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Evidence is emerging that the London market is beginning to pick up pace. The media slump seems to have been arrested, manufacturing is due an upturn (see page 11), the economy is looking ever rosier and the Chancellor's upcoming spending boom could be a boon for many sectors. Although the blue-chip benchmark is still trading in a very narrow range, the Small Cap Index is inching ever upwards and now stands at 2582.16.

Companies in the large support services sector have dominated procedings. Cash-rich RPS raced ahead 4.5p to 147.5p on news of acquisitions totalling £3.45 million.



RPS has bought IDS, which provides survey operations and advice to the water industry, as well as two ventures with common ownership that offer safety and engineering advice to the nuclear industry.



Powered access equipment firm Lavendon felt the pressure after its AGM lamented activity in the subdued German market. The firm warned that its 'accelerated investment programme' will have an adverse effect on first-half profits. The shares, which have been as high as 522p over the past year, eased 12.5p to 248.5p.



Harvey Nash enjoyed a roller coaster ride. The share price crashed from 122.5p to 97.5p in the days after it reported £11.3 million annual pre-tax losses, before recovering ground on broker recommendations to finish at 106.5p. Nash also ditched its final dividend.



As did troubled men's clothing retailer Moss Bros – after revealing a £4.9 million pre-tax loss for the year to January. From December through to April, the company managed to fight off a hostile bid from Shami Ahmed's Legendary Investments at 50p a share. But the shares are now changing hands for just 37.5p.



Duckers and divers



Others ducking and diving on dividend news included European Motor. Richard Palmer, chief executive, unveiled record results for the year to February, with pre-tax profits powering up 23 per cent to £10.4 million on sales of £441 million (£399.7 million). He also cheered the company's followers by lifting the total dividend by 7.7 per cent to 7p. 'We've had a great new car year and it's still going very well', he boomed. Although the shares reversed 5.5p to 144p on the day of the figures, the price has motored up from a 59.5p low over the past 52-weeks to as high as 153p.



By contrast, insurer Hiscox softened 1.5p to 133.5pafter it scrapped its dividend on the back of £32.5 million 1osses for 2001. Hiscox's business was badly hit by 11 September.



Interestingly, corporate air charter broker Air Partner soared almost 10 per cent to 330p on upbeat first-half figures to January that demonstrated a 28 per cent jump in pre-tax profits to £1.6 million. Chairman Tony Mack says there has been a surge of interest in its evacuation programme in the wake of last year's Manhattan mayhem.



Other miscellaneous movers included umbrella manufacturer Chapelthorpe. Its price nudged ahead 2.5p to 9.75p on a press tipping that mentioned renewed management buy-out talks and a 30p target price. Last year, chief executive Brian Leckie abandoned a 32p per share bid for the household goods and textiles listed stock because he could not raise the necessary cash.



Meanwhile, real estate group Unite eased 18.5p to 298p following a discounted placing of 6.8 million shares with institutional investors at 286.5p.



Last, but by no means least, bouts of 2001 restructuring left several ventures in a stronger position. Although Headlam's shares reversed 6.5p to 277.5p on the back of its annual results, the floor-coverings distributor announced a move back into the black. A strong organic performance and cash from disposals left the Birmingham-based play with a strong balance sheet. Last year's £38.9 million net debt was replaced by £12.4 million net cash.



Heading in the opposite direction was engineering play Bullough. Its shares moved up 1.75p to 20.75p on full-year figures to December showing £4.7 million pre-tax profits surrendering to a £13.9 million loss. Significantly, though, the group has ditched its loss-making Product Procurement Services arm, which hit the figures to the tune of £7.6 million. It will from now on focus on its Workplace Solutions and Temperature Control divisions. The stock is trading at 24p a share.



Looking forward



Halifax-based engineering firm Wescol is another changed business that could be an interesting recovery play. Recent first-half figures showed sales up 47 per cent at £48.4 million, a small operating profit and narrower pre-tax losses of £427,000 (£2.8 million). Wescol looks slimmer after having sold a non-core design and build arm to its management. (In November, full-year pre-tax losses were trimmer at £5.8 million, compared with £7.5 million the previous year.) Chairman Geoff Adams explains: 'We've got the business under control, but it is very much like an oil tanker in that it takes time to turn it around'.