Hot small caps: Restaurant Group rises on upgrade

02/09/2008 12:11

LONDON (Reuters) - Following is a round-up of key small cap movers on the London Stock Exchange on Tuesday. ---------------------------------------------------------------- ------------

Shares in Restaurant Group jumps 9.7 percent to 152.5 pence after the firm, which runs chains such as Frankie & Benny’s, Chiquito and Garfunkel’s, is upgraded to ’buy’ from ’neutral’ by UBS following a positive read-across from pub operator Greene King’s latest trading statement.

"Greene King has delivered a decent update, which seems to suggest the pub food sector is doing pretty well so that has pleased the market. The stock was upgraded by UBS as well and that has also given it a push," a KBC Peel Hunt analyst tells Reuters.

10:10GMT 02Sept 2008-Avingtrans up on Rolls-Royce deal ---------------------------------------------------------------- ------------

Shares in Avingtrans jump 5.5 percent to 58 pence after the diversified component manufacturer signs a long-term deal to supply Rolls-Royce Group with rigid pipe assemblies and components from its aerospace division in a 22 million pounds deal. The group also says Steve McQuillan will take up the role of Chief Executive on 1 October.

"The group has invested significant capital in these operations over the last year .....continued below

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and today’s announcement greatly improves order prospects. The group now has a fresh Chairman and CEO which should rejuvenate prospects and clarify future direction," says FinnCap analyst David Buxton in a note.

08:55GMT 02Sept 2008-OHM falls on sales downgrade ---------------------------------------------------------------- ------------

Shares in Offshore Hydrocarbon Mapping fall 14 percent to 31 pence as the provider of electromagnetic surveys for the offshore oil industry says full-year sales will be hit by low demand and licensing delays in Norway.

"It’s a difficult time for them," says Greig Aitken at Brewin Dolphin, who downgraded his full-year forecast last week on read-through from competitor EMGS . "There has not been a lot of propriety work around this summer. Is it a blip for a technology in the early stage of adoption? I think it is. But they have got to pick up more business -- the next six months is crucial."

07:30GMT 02Sept 2008-BowLeven soars on Cameroon field update ---------------------------------------------------------------- ------------

Shares in BowLeven soar 19 percent to 300 pence as the Africa-focused oil and gas group says in an operational update that the oil in place in its IF discovery in offshore Cameroon is estimated to be between 76 million barrels and 249 million barrels.

"It appears to be a very positive statement," says Richard Slape at Canaccord Adams. "They have not told us the recovery factor, but even at the lower end of the range, they have 20 million barrels, which combined with the adjacent field gives a development of 50 million barrels. Even taking a conservative view, it should be a commercial project."

05:51GMT 02Sept 2008-FTSE seen opening 14 to 17 points higher ---------------------------------------------------------------- ------------

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