Cambridge Index

Cambridge Index drops 2.0%

The Cambridge index fell 561.3 points or 2% to close at 27999.9, as four out of the top five index heavyweights posted weekly losses to their share prices. Berenberg Bank reaffirmed its “Hold” rating on AVEVA Group, up 0.1%. Barclays raised its target price on the stock to 3150p from 2800p and gave an “Overweight” rating.

CyanConnode Holdings, up 8.3%, announced a five-year purchase order worth $2.9m from a State-Owned Utility in India for the support and maintenance of Omnimesh smart metering deployment. RhythmOne, up 3.3%, announced the resignation of its Chief Financial Officer (CFO) and Executive Director, Ed Reginelli, and disclosed that Mark Zorko will be succeeding as the CFO. The company expects its H1 2019 performance to be in line with board’s expectations, with revenue estimated to be between $170-$180m. Scientific Digital Imaging, up 2.4%, in its trading update for the year ending 30 April 2019, announced that it continues to progress in line with its prior expectations. Separately, the company announced the acquisition of Fistreem International Limited for approximately £760k. FinnCap increased its target price on the stock to 44p from 42p. Sareum Holdings, unchanged at 0.8p, announced that it has successfully selected development molecules TYK2 and JAK1 from its TYK2 inhibitor programme as a further advancement in targeted immunotherapy for certain cancers. Today, the company announced that it reported a loss before tax of £1.7m for the year ended 30 June 2018, against a profit of £350k reported in the previous year.

LPA Group, down 0.9%, announced today the appointment of Paul Curtis as an Executive Director and Chief Operating Officer along with its prior Chief Executive, Peter Pollock, as the Chairman. Dialight, down 2.9%, announced that it has initiated the process for terminating the agreement with its contract manufacturing partner, due to worsening performance. The company also stated that it expects to attain a full year operating profit in the range of £8-£10m, amid potential short-term disruption. Netcall, down 3%, announced that it will publish its full year results for the year ended 30 June 2018 on 16 October 2018. Ubisense Group, down 5%, announced that its half-yearly revenues fell to £10.3m from £12.4m reported in H1 2017, while its loss before tax rose to £2.8m from £1.9m. Bango, down 6.2%, announced the resignation of its CFO, Rachel Elias-Jones, with effect from 12 November 2018. Berenberg Bank and Peel Hunt reconfirmed their “Buy” rating on Quixant, down 6.3%. Numis Securities reconfirmed its “Buy” rating on Kier Group, down 12.8%. Gaming Realms down 18.2%, announced that its half-yearly revenues declined to £11m from £15m reported in H1 2017, while its loss before tax narrowed to £2.9m from £4.6m.

 

UK markets closed mostly higher last week, supported by gains in energy sector stocks, amid rising crude oil prices. The British economy advanced as expected in Q2 2018, while the consumer confidence declined in September. The Bank of England policymaker, Gertjan Vlieghe, commented that one or two rate hikes per year would be needed, if UK’s productivity and wages improves. The FTSE 100 index advanced 0.3% to settle at 7510.2, while the FTSE AIM 100 index rose 0.2% to close at 5874.12. Meanwhile, the FTSE techMARK 100 index lost 0.3% to end at 4706.7.

US markets ended mixed in the previous week. The US Federal Reserve, in its September monetary meeting, raised its benchmark interest rate by 0.25% to a range of 2.0%-2.25% and projected one more rate hike this year, followed by three hikes in 2019. The US annualized GDP grew as anticipated in Q2 2018, whereas the consumer confidence index surprisingly rose to its 18-year high in September. On the contrary, the nation’s advance goods trade deficit unexpectedly widened in August. The DJIA index fell 1.1% to end at 26458.31, while the NASDAQ index gained 0.7% to close at 8046.35.


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, advanced 4.8% to 44p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, tumbled 6.2% to 159p. The company announced the resignation of its Chief Financial Officer, Rachel Elias-Jones, with effect from 12 November 2018. Meanwhile, Bango announced appointment of an interim CFO from 08 October 2018 and stated that the search for a permanent CFO has been initiated.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, surged 8.3% to 13.1p and emerged as the top gainer in the Cambridge Index. CyanConnode announced a five-year purchase order worth $2.9 million from a State-Owned Utility in India for the support and maintenance of Omnimesh smart metering deployment beginning within a period of six months later to the installation of machines. FinnCap restated its “Corporate” rating on the stock.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, climbed 5.5% to 1335p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, sank 18.2% to 6.4p. The company, in its interim results for the six months ended 30 June 2018, announced that revenues declined to £11 million from £15 million reported in the same period last year. However, its loss before tax narrowed to £2.9 million from £4.6 million reported in the previous year. Likewise, its basic and diluted loss per share fell to 0.92p from 1.37p in the prior year. Peel Hunt reiterated its “Under Review” 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, dropped 6.7% to 210p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, plummeted 12.8% to 905.5p. Numis Securities reconfirmed its “Buy” rating on the stock.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, declined 6.3% to 430p. Berenberg Bank reconfirmed its “Buy” rating on the stock. Peel Hunt reissued its “Buy” rating on the stock.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, rose 3.3% to 222p.The company announced the resignation of its Chief Financial Officer (CFO) and Executive Director, Ed Reginelli, with immediate effect and disclosed that Mark Zorko will be succeeding as the CFO with further prospects of appointment as the Executive Director. Furthermore, the company revealed that its H1 2019 performance is likely to be in line with board’s expectations, with revenue estimated to be between $170-$180 million and adjusted EBITDA to be between $19-$21 million.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, jumped 4.3% to 302p.

Other movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, edged 0.1% higher to 2894p. Berenberg Bank reaffirmed its “Hold” rating on the stock. Barclays raised its target price on the stock to 3150p from 2800p and gave an “Overweight” rating.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, eased 2.9% to 476p. The company announced that it has initiated the process for terminating the agreement with its contract manufacturing partner, due to worsening performance. Furthermore, the company stated that it expects to attain a full year operating profit in the range of £8-£10 million, amid potential short-term disruption. It anticipates results for the year ending 31 December 2018 to be published on 25 February 2019. Peel Hunt kept its “Hold” rating on the stock.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, slipped 0.9% to 111p. Today, the company announced the appointment of Paul Curtis as an Executive Director and Chief Operating Officer along with its prior Chief Executive, Peter Pollock, as the Chairman.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, fell 3% to 63.8p. The company announced that it will publish its full year results for the year ended 30 June 2017 on 16 October 2018.

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 it has successfully selected development molecules TYK2 and JAK1 from its TYK2 inhibitor programme as a further advancement in targeted immunotherapy for certain cancers. Today, the company announced that it reported a loss before tax of £1.7 million for the year ended 30 June 2018, against a profit of £0.35 million reported in the previous year.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, advanced 2.4% to 42.3p. The company, in its trading update for the year ending 30 April 2019, announced that it continues to progress in line with its prior expectations. Separately, the company announced that it has acquired Fistreem International Limited for a total cash consideration of approximately £0.76 million. FinnCap increased its target price on the stock to 44p from 42p and gave a “Corporate” rating.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, slumped 5% to 66.5p. The company, in its interim results for the six months ended 30 June 2018, announced that revenues fell to £10.3 million from £12.4 million reported in the same period last year. Moreover, its loss before tax rose to £2.8 million from £1.9 million reported in H1 2017, while basic loss per share increased to 3.8p compared to loss of 3.3p.

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