Small-caps: Game bounces back

Troubled retailer Game Group rose 24.6 per cent to 6.6p on Friday after announcing it expected to meet its covenant tests, having received “support from its stakeholders and lenders”.

“We’re pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan,” said Ian Shepherd, Game’s chief executive.

Espirito Santo advised clients to “sell” with a target price of 2p, and argued longer-term investment decisions could only be made once details of Game’s strategic review are known.

Brewer Fuller, Smith & Turner rose 2.4 per cent to 740p after announcing it had bought 15 pubs from Enterprise Inns for £22.9m. Enterprise advanced 7 per cent to 42p on the news.

Numis said “substantial share price outperformance requires the company to . . . be acquisitive if the right deal becomes available” and argues that Fuller's “is utilising the strongest brand and balance sheet in the sector with a view to exploiting the best opportunity to grow margins via increasing scale. The benefits of this strategy should be fully apparent in 2013 earnings.”

Numis advised clients to “add” with a target price of 775p.

Workforce services provider Worldlink Group soared 73 per cent to 41p after revealing The One Media Technology Corporation had approached it with a view to a possible offer for the company which, barring extensions, must now be made by March 2.

In contrast, PLUS Markets Group , the British stock exchange for small companies, fell 13.3 per cent to 0.975p as it announced it had put itself up for sale due to a need for more financial backing to take advantage of opportunities presented by coming regulatory and technological changes.

Waste to energy group Kedco fell 18.8 per cent to 1.6p after announcing it had raised £403,000 through a placing of 31m new shares at 1.3p per share and allotted 8.8m new shares to its 22.14 per cent shareholder Farmer Business Developments after it had exercised a convertible loan note.