LONDON (Thomson Financial) – UK smaller companies closed up at a session high, tracking a strong performance in the broader market, with Avanti Screenmedia the best performer after it said it was no longer reliant on its overdraft.

At the close, the FTSE Small Cap index was 21.6 points higher at 3,885.4, while the FTSE 100 closed up 61.6 points to 6,376.8.

Leading the risers, Avanti Screenmedia closed 38 pct higher, up 1.25 pence to 4.50 pence, after it said it had secured a 100,000 stg loan and was no longer reliant on its overdraft facility.

Avanti also said advertising sales across the company are performing strongly with booked advertising sales for the current financial year having already exceeded those achieved for the entire 12 months toಞ June 2007.

The group added, however, that it is continuing to seek further funding for short term working capital.

Also on the up, medical diagnostics company Cozart climbed 10-3/4 pence to 51-1/2, after it said it is in “advanced” discussions with a third party which may or may not lead to a recommended cash offer.

The group said a further announcement will be made in due course. Elsewhere, Kefi Minerals picked up 0.875 to 3.875 as it said it has intersected gold-silver mineralisation in six of the nine holes drilled at the company’s fully-owned Derinin Tepe prospect in western Turkey. The first three drill holes intersected significant widths of 3-4 metres of mineralised backfill associated with ancient workings, the company said. And Herencia Resources rose 0.25 to 1ቃ after it said it continues to achieve high grade assay results at the Paguanta Project in Northern Chile.

The mining company said it found in excess of 5 pct of zinc, 100 grams per ton of silver and 2 pct lead.

Elsewhere, Office2Office jumped 28-3/4 to 189-3/4 after the supplier of office products and related services in the UK and Ireland disclosed an increase in underlying interim pretax profits to 6.0 mln stg fromŅ.7 mln.

Following the numbers, Landsbanki anticipated retaining its forecast at 10.8 mln stg pretax (post-options), which allows for the loss of the MoD contract starting in H2. It will review its 2008 forecast and ‘hold’ recommendation following the analysts’ meeting.

Punters were again picking up stock in Conival, 0.25 up at 2.00, amid increasing speculation that something is afoot at the specialist branded food and beverage company. Celebrity chef Marco Pierre White created the company in 2005 and still sits on 8 pct of the equity.

Charlemagne Capital perked upń-1/2 to 58-1/2 as lower interim profits from the equity investment management group were offset by a confident statement, while TV home shopping company ResponzeTV climbed 3-3/4 to 37-1/2 in response to much-reduced losses at the half-way mark.

Apparel brand Hot Tuna International was up 1.000 to 8.875 after it said it has entered into a three-year agreement with Sourcerite International, to distribute its ranges in the Middle East.

The company said it will supply several lines from its range to Sourcerite, which will be sold through a number of stores throughout the Middle East, including stores owned by Sourcerite.

Meanwhile, Investika was 22-1/2 higher at 210 after it said Berong Nickel, in which it holds a 24.8 pct stake, has entered into a five-year laterite ore supply agreement with BHP Billiton’s Queensland Nickel.

Berong Nickel will supply up to 500,000 wet metric tons per year. The first shipment under the deal is scheduled for delivery from Berong in late September, the company said.

Contract news gave a boon to ServicePower, 1-3/4 firmer at 17-1ǚ, as the supplier of outsourcing solutions and software to the mobile repair and installations industry was awarded a significant contract by a major US insurance company. The contract is worth more than 2.2 mln stg in software licence and implementation fees. Styles & Wood made progress, climbing 15-1/2 to 204 in response to better than expected half-year numbers. The property services company sees full-year results ahead of market expectations.

In response, Altium Securities said it is looking to upgrade its estimates for the company by around 5 pct ahead of the analysts’ meeting. The broker maintains its ‘buy’ recommendation and 250 pence price target. Bid hopes spurred SCI Entertainment 44-1/2 higher to 384 after the computer games maker said it has entered into “extremely preliminary talks” following an approach for acquisition of the company.

Also heading north, shares in Elephant Loans notched up a gain of 0.12, at 1.50 after the sales distribution channel for specialist lenders signed a major affinity partnership agreement. Advanced Medical Solutions celebrated maiden first-half pretax profits of 0.7 mln stg with a rise of 1-1/4 to 25, while CybIT hardened 3-1/4 to 55-1ǚ as the online telematics service provider expressed confidence of meeting the 19 mln stg full year revenue expectations.

Meanwhile, Vindon Healthcare was 1 higher at 20-1/2 after the company posted a 28.3 pct increase in first-half pretax profit and said it was confident going forward.

In reaction, WH Ireland reiterated its ‘outperform’ stance and 22 pence target price, noting that the group’s first half results indicate that Vindon is on track to meet its 20ǧ earnings estimates. Among the decliners, Media Square remained the biggest faller, sliding 2.625 — or 30 pct — to 6.125 pence after the international marketing communications group warned that earnings for the year ending 29 February 2008 are likely to be materially below market expectations.

A small number of the Group’s companies are experiencing poor trading over the summer. In particular, operations within Germany and some of the Marketing Services companies will suffer from revenues below expectation for this year, Media cautioned. Losses were recorded in Global Marine Energy, down 0.750 to 7.875 after it said it is convening an extraordinary general meeting on September 26, as its net assets have fallen to below half of its called-up share capital.

Sellers were also about in Pure Wafer, 30 off at 241-1/2, as the silicon wafer reclaim services company disclosed higher full-year pretax profits, but cautioned that its first-quarter results are likely to be hit by technical difficulties even though it expects profitable growth in the next year.

And finally, Qualceram Shires dropped 12-1/2 to 112-1/2 after the maker of bathroom suites revealed only a marginal increase in first-half operating profit, with sales hit by increasing interest rates and a slowdown in the Irish housing market.

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