LONDON (Thomson Financial) – UK small caps closed just off their session high today, lifted by solid gains among the blue chips, with Business Direct Group soaring 125 percent amid plans to sell the group in order to secure long-term funding.

At the close, the FTSE Small Cap index climbed 29.0 points to 2,738.8 — with the session higher 2,739.3 — while the FTSE 100 index leapt 101.5 points to 5,420.7.

Business Direct Group rocketed 0-1/4 of a penny to 0.45 of a penny to top the small cap risers, as it said it sees a sale of all or part of the group as the most likely option to secure its future long-term funding.

The logistics company said that a further announcement will be made when appropriate, and that in the meantime it continues to trade normally.

Ark Therapeutics stayed behind, up 32-3/4 pence to 80-1/4 pence, after a drug trial success, although Landsbanki cut the stock to ‘hold’ from ‘buy’, saying the data gives a ‘mixed’ set of results.

The broker thinks the European Medicines Agency may well want the complete data set.

Merger talks took Gladstone Pacific Nickel 24-1/2 up to 85, as it entered into merger discussions with Resource Development International Ltd., (RDI)an unlisted company controlled by Clive Palmer.

Palmer resigned from his role as chairman of Gladstone, along with director Geoffrey Smith, with immediate effect.

In deal news, Silence Therapeutics rose 8-1/2 to 38-1/4 as it said its partner Quark Pharmaceuticals Inc. together with Pfizer, has started a Phase II clinical trial of RTP-801i-14, which will trigger a $1.9 million milestone payment to Silence from Quark.

Deal news also boosted Optare 4-1/2 to 29-1/4, while Ultima Networks and Blinkx rose on product launches, Ultima climbing 0.225 of a penny to 1.925, while Blinkx moved 0-1/4 of a penny higher to 29-3/4.

Positive numbers news lifted Puricore 1-3/4 to 17.

Elsewhere, Formjet climbed 0.175 of a penny to 1.05 as it raised 900,000 pounds by placing 120 mln shares at 0.75 pence apiece to fund the acquisition of a specialist distribution company with a significant customer base of IT resellers and independent retailers.

Irish Life & Permanent rose 0.62 of a penny to 5.17 on receiving the final tranche of term funding required to replace the 3 billion euros of funds maturing in the current quarter.

Kalahari Minerals rose 1-1/2 to 29-3/4 as Extract Resources, in which Kalahari subsidiary Kalahari Uranium holds a 39.11 percent interest, announced a preliminary exploration target at Rossing South of between 126 million and 198 million lb of triuranium octoxide.

But away from the risers and Acertec slumped 6-1/2 to 8 — a 44 percent slide to top the losers — as it said its 2008 profits are to be substantially short of market forecasts.

Ensor Holdings remained 5-1/2 lower to 20, also on a profit warning, while numbers woes took 0-1/4 of a penny from Cinpart, on 2.

Recruitment specialist Prime People closed 9 lower to 44-1/2, as it said net fee income in the first three months of the current financial year was static.

Numbers news also hurt Uniq, 10-1/2 lower to 84, as it posted a wider first-half pretax loss, leading FinnCap and Panmure Gordon to keep ’sell’ ratings on the stock.

In other news, James Cropper stayed hard-hit, 15-1/2 down to 132 as it cautioned it sees a challenging year.

Taihua shed 1-1/4 to 10-1/2 as adverse exchange rate fluctuations between the renminbi currency and the U.S. dollar offset the value of sales.

hannah.benjamin@thomsonreuters.com

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Source  :  forbes.com