Cambridge Index

Cambridge Index rises 1.9%

The Cambridge index gained 1.9% or 495.5 points to settle at 26,183.6, as eight out of the top ten index heavyweights posted weekly gains to their share prices. AVEVA Group, up 8.4%, in its FY2018 trading update, announced that it anticipates the Group revenue on a pro-forma basis to be at par with the Board’s expectations. The H2 revenue grew by 5.9% as compared to H1, backed by good sales execution, along with the stability in its Oil & Gas and Marine end markets. Numis Securities reissued its “Add” rating on the stock with a target price of 2180p.

RhythmOne, up 16.7%, in its FY2018 trading update, announced that its trading performance during the period was in line with the previous expectations. It expects revenues to surge 71% to $255m from $149m in FY2017, while adjusted EBITDA is forecasted to climb to $14m from $1.4m in the last year. Science Group, up 8.3%, in its business update, announced that trading in the Q1 2018 was positive, with revenues and profits ahead of the Board’s expectations. Separately, it announced the appointment of Panmure Gordon Limited as its Nominated Adviser and Broker, to manage its share buy-back programme. Peel Hunt reissued its “Buy” rating on Kier Group, up 5.2%, with a target price of 1600p. Elektron Technology, up 3.6%, announced that its final results for the year ended 31 January 2018 will be published on 3 May 2018. Peel Hunt lowered its target price on Gaming Realms, up 2.6%, to 30p from 40p and maintained a “Buy” rating. FinnCap restated its “Corporate” rating on Amino Technologies, up 0.7%, with a target price of 220p.

Sareum Holdings, which remained unchanged at 0.8p, announced that Sierra Oncology made a presentation on the preclinical results data for Sareum’s Chk1 inhibitor at the American Association of Cancer Research Annual Meeting 2018 in Chicago, USA. Tristel, down 0.9%, announced today that it has received an approval from the US Environmental Protection Agency for its foam-based chlorine dioxide product, Duo. Dialight, down 1.5%, in its trading update, announced that it has been continuously concentrating on the operational issues by taking corrective measures to identify shortages at an early stage and also improve efficiency. Peel Hunt reaffirmed its “Hold” rating on the stock with a target price of 600p. N+1 Singer lowered its target price on Vernalis, down 2.0%, to 28p from 37p and maintained a “Hold” rating.

UK markets ended in the green in the previous week, led by gains in financial and commodity sector stocks. On the macro front, the British unemployment rate fell to its lowest level since 1975 in the three months ended February. Meanwhile, UK’s average weekly earnings rose at a weaker-than-expected pace for the three months to February and the nation’s inflation cooled more than expected in March. The FTSE 100 index rose 1.4% to settle at 7,368.2, while the FTSE techMARK 100 index jumped 2.2% to close at 4,533.5. Moreover, the FTSE AIM 100 index added 0.8% to end at 5,346.7.

US markets closed higher in the last week, supported by upbeat corporate earnings from major companies. On the data front, US advance retail sales advanced for the first time in three months in March, while housing starts surprisingly rose in March. On the contrary, US initial jobless claims eased less-than-anticipated for the week ended 13 April 2018. The DJIA index gained 0.4% to end at 24,462.9, while the NASDAQ index rose 0.6% to close at 7,146.1.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No. of Comps

Index movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, climbed 8.4% to 2136p. The company, in its trading update for the financial year ended 31 March 2018, announced that it anticipates the Group revenue on a pro-forma basis to be at par with the Board’s expectations. The H2 revenue grew by 5.9% as compared to H1, backed by good sales execution, along with the stability in its Oil & Gas and Marine end markets.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, rose 10.3% to 188p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, advanced 13.9% to 135.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, dropped 5.0% to 12.3p and emerged as the top loser in the Cambridge Index.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, shed 1.5% to 518p. The company, in its trading update, announced that it has been continuously concentrating on the operational issues, which had a significant impact in 2017 results, by taking corrective measures to identify shortages at an early stage and also improve efficiency. Meanwhile, complex product lines are being transferred to the Ensenada, Mexico facility, to provide help in the overall production. Separately, the company announced that its interim results for the six months ending 30 June 2018 will be declared on 30 July 2018. Peel Hunt reaffirmed its “Hold” rating on the stock with a target price of 600p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, slipped 1.2% to 3265p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, increased 11.7% to 62p.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, surged 16.7% to 210p and emerged as the top gainer in the Cambridge Index. The company, in its trading update for the year ended 31 March 2018, announced that its trading performance during the period was in line with the previous expectations. It expects FY2018 revenues to surge by 71.0% to $255.0 million from $149.0 million in FY2017, while adjusted EBITDA is forecasted to climb to $14.0 million from $1.4 million in the last year. The full-year growth was mainly driven by on-platform programmatic revenues, which grew approximately 13% on a YoY basis. Whitman Howard reaffirmed its “Buy” rating on the stock with a target price of 60p. Numis Securities reissued its “Buy” rating on the stock.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, fell 2.7% to 36p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, eased 2.0% to 3.7p. N+1 Singer lowered its target price on the stock to 28p from 37p and maintained a “Hold” rating.

Other movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, edged 0.7% higher to 215.5p. FinnCap restated its “Corporate” rating on the stock with a target price of 220p.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, rose 3.6% to 28.5p. The company announced that its final results for the year ended 31 January 2018 will be published on 3 May 2018.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, climbed 2.6% to 8p. Peel Hunt lowered its target price on the stock to 30p from 40p and maintained a “Buy” rating.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, advanced 5.2% to 1056p. Peel Hunt reissued its “Buy” rating on the stock with a target price of 1600p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, remained unchanged at 0.8p. The company announced that Sierra Oncology, the licence holder of Sareum’s clinical cancer candidate SRA737, made a presentation on the preclinical results data for its Checkpoint kinase 1 (Chk1) inhibitor at the American Association of Cancer Research (AACR) Annual Meeting 2018 in Chicago, USA.
Table 1: Cambridge Index - Weekly Top 5 Gainers

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, increased 8.3% to 222p. The company, in its business update, announced that trading in the first three months of 2018 was positive, with revenues and profits ahead of the Board’s expectations. The company has gross cash of £21.5 million and net funds of £7.8 million as on 31 March 2018. Additionally, it stated that deferred contingent consideration of $0.75 million related to the TSG acquisition will not be payable, as the single criterion was not satisfied by the seller. Separately, it announced the appointment of Panmure Gordon (UK) Limited as its Nominated Adviser and Broker, to manage its share buy-back programme.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, fell 0.9% to 277.5p. Today, the company announced that it has received an approval from the United States Environmental Protection Agency (EPA) for its foam-based chlorine dioxide product, Duo.

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

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