Beyond the Footsie: Mon close
SHARES in UK smaller companies ended the day lower after a wave of profit warnings and weak earnings news took its toll, dealers said.
The FTSE Small Cap index closed 8.6 points lower at 2580.9, just off a session low of 2580.4, in line with the other indices which all shut on a weak footing.
Jewellery manufacturer and distributor, Abbeycrest, saw 22% wiped off its market value today after warning that pre-tax profits for the year to February 28 will be below market expectations.
The news was in stark comparison to an upbeat statement released in January, when the company said that following buoyant trade over Christmas, it expected to post full year figures in line. Its shares were 25p weaker at 87 1/2.
It was a similar story with MOS International, down 1/4 at 2 after the company told investors that it expects to post a loss for the full year to March 2002.
Moreover, the company said that trading conditions remain difficult and the downward cycle of the oil exploration industry has continued since the events of September 2001.
An 87% slump in second half pretax profits weighed on shares in construction group Prowting, down 12 1/2 pence to 123. Investors were also dismayed to learn that the company has omitted to pay a final dividend.
Elsewhere on the downside, Motion Media was 8p off at 29 after revealing that losses for the full year widened from the previous year, due to flat sales amid tough market conditions.
Meanwhile, Digital Sport slipped 0.16 to 0.63 on news that full year results were hit by discontinued businesses and aborted acquisitions. Nevertheless, it narrowed losses for the period to £1.08m from £7.34m.
On the upside, hotel firm, CHE Group soared 8p to 33 after its upbeat outlook eclipsed news of widening full year losses.
The pan-European group said it is 'encouraged' by the rate of recovery following the events of 11 September and is now much better placed to benefit from an upturn in business activity levels. Furthermore it said has significantly reduced its debt through the sale of hotels and other property.
However it reported a pre-tax loss before exceptionals of £4.2m for the full year from a loss of £0.2m in 2000, blaming a slump in the tourist industry.
Pubs'n'Bars was another of the few bright features, up 1p at 38 1/2 following news of a 22% increase in annual profits.
Investors were also delighted to hear that trading in the new year to date has improved in line with its expectations, with like-for-like sales 3% ahead.
Meanwhile stockbroker Beeson Gregory gained 6 1/2 pence to 94 after calling off talks to buy Old Mutual Securities following a bid approach, believed to be from Evolution Group.
