UK small caps are down by 0.5 Percent at midday, outperforming themid-caps, down 0.9 percent, and the blue chips, down 0.8percent.
Renold PLC sheds 11.5 percent after the industrial chain makerissues its second profit warning since October, saying that its second-halfoperating profit would be lower than previously expected.
Iomart falls 2.3 percent after being downgraded to "hold" from"buy" by Canaccord Genuity.
"Following the recent strength in the share price and yesterday'sfourth-quarter miss by U.S. peer Rackspace, we are downgrading ourrecommendation to hold in the short term," analysts at Canaccord Genuity say ina note.
"We still like the Iomart model, particularly the highly operationallygeared profit growth and substantial unfilled capacity, but feel that short termupside is more limited at this level, with only 2 percent upside to our(unchanged) 248p price target."
Reuters messaging rm://alistair.smout.thomsonreuters.com@reuters.net