Cambridge Index

Cambridge Index tumbles 5.1%

The Cambridge index declined 1332.3 points or 5.1% to close at 24755.6, as nine out of the top ten index heavyweights posted weekly losses to their share prices.

IQGeo Group, up 8.6%, in its trading update for the six months ended 30 June 2019, announced that it expects to deliver a 100% growth in myWorld’s orders to £2.4m from £1.2m in the same period last year. It anticipates total revenue to be more than £3m, compared to £2.5m in H1 2018, citing a fall in its non-core Geospatial business. IQGeo projects to deliver better than expected performance in H2 2019. Separately, the company unveiled a tender offer to return nearly £13m in excess cash generated from the sale of RTLS SmartSpace. Elektron Technology, up 7.8%, announced that it has signed a conditional agreement with a special purpose vehicle wholly-owned by Equistone Partners Europe for the disposal of Elektron Technology UK Limited’s entire issued capital for a consideration of £105m. It expects net proceeds to be around £94m following proposed sale of its Bulgin business. Moreover, the company stated its intention to change its name to Checkit Plc in order to focus on its future business. Dialight, up 7.7%, announced today that its half-yearly revenue fell 2% to £76.1m, and swung to a loss before tax of £2.1m. Separately, Dialight announced the resignation of its Chairman, Wayne Edmunds, with immediate effect.

Brady, unchanged at 56.8p, announced the appointment of current Non-Executive Director, Iain Greig, as the interim Chief Technology Officer (CTO), effective 12 August 2019. CyanConnode Holdings, unchanged at 5p, today announced a Memorandum of Understanding with Hexing Electrical Co. Ltd for the distribution of smart metering solutions in certain territories. Kier Group, down 0.1%, in its trading update for the financial year ended 30 June 2019, announced that it expects average month-end net debt of £422m, which is at the lower of its previous guidance if £420m-£450m. Trading in its Infrastructure Services and Buildings divisions remained strong during the period. However, Group turnover is anticipated to be around £100m lower than the prior year, amid delayed property and land-led transactions. Separately, the company announced the appointment of Simon Kesterton as the Chief Financial Officer (CFO) designate, with effect from 26 August 2019. Simon will assume the role of CFO from 19 September 2019. Peel Hunt reissued its “Under Review” rating on the stock. Liberum Capital reconfirmed its “Buy” rating on the stock.

UK markets closed lower in the previous week, led by losses in mining and financial sector stocks. On the macro front, UK’s manufacturing PMI remained steady in July, while the construction PMI rose less than anticipated in July. On the contrary, Britain’s house prices climbed more than expected in July, whereas the consumer confidence surprisingly increased in July. In major news, the Bank of England held its key interest rate steady and slashed its growth forecast for the UK economy for 2019 and 2020. The FTSE 100 index declined 1.9% to settle at 7407.1, while the FTSE AIM 100 index fell 0.8% to close at 4744.4. Meanwhile, the FTSE techMARK 100 index lost 0.8% to end at 5316.7.

US markets ended on a weaker footing last week, after the US Federal Reserve (Fed) Chair, Jerome Powell, ruled out the possibility for an interest rate cut this year. On the data front, the US non-farm payrolls advanced below expectations in July, whereas the manufacturing sector activity fell to its lowest level since September 2009 in July. On the flipside, the US durable goods orders rose in June, while pending homes sales climbed higher than anticipated in June. In major news, the US Fed cut its benchmark interest rate by 0.25% to a target range of 2% to 2.25%, due to global economic concerns and muted US inflation. The DJIA index fell 2.6% to end at 26485, while the NASDAQ index lost 3.9% to close at 8004.1.


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, fell 4.9% to 1253p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, plummeted 11.4% to 116.5p and emerged as the top loser in the Cambridge Index.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, advanced 7.7% to 390p. Today, the company announced that its half-yearly revenue fell 2% to £76.1 million, while it swung to a loss before tax of £2.1 million. Separately, Dialight announced the resignation of its Chairman, Wayne Edmunds, with immediate effect.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, tumbled 9.9% to 338.2p.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast-moving engineered products, increased 7.8% to 55p. The company announced that it has signed a conditional agreement with a special purpose vehicle wholly-owned by Equistone Partners Europe for the disposal of Elektron Technology UK Limited’s entire issued capital for a consideration of £105 million. It expects net proceeds to be around £94 million following proposed sale of its Bulgin business. Moreover, the company stated its intention to change its name to Checkit Plc in order to focus on its future business.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, declined 7.6% to 928p.

IQGeo Group PLC

IQGeo Group PLC (former Ubisense Group PLC), a market leader of real-time location solutions, surged 8.6% to 44p and emerged as the top gainer in the Cambridge Index. The company, in its trading update for the six months ended 30 June 2019, announced that it expects to deliver a 100% growth in myWorld’s orders to £2.4 million from £1.2 million in the same period last year. It anticipates total revenue to be more than £3 million, compared to £2.5 million in H1 2018, citing a fall in its non-core Geospatial business. IQGeo projects to deliver better than expected performance in H2 2019. Separately, the company unveiled a tender offer to return nearly £13 million in excess cash generated from the sale of RTLS SmartSpace. The company's broker and Nomad, FinnCap, will acquire 28.3 million ordinary shares at a price of 46p per ordinary share.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, dropped 5.1% to 3033p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, soared 8.4% to 298p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 8% to 0.4p.

Other movers

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, remained unchanged at 56.8p. The company announced the appointment of current Non-Executive Director, Iain Greig, as the interim Chief Technology Officer (CTO), effective 12 August 2019.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, remained unchanged at 5p. Today, the company announced a Memorandum of Understanding with Hexing Electrical Co. Ltd for the distribution of smart metering solutions in certain territories.
Table 1: Cambridge Index - Weekly Top 5 Gainers

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, edged 0.1% lower to 79.1p. The company, in its trading update for the financial year ended 30 June 2019, announced that it expects average month-end net debt of £422 million, which is at the lower of its previous guidance if £420 million-£450 million. Trading in its Infrastructure Services and Buildings divisions remained strong during the period. However, Group turnover is anticipated to be around £100 million lower than the prior year, amid delayed property and land-led transactions. Separately, the company announced the appointment of Simon Kesterton as the Chief Financial Officer (CFO) designate, with effect from 26 August 2019. Simon will assume the role of CFO from 19 September 2019. Peel Hunt reissued its “Under Review” rating on the stock. Liberum Capital 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

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