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Minnows make progress despite resource drag on Footsie

Published: 13:27 25 Apr 2016 BST

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Small-cap shares were doing better than their top-flight peers on Monday as resource stocks flagged amid oil price falls.

The FTSE AIM 100 and the AIM All-Share were both modestly in positive territory but the FTSE 100 Index was 38.7 points off at 6271.

Highlands Natural Resources (LON:HNR) surged 9.9p to 21.75p as it detailed significant progress on implementing and commercialising its DT Ultravert re-fracking technology alongside Schlumberger.

Aminex Plc (LON:AEX) confirmed it is looking to expand its business  now that it has finally achieved a long awaited milestone in Tanzania, with the start of gas production from the Kiliwani North field.

The company also welcomed news that an oil pipeline originally due to be built from Uganda through Kenya would be re-routed through Tanzania due to security concerns. But shares in Aminex pared early gains to stand 0.02p off at 1.32p by lunchtime.

Investors were tucking into SnackTime PLC (LON:SNAK), the snack foods and hot drinks vending machine firm that is turning into a turnaround story.

The shares rose 13.6% to 6.25p as the company revealed consolidated revenues for the year to the end of March 2016 fell just 2% from the year before. Reflecting its move away from snacks and towards hot drinks, the company intends to change its name to Uvenco UK PLC.

Tri-Star Resources PLC (AIM: TSTR) heated up 10% to 0.11p as it announced that test-work had resulted in the first production of high purity antimony metal at a project in Oman.

On the downside, marketing services group St Ives PLC (LON:SIV) lost more than two-fifths of its value after reporting a marked deterioration in the near-term outlook for the company. Shares fell 44.8% to 124.25p.

Cloud-based communications provider Outsourcery plc (LON:OUT) plunged 36.6% to 6.5p as it revealed in its full-year results statement it would require further funding for short-term working capital purposes.

Shares in Snoozebox Holdings PLC (LON:ZZZ) fell out of bed after the abrupt departure of chief executive Lorcán Ó Murchú, shortly before the initial findings of a comprehensive review of the business were due to be published.

The stock backtracked nearly a quarter to 1.22p.

In the higher echelons of the market, resource stocks were weighing as investors awaited this week's monetary policy decisions from the US Federal Reserve and the Bank of Japan.

Anglo American PLC (LON:AAL) reversed 5.8% to 690p, BHP Billiton (LON:BLT) was 5.3% off at 935.2p and Rio Tinto (LON:RIO) lost 4% to 2240.5p.

But Ted Baker was in vogue with a 166p, or 6.87%, gain to 2582p as Jefferies International upgraded the fashion retailer to a ‘buy’.

And shares in Imperial Brands (formerly Imperial Tobacco) wafted 3% higher to 3683p on an upgrade to 'buy' from broker Goldman Sachs.

LONDON OPEN

Resource stocks dragged down the Footsie at the outset but Aim stocks were generally making headway.

Heavyweight miners and oil producers were out of favour, contributing to a 38 point fall for the FTSE 100 at 6,272, but away from the blue-chips Aim stocks were firmer on balance, with the FTSE Aim 100 up five points (0.2%) at 3,429 while the FTSE Aim All-Share was up a point at 732.

Highlands Natural Resources PLC (LON:HNR) was one of the top risers, surging 3.375p to 15.25p as it detailed the significant progress it had made with regards to the implementation and commercialisation of the DT Ultravert refracking technology.

“We are incredibly excited to be commencing our first commercial tests of DT Ultravert in the Piceance Basin in June 2016 with the aim of proving that this technology, of which we own 75%, could provide a breakthrough in the industry, particularly in the current oil price environment,” said Highlands chief executive officer Robert Price.

Investors were tucking into SnackTime PLC (LON:SNAK), the snack foods and hot drinks vending machine firm that is turning into a turnaround story.

The shares rose 13.6% to 6.25p as the company revealed consolidated revenues for the year to the end of March 2016 fell just 2% from the year before. Reflecting its move away from snacks and towards hot drinks, the company intends to change its name to Uvenco UK PLC.

A return of capital is almost always welcomed by shareholders and so it proved with Randall & Quilter Investment Holdings Ltd (LON:RQIH), which is proposing to issue shareholders with newly created V shares.

The non-life insurance market-focused investment company's shares rose 12% to 103p.

The revamped web site from Strategic Minerals PLC (LON:SML) must be a corker because the shares rose 12.5% to 0.23p on news that it had been updated. Perish the thought that some investors might have got confused about a statement after the close on Friday that Bushveld Minerals Limited (LON:BMN) is pondering buying Evraz's 78% holding in a company, also called Strategic Minerals, that owns vanadium assets in South Africa.

A somewhat more substantial update from Arian Resources PLC (LON:AAU), relating to a resource estimate for its Kiziltepe mine in Turkey.

The shares hardened 5.3% to 1.5p as the company said it is looking at an extra two years of the life-of-mine after the resources estimate upgrade.

On the downside, marketing services group St Ives PLC (LON:SIV) lost two-fifths of its value after reporting a marked deterioration in the near-term outlook for the company.

Cloud-based communications solutions provider Outsourcery plc (LON:OUT) plunged 29% to 7.25p as it revealed in its full-year results statement it would require further funding for short-term working capital purposes.

Shares in Snoozebox Holdings PLC (LON:ZZZ) fell out of bed after the abrupt departure of chief executive Lorcán Ó Murchú, shortly before the initial findings of a comprehensive review of the business are published.

Chairman Chris Errington will take on executive duties until the company finds a new chief executive.

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