| The Markets The markets experienced a rocky trading session as optimism over Spain's bailout request ar the weekend, which saw shares across Europe open markedly higher, was all but wiped out by skepticism it will not be the end of the nation's troubles. It is now widely believed that the funding, which will see Spanish banks be lent up to 100 billion euros by the European Union and International Monetary Fund, will only provide temporary respite. Back home, a report by the Centre for Economic and Business Research suggested that short-term business prospects in the UK were improving. Business services firm BDO backed this up as it released the latest figure from its output index, which reached a twelve-month high in May. The gauge climbed from 95.8 to 96.7 in May, with any figure above 95 conveying growth. At the London close the Dow Jones was up by 20.05 points at 12,481.01 and the Nasdaq was up by 10.59 points at 2,546.00.
In London the FTSE 100 fell by 12.71 points to 5,435.08; the FTSE 250 finished 46.17 points behind at 10,698.95; the FTSE All-Share lost 7.20 points to 2,822.17; and the FTSE AIM Index declined by 5.57 points to 684.39. 
Broker Notes Singer Capital retained its "buy" recommendation for Ted Baker (TED) with a 920p target price, ahead of the tailor's interim management statement tomorrow. The broker expects the firm to report first quarter growth of between 14% and 15%, with retail growth of around 16%/17%. Singer has high hopes for the group's international expansion plans, but noted that the wholesale division will face tough comparables against 2011's performance due to phasing differences. The shares rose by 13.5p to 910p. Seymour Pierce maintained its "buy" rating for Workspace Group (WKP) with a target price of 270p. The commercial property company is expected to report pre-tax profit growth of 12.7% for the year ended 31st March 2012, to 15.9 million pounds, with the broker anticipating occupancy rates of 86%. Seymour Pierce estimated that the group has a net asset value of 300p per share, based on a portfolio value of 748.6 million pounds, and forecasts a NAV of 316p for 2013. Workspace shares added 0.75p to 224p. ADVERTISEMENT Latest small cap tip out next week on WatsHot.com
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Just GBP73 for a year's membership by direct debit (GBP87.60 by card/cheque/Paypal) Click here to join WatsHot.com now WH Ireland reiterated its "buy" recommendation for Hornby (HRN) with a 135p target price. The broker noted that despite difficult UK trading, the toy company achieved modest adjusted pre-tax profit growth of 2.3% to 4.5 million pounds in the year ended 31st March 2012, boosted by sales of Olympic themed products. WH Ireland added that revenues in mainland Europe rose 21% as supply chains were restored. However, the broker noted that if the Olympic merchandise does not sell as well as expected over the games, it could lead to high levels of obsolete stock by the half year. The shares fell by 4.75p to 70.25p. Canaccord Genuity kept its "buy" stance on Secure Trust Bank (STB) with a target price of 1,200p. The bank's acquisition of sub-to-near prime lender Everyday Loans gives the firm access to an unsecured loan book of 64 million pounds, said the broker, as well as a network of 25 offices and an experienced management team. Canaccord expects the acquisition to add 2.2 million pounds to the firm's earnings for 2012, rising to 3.7 million pounds in 2013. Shares in Secure Trust Bank rose by 12.5p to 1037.5p. Blue-Chips Tesco (TSCO) reported sales growth of 2.2% for the 13 weeks ended 26th May 2012, year-on-year, as it began the implementation of its six-point plan in the UK, with the launch of the Everyday Value range and the hiring of 700 new staff. Since the end of the quarter the firm achieved its most successful week in the UK, excluding the Christmas period, with over 1 billion pound of sales in the run up to the Diamond Jubilee. However, the supermarket chain noted continued uncertainty in the Eurozone as well as slowing growth in China and the introduction of shopping hours legislation in South Korea. The shares finished flat at 302.8p. In order to enhance its skill range and increase scale, Serco Group (SRP) has acquired UK outsourcing company Vertex Public Sector for a cash consideration of 55.5 million pounds. The target, which reported revenues of 110 million pounds in the year ended 31st March 2012, will be incorporated into the government services firm's existing Global Services business, which is expected to generate revenues of over 1 billion dollars (0.64 billion pounds) per year. The firm noted that Vertex has a number of major customers including the Westminster council and the central government Child Maintenance and Enforcement Commission. Serco shares closed up by 6p at 546p. Mid-Caps More bad news from Aquarius Platinum (AQP) which, In light of weak platinum metal prices, has decided to halt its Pooling and Sharing Agreement, P&SA2, at Marikana in South Africa in order to preserve deposits until the economic climate improves. Therefore, the Marikana 4 shaft and concentrator plant will be placed on "care and maintenance". In the mean time, the management functions will be consolidated with its neighbouring P&SA1 operation at Kroondal. The shares fell by 8p to 65.5p. A joint venture between Galliford Try (GFRD), Costain Group (COST) and WS Atkins (ATK) announced that it won a 180 million pounds contract by United Utilities Group (UU.) to upgrade the Liverpool Waste Water Treatment Works. The construction companies will build a two-storey batch reactor plant as well as perform renovations on the existing facilities. The deal is part of an ongoing framework between the companies established in April 2010. Shares in Galliford fell by 12p to 589.5p, Costain shares were flat at 188p and WS Atkins shares lost 13p to close at 681.5p. Lancashire Holdings (LRE) renewed its collateralised reinsurance business Accordion Reinsurance, or as it likes to call its "a property retrocession side car facility", which can be capitalised for up to 250 million dollars (160.7 million pounds). Originally launched in May 2011, Accordion is designed to allow Lancashire to continue offering property insurance, while giving it protection against catastrophe losses. The group noted this could be particularly important in the event of a tumultuous US storm season. The shares rose by 1.5p to 760p. Small Caps, AIM and PLUS Online personal health services company Fitbug Holdings* (FITB) has launched a new games framework and iPhone app to be offered as product extensions to fitbug.com, allowing users to increase their exposure to the company's services. The new products will allow individuals or teams to compete against other users, and can be customised to meet client requirements. Members will also be able to log physical activities and nutritional input and check their progress while on the go. The shares gained 0.175p to 1.5p. Shares in Hardide (HDD) rose by 0.05p to 0.54p as the engineering technology firm unveiled a maiden interim profit of 201,000 pounds for the six months to March - from a 432,000 pound loss in the comparative period - following a 94% surge in turnover to 1.54 million pounds. Revenue from both the flow control and aerospace divisions were markedly higher thanks to growing demand underpinned by 'strong technical and operational effectiveness'. The firm did however note that there had been an element of stock building by certain key customers, dampening expectations that current momentum can be maintained in the second half of the year. Intandem Films* (IFM) was one of only ten firms out of 300 applicants to be awarded funding from the California Film Commission Tax Credit Lottery, the London and Los Angeles based film group receiving 1.76 million dollars to fund the co-production of '10 Things I Hate About Life'. In addition to being responsible for raising the production finances for the film which it will receive producer fees for, Intandem will earn 15% commission on global sales, as well as 35% in the UK. Intandem shares advanced by 0.25p to 3.625p. Triple Plate Junction (TPJ) shares crashed by 0.425p to 1.625p as the gold and copper exploration company conceeded it did not intersect any commercially viable deposits at Gumots, a prospect within the Morobi project in Papua New Guinea. The result does not bode well for the remaining prospective drill targets identified within the prospect forcing the firm's joint venture partner Newmont Ventures to suspend active drilling for a six month period. Westminster Group (WSG) announced that it has been awarded a 900,000 dollar contract to supply advanced surveillance equipment to an unnamed Middle Eastern government. The security and defence group noted that the deal took several months of negotiating to secure and that the technology will be used to monitor criminal and terrorist activity. This deal is recognised as a significant step forward for Westminster as it looks to gain ground in the emerging Middle Eastern market. Westminster shares gained 3p to 31p. Marine seismic operations firm Thalassa Holdings (THAL) has signed a new joint venture with P-Cable 3D Seismic AS to commercial P-Cable's 3D seismic technology. The recognised benefits of the technology over other products in the market include its ability to produce relatively low-cost high-resolution 3D seismic data with rapid deployment and high area coverage. Thalassa added the partnership was already bearing fruit following a contract to provide the technology to Spring Energy Norway, a privately owned Norwegian oil and gas company. Simultaneously, Thalassa unveiled that in conjunction with this partnership and the Arctic contract signed in April, contracted revenues for 2012 stand at $15 million and profits will likely be several fold ahead of current market expectations. * Intandem Films and Fitbug Holdings are corporate clients of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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