August 18, 2012 12:20 am

Small-cap week: Manganese shares crash

The small-cap market’s biggest crash this week was delivered by Manganese Bronze, with the London taxi-cab maker slumping 45 per cent after it admitted to a hole in its accounts.

The company delayed interim results after discovering an IT error that meant it had overstated stock and understated liabilities going back to 2010.

The warning left Manganese valued at £4.2m, its shares having plunged by 98.6 per cent over the past five years.

JJB Sports fell 35.7 per cent after Dick’s Sporting Goods wrote off the value of its £20m investment in the retailer.

Just five months after giving the lifeline to the troubled business, Dick’s said JJB’s performance had “materially deteriorated from its expectations” since the time of its investment.

Home shopping group Findel was up 70 per cent after a push from broker WH Ireland, whose price target was still more than double Friday’s closing price.

It reckoned Findel could boost margins as its turnround continues, which would alleviate financial stress on the group.

Better than expected interim results and a reassuring outlook statement lifted Cluff Gold, the Burkina Faso miner, by 24.8 per cent.

Domestic boiler developer Ceres Power rose 51.5 per cent even after cautioning that it would have to raise an initial tranche of funding by the end of September and was still investigating options.

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