Cambridge Index

Cambridge Index jumps 1.4%

The Cambridge index rose 1.4% or 329.6 points to finish at 24,173.5, as index heavyweights such as Johnson Matthey and AVEVA Group recorded weekly gains to their share prices. Liberum Capital reiterated its “Hold” rating on Johnson Matthey, up 4.4%, with a target price of 3400p. DS Smith, down 0.4% announced that trading was in line with expectations, while mentioned successful acquisition of Interstate Resources Inc. J P Morgan restated its “Overweight” rating on the stock with a target price of 570p. Zacks Investment Research raised its rating on Abcam, down 0.4%, to “Hold” from “Sell”. Greene King, down 16.2%, announced that it has reported a decline in like-for-like sales for the period. Investec downgraded its target price on the stock to 667p from 850p while Liberum Capital reaffirmed its “Buy” rating on the stock with a target price of 780p. AVEVA Group, up 26.1%, announced appointments of Emmanuel Babeau and Peter Herweck as the Non-Executive Directors. J P Morgan upgraded its target price on the stock to 2800p from 1950p and maintained a “Neutral” rating.

Frontier Developments, up 28.9%, announced that its annual revenues rose to £37.4m. FinnCap raised its target price on the stock to 1332p from 968p and Liberum Capital upgraded its target price on the stock to 1250p while maintaining a “Buy” rating. Science Group, up 13.9%, announced that it has completed the acquisition of Technology Sciences Group Inc., Technology Sciences (Europe) Limited and associated subsidiaries. Numis Securities raised its “Buy” rating on the stock with a target price of 240p. Xaar, up 8.8%, announced that its half-yearly revenues slightly fell to £44m. Peel Hunt reaffirmed its “Buy” rating on the stock with a target price of 470p. RhythmOne, up 2.9%, announced signing of a partnership deal with YuMe, Inc. for a total consideration of $185m. They also announced the appointment of Mr. Edward Reginelli as the Chief Financial Officer. 1Spatial, which remained unchanged at 3.4p, announced the signing of an initial three year contract with Northern Gas Networks Limited which can be extended for a further three years.

Peel Hunt reaffirmed its “Buy” rating on Kier Group, down 1.7%, with a target price of 1600p. Horizon Discovery Group, down 2.5%, announced that it expects interim revenues to be £12.1m. Brady, down 4.3%, announced that interim revenues fell to £13.2m. CyanConnode Holdings, down 8.1%, announced the appointment of Anil Daulani as the Managing Director for India. Berenberg Bank reissued its “Sell” rating on Dialight, down 8.2%, with a target price of 620p.

UK markets finished mostly lower last week, following an unexpected drop in the UK construction PMI in August. The nation’s services sector activity eased to an 11-month low in August. The FTSE 100 index fell 0.8% to settle at 7,377.6, while the FTSE AIM 100 index dropped 1.0% to close at 5,137.9. The FTSE techMARK 100 index gained 1.6% to end at 4,522.6.

US markets ended the last week on a weaker footing, driven by losses in banking and insurance sector stocks. The number of Americans filing for fresh unemployment benefits jumped to its highest level in two years in the prior week. Meanwhile, the US President, Donald Trump, along with top Democrats, agreed to increase the debt ceiling limit and extend government funding for three months. The NASDAQ index declined 1.2% to close at 6,360.2, while the DJIA index lost 0.9% to end at 21,797.8.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No of Comps

Index movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, climbed 9.2% to 214.0p.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, jumped 26.1% to 2450.0p. The company announced, in relation to combine AVEVA and the Schneider Electric Software Business, that the combined circular and prospectus have been approved by the UK Listing Authority. Separately, the company announced appointments of Emmanuel Babeau and Peter Herweck as the Non-Executive Directors of the Company post-merger between the company and Schneider Electric Software Business. J P Morgan Chase & Co upgraded its target price on the stock to 2800.0p from 1950.0p and maintained a “Neutral” rating.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, fell 7.2% to 141.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, eased 8.1% to 0.2p. The company announced that it has appointed Anil Daulani as the Managing Director for India. Furthermore, the company noted that he will be joining Delhi office this week and will be appointed as a Director of CyanConnode Pvt Limited in India.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, dropped 8.2% to 730.0p. Berenberg Bank reissued its “Sell” rating on the stock with a target price of 620.0p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, surged 28.9% to 1350.0p and emerged as the top gainer in the Cambridge Index. The company, in its final results for the 12 months ended 31 May 2017, announced that revenues jumped to £37.4 million from £21.4 million reported in the prior year. Moreover, the company’s profit before tax surged to £7.8 million compared to a profit of £1.3 million reported in the last year. The basic earnings per share stood at 22.7p compared to earnings of 4.2p in the previous year. The company stated that sales from the Elite Dangerous and Planet Coaster franchises would decide the trading in the current financial year, the twelve months ending 31 May 2018. Separately, the company announced that it has appointed Stewart Stanbury as the Director of Marketing with immediate effect. FinnCap raised its target price on the stock to 1332.0p from 968.0p and maintained a “Corporate” rating. Liberum Capital upgraded its target price on the stock to 1250.0p from 850.0p and maintained a “Buy” rating.

Greene King PLC

Shares of pub operator, Greene King PLC, plummeted 16.2% to 555.5p and emerged as the top loser in the Cambridge Index. The company, in its trading update for the 18 weeks ended 03 September 2017, announced that it has reported a decline in like-for-like sales for the period, due to unfavourable weather conditions. Furthermore, the company stated that it remains cautious on the current trading environment. Meanwhile, Greene King noted that strong returns and cash were delivered from its Brewing & Brands and Pub Partners division. Moreover, the company remains on track to deliver £45.0 million in cost savings from its acquisition of The Spirit Pub Co. Investec downgraded its target price on the stock to 667.0p from 850.0p and issued a “Hold” rating. Liberum Capital reaffirmed its “Buy” rating on the stock with a target price of 780.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 12.9% to 0.9p.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, advanced 13.9% to 225.0p. The company announced that it has completed the acquisition of Technology Sciences Group Inc., Technology Sciences (Europe) Limited and associated subsidiaries. Numis Securities raised its “Buy” rating on the stock with a target price of 240.0p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, declined 9.2% to 285.0p.

Other movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, remained unchanged at 3.4p. Today, the company announced that it has signed an initial three years contract with Northern Gas Networks Limited to offer a Smart Work asset management system which will support the latter’s back office business functions to help deliver efficiencies. Also, the company mentioned that the contract can be further extended for three years.

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, declined 0.4% to 1070.0p. Zacks Investment Research raised its rating on the stock to “Hold” from “Sell”.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, declined 4.3% to 66.0p. The company, in its interim results for the six months ended 30 June 2017, announced that revenues fell to £13.2 million compared to £14.8 million reported in the same period last year. The company’s loss before tax came in at £3.5 million from a loss of £0.122 million reported in the previous year. The basic loss per share stood at 3.97p compared to a loss of 0.32p in the previous year. The company stated that it anticipates annual results to be in line with market consensus.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, edged 0.4% lower to 496.0p. The company, in its trading update for the period since 01 May 2017, announced that trading was in line with expectations, while like for like volume growth remains ahead of the comparative period the previous year. Furthermore, the company mentioned that it has successfully acquired Interstate Resources Inc. The company’s interim results for the half year ending 31 October 2017 will be published on 07 December 2017. Meanwhile, J P Morgan Chase & Co restated its “Overweight” rating on the stock with a target price of 570.0p. Berenberg Bank reissued its “Buy” rating on the stock. Beaufort Securities reaffirmed its “Buy” rating on the stock.

Horizon Discovery Group PLC

Horizon Discovery Group PLC, the life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines, lost 2.5% to 238.0p. The company, in its trading update for the six months ended 30 June 2017, announced that it expects revenues to be £12.1 million, while anticipates negative EBITDA in H1 2017. Moreover, the company added that acquisition of GE Healthcare Dharmacon, Inc. was successfully completed for $85.0 million. Moreover, the company indicated that its interim results for the period will be released on 26 September 2017.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, advanced 4.4% to 2905.0p. Liberum Capital reiterated its “Hold” rating on the stock with a target price of 3400.0p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, fell 1.7% to 1150.0p. Peel Hunt reaffirmed its “Buy” rating on the stock with a target price of 1600.0p.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, rose 2.9% to 36.0p. The company announced that it has signed a partnership deal with YuMe, Inc. to acquire all its issued and to be issued share capital for a total consideration of approximately $185.0 million. The firm further detailed that the deal is anticipated to close in the first calendar quarter of 2018. Separately, the company announced that its General Meeting will be held at the offices of Bird & Bird LLP, 12 New Fetter Lane, London EC4A 1JP, United Kingdom on 25 September 2017. Today, the company announced that Mr. Richard O'Connor will be stepping down from his role of Chief Financial Officer, while Mr. Edward Reginelli will rejoin RhythmOne to take over as CFO. Moreover, the company mentioned that Richard will continue to serve as an advisory capacity till December 2017.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, jumped 8.8% to 419.0p. The company, in its interim report for the six months ended 30 June 2017, announced that revenues slightly fell to £44.0 million from £44.5 million reported in the same period last year. The company’s profit before tax declined to £7.9 million compared to a profit of £8.8 million reported in the preceding year. The basic earnings per share came in at 6.0p compared to earnings of 8.7p in the prior year. The company’s board has declared an interim dividend of 3.4p. The company stated that it anticipates new product growth to continue in the second half of the year. Peel Hunt reaffirmed its “Buy” rating on the stock with a target price of 470.0p.

The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No of Comps

Table 1 Cambridge Index - Weekly Top 5 Gainers

Table 2 Cambridge Index - Weekly Top 5 Losers

Table 3 Cambridge Index - Top 5 Weights

Subscribe to our newsletter to receive all the latest insights direct to your inbox