News

Shares in British Polythene were on offer after the plastics group said 2008 looks to be a very challenging year as it posted lower full year profit and sales.

Pre-tax profit fell to £11.5m in the year ended 31 December from £14m last time, reflecting significant increases in raw material costs and patchy demand from certain sectors. Sales were also lower at £424m compared with £414m previously.

"2008 has begun with record raw material and energy prices and the margin compression we experienced during 2007 intensified in January and February. We are actively working to pass on these costs," said chairman Cameron McLatchie.

Shares in Renovo plummeted after the scar-reduction specialist said the Phase II results for its Juvista treatment did not meet its primary endpoint in a breast augmentation trial, though it did meet its endpoint in a scar revision trial.

"Although it is disappointing that the breast augmentation trial did not meet its primary endpoint, one of the objectives of our Phase 2 programme was to investigate the most effective dosing strategy for Juvista," said chief executive Mark Ferguson.

"This gives us confidence that the large scar reduction market remains accessible with Juvista and our first Phase 3 trial will start in the second half of 2008," he added.

Car parks and transport business Rotala expects results for the current financial year to be ahead of forecast and announced that it has bought Go West Midlands from Go-Ahead for £2m.

The group also said that it would place loan notes to raise £2.4m to provide additional working capital and finance today's acquisition.

Pharmaceutical firm Phoqus announced positive results from a Phase II study evaluating its hydrocortisone therapy Chronocort(R) in patients with Congenital Adrenal Hyperplasia CAH.

CAH is a genetic enzyme disorder characterised by deficiency of the hormone cortisol and excess production of androgens. The group will now proceed to the phase III pivotal trial.

Vane Minerals fell despite saying that it was pleased with progress on all fronts. "The combination of the successful fund raising at the end of 2007, the approval of drilling permits together with the company's aggressive acquisition strategy puts Vane in an excellent position for value creation," it said.

DVD technology group ZOO Digital rose after it announced the release of its Media Adaptation Tool, which reduces the time and cost required for the design of packaging and marketing materials.