Cambridge Index

Cambridge Index jumps 2.3%

The Cambridge index advanced 2.3% or 652.4 points to settle at 29,431.5, as eight out of the top ten index heavyweights posted weekly gains to their share prices. Deutsche Bank reissued its “Buy” rating on Johnson Matthey, down 0.7%, with a target price of 4500p. DS Smith, up 1.4%, announced that final revenues advanced to £5.8b, while its profit before tax rose to £292m. AVEVA Group, up 7.9%, announced that annual revenues increased to £499.1m. However, its profit before tax fell to £46.9m. Barclays Capital reaffirms its “Equal weight” rating on the stock with a target price of 2800p.

Vernalis, up 9.4%, announced termination of its development and commercialisation agreement with Tris Pharma, Inc., with immediate effect. As per the terms of termination, it would pay $10m cash to free from all future payment obligations. Frontier Developments, up 7.9%, reported strong revenues for the first half period following better results from its franchises, Elite Dangerous and Planet Coaster. Numis Securities restated its “Hold” rating on the stock with a target price of 300p. FinnCap lifted its target price on the stock to 1750p from 1700p. Peel Hunt reissued its “Buy” rating on Xaar, up 5.4%. FinnCap gave a target price of 165p on Tristel, up 4.8%. Liberum Capital reissued its “Buy” rating on Kier Group, up 2.4%. Canaccord Genuity reissued its “Hold” rating on Amino Technologies, up 2%, with a target price of 220p.

RhythmOne, down 1%, announced that final revenues climbed to $255.1m. However, its loss before tax rose to $22.9m. Numis Securities reaffirmed its “Buy” rating on the stock. Bango, down 2.2%, announced that its carrier billing solution has been implemented by Entel subscribers in Chile for Google Play. Sareum Holdings, down 3%, announced the appointment of WH Ireland Limited and Hybridan LLP as Nominated Adviser and Sole Broker, respectively. CyanConnode Holdings, down 5.3%, announced that it remains on track to reduce its costs further by £500k per annum. Separately, the company announced that Non-Executive Director, Simon Smith has decided to leave from the Board, with immediate effect. The company also received a purchase order of €184,000 for the supply of its narrowband RF mesh communication modules.

UK markets finished mixed in the previous week, as the nation’s unemployment rate remained steady at its lowest level since 1975 for the three months ended April, while the UK house price balance rose more-than-expected in May. British industrial production fell for the first time in four months in April, while the nation’s construction output declined to its lowest level since 2013 in April. The UK’s house price index rose at its slowest pace since March 2017 for April. The FTSE 100 index fell 0.6% to settle at 7,633.9, while the FTSE AIM 100 index added 0.8% to close at 5,780.3. Meanwhile, the FTSE techMARK 100 index gained 0.2% to end at 4,795.8.

US markets also ended mixed last week. The US Federal Reserve (Fed), in its June monetary policy meeting, increased its benchmark interest rate for the second time in 2018 and signalled two more rate hikes for this year. The Fed also raised its outlook on the US economy for 2018. In other economic news, the US inflation accelerated to a six-year high in May, while the nation’s retail sales surprisingly jumped to its highest level in six months in the same month. The DJIA index dropped 0.9% to end at 25,090.5, while the NASDAQ index added 1.3% to close at 7,746.4.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, climbed 19.4% to 4.0p and emerged as the top gainer in the Cambridge Index.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, eased 5.3% to 9.0p. The company, in its trading update, announced that it remains on track to right-size business and reduce the cost further by £500k per annum, with immediate effect. However, the company mentioned that revenues fell short of its expectations, following its inability to deliver orders on time. Separately, the company announced that Non-Executive Director, Simon Smith has decided to leave from the Board, with immediate effect, but would continue as a substantive shareholder of the company. Further, the company received a purchase order of €184,000 for the supply of its narrowband RF mesh communication modules.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, jumped 8.1% to 40.0p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, advanced 7.9% to 1780.0p. The company, in its trading update for the year ended 31 May 2018, announced that it reported strong revenues for the first half period following better results from its franchises, Elite Dangerous and Planet Coaster. Further, it expects revenues and operating profit to be around £34.0 million and £2.0 million, respectively. Also, the company announced the launch of the Jurassic World Evolution on the first day of E3 Expo. Numis Securities restated its “Hold” rating on the stock with a target price of 300p. FinnCap lifted its target price on the stock to 1700p from 1750p and maintained a “Corporate” rating.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, declined 6.2% to 7.9p.

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, surged 9.0% to 185.5p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, dropped 5.6% to 420.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, fell 3.0% to 0.8p. The company announced the appointment of WH Ireland Limited and Hybridan LLP as Nominated Adviser and Sole Broker, respectively.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, retreated 7.8% to 35.5p and emerged as the top loser in the Cambridge Index.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, soared 9.4% to 6.2p. The company announced termination of its development and commercialisation agreement with Tris Pharma, Inc., with immediate effect and as per the terms of termination, it would pay $10.0 million cash to free from all future payment obligations. Moreover, Vernalis has transferred Tuzistra XR rights to Tris along with the New Drug Application (NDA) and will remain accountable for all Tuzistra XR commercial activities until the date of transfer of NDA.

Other movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, rose 2.0% to 204.5p. Canaccord Genuity reissued its “Hold” rating on the stock with a target price of 220p.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, rose 7.9% to 2692.0p. The company, in its preliminary results for the year ended 31 March 2018, announced that revenues increased to £499.1 million from £432.8 million reported in the last year. However, its profit before tax fell to £46.9 million from £51.4 million in the previous year. Its basic earnings per share rose to 46.97p from 39.99p in the prior year. The company’s board declared a final dividend of 27.0p per share, payable on 03 August 2018 to shareholders on the register as at 06 July 2018. Barclays Capital reaffirms its “Equal weight” rating on the stock with a target price of 2800p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, shed 2.2% to 154.5p. The company announced that its carrier billing solution has been implemented by Entel subscribers in Chile for Google Play. The company detailed that, both pre-paid and post-paid subscribers can now instantly access to their favourite games, music, movies and more by using a simple click-to-buy carrier billing.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, climbed 1.4% to 563.8p. The company, in its final results for the year ended 30 April 2018, announced that revenues advanced to £5.8 billion from £4.8 billion reported in the previous year. Moreover, its profit before tax rose to £292.0 million from £264.0 million reported in the last year. Also, its basic earnings per share climbed to 24.9p from 22.1p posted in the prior year. The company’s board declared a final dividend of 9.8p per share, payable on 1 November 2018 to shareholders on the register as at 5 October 2018.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, shed 0.7% to 3762.0p. Deutsche Bank reissued its “Buy” rating on the stock with a target price of 4500p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, gained 2.4% to 1009.0p. Liberum Capital reissued its “Buy” rating on the stock.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, lost 1.0% to 200.0p. The company, in its results for the year ended 31 March 2018, announced that revenues climbed to $255.1 million from $149.0 million reported in the previous year. However, the company’s loss before tax rose to $22.9 million from $14.9 million in the prior year. Its basic loss per share stood at 25.64c compared to 44.46c in the last year. Numis Securities reaffirmed its “Buy” rating on the stock.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, gained 4.8% to 327.5p. FinnCap reissued its “Corporate” rating on the stock with a target price of 165p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, edged 5.4% up to 314.0p. Peel Hunt reissued its “Buy” rating on the stock.

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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