UK SMALLCAP ROUNDUP: Weak Pound Boosting Lure Of UK Smallcaps

21st Jul 2010 16:00

Dow Jones smallcap news is now on Twitter, allowing you to catch up on the news away from your desk. Go to http://twitter.com/DJ_UK_Smallcaps INVESTORS are set to take advantage from the effect of a weak sterling on U.K.-based international companies, the manager of the BlackRock UK Special Situations Fund said Wednesday, especially those interested in smaller companies. Richard Plackett said that as takeover activity picks up, small and mid caps will continue to attract foreign buyers due to the weakness of sterling, adding that his own fund has benefited recently with the agreed bids for Chloride Group PLC (CHLD.LN), a maker of secure power systems, and BSS Group PLC (BTSM.LN). ZETAR PLC (ZTR.LN), a U.K. confectionery and snack foods company, said it expects the launch of its Toy Story-themed products to drive sales in the run up to the key Christmas trading period, although overall full-year sales growth is expected to slow on the gains seen so far in the new fiscal. The firm, which makes Kinnerton chocolate and produces branded items like advent calendars, is releasing Toy Story-branded chocolate bars in the coming weeks, to coincide with the recent cinema release of Toy Story 3. At 1430 GMT, shares +5 pence, or 2.1%, at 217 pence. FIRESTONE DIAMONDS PLC (FDI.LN), a diamond miner, said it agreed to acquire peer KOPANE DIAMOND DEVELOPMENTS PLC (KDD.LN) for GBP52.7 million in shares, in a deal that brings together assets including Firestone's mine in Botswana and Kopane's Liqhobong project in Lesotho. Firestone said its directors believe Liqhobong to be one of the most promising diamond projects in the world, and potentially one of the top three not yet in development. At 1430 GMT, Firestone Diamonds shares -3 pence, or 9.9%, at 30 pence. Kopane shares flat at 13 pence. DP POLAND, a new firm that has secured the Polish franchise for major pizza delivery brand Domino's Pizza Inc. (DPZ), Wednesday said it plans to raise GBP6.5 million when it joins London's junior Alternative Investment Market July 28. Domino's Pizza doesn't currently have any operations in Poland and so DP Poland plans to roll out Domino's Pizza stores predominantly in Warsaw and hopes to have opened at least 27 owned stores by the end of 2012 and over 50 in the next four to five years. ENTERTAINMENT ONE LTD. (ETO.LN), an independent film and television producer, announced a 16.7% rise in first-quarter sales, boosted by the release of the latest Twilight Saga movie, and said it continues to size up acquisition opportunities to enter new territories. At 1430 GMT, shares +3 pence, or 3.2%, at 81 pence. EREDENE CAPITAL PLC (ERE.LN), an investor in infrastructure, will likely return to market in the medium term to raise some cash for its investment in a landmark container terminal project, Chief Executive Alastair King said. "We have no enormous need as for the first draw-down [for Ennore], we need GBP5.4 million over the course of the next 18 months," he said. At 1430 GMT, shares +1 pence, or 2.5%, at 20 pence. WEST PIONEER PROPERTIES LTD. (WPR.LN), an Indian property developer, now expects to make $17 million profit from the three residential tower blocks it is developing near Mumbai given rising house prices, Chief Executive Ajay Gupta said. The company last summer entered the residential market in Kalyan, a suburb of Mumbai, with plans to develop three tower blocks called Metro Residency. It originally expected to make $4 million profit from each tower but this has since risen. At 1430 GMT, shares +1 pence, or 2.4%, at 21 pence. SSL INTERNATIONAL PLC (SSL.LN), the maker of Durex condoms, said it agreed terms for a GBP2.54 billion takeover by household products maker Reckitt Benckiser Group PLC (RB.LN). Reckitt Benckiser's offer represents a premium of 32.8% to SSL's closing price Tuesday and is four times SSL's share price five years ago, according to SSL Chairman Gerald Corbett. Reckitt said the acquisition of SSL would add Durex condoms and Scholl footcare products to its stable of "Powerbrands" and will immediately boost earnings. At 1430 GMT, shares +299 pence, or 34%, at 1,181 pence. DOMINION PETROLEUM LTD. (DPL.LN), an oil and gas explorer, said it didn't find any oil or gas at an exploration well in Uganda. The company said the Ngaji-1 well at Lake Edward Graben was drilled to 1,765 meters. No hydrocarbons were found, Dominion said. At 1430 GMT, shares -3 pence, or 45%, at 3 pence. DJ UK Smaller Cos +0.46% AIM +0.5% -By Hannah Benjamin, Rachael Gormley & Jason Douglas, Dow Jones Newswires; +44 (0) 20 7842 9298; [email protected] (END) Dow Jones Newswires July 21, 2010 11:00 ET (15:00 GMT)