Companies: CCG    CHH    CLV    FDT    MER    MUR    PTD   

A swathe of upbeat results combined with bid talk and acquisition rumours to send London's junior market higher this week. By the end of play on Friday, the AIM Index had gained 16 points to the good to close at 1110.1.

The most impressive results belonged to Bob Holt’s social housing play Mears. It cheered followers on Tuesday by posting an incredible 42 per cent profits improvement to £4.6 million in the first six months to June. The veritable AIM star also unveiled a 52 per cent jump in social housing turnover, boosted by recent contract awards. Its order book, which stretches over a decade into the future, stands at £960 million.

1st Dental takes bite out of losses

Acquisitive growth lay behind bullish numbers from a swathe of other players, including Andrew Garner’s 1st Dental, which revealed interim losses halved to £55,000, on a 145 per cent top-line jump to £5.9 million. 1st Dental says it plans to ‘buy one or two other laboratories before year end' after speedily turning round its loss-making £4.9 million Benchmark acquisition in only four months. A volatile performer this year, 1st Dental, now market leader in Britain's fragmented £400 million false teeth market, posted a ten per cent gain over the week to 37.25p.

Another deal hungry outfit was mobile phone and electronic equipment repairer CRC Group. It published interim numbers containing a 67 per cent interim profits leap to £2.5 million, stats that sent the shares five per cent higher to 282.5p over the week. Management says the acquisitions of Teleca and Kronos, snared from Italy's Progetto Electronica, are key to CRC’s growth strategy, and another earnings enhancing deal is on the cards.

European patent and trademark attorney Murgitroyd smashed forecasts with full year figures to the end of May showing adjusted pre-tax profits up 42 per cent to £1.37 million This sent the shares shooting up 14 per cent to 205p by the end of the week. Turnover for the second half of the year firmed up 26 per cent, boosted by the January acquisition of Castles, which enhanced the client base and brought aggressive new business winner David Castle onto the board.

Chipper Clipper

Elsewhere, ocean racing outfit Clipper Ventures cruised up 28 per cent to 20.5p on improved preliminary results for the year to 30 April. Losses were reduced by £500,000 to £317,000. Chairman Sir Robin Knox-Johnston pointed out that Clipper’s ever-expanding profile is leading to enhanced sponsorship agreements. ‘The 2005/06 race [is] attracting almost £3.5 million compared to £600,000 for the last race in 2002/2003,’ he remarked.

Less bullish figures were posted by ceramics maker Churchill China, which is battling against rising energy prices and cautious spend on the high street. First half figures to June revealed a dip in profits from £1.3 million to £600,000 on lower sales of £22.3 million. Sector peer Pittards, which produces leather for gloves, shoes, and sports equipment, revealed wider interim losses of £1.45 million (£1.41 million) to June, on turnover to £32.3 million. Worryingly, energy costs are ‘eroding the benefits of the cost savings achieved over the last 12 months’.

Looking forward

The international appeal of AIM shows no signs of relent, with new issues from around the globe waiting to debut on the renowned market. Global Brands, owner of the Domino's Pizza franchise in Switzerland, Luxembourg and Liechtenstein, plans to pull in £3.5 million through a placing on AIM. Its strategy is to convert the Swiss love of cheese into desire for cheese-topped pizzas. Domino’s is the only international pizza delivery brand in Switzerland and Global Brands presently operates six stores in three locations over there. Ruegg and Hichens Harrison are advising the company.