Cambridge Index

Cambridge Index surges 2.6%

The Cambridge index advanced 2.6% or 692.4 points to settle at 27,578.3, as heavyweights such as Johnson Matthey, DS Smith and AVEVA Group posted weekly gains to their share prices. Abcam, down 1.2%, announced that it has ended its quest to acquire Horizon Discovery Group, a week after its public announcement of a proposed takeover. Abcam revealed that after Horizon rejected its offer and considering Horizon’s 2017 preliminary results announcement, it confirmed that it does not intend to make an offer for Horizon. Peel Hunt reissued its “Hold” rating on the stock.

1Spatial, up 12.1%, announced that its preliminary results for the year ended 31 January 2018 will be published on 22 May 2018. Peel Hunt reissued its “Hold” rating on Science Group, up 0.4%.

Marshall Motor Holdings, down 0.3%, announced that it has appointed Kathy Jenkins, Group HR Director of Marshall of Cambridge (Holdings) Limited, as a Non-Executive Director of the company’s Board, as Christopher Sawyer is retiring from his post of Non-Executive Director on 23 May 2018. Sareum Holdings, down 3%, announced that Sierra Oncology has initiated the cohort expansion phase of the SRA737-02 Phase 1/2 low dose Gemcitabine Combination trial. The trial is meant to discover the early effectiveness of SRA737 along with low dose gemcitabine (LDG) in patients with tumours that harbour genomic alterations hypothesised to confer sensitivity to Chk1 inhibition via synthetic lethality. Horizon Discovery Group, down 13.7%, in its preliminary results for the year ended 31 December 2017, announced that revenues advanced to £36.5m from £24.1m reported in the previous year. Its loss before tax rose to £14.3m from £12.5m in 2016. Separately, Horizon revealed that the unsolicited proposal by Abcam fundamentally undervalues the company, based on the FactSet’s consensus of £60m revenues for 2018. As a result, Abcam confirmed that it does not intend to make an offer for Horizon. Also, the company announced the appointment of Terry Pizzie as the Chief Executive Officer with immediate effect. Numis reissued its “Buy” rating on the stock with a target price of 245p.

UK markets ended in the green last week, led by a weaker British Pound, after the Bank of England reduced its outlook for the second-quarter inflation and GDP growth. On the data front, the UK construction output fell to its lowest level since 2012 in March, while the nation’s retail sales dropped to a 23-year low level in April. Moreover, the UK house prices tumbled to its weakest level in eight years in April. The FTSE 100 index climbed 2.1% to settle at 7,724.6, while the FTSE AIM 100 index added 1.9% to close at 5,638.4. Meanwhile, the FTSE techMARK 100 index jumped 2.9% to end at 4,658.8.

US markets ended the previous week on a positive note, driven by gains in energy, technology and financial sector stocks. In economic news, the weekly US initial jobless claims remained unchanged near the 48-year low level in the last week, while the NFIB business optimism index unexpectedly jumped in April. Meanwhile, the nation’s consumer credit dropped to its lowest level in six months in March. The DJIA index advanced 2.3% to end at 24,831.2, while the NASDAQ index gained 2.7% to close at 7,402.9.


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, surged 12.1% to 3.3p and emerged as the top gainer in the Cambridge Index. The company announced that its preliminary results for the year ended 31 January 2018 will be published on 22 May 2018.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, climbed 9.1% to 174.5p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, advanced 7% to 167.5p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, climbed 7% to 550p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, rose 9% to 1515p.

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, fell 13.7% to 170p and emerged as the top loser in the Cambridge Index. The company, in its preliminary results for the year ended 31 December 2017, announced that revenues advanced to £36.5 million from £24.1 million reported in the previous year. Its loss before tax rose to £14.3 million from £12.5 million in 2016, while the basic and diluted loss per share narrowed to 8.4p from 12.1p in the last year. Separately, Horizon revealed that the unsolicited proposal by Abcam Plc fundamentally undervalues the company, based on the FactSet’s consensus of £60.0 million revenues for 2018. As a result, Abcam Plc confirmed that it does not intend to make an offer for Horizon. Also, the company announced the appointment of Terry Pizzie as the Chief Executive Officer with immediate effect. Numis reissued its “Buy” rating on the stock with a target price of 245p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, fell 1.6% to 447.5p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, declined 3% to 0.8p. The company announced that Sierra Oncology has initiated the cohort expansion phase of the SRA737-02 Phase 1/2 low dose Gemcitabine Combination trial. The trial is meant to discover the early effectiveness of SRA737 along with low dose gemcitabine (LDG) in patients with tumours that harbour genomic alterations hypothesised to confer sensitivity to Chk1 inhibition via synthetic lethality.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, declined 1.2% to 41p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, dropped 2.5% to 3.8p.

Other movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, dropped 1.2% to 1250p. The company announced that it has ended its quest to acquire Horizon Discovery Group Plc, a week after its public announcement of a proposed takeover. Abcam revealed that after Horizon rejected its offer and considering Horizon’s 2017 preliminary results announcement, it confirmed that it does not intend to make an offer for Horizon. Peel Hunt reissued its “Hold” rating on the stock.

Marshall Motor Holdings PLC

Marshall Motor Holdings PLC, one of the UK's leading automotive retail and leasing groups representing a unique portfolio of prestige and volume brands and with the highest brand coverage of any dealer group in the UK, fell 0.3% to 167p. The company announced that it has appointed Kathy Jenkins, Group HR Director of Marshall of Cambridge (Holdings) Limited, as a Non-Executive Director of the company’s Board, as Christopher Sawyer is retiring from his post of Non-Executive Director on 23 May 2018.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, advanced 0.4% to 252p. Peel Hunt reissued its “Hold” 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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