Beyond the Footsie: Thursday close

SHARES in UK smaller companies failed to eulate the blue-chips and managed only modest gains. At the close, the FTSE SmallCap index was 3.8 points firmer at 1,995.8.

Applied Optical Technologies saw its shares rise 7p at 51 1/2p, while Baltimore firmed 1/2p at 6 1/2p.

Set-top box manufacturer Pace Micro also found support, taking on 2 3/4p at 24 3/4p with traders noting possible benefits for the group from a US government decision to require TV makers to include digital tuners in their sets from 2004.

The tale of woe from split capital investment trusts continued as Aberdeen Preferred Income Trust fell 70% -- 0.07p to 0.03p.

Serviced offices firm Regus was also a notable faller amid fears it may be forced to raise fresh cash from its shareholders. Deutsche Bank said it has 'lost faith' that Regus can weather the downturn without a cash injection. Regus shares shed 7p to 9 1/4p.

Elsewhere, Airflow Streamlines shed 12 1/2p to 51p after saying it expects the first half to show continuing losses but to be in the black during the second half. The company was reporting delayed results for the year to March with turnover rising from £69.82m to £74.33m.

Profile Media Group was down 3/4p to 2 3/4p after warning of continuing losses. And Savoy Asset Management lost 27 1/2p to 80p after reversing to first half losses, reflecting the difficult trading conditions in world stock markets.

And Coffee Republic shares eased back 1/4p to 23 3/4p on profit taking after it was revealed that rival Caffe Nero had increased its stake in its rival to 10.69 pct amid heightened speculation it could bid for the coffee chain.