock from the Official List of the ASX.
On a brighter note, Gulfsands Petroleum shot up 16-1/2 to 104-1/2, after the
AIM-listed oil and gas exploration, development and production company, with
activities in the US, Syria and Iraq, disclosed a new gas discovery in the Gulf
of Mexico.
Buyers also came for Zambezi Resources, 1 firmer at 12-1/4, after the
Zambian focused copper and gold exploration company disclosed the identification
of an extensive uranium anomaly within the Chumbwe project area, approximately
65 km east of Lusaka.
On plus side, promotions group MKM Group rose 0-3/4 to 5-1/2 after it said
trading since the end of the half year has been encouraging.
The news was a welcome distraction from the current first half results that
showed a fall into pre-tax losses of 512,000 stg for the six months to September
from a profit of 372,000 stg the year before.
Terrace Hill rose a penny to 46 after the property developer said it was
continuing to make strong progress with significant lettings achieved at its
Swansea Waterfront development and at the Powerhub Centre in Crawley.
Elsewhere, Whittard of Chelsea climbed 4-3/4 to 89-3/4 as Java Acquisitions,
a unit of Barney Holdings, made an agreed 21.5 mln stg, or 90 pence a share,
cash offer.
Barney Holdings is the holding company for Julian Graves, a UK speciality
food retailer with over 260 stores in the UK and Ireland, selling products
including nuts, seeds, dried fruit, nostalgic sweets, baking ingredients, luxury
snacks and fruit and nut mixes. Barney Holdings majority shareholder is Baugur
Group.