The FTSE Small Caps index falls 0.5 percent, in line with a 0.5percent decline on the blue-chip FTSE 100 index while the FTSE 250mid-cap index retreats by 0.8 percent.
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.
Avocet Mining tumbles 51.5 percent after revealing that its soleoperating mine might hold less economically extractable gold than it previouslythought, meaning it may need to raise new equity to buy back part of its hedgebook.
"They have a smaller mine with a shorter mine life but the same hedge andoverhead requirements, hitting viability as a stand alone business," writesLiberum analyst Kate Craig in a research note, who keeps a "hold" rating on thestock.
The need to raise capital hits another small cap, with Talvivaara losing 3.1 percent. It is seeking to raise 260 million euros ($349million) through a rights issue to keep its nickel mine running, after a costlywaste water leak last year strained its finances.
Although the rights issue is endorsed by the company's top investors, stocksdipped on fears of dilution of existing shares.
Reuters messaging rm://alistair.smout.thomsonreuters.com@reuters.net