| The Markets The UK economy contracted by 0.4% quarter-on-quarter, in the three months to June, according to revised figures from the Office for National Statistics. The country's performance was dragged down by continued weakness in the construction sector, although this too was showing minor signs of improvement. Meanwhile, it is anticipated that Spain will announce spending cuts and tax increases, worth a combined 39 billion euros (31 billion pounds) as the country looks to cope with its rising cost of debt. There were mixed results from the US, where GDP rose by 1.3% in the second quarter, falling short of consensus forecasts of 1.7%. However, initial jobless figures for September were better than expected, coming in at 359,000, compared to forecasts of 375,000. At the London close the Dow Jones was up by 12.14 points at 13,425.65 and the Nasdaq was up by 15.58 points at 2,797.21. In London the FTSE 100 rose by 11.33 points to 5,779.42; the FTSE 250 finished 16.52 points ahead at 11,754.40; the FTSE All-Share gained 5.73 points to 3,015.83; and the FTSE AIM Index climbed by 1.11 points to 702.80. 
Broker Notes HB Markets kept its "speculative buy" rating for Auhua Clean Energy (ACE) with a 55p target price. The broker noted that the China based solar-powered water heating technology developer achieved revenues of 95.4 million yuan (9.7 million pounds) for the six months ended 30th June, 35% higher than 2011's comparable period, with an order book worth 74.8 million yuan (7.6 million pounds). HB Markets expects growth to be driven by the country's goal of reducing its carbon emissions by 45% by 2020. Auhua shares were unchanged at 39p.  Panmure Gordon reiterated its "buy" recommendation for Gable Holdings (GAH) with a 38p target price. The broker expects the insurance company to report first half pre-tax profits of 3.7 million pounds, up 43% year-on-year, benefiting from the launch of its first policy in Germany. Panmure noted that the firm has secured a new property liability programme win in France, worth 4.5 million euros (3.6 million pounds) per annum and an after the event programme in UK worth 3 million pounds per year. The shares slipped by 0.125p to 27.375p. Singer Capital retained its "buy" stance on The Innovation Group (TIG) with a target price of 23p. The automotive software developer launched two new products, Insurer Rapid Assess and Insurer Gateway, which the broker said will increase efficiency at insurance firms, by reducing the amount of time it takes to assess external car damage. Singer maintained its view that the firm will increase its EBITDA margin to 20% by 2015 and adjusted profit margin to 15%. Shares in The Innovation Group advanced by 0.25p to 21.25p. Blue-Chips Tate & Lyle (TATE) expects to report adjusted operating profits in-line with market forecasts for the six months ending 30th September 2012 as strong growth in the US and emerging markets compensated for difficult trading conditions in Europe. The food ingredients company added that conditions are likely to remain challenging in Europe for the remainder of the financial year but believes that it will achieve volume growth across all of its core products. The shares rose by 15.5p to 670p. 
Oil and gas infrastructure company Petrofac (PFC) announced that it has secured a 200 million dollar (123.5 million pound) contract to deliver engineering procurement and construction services for a new distribution network in Kuwait. The deal involves laying 900 kilometres of buried cable as well as the construction of three substations buildings and is expected to be completed in 24 months. The new sites will be used to develop onshore oil fields in the country's northern region. Shares in Petrofac edged up by 16p to 1,593p. Compass Group (CPG) said that it enjoyed a strong fourth quarter trading period and expects to see full year, ending 30th September, revenue growth of 8%, at constant currency rates, with operating profits also forecasted to rise by 8%. The catering company noted that it continued its cost cutting programme in Europe, and expects to achieve savings of 95 million pounds per year by 2014. The firm added that it spent 200 million pounds on acquisitions during the period and that it will complete its 500 million pound share buyback programme by the end of the calendar year. The shares inched down by 7p to 704.5p. Mid-Caps Shares in TUI Travel (TT.) ascended by 2.9p to 233p after the firm reported strong trading during the summer period, with sales rising across almost all its regions, although trading in France remained difficult due to unrest in North Africa and the Middle East. Additionally, UK Winter sales rose by 5% and the package holiday company noted that early bookings for Summer 2013 were significantly ahead of the market average. 
Investment company 3i Infrastructure (3IN) generated 30.8 million pounds of income from its European portfolio in the period from 1st April to 26th September, down from 36.8 million pounds in 2011's comparable period, attributing the decline to a lower dividend from Anglican Water Group. Meanwhile, the group noted that it had invested 4.9 million pounds in a portfolio of road BOT companies. The firm had cash reserves of 169.7 million pounds as at 26th September, up from 144.2 million pounds as at 9th July. The shares climbed by 2.1p to 125.9p. Paragon Group of Companies (PAG) has secured a new 200 million pound debt facility with Lloyds Banking Group (LLOY), in addition to its existing 200 million pound facility with Macquarie Bank. The mortgage provider said that it will use the additional reserves to fund further buy-to-let mortgage lending. It also noted that it is currently in negotiations to extend its deal with Macquarie, which currently expires in December 2012. Paragon shares gained 2.1p to 205.9p. Small Caps, AIM and PLUS Advanced plastics developer Symphony Environmental Technologies (SYM) reported a pre-tax loss of 0.69 million pounds for the six months ended 30th June, down from a loss of 0.21 million pounds in the first half of 2011, as revenues declined by 45.5% to 2.12 million pounds. The group attributed the fall in sales to high levels of debtors, claiming that trading during the period was much better than the results seem to suggest. The group noted that it completed a number of distribution agreements, including in parts of Africa, Chian and the Philippines. The shares tumbled by 0.75p to 3.625p. In its first results since listing on AIM in June, business software company WANdisco* (WAND) reported that it won 21 new contracts during the six months ended 30th June and secured 41 renewals. The clients included a number of household names such as Disney, Hewlett Packard and McAfee. Revenues for the period rose 53% year-on-year to 2.9 million dollars (1.8 million pounds), while cash bookings were 57% higher at 3.4 million dollars (2.1 million pounds). Shares in WANdisco surged by 50p to 360p. Inditherm's (IDM) pre-tax losses for the half year ended 30th June 2012 remained broadly unchanged on the prior year's comparable period, at 73,000 pounds. The heating company said that it suffered from a difficult second quarter, exacerbated by high levels of uncertainty around the NHS budget. The group also saw reduced demand from overseas distributors and said that it was not confident in achieving export growth in the current financial year. The shares crashed by 0.75p to 3.75p. 
Housebuilder Mar City (MAR) swung to a profit of 0.30 million pounds for the six months ended 30th June 2012, from a loss of 0.60 million pounds in the first half of 2011, as revenues soared from 0.45 million pounds to 4.03 million pounds. The firm noted that it is currently working on three contracts to deliver 165 houses, worth an expected 14 million pounds and that it has further pending contract for a further 275 homes. Shares in Mar City soared by 0.325p to 1.65p. Mobile Tornado Group (MBT) shares leapt by 0.875p to 9.5p after the company announced that it has secured a contract with a major French mobile operator, to supply its IPRS Push-to-Talk technology platform. The workforce management communications group added that integration of its technology has already begun and the commercial launch is expect to occur by the end of the year. The deal follows on from contracts with Telecom Italia and American Movil. PLUS-quoted Sutherland Health Group* (SHGP) said that its revenues and profits in the year-to-date were higher than in the comparable period for the prior year, ended 31st March 2012. The sexual health and diagnostics company attributed the improved performance to new product launches, as well as securing new customers. Sutherland shares swelled by 0.1p to 1.25p. *WANdisco and Sutherland Health Group are corporate clients of subsidiaries owned by Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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