Cambridge Index

Cambridge Index gains 2.2%

The Cambridge index advanced 499.2 points or 2.2% to close at 23675.8, as four out of the top five index heavyweights posted weekly gains to their share prices. JP Morgan Chase slashed its target price on DS Smith, up 6.1%, to 400p from 600p on the stock and gave an “Overweight” rating. Goldman Sachs Group trimmed its target price on AVEVA Group, down 0.9%, to 2950 from 3050p and gave a “Neutral” rating. Abcam, up 8.6%, announced that it has expanded its custom rabbit monoclonal production capabilities through the acquisition of Calico Biolabs. Peel Hunt restated its “Buy” rating on the stock.

Cambridge Cognition Holdings, up 15.8%, announced that it has teamed up with a major pharmaceutical company to expand the utilisation of its cloud-based CANTAB Connect platform by providing online neurological testing to patients in India. FinnCap reaffirmed its “Corporate” rating on the stock. Scientific Digital Imaging, up 5.7%, announced the acquisition of Thermal Exchange Limited for a consideration of around £0.9m. Netcall, up 3.2%, announced that it expects to report revenues and adjusted EBITDA for six months to 31 December 2018 of approximately £11.4m and £2.0m, respectively. FinnCap reiterated its “Corporate” rating on the stock.

Peel Hunt reissued its “Buy” rating on Quixant, down 1.8%. Brady, down 4.7%, announced that it anticipates revenues and adjusted EBITDA for FY2018 to be around £23m and £2.6m, respectively. Also, the company reiterated the joining of Carmen Carey as its Chief Executive Officer with effect from 18 February 2019. RhythmOne, down 8.4%, announced that it has been approached by Taptica International Limited for an all-share merger. Horizon Discovery Group, down 9.1%, announced that it expects FY2018 revenue to surge 61% to £58.7m on a reported basis, with revenues on a constant currency basis rising 66% to £60.5m. Horizon expects a positive EBITDA for the period and is likely to surpass market estimates. Separately, the company announced that it has appointed Jayesh Pankhania to replace Richard Vellacott as the Chief Financial Officer. Peel Hunt reaffirmed its “Hold” rating on the stock. IQGeo Group, down 10.9%, in its trading update for the year ended 31 December 2018, announced that it expects to report a 20% jump in its higher-margin own product revenue of around £20m. However, overall revenues are likely to fall 8.4% to £25m, as some of its orders were delayed into 2019. Meanwhile, the firm announced a change in its registered office to CB1 Business Centre, Twenty Station Road, Cambridge, with immediate effect.

UK markets closed higher in the last week, supported by gains in commodity and utilities sector stocks. On the data front, the UK house price growth dropped to a 6-year low in January, whereas the net consumer credit climbed less than expected in December. Moreover, the British manufacturing PMI fell to a 3-month low in January. The FTSE 100 index advanced 3.1% to settle at 7020.2, while the FTSE AIM 100 index rose 1.3% to close at 4770.0. Meanwhile, the FTSE techMARK 100 index gained 1.5% to end at 4601.3.

US markets ended higher in the previous week, amid upbeat earnings results from top companies. In major news, the US Fed maintained its benchmark interest rate steady and stated that it would maintain a patient approach on further interest rate hikes. In economic news, the US consumer confidence index fell to its lowest level in 18 months in January, while pending home sales dropped to a 5-year low in December. Moreover, the nation’s unemployment rate jumped to its highest level in 7 months in January. On the contrary, the US non-farm payrolls rose more than expected in January, while the manufacturing sector activity rebounded in the same month. The DJIA index rose 1.3% to end at 25063.9, while the NASDAQ index gained 1.4% to close at 7263.9.


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 8.6% to 1343p. The company announced that it has expanded its custom rabbit monoclonal production capabilities through the acquisition of Calico Biolabs, a developer of custom recombinant rabbit monoclonal antibodies. Peel Hunt restated its “Buy” rating on the stock.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, rallied 15.8% to 91.5p and emerged as the top gainer in the Cambridge Index. The company announced that it has teamed up with a major pharmaceutical company to expand the utilisation of its cloud-based CANTAB Connect platform by providing online neurological testing to patients in India for an advance compensation of over £0.2 million. FinnCap reaffirmed its “Corporate” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, jumped 6.1% to 339.9p. JP Morgan Chase & Co. slashed its target price on the stock to 400p from 600p on the stock and gave an “Overweight” rating.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, declined 7.8% to 4.4p.

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, tumbled 9.1% to 155p. The company, in its trading update for the year ended 31 December 2018, announced that it expects revenue to surge 61% to £58.7 million on a reported basis, with revenues on a constant currency basis rising 66% to £60.5 million. Moreover, it anticipates a 67% jump in its gross margins, amid optimisation of its product and services portfolio. Horizon expects a positive EBITDA for the period and is likely to surpass market estimates. Separately, the company announced that it has appointed Jayesh Pankhania to replace Richard Vellacott as the Chief Financial Officer and member of the Board with immediate effect. Peel Hunt reaffirmed its “Hold” rating on the stock.

IQGeo Group PLC

IQGeo Group PLC (former Ubisense Group PLC), a market leader of real-time location solutions, plummeted 10.9% to 53p and emerged as the top loser in the Cambridge Index. The company, in its trading update for the year ended 31 December 2018, announced that it expects to report a 20% jump in its higher-margin own product revenue of around £20 million. However, overall revenues are likely to fall 8.4% to £25 million from £27.3 million in FY2017, as some of its orders were delayed into 2019. Meanwhile, the firm announced a change in its registered office to CB1 Business Centre, Twenty Station Road, Cambridge, with immediate effect.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, dropped 6.7% to 97p.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, slumped 8.4% to 170.4p. The company announced that it has been approached by Taptica International Limited for an all-share merger to form a top video advertising firm in the US.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, climbed 5.7% to 35.3p. Today, the company announced the acquisition of Thermal Exchange Limited for a consideration of around £0.9 million.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, surged 6.4% to 292.5p.

Other movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, fell 0.9% to 2724p. Goldman Sachs Group trimmed its target price on the stock to 2950 from 3050p and gave a “Neutral” rating.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, slumped 4.7% to 60.5p. The company, in its trading update for the year ended 31 December 2018, announced that it anticipates revenues and adjusted EBITDA to be around £23 million and £2.6 million, respectively, whereas provided an upbeat outlook for 2019. Also, the company reiterated the joining of Carmen Carey as its Chief Executive Officer with effect from 18 February 2019.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, rose 3.2% to 32.5p. The company, in its trading update for the six months ended 31 December 2018, announced that it expects to report revenues and adjusted EBITDA of approximately £11.4 million and £2.0 million, respectively. Further, the company indicated that its interim results for the six months ended 31 December 2018 will be released on 05 March 2019. FinnCap reiterated its “Corporate” rating on the stock.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, eased 1.8% to 277.5p. 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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