Beyond the Footsie: Thursday close

SMALLER company shares ended a gloomy session in negative territory, undermined by sharp losses in the UK and the US. At the close, the FTSE SmallCap index was down 8.7 points at 2202.2.

Transport Systems was the session's biggest riser, with shares up 7p to 15 1/2p after revealing interim profits to September should significantly exceed expectations, thanks to a profitable first quarter and very successful trading at its Forrest Highway operating unit, which has secured a number of new contracts.

Universe Group rose 2 1/2p to 33p after announcing that its international money transfer division has opened in a further nine countries.

Silk Industries jumped 6p to 32 1/2p after revealing that it is in preliminary takeover talks, while news of a trial contract boosted DCS Group by 2 1/4p to 14 3/4p.

And Mouchel jumped 12 to 160 1/2p after the support services group promised a very positive set of results for the year ending this month, and predicted a 'strong and secure' order book for the coming year.

Financially restructured Marconi Corp was also under the spotlight after the company revealed that tough markets and weaker demand were behind a 38% year-on-year fall in first quarter sales to £367m.

It also revealed that gross profit margins dropped two percentage points year-on-year in the first quarter to June, though it gave no hint as to how this might alter the company's previously-stated financial targets for the year.

Chief executive Mike Parton warned he held a 'cautious view' of short-term market conditions. But, after initial sharp falls, its shares ended the day up 1 1/4p at 69p.

AIM Group was cheaper by 7 1/2p at 80p after skipping its final dividend and warning of 'extremely difficult' trading in the aviation industry.