LONDON (AFX) - Major small cap casualty was 32Red, which slumped 23 pence -- or 42.2 pct -- to
just 31-1/2 after the online casino, poker and sportsbetting operator warned its full-year operating results will fall 'significantly' below current market forecasts. It blamed poor trading at Bet Direct, the sportsbetting operator 32Red bought in June.
The lower-than-anticipated EBITDA has resulted in a breach of its EBITDA covenant with the Royal Bank of Scotland with which 32Red has an outstanding loan of about 6 mln stg.
Vigilant Technology shares were down 6 at 10-1/2, after the company cautioned its full-year numbers will be below current market expectations.
Sales in the second half have picked up, but Vigilant has been unable to close as many sales as had been anticipated. The sales pipeline for 2007 remains encouraging, nevertheless.
Again on the downside, Plus Markets Group dipped 1-3/4 to 19 following news that the company is to raise 25 mln stg via a placing of 179 mln shares at 14 pence per share.
The trading services company said the placing, which represent 57.02 pct of the enlarged issued share capital, will be used to strengthen its balance sheet, prepare for MiFID regulations and develop and promote new trading services, market data services and company services products.
Still on the backfoot, Slimma shrank 4-1/2 to 53 in reaction to a sharp fall in full-year profits and a warning that investment costs will affect the profit performance of the business in the short term. When combined with a more challenging market place forecast, chairman Carolyn Simons retains a cautious outlook for the new financial year.
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