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On 18 September the Small Cap Index surrendered 40.4 points to finish at just 1,901.35, its lowest level since October 1998 – and a fall from 2,266.14 a year previously. The Small Cap plunge mirrored the FTSE's 4 per cent fall on the day to just 3,865.4 – its lowest level since the end of July – as buyers and sellers digested yet more grim news from across the pond.

But the current crisis of confidence is often at odds with company fundamentals. Indeed, with a whole host of small caps currently oversold, a slew of announcements stated that certain takeover bids undervalued this or that company, while a wealth of smaller stocks cheered investors and analysts with bullish announcements.

As on Aim, the small cap support services sector was a hive of activity, with some of the news negative but much of it positive.

Equipment rental firm Ashtead advanced 5.5p to 36.5p after confirming reports that it received an approach from two venture capital firms, acting jointly. Chairman Henry Staunton later explained that the initial approach did not recognise the company's full value. 'No [clear] offer was forthcoming and discussions were terminated,' he added. The shares have eased back to 33.5p, against a 52-week peak of 88p.

Elsewhere, Regus chief executive Mark Dixon, the former hotdog salesman, assured shareholders there was no need to panic after one investor dumped 16.23 million shares at 1.5p. This sent the price down to a 3p low, although it has since rebounded to 5p. The 64 per cent-shareholder tried to stoke up interest in his venture by claiming the firm had no debt, a profitable UK business and £63 million of cash at the end of the second quarter.

Toad profits jump in first half

Investors in other support service stocks jumped for joy on jovial first-half results to June. Pre-tax profits at vehicle security specialist and multimedia equipment distributor Toad lifted from a depressed £68,000 to £362,000. The management attributed the recovery to the elimination of costs associated with relocating its vehicle security division and a profits contribution from motorcycle security business Datatool, acquired in the summer last year. Investors can pick up the shares for just 7p, against a 52-week high of 13.25p.

Fledgling firm Parkwood perked up 0.75p to 57.9p as pre-tax profits rose 17 per cent to £510,000, on a 6 per cent sales upswing to £21.7 million. Encouragingly, chairman Tony Hewitt said: 'We're in a position to expand again and push sales above the £50 million threshold next year, while increasing our margins.' The shares have been pegged back to 51p since the figures were released.

Poon bids as Peacock fails to strut

There have been some intriguing machinations in the general retailers sector. Upscale department store Harvey Nichols, considered unloved by the board, surged 61.5p to 246p after it recommended a £137.5 million takeover bid from Hong Kong businessman Dickson Poon, who is also chairman. He is bidding 250p a share for the 49.9 per cent he does not already own. Once married to Bond girl Michelle Yeoh, Poon hopes shareholders will give him a licence to take the firm private.

Discount retailer Peacock had its feathers ruffled, losing 10.5p to 64p after certain commentators suggested the shares should be avoided because the firm faces demands by Woolworths to renegotiate a supply deal. Broker Numis also reiterated the stock as a 'Sell' and slashed its 2003 profits forecast from £25 million to £22 million.

In the media sector, publishing house Bloomsbury failed to budge at 612.5p, against a 52-week high of 880p, despite posting robust half-year figures to June. Pre-tax profits improved from £2.55 million to £2.83 million, with profits before goodwill gaining 9.8 per cent to £3.13 million. Cash balances rose 60 per cent to £25 million, leaving it well placed for further deals. The shares have since fallen away to 577.5p as the market has drifted south.

Logistics firm Christian Salvesen was sent skidding 4p to a 13-year low of 64.5p on fears of a profit warning and dividend cut. The transport-listed firm is due to report on the six months to September within weeks. Analysts believe the UK industrial operation is suffering from a general slowdown, while its troubled German and Spanish arms are faring worse than expected.

Looking forward

Air Partner, the corporate air charter broker, recently cheered followers with news that forthcoming full-year figures will top City expectations by 10 per cent. Managing director David Savile said: 'In some areas of activity we've simply outgrown any downturn in the industry – in others we've seen continued growth.'

Previously, house broker Evolution Beeson Gregory predicted £3.2 million pre-tax, giving earnings of 21.3p. Last time out the group posted £2.2 million pre-tax profits on sales of £89.2 million. Preliminary figures to end-July will be published on 10 October.