Felix Group plunged 4.9p to 1.35p after Richard Rose, the chairman, said that the business model of placing ATMs that provide promotional discounts in high street stores may not be viable. Trials had proved disappointing and expensive, he said and he would begin a more detailed business review. Schroders owns 28 per cent of the company.

SMG, the former Scottish Media Group, whose rescue rights issue completes on December 18, has been granted a £90 million loan facility from HBOS. But the shares lost 3¼p to 12½p on fears over the rate it is paying.

DawMed Systems, the maker of industrial washing machines for hospitals, fell 1¼p to 3p after it warned of substantial full-year losses after delays installing a new IT system and a dearth of NHS funding for infection control. Publication of its accounts are also being delayed.

Faroe Petroleum, the privatised former state oil company of the Faroes, gained 4½p to 159½p after it said it had raised £45 million in a placing and swapped its Norway exploration rights with Eon in return for gas-fields in the UK. It has also acquired some undeveloped North Sea fields from Shell.

Melrose Resources jumped 20p to 330p after it began pumping oil from its well at the West Dikirnis field in Egypt. David Thomas, the chief executive, said: “This will transform the cash generation of the business.”

Education Development International edged up ½p to 40¼p on talk that it was about to sell its 50 per cent stake in Educational Resources to AEC Education, unchanged at 11¾p.

Reflec, the maker of reflective inks and fabrics, fell 5p to 14p to after it reported a 51 per cent drop in full-year profits. Johnson Service, the workwear and laundry group, which will breach its bank covenants, bounced 18p to 59p even though it said it would not pay the dividend it has already declared. Short-sellers are thought to be closing their positions ahead of the weekend.

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