| The Markets Like-for-like retail sales fell by 0.4% in the UK, according to figures from the British Retail Consortium, and many have blamed the decline on the Olympics. While good weather during the Games boosted sales of food and drink, this failed to compensate for falling demand for non-food items. The US also saw weaker than expected economic figures, with construction spending in July falling by 0.9% month-on-month, compared to expected growth of 0.4%. This was largely the result of reduced levels of home improvement, as consumers suffered from lower disposable income. At the London close the Dow Jones was down by 87.45 points at 13,003.39 and the Nasdaq was down by 21.74 points at 2,750.50. In London the FTSE 100 fell by 86.40 points to 5,672.01; the FTSE 250 finished 74.29 points behind at 11,428.84; the FTSE All-Share lost 40.92 points to 2,955.62; and the FTSE AIM Index declined by 4.13 points to 678.98. 
Broker Notes Singer Capital maintained its "buy" rating for Vectura Group (VEC) with a target price of 120p. The broker pointed to positive results from Phase III trials of the pharmaceutical company's QVA149 and Seebri Breezhaler treatments. The results showed that QVA149 was more effective at treating chronic obstructive pulmonary disease than GlaxoSmithKline's (GSK) current standard drug Seretide. Singer added that Glaxo's new treatment Revalar has failed to demonstrate similar efficacy. Share in Vectura inched down by 0.5p to 83.25p.  Seymour Pierce reiterated its "buy" recommendation for Belvoir Lettings (BLV) with a 91p target price. The letting agency will issue its interim results on Wednesday, the first since listing on AIM in February 2012, and the broker expects the firm to have benefited from a growing rental market, as would be buyers struggle to accumulate sufficient funds for a deposit. While Seymour Pierce noted that rental prices fell from October 2011 to March 2012, it said that they have recovered sharply, with July 2012 rates averaging 725 pounds per month, compared to October levels of 720 pounds. The shares were unchanged at 82p. WH Ireland kept its "buy" stance for Pennant International (PEN) with an increased target price of 59p, from 43p. The broker was impressed by the 20% increase to the training simulator developer's interim dividend, to 0.6p per share, noting that a similar increase to the full year dividend would give a yield of 5.5%. WH Ireland noted that the group secured a number of large contracts during the period and added that it has submitted a proposal for a five year training equipment and services contract in Australia, in conjunction with BAE systems (BA.). Pennant shares jumped by 1.5p to 40.5p. Blue-Chips As it looks to strengthen its presence in the digital entertainment market, Tesco (TSCO) announced that it has bought eBook platform provider Mobcast for 4.5 million pounds. The news follows on from the supermarket chain acquiring a 91% stake in internet radio service WE7 for 10.8 million pounds and movie streaming company blinkbox in 2011. The shares slipped by 0.65p to 338.8p. 
Mid-Caps Shares in Ashtead Group (AHT) surged by 33.4p to 315.9p after the firm reported an 82% jump in underlying pre-tax profits, year-on-year, for its quarter ended 31st July 2012 to 61.4 million pounds, on revenue growth of 21% to 325 million pounds. As a result of the strong performance, the industrial equipment rental company expects to beat previous full year forecasts. The firm noted an improved trading environment in the US but the UK remains challenging, and Ashtead does not expect conditions to change in the short-term. 
DS Smith (SMDS) said that SCA Packaging, which it acquired on 30th June 2012 for 1.28 billion pounds, has integrated well and has significantly improved its position in the European market. The recycled packaging supplier added that its corrugated box business also performed well during the period from 30th April to date, with volumes sales slightly above expectations. The group reiterated its target of reducing net debt to below two times EBITDA in the medium term. The shares rose by 5.6p to 167.6p. Pub chain Greene King (GNK) announced a 5.1% rise in like-for-like sales for the 18 weeks ended 2nd September, despite the heavy summer rainfall. The firm noted that the Olympics had a negligible net impact, with stronger performances in the suburbs offsetting weaker sales from pubs in the City and West End. Total beer volumes rose by 0.4%, although its core brands fell by 0.9% Shares in Greene King gained 10p to 573.5p. Small Caps, AIM and PLUS Hydro International (HYD) reported a 70.2% fall in pre-tax profits to 283,000 pounds for the six months ended 30th June, despite revenue growth of 11.8% to 15.3 million pounds. The flooding prevention and wastewater treatment company was impacted by a shift in the sales mix towards lower margin products and incurred greater administrative expenses as it invested in new businesses, such as Hydro Consultancy. While the firm expects the full year performance to be heavily second half weighted, it noted that difficult trading conditions were likely to continue. The shares crashed by 12p to 121.5p. Healthcare support software developer Craneware (CRW) benefited strongly from a contact win which gave it entry into the Federal and State Healthcare market, with pre-tax profits for the year ended 30th June rising by 29% to 11.2 million dollars (7.0 million pounds). The firm noted a strong renewal rate and added that it had revenue visibility of 108.7 million dollars (68.4 million pounds) over the next three years. The group finished the period with cash reserves of 28.8 million dollars (18.1 million pounds) up from 24.2 million dollars (15.2 million pounds) at the same time in 2011. The shares advanced by 32.5p to 360p. Meanwhile, fellow healthcare IT firm Advanced Computer Software (ASW) announced that it had issued a 350,000 pound, interest free, convertible loan note to peer Avia Health Informatics (AVIA). The loan has a term of three years and can be converted into equity at any time, giving Advanced a 29.9% stake in Avia. The funds should provide Avia with sufficient capital to overcome short-term liquidity issues, and as part of the deal, Advanced Computer Software will be able to nominate a non-executive to Avia's board. Shares in Advanced Computer Software were unchanged at 62.5p, while those of Avia leapt by 1.375p to 8.75p. 
Investors were disappointed to hear that, as a result of moving its manufacturing facilities from Australia to the US, AorTech International (AOR) was only able to maintain normal production rates for seven months in the financial year, sending the shares spiraling down by 26.5p to 157.5p. However, the biomedical polymer developer was able to achieve pre-tax profits of 57,000 dollars (35,865 pounds) for the period ended 31st March, up from a loss of 3.9 million dollars (2.5 million pounds) in 2011 as revenues more than doubled to 5.0 million dollars (3.1 million pounds). Botswana Diamonds (BOD) has identified 12 targets on its licence in Orapa, Botswana, following aeromagnetic and geophysical surveys, "of which five look particularly interesting", according to the group's chairman John Teeling. The precious gem miner will now begin a drilling exploration programme which is expected to be completed in six months. Meanwhile, the firm noted that its joint-venture with a "major international resource company" was performing well and it expects to issue a report shortly. The shares soared by 0.375p to 2.5p. Electronic technology developer Stadium Group (SDM) saw pre-tax profits for the six months ended 30th June tumble by 63.3% to 0.58 million pounds, as revenues fell by 9.8% to 20.93 million pounds. The company attributed the fall to delays to two major projects, which will now not achieve full scale production until early 2013. Separately, the firm reported that it has acquired touch-screen display manufacturer IGT Industries for a consideration of up to 4.2 million pounds. For the year ended 31st October 2011, the target reported revenues of 5 million pounds and is expected to complement the firm's existing power and EMS business. Stadium shares dropped by 6p to 64p. | 
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