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ZETAR PLC (ZTR.LN) Wednesday said it is in talks to supply products to the recently launched online version of high-street retailer Woolworths.

The U.K confectionery and snack foods company was a major supplier to Woolworths PLC (WLW.LN) before the chain collapsed in January, leading to a bad debt charge of GBP1 million for Zetar.

"We aren't supplying Woolworths.co.uk at the moment but we're in conversation with them," Chief Executive Ian Blackburn told Dow Jones Newswires Wednesday.

At 1042 GMT, shares +6 pence, or 3.7%, at 170.5 pence.

DXS LTD. and HORIZON DISCOVERY LTD, two U.K. diagnostics companies, said they teamed up to develop better tests for a gene which can affect how people respond to certain cancer medications.

Manchester, England-based DxS and Cambridge, England-based Horizon said they entered a strategic collaboration focused on DxS's Therascreen test for K-RAS mutation.

K-RAS is a gene that affects how people respond to drugs like ImClone Systems Inc.'s (IMCL) and Bristol-Myers Squibb Co.'s (BMY) Erbitux and Amgen Inc.'s (AMGN) Vectibix.

CONNAUGHT PLC (CNT.LN) said it will raise GBP12.1 million to fund future acquisitions after it announced two new bolt-on acquisitions to its compliance business which will give it national coverage.

The U.K. support services firm, which last week said announced a recommended offer for environmental services business, Fountains PLC (FNT.LN), said it has bought Fire (International) Ltd. and Igrox Ltd. for a total of around GBP15.9 million.

Panmure Gordon's Andy Brown said the acquisitions maintain Connaught's positive momentum but the "good news is already in the price." He kept his "hold" rating and 340 pence target price.

At 1042 GMT, shares +12.5 pence, or 3.4%, at 379.5 pence.

ITHACA ENERGY INC. (IAE.V) Wednesday said production from the Jacky field in the North Sea has hit 11,000 barrels of oil a day, well ahead of initial estimates of 7,500 barrels a day.

Jacky started production April 6 and flowed at rates of 8,800 barrels a day.

Since then a pump has been activated and the production increased to its current level, Ithaca said. Average June production was 9,300 barrels of oil a day, it added.

At 1043 GMT, London-traded shares +5.25 pence, or 15%, at 39.75 pence.

GALIFORM PLC (GFRM.LN), a kitchen maker, reported a fiscal first-half loss, hurt by lower sales and a GBP4.4 million rent bill from old stores, adding it will consider opening new stores if trading improves.

Galiform, which owns Howden Joinery, said if economic conditions remain stable then it expects sales, which have been hurt by lower activity in the housing market, to improve during its fiscal second half.

At 1043 GMT, shares +7.25 pence, or 19%, at 44.75 pence.

SINCLAIR PHARMA PLC (SPH.LN) said it expects fiscal 2009 revenue to decline on the year because of destocking by drug wholesalers.

The pharmaceutical company said wholesalers have been working through their stocks rather than order new medicines because of cash constraints.

It expects revenue for the year to June 30 to total GBP29.7 million, a 2% decline on fiscal 2008's GBP30.3 million. Analysts were forecasting revenue of between GBP30.7 million and GBP35.8 million.

At 1043 GMT, shares -2 pence, or 7.7%, at 24 pence.

SOLAR INTEGRATED TECHNOLOGIES INC. (SIT.LN), a solar panel company, said it agreed to be acquired by Energy Conversion Devices Inc. (ENER) of the U.S., in a deal valuing it at $16.3 million.

Energy Conversion Devices, or ECD, has agreed to pay 6.75 pence a share in cash for Solar Integrated Technologies, a 17% premium to Tuesday's closing price. Its shares have lost 94% of their value during the past 12 months.

At 1044 GMT, shares +1 pence, or 17%, at 6.75 pence.

WALKER GREENBANK PLC (WGB.LN) said fiscal first-half sales were down 12.5% on the year, but said there's evidence stability is returning to the U.K. retail market.

The furnishings company said it is cautious about the remainder of the year but has evidence that stability has returned to sales of its key brands. Brands include Sanderson, Morris & Co. and Zoffany.

At 1044 GMT, shares flat at 16.75 pence.

SPORTINGBET PLC (SBT.LN) said it has sold its loss-making Italian operation to local management, saying the money and time needed to generate a profit in the country would be better placed elsewhere.

The online gambling company also said the positive start to trading in the fourth quarter ending July 31 has continued, and it is confident of achieving fiscal-year forecasts.

At 1044 GMT, shares -0.75 pence, or 1.4%, at 54.25 pence.

HELICAL BAR PLC (HLCL.LN) said it is looking at a number of potential acquisitions to take advantage of overall falling property prices, but the value of some properties is starting to level out.

In a statement for the fiscal first quarter to June 30, the U.K. property investor said while there was an improvement in the quality of tenants on the lettings it has completed, particularly in offices in London's West End and the City, average property values are still falling due to declining rental values.

At 1044 GMT, shares -3.5 pence, or 1.1%, at 327.5 pence.

STOBART GROUP LTD. (STOB.LN), a logistics company, said its subsidiary Eddie Stobart has gained a distribution contract with U.K. supermarket giant Tesco PLC (TSCO.LN) worth around GBP25 million a year.

At 1045 GMT, shares +3 pence, or 3%, at 104 pence.

ERUMA PLC (ERU.LN) said it won a GBP120,000 contract to install an emergency lighting system at a U.K. hospital, in its first move into the health sector.

At 1045 GMT, shares +0.13 pence, or 8.3%, at 1.63 pence.

COHORT PLC (CHRT.LN) said one of its subsidiaries has signed a contract to provide computer equipment and networks to seven schools in a deal worth more than GBP13 million over seven years.

At 1045 GMT, shares flat at 175 pence.

AORTECH INTERNATIONAL PLC (AOR.LN) reported a fiscal year pretax loss at the same level as a year earlier, as cost savings helped offset slightly lower revenue.

At 1045 GMT, shares -7.5 pence, or 5.1%, at 140 pence.

IDATECH PLC (IDA.LN) said it received an order for 30 of its ElectraGen hydrogen fuel cell systems from a German customer.

Financial terms weren't disclosed.

At 1046 GMT, shares flat at 91.5 pence.

FTSE SMALL CAP -0.3%

FTSE AIM -0.3%

-By Rachael Gormley, Dow Jones Newswires; 44 20 7842 9308; uksmallcaps@dowjones.com

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