Hot small caps - Sportech up after reports inline update

(LONDON) Reuters - Following is a round-up of key small cap movers on the London stock market on Tuesday.

11:16 a.m. GMT - Sportech up after reports inline update

Shares in Sportech (ROD.L), the football pools operator, climb 1.6 percent after the company reports an inline update, saying initiatives taken during 2008 have resulted in a robust trading performance by the business, prompting Investec to repeat its "buy" rating.

Investec says: "The update highlights good progress with respect to the 888 (888.L) and Ladbrokes (LAD.L) deals, and we expect news of other distribution deals in UK retail and new product launches to drive a re-rating."

Sportech says: "The rebranding and relaunch of The New Football Pool, formerly the Littlewoods and Vernons Football Pools businesses, in August has driven increased resilience in customer numbers."

10:58 a.m. GMT - Enterprise Inns gains on beer duty hopes

Shares in Enterprise Inns (ETI.L) gain 17.1 percent, extending last week's rally after a no worse than feared trading update with one trader citing hopes for a possible freeze in beer duty to help revive the moribund pub operators.

Enterprise Inns, Britain's biggest pubs group by number of outlets, last week reported a sharp fall in income in the first 16 weeks of its financial year and said it was taking action to reduce its 3.7 billion pound debt.

Calls by the British Beer and Pub Association for a halt to planned duty increases over the next few years were boosting the "bombed out stock," one trader in London said, while also noting technical factors in the stock.

Enterprise Inns shares lost more than 95 percent of their value last year, as beer sales in pubs continued to plummet, hit by a combination of factors including the smoking ban and stiff price competition from supermarkets.

10:20 a.m. GMT - Hornby runs out of steam after trading update

Shares in Hornby (HRN.L) fall 12.5 percent to 84 pence as the iconic toy train maker says it expects trading for the year to March to be at the low end of analysts' expectations, due in part to muted demand in the pre-Christmas period.

Altium Securities reduces its EPS estimates for the year to March 2010 and the year to March 2011 by 25 and 26 percent, respectively.

"In view of the reducing cover we think there will be pressure on Hornby to reduce the dividend," Altium says in a note.

The broker therefore cuts its target price to 70 pence from 80 pence, while keeping its "sell" recommendation.