Cambridge Index

Cambridge Index slides 0.7%

The Cambridge index declined 182.1 points or 0.7% to close at 25828.3, as index heavyweights such as Johnson Matthey and DS Smith posted weekly losses to their share prices. Johnson Matthey, down 5%, in its trading update, announced that its annual performance expectations remain unchanged, with performance weighted heavily towards the second half. However, its largest business unit, Clean Air, is anticipated to report operating profit slightly less than the previous year, due to higher short-term costs. Separately, the company announced the retirement of John Walker as the Executive Director and Sector Chief Executive of Clean Air. DS Smith, down 2.7%, the Competition and Markets Authority (CMA) revealed that the company’s proposed disposal of its rigid and flexible packaging business to Liqui-Box could create insufficient competition, increasing the possibility of poor-quality products and services and higher prices. Abcam, up 4.1%, announced that it has acquired the entire live cell line and lysates portfolio of genome editing technologies firm, EdiGene Inc. Peel Hunt reiterated its “Add” rating on the stock.

Amino Technologies, up 5%, announced the acquisition of an 87% stake in online video specialist, 24i Media (24i), for a total consideration of €21.4m. FinnCap reiterated its “Corporate” rating on the stock. Cambridge Cognition Holdings, up 3.3%, announced a second commercial partnership with a leading pharmaceutical company for its unique voice biomarker technology platform, NeuroVocalix. FinnCap reiterated its “Corporate” rating on the stock. Scientific Digital Imaging, up 2.2%, in its final results for the year ended 30 April 2019, announced that revenues surged to £17.4m from £14.5m reported in the last year. Its profit before tax rose to £2.1m from £1.7m reported in the previous year, while basic earnings per share advanced to 2.1p from 1.81p. FinnCap restated its “Corporate” rating on the stock. Tristel, unchanged at 300p, announced that it expects annual performance to be in line with its previous forecast, with revenues rising by 17% to £26m. Science Group, unchanged at 199p, announced its decision to waive the acceptance condition according to the offer document declaring the offer unconditional as to acceptances. The company continued to purchase shares of Frontier Smart Technologies Group Limited (Frontier), with its current holding rising to 39.9% at 16.2m Frontier shares.

Gaming Realms, down 6.8%, announced that it has successfully completed the disposal of its gaming subsidiary, Bear Group Limited, as well its stake in River UK Casino Limited to River iGaming for an initial cash consideration of £7.35m and total value of £11.5m due to be cleared till 31 December 2020 in deferred consideration of £1.5m. Peel Hunt reconfirmed its “Hold” rating on Horizon Discovery Group, down 8.4%. CyanConnode Holdings, down 20%, in its trading update for the six months ended 30 June 2019, announced that it expects total revenue to decline 38% to £1m and operating losses to narrow by 16% to £3m. The Board expects to achieve full year market expectations for 2019.

UK markets closed mostly higher last week, led by gains in mining and consumer discretionary sector stocks. In macro news, UK’s inflation grew as estimated in June, while the nation’s public sector net borrowings for June hit its highest level since 2015. Moreover, Britain’s retail sales unexpectedly rose in June. The FTSE 100 index marginally rose to settle at 7508.7, while the FTSE AIM 100 index fell 0.7% to close at 4695.0. Meanwhile, the FTSE techMARK 100 index gained 0.2% to end at 5191.2.

US markets ended lower last week, amid losses in technology and industrial sector stocks. On the data front, the US building permits fell to a 2-year low in June, whereas the advance retail sales climbed more than anticipated in June. In major news, the US Fed’s latest Beige Book report revealed that the US economy grew at a modest pace in recent weeks, led by consumer spending and an overall generally positive outlook despite disruptions caused by the US trade policy. The DJIA index fell 0.7% to end at 27154.2, while the NASDAQ index lost 1.2% to close at 8146.5.


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, rose 4.1% to 1405p. The company announced that it has acquired the entire live cell line and lysates portfolio of genome editing technologies firm, EdiGene Inc. Today, Abcam revealed that it anticipates annual revenue to advance 11.4% to £259.9 million and announced the resignation of its Chief Financial Officer, Gavin Wood. Peel Hunt reiterated its “Add” rating on the stock.

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, climbed 5% to 125p. The company announced the acquisition of an 87% stake in online video specialist, 24i Media (24i), for a total consideration of €21.4 million. Following a concurrent reorganisation, Amino will own 92% of the issued share capital of 24i, with the balance of 8% owned by 24i’s founders who have an option to sell the same to Amino. FinnCap reiterated its “Corporate” rating on the stock.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, gained 4.3% to 110p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, sank 20% to 5p and emerged as the top loser in the Cambridge Index. The company, in its trading update for the six months ended 30 June 2019, announced that it expects total revenue to decline 38% to £1 million and operating losses to narrow by 16% to £3 million. The Board expects to achieve full year market expectations for 2019.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, dropped 6.8% to 5.5p. The company announced that it has successfully completed the disposal of its gaming subsidiary, Bear Group Limited, as well its stake in River UK Casino Limited to River iGaming PLC for an initial cash consideration of £7.35 million and total value of £11.5 million due to be cleared till 31 December 2020 in deferred consideration of £1.5 million.

Greene King PLC

Shares of pub operator, Greene King PLC, advanced 5.4% to 661.8p and emerged as the top gainer in the Cambridge Index.

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, declined 8.4% to 151p. Peel Hunt reconfirmed its “Hold” rating on the stock.

IQGeo Group PLC

IQGeo Group PLC (former Ubisense Group PLC), a market leader of real-time location solutions, tumbled 11% to 40.5p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, decreased 6.2% to 78.4p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, increased 3.6% to 261p.

Other movers

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, rose 3.3% to 62.5p. The company announced that it has entered into a second commercial partnership with a leading pharmaceutical company for its unique voice biomarker technology platform, NeuroVocalix. FinnCap reiterated its “Corporate” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, fell 2.7% to 357.2p. The Competition and Markets Authority (CMA) revealed that DS Smith’s proposed disposal of its rigid and flexible packaging business to Liqui-Box could create insufficient competition, increasing the possibility of poor-quality products and services and higher prices.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, declined 5% to 3131p. The company, in its trading update, announced that its annual performance expectations remain unchanged, with performance weighted heavily towards the second half. However, its largest business unit, Clean Air, is anticipated to report operating profit slightly less than the previous year, due to higher short-term costs. Separately, the company announced the retirement of John Walker as the Executive Director and Sector Chief Executive of Clean Air, with effect from 31 March 2020. Hence, Joan Braca will succeed John Walker as Sector Chief Executive, Clean Air, effective 1 October 2019.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, remained unchanged at 199p. The company announced its decision to waive the acceptance condition according to the offer document declaring the offer unconditional as to acceptances. The company continued to purchase shares of Frontier Smart Technologies Group Limited (Frontier) from the market, with its current holding rising to 39.9% at 16.2 million Frontier shares.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, advanced 2.2% to 50.6p. The company, in its final results for the year ended 30 April 2019, announced that revenues surged to £17.4 million from £14.5 million reported in the last year. Its profit before tax rose to £2.1 million from £1.7 million reported in the previous year, while basic earnings per share advanced to 2.1p from 1.81p. FinnCap restated its “Corporate” rating on the stock.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, remained unchanged at 300p. Today, the company announced that it expects annual performance to be in line with its previous forecast, with revenues rising by 17% to £26 million.

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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