Cambridge Index

Cambridge Index jumps 3.2%

The Cambridge index advanced 882.4 points or 3.2% to close at 28,561.2, as seven out of the top ten index heavyweights posted weekly gains to their share prices. Numis Securities reconfirmed its “Add” rating on DS Smith, down 0.3% with a target price of 585p. AVEVA Group, up 3.1%, announced that its revenue growth on a constant currency basis for the financial year to date has continued to perform well, while its full-year outlook remains at par with its forecast. AVEVA expects adjusted EBIT margins to increase by 30%. The stock was subject to mostly positive ratings from various brokers.

CyanConnode Holdings, up 79.3%, announced a purchase order worth $11.6m from an Indian State-Owned Utility for its Omnimesh IPv6-based hardware, perpetual software licenses and installation services. It also announced a five-year purchase order worth $2.9m from a State-Owned Utility in India. Science Group, up 7.5%, announced that it has initiated a formal evaluation of its corporate strategy to explore its worthiness to continue as an independent organisation and has begun a strategic review of sale process. Kier Group, up 5.6%, announced that its full-year revenues rose to £4.2b from £4.1b reported in the last year. The company also reported a profit before tax of £106.2m, against a loss of £14.2m. Numis Securities and Liberum restated their “Buy” ratings on the stock. Bango, up 4%, announced that its half-yearly end-user spend jumped to £219.9m from £92.3m, whereas revenues surged to £2.6m from £1.7m reported in H1 2017. However, its loss before tax widened to £2.2m from £2m in the previous year. Elektron Technology, up 2.3%, announced that its interim revenues soared to £15.9m from £13.6m, while profit before tax surged to £1.4m from £600k posted last year. Peel Hunt reissued its “Hold” rating on Horizon Discovery Group, up 2.3%. Numis Securities reaffirmed its “Buy” rating on the stock.

Cambridge Cognition Holdings, which remained steady at 137.5p, announced that its half-yearly revenues narrowed to £2.8m from £3.2m reported in H1 2017. Further, its loss before tax expanded to £1m from £400k reported in the previous year. Separately, the company announced a commercial partnership agreement with a pharmaceutical firm for its voice biomarker technology, NeuroVocalix. Quixant PLC, down 4.2%, announced that its half-yearly revenues dropped to $50.3m from $56.9m, while its profit before tax declined to $6.1m from $8.7m. Also, its basic earnings per share eased to $0.08 from $0.11 in the previous year. Peel Hunt and Berenberg Bank reissued their “Buy” ratings on the stock.

 

UK markets ended in positive territory last week, after the UK consumer price index surprisingly jumped in August, while retail sales advanced more than expected in the same month. Meanwhile, the nation’s house price index dropped in July, while UK public sector net borrowing rose more than expected in August. The UK Prime Minister, Theresa May, signalled that Brexit talks had reached an impasse and cautioned that the nation must be prepared for no-deal scenario. The FTSE 100 index advanced 2.5% to settle at 7490.2, while the FTSE AIM 100 index rose 0.1% to close at 5864.5. Meanwhile, the FTSE techMARK 100 index gained 0.5% to end at 4720.

US markets ended mixed in the previous week. The US housing starts climbed to a 3-month high in August, while the US manufacturing PMI advanced more than expected in September. The nation’s existing home sales remained steady in August, while the US housing market index remained unchanged in September. On the other hand, the nation’s building permits eased in August, while the US services PMI unexpectedly declined to its lowest level in 17 months in September. The DJIA index rose 2.3% to end at 26743.5, while the NASDAQ index lost 0.3% to close at 7987.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, soared 9.4% to 1433p. Peel Hunt increased its target price on the stock to 1350p from 1100p and gave a “Hold” rating.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, skyrocketed 79.3% to 12.1p and emerged as the top gainer in the Cambridge Index, after announcing that it has received a purchase order worth $11.6 million, its largest order till date, from an Indian State-Owned Utility for its Omnimesh IPv6-based hardware, perpetual software licenses and installation services. Moreover, the company anticipates a contribution of around £0.7 million to the annual revenues from this order. Today, CyanConnode announced a five-year purchase order worth $2.9 million from a State-Owned Utility in India.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, rallied 17.7% to 1265p. The company announced that its Annual General Meeting will be held on 16 October 2018.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, declined 4.9% to 7.8p and emerged as the top loser in the Cambridge Index.

Greene King PLC

Shares of pub operator, Greene King PLC, slid 1.8% to 501.4p. Peel Hunt reconfirmed its “Buy” rating on the stock.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, edged 1.8% lower to 112p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, dropped 4.2% to 459p. The company, in its interim results for the six months ended 30 June 2018, announced that revenues dropped to $50.3 million from $56.9 million reported in the same period last year, while its profit before tax declined to $6.1 million from $8.7 million. Also, its basic earnings per share eased to $0.08 from $0.11 in the previous year. The company stated that its full year performance remains in line with market expectations. Peel Hunt reissued its “Buy” rating on the stock. FinnCap reaffirmed its “Corporate” rating on the stock. Berenberg Bank reiterated its “Buy” rating on the stock.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 6.9% to 0.8p.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, surged 7.5% to 259p. The company announced that it has initiated a formal evaluation of its corporate strategy to explore its worthiness to continue as an independent organisation. Separately, the company informed that it has begun a strategic review of sale process and that includes allocation of cash resources and asset utilisation, shareholder structure and share liquidity as well as potential diversification. The structural review is likely to complete by the time of the release of its preliminary results for 2018.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, fell 2.6% to 166p.

Other movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, rose 3.1% to 2892p. The company, in its current trading update, announced that its revenue growth on a constant currency basis for the financial year to date has continued to perform well, while its full-year outlook remains at par with its forecast. Moreover, AVEVA expects its medium-term revenue to expand at least in line with the blended growth rate, while anticipates adjusted EBIT margins to increase by 30%. Numis Securities raised its target price on the stock to 3400p from 3220p and gave a “Buy” rating. Citigroup hoisted its target price on the stock to 2860p from 2800p and gave a “Neutral” rating. Barclays increased its target price to 3150p from 2800p on the stock and gave an “Overweight” rating. Berenberg Bank restated its “Hold” rating on the stock.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, climbed 4% to 169.5p. The company, in its interim results for the six months ended 30 June 2018, announced that its end-user spend (EUS) more than doubled to £219.9 million from £92.3 million, whereas revenues surged to £2.6 million from £1.7 million reported in H1 2017. However, its loss before tax widened to £2.2 million from £2 million in the previous year. Its basic loss per share increased to 2.78p from 2.67p in the previous year.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, remained steady at 137.5p. The company, in its interim results for the six months ended 30 June 2018, announced that revenues narrowed to £2.8 million from £3.2 million reported in H1 2017. Further, its loss before tax expanded to £1 million from £0.4 million reported in the previous year. Likewise, the basic and diluted loss per share widened to 5p from 1.8p in the previous year. Separately, the company announced a commercial partnership agreement with a pharmaceutical firm for its voice biomarker technology, NeuroVocalix, that would enable remote assessment of voice-based cognitive measures. Moreover, the contract includes a clinical trial which would directly manage two verbal NeuroVocalix cognitive tests with Cambridge Cognition's CANTAB and Cognition Kit assessments from the candidate’s smartphone’s for four weeks. FinnCap reiterated its “Corporate” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, edged 0.3% lower to 486.3p. Numis Securities reconfirmed its “Add” rating on the stock with a target price of 585p.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast-moving engineered products, jumped 2.3% to 44.5p. The company, in its interim results for the six months ended 31 July 2018, announced that revenues soared 17% to £15.9 million from £13.6 million in the same period prior year. Also, its profit before tax surged to £1.4 million from £0.6 million posted last year. Moreover, the basic earnings per share rose to 0.6p from 0.2p in the previous year. The company maintained its upbeat outlook for the H2 2018 and expects to post results in line with its prior forecasts.

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, gained 2.3% to 225p. Peel Hunt reissued its “Hold” rating on the stock. Numis Securities reaffirmed its “Buy” rating on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, advanced 5.6% to 1038p. The company, in its final results for the year ended 30 June 2018, announced that revenues slightly rose to £4.2 billion from £4.1 billion reported in the last year. Moreover, it reported a profit before tax of £106.2 million, against a loss of £14.2 million reported in the previous year. Its basic earnings per share stood at 90.8p, compared to a loss of 27.2p in the previous year. The company’s board declared a final dividend of 46p per share, payable on 03 December 2018 to shareholders on the register as at 28 September 2018. Numis Securities restated its “Buy” rating on the stock. Liberum reconfirmed 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

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