Wires

STOCKS NEWS EUROPE-UK small caps stay weak early afternoon

The FTSE Small Caps index is down 0.3 percent around midday, justoutperforming slightly bigger declines by the blue chips and the midcaps , both 0.4 percent lower.

Avanti Communications Group drops 16 percent after the satelliteoperator reports increased full-year losses, with revenues of 12.5 millionpounds falling short of estimates of 17.2 million pounds, according to ThomsonReuters I/B/E/S.

"Management attributes this to more conservative accounting treatmentalthough underlying growth run-rate for recurring revenues is also below ourforecasts," Jefferies & Co analysts say in a note to clients.

The analysts now expect consensus revenue forecasts to be reduced for 2013and 2014.

Thorntons gains 3.3 percent as the chocolate group says trading isin line with management expectations, with first-quarter total sales falling 1percent to 46.0 million pounds primarily due to planned store closures, althoughit is cautious on the outlook for its upcoming Christmas peak trading season.

Reuters messaging rm://jon.hopkins.thomsonreuters.com@reuters.net

Keywords: MARKETS EUROPE STOCKSNEWS

Related Tags