Cambridge Index

Cambridge Index jumps 3.7%

The Cambridge index advanced 944.7 points or 3.7% to close at 26481.2, as the top five index heavyweights posted weekly gains to their share prices. DS Smith, up 2.6%, announced the successful disposal of its two packaging businesses in North Western France and Portugal to International Paper. Greene King, up 5.1%, in its final results for the year ended 28 April 2019, announced that revenues slightly rose to £2.22b from £2.17b reported in the last year. However, its profit before tax and basic earnings per share both declined to £172.8m from £197.5m and 38.9p from 59.1p respectively. The company’s board declared a final dividend of 24.4p per share, payable on 13 September 2019 to shareholders on the register as at 9 August 2019. Shore Capital and Peel Hunt reconfirmed their “Buy” ratings on the stock.

Gaming Realms, up 2.2%, in its annual results for the year ended 31 December 2018, announced that revenues declined to £6.2m from £7.6m reported in the last year. Its profit before tax grew to £900k from a £8.6m loss reported in the previous year. The basic and diluted earnings per share stood at 0.33p, compared to a loss per share of 2.96p in 2017. Further, the company stated its intentions to focus on the development and licensing of mobile games under the Slingo brand as well as their international distribution. Science Group, up 0.5%, announced a revised cash offer to acquire the entire issued and to be issued ordinary share capital of Frontier Smart Technologies Group Limited at 35p per share. Scientific Digital Imaging, up 0.4%, in its trading update for the year ended 30 April 2019, announced that it anticipates annual revenue to be around £17.4m, slightly higher than its previous forecast and compared to £14.5m in the prior year. Likewise, it expects profit before tax to be at least £2m, against £1.7m reported in the preceding year.

Cambridge Cognition Holdings, down 7.9%, announced the appointment of Debra Leeves as a Non-Executive Director, with immediate effect. Sareum Holdings, down 24.3%, announced that it has successfully completed the fundraising of £780k, of which £680k is raised through a placement by Hybridan LLP of 170.4m new ordinary shares at 0.4p per share and £100k is raised by issuing 25m new shares to an institutional investor. The net proceeds will be utilized to advance its TYK2/JAK1 drug development programmes and working capital purposes.

 

UK markets closed mostly higher last week, led by gains in mining and housebuilding sector stocks. The British economy grew as expected in the first quarter, while the consumer confidence index fell more than anticipated in June. The Bank of England Governor, Mark Carney, highlighted the possibilities of monetary policy easing to support the economy in case of no-deal Brexit in October. The FTSE 100 index advanced 0.2% to settle at 7425.6, while the FTSE AIM 100 index fell 1.9% to close at 4767.3. Meanwhile, the FTSE techMARK 100 index gained 1.8% to end at 5175.7.

US markets ended in the red in the previous week, amid losses in technology and healthcare sector stocks. The US economy advanced less than estimated in the first quarter, while new home sales unexpectedly fell to a 5-month low level in May. The US Fed Chairman, Jerome Powell, hinted that the central bank might refrain from an interest rate cut in its July meeting. The DJIA index fell 0.4% to end at 26,600, while the NASDAQ index lost 0.3% to close at 8006.24.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, climbed 5.6% to 4042p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, jumped 6.6% to 88.5p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 7.9% to 64p. Today, the company announced the appointment of Debra Leeves as a Non-Executive Director, with immediate effect.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, fell 6.4% to 5.9p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, dropped 7.4% to 491p.

Greene King PLC

Shares of pub operator, Greene King PLC, rose 5.1% to 618p. The company, in its final results for the year ended 28 April 2019, announced that revenues slightly rose to £2.22 billion from £2.17 billion reported in the last year. However, its profit before tax declined to £172.8 million from £197.5 million reported in the previous year, while the basic earnings per share fell to 38.9p from 59.1p. The company’s board declared a final dividend of 24.4p per share, payable on 13 September 2019 to shareholders on the register as at 9 August 2019. Peel Hunt reconfirmed its “Buy” rating on the stock. Shore Capital restated its “Buy” 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, surged 11.4% to 156p and emerged as the top gainer in the Cambridge Index.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, plummeted 10.3% to 106.3p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, tanked 24.3% to 0.4p and emerged as the top loser in the Cambridge Index. The company announced that it has successfully completed the fundraising of £0.78 million, of which £0.68 million is raised through a placement by Hybridan LLP of 170.4 million new ordinary shares at 0.4p per share and £0.1 million is raised by issuing 25 million new shares to an institutional investor. The net proceeds will be utilized to advance its TYK2/JAK1 drug development programmes and working capital purposes. Separately, Sareum announced that Sierra Oncology is planning to explore non-dilutive strategic options for supporting the continuous development of its portfolio of potent and selective DDR (DNA Damage Response) assets, including SRA737.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, advanced 6.2% to 82p.

Other movers

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, rose 2.6% to 362.5p. Today, the company announced the successful disposal of its two packaging businesses in North Western France and Portugal to International Paper.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, advanced 2.2% to 5.9p. The company, in its annual results for the year ended 31 December 2018, announced that revenues declined to £6.2 million from £7.6 million reported in the last year. Its loss before tax narrowed to £6 million from £8.6 million reported in the previous year. The basic and diluted earnings per share stood at 0.33p, compared to a loss per share of 2.96p in 2017. Further, the company stated its intentions to focus on the development and licensing of mobile games under the Slingo brand as well as their international distribution.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, edged 0.5% higher to 199p. Today, the company announced a revised cash offer to acquire the entire issued and to be issued ordinary share capital of Frontier Smart Technologies Group Limited at 35p per share.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, added 0.4% to 55.5p. The company, in its trading update for the year ended 30 April 2019, announced that it anticipates annual revenue to be around £17.4 million, slightly higher than its previous forecast and compared to £14.5 million in the prior year. Likewise, it expects profit before tax to be at least £2 million, against £1.7 million reported in the preceding year. FinnCap reissued its “Corporate” 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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