Smaller companies spotlight

EACH week, former Fleet Street City Editor

Gene genies

BREAKTHROUGHS in medical science are not only the stuff of which dreams are made, but can also be the path to riches. Which is why the market is looking at the shares of AIM-listed Oxford Biomedica. It has provided the technology for treatment that may, one day, cure diseases such as muscular dystrophy and cystic fibrosis.

Experiments carried out in conjunction with the Imperial College of Science and Technology, London, have found a way of transferring genes to unborn mice which, if the method were used in unborn children could enable debilitating and fatal diseases to be treated before suffering occurs.

Of course, as Robbie Burns observed two centuries ago: 'The best laid schemes o‘ mice an‘ men, Gang aft agley' (whatever that may mean), but this has got the boffins excited. They know that many major diseases are caused by a defect in a single gene; by transferring healthy genes to replace those which are not working, has the potential for curing many problems.

In many cases the transfer can be achieved by targeting a relatively small number of the patients‘ white blood cells, but in others such as muscular dystrophy and cystic fibrosis there is a need to treat every muscle cell in the body.

Current techniques mean this is not possible, but the Imperial College team, using Oxford Biomedica‘s LentiVector has found that it is possible to deliver the gene when the tissue volume is still small.

They have transferred genes to mouse embryos while they are still in the womb – and believe similar techniques could be delivered to a human foetus where pre-natal diagnosis indicates that an embryo may have a major problem. At present, in such circumstances, termination of a pregnancy is often the answer.

Dr Mike Themis, of Imperial College, says: 'We hope, one day, we may be able to offer parents gene therapy as an alternative.' Professor Alan Kingsman, chief executive of Oxford BioMedica, is not yet throwing his hat in the air, but says: 'We are currently evaluating product opportunities from these studies, as well as consulting broadly on the regulatory and ethical issues raised by such groundbreaking work.'

Some you may have missed

COUNTRYSIDE Properties has received planning permission for a mixed-use development in the London Borough of Merton on a 10-acre site at Merton Abbey Mills. The development will include 284 apartments, a 3,900 sq.m health and fitness centre, a 120-bedroom hotel for Scottish & Newcastle, two restaurants, craft workshops and a heritage centre. Work is expected to start in the autumn and be completed in the summer 2005. The value of the completed development is expected to be more than £80m.

AIM-listed, Private & Commercial Finance Group, expects to award the mandate for securitisation of its motor finance portfolio before the end of the month, with completion in July. It also expects to bring in its new proposal system this month, allowing a substantial increase in volumes processed each month.

OFEX-listed PC-OP.Com, the data security services provider, has changed its name to Securix Group. It plans to move to the Alternative Investment Market next month.

DESPITE reporting a loss of £3.8m for the year to March 31, Paul Wright, chief executive of Vocalis Group, is in upbeat mood, claiming the year was 'one of significant progress'. Major changes were made to the group‘s strategy and it is enjoying the first commercial successes of these moves. New contracts worth £2m were won in the final quarter of last year from Powergen, Chelsea Building Society and Abbey National, revenues from which will come through this year.

PROVIDER of medical and legal reports, Litcomp, which came to Ofex in February with an over-subscribed offer for sale, could be heading for the Guinness Book of Records if it is as successful in the year to March 2003 as it was in the previous 12 months. On a turnover that rose 277% to £1,26m, pre-tax profits grew a staggering 1,935% to £60,780. Chairman Jack Wigglesworth says: 'We look forward to reporting on our progress at the interim stage.'

Which analyst, I wonder, will be the first to complain if the business fails to maintain its growth rate.

MODEL trains and toy racing cars group Hornby increased profits 60% to £3.7m in the year to end March. Key to the success, says chief executive Frank Martin, has been cutting costs by moving manufacturing to China.

INTERNET hosting provider Host Europe has formed an alliance with WorldPay who will promote Host Europe‘s range of services.

Some to watch out for

THE market may be depressed, but analysts at brokers Teather & Greenwood maintain the stiff upper lip that keeps hopes alive. Ben Archer believes support services group Weeks is a buy at just 5.5p following strong final results claiming 'the shares are at a significant discount to the group‘s larger rivals'.

Peter Ashworth is also impressed by the final results from IFTE, in the same sector. He says they 'demonstrated the significant progress achieved over the last 12 months from a loss of £1.1m to a pre-tax profit of £1.79m'. The shares are still a buy at 134p having risen 28% in the past year.

Stephen Thomas likes the look of Scarisbrick Group in the leisure sector which has recovered strongly from early problems caused by the foot-and-mouth epidemic. Opening of two new Maloneys bars in the current year in Wigan and Bolton, as well as full year‘s contribution from the St Helen‘s outlet (only eight months last year) will drive growth in the current year, he says. The shares are a buy at 97p.

LUMINAR, owner, developer and operator of restaurants and late-night dancing venues, has released 'an outstanding set of final results' says Anne McMahon of brokers Seymour Pierce. She says the shares are a buy at 870p.

MARKET men believe Peter Long, chief executive of travel giant First Choice, was hinting about a potential bid for MyTravel when he talked, this week, about 'playing a leading role in consolidation of the industry'. Three years ago, Airtours (as MyTravel was then called) bid £950m for First Choice, but was thwarted by the European Commission – a decision recently overturned by the European Court of Justice.