Cambridge Index

Cambridge Index adds 0.1%

The Cambridge index advanced 19.7 points or 0.1% to close at 25587.3, as index heavyweights such as AVEVA Group and DS Smith posted weekly gains to their share prices. DS Smith, up 6.5%, announced that its annual revenues soared to £6.1b from £5.5b reported in the last year. Its profit before tax rose to £350m from £260m reported in the previous year, while its basic earnings per share advanced to 33.3p from 30.7p. The Board declared a final dividend of 11p per share.

CyanConnode Holdings, up 38.5%, announced that it performed in line with the Board’s expectations in the five months ended 31 May 2019. The company expects renewed orders for its Omnimesh Advanced Metering Infrastructure platform from its largest market, India, in near future. Frontier Developments, up 4%, announced its first publishing partnership agreement with Haemimont Games under its new Frontier Publishing initiative in order to expand its portfolio. Liberum Capital reiterated its “Buy” rating on the stock with a target price of 1800p. Shore Capital reissued its “Buy” rating on the stock. Elektron Technology, up 3.5%, announced that its annual revenues climbed to £33.7m from £29.8m reported in the last year. Its profit before tax increased to £4.6m from £2.7m in the previous year, whereas its basic earnings per share rose to 2.1p from 1.1p. Science Group remained unchanged at 199p, announced that its portfolio company, Frontier Smart Technologies Group Limited (unrelated to Frontier Developments), received a preliminary approach from a credible industry player, to execute a corporate transaction. The company criticized Frontier for continuously frustrating its proposal of a takeover and that it has not received any tangible progress from Frontier, seeking clarification for the deliverability of this second approach. It highlighted possible risks to Frontier from further delay of the process and advised its board of directors to conclude the transaction with Science Group within the stipulated time.

Numis Securities reconfirmed its “Buy” rating on Horizon Discovery Group, down 0.5% with a target price of 280p. Marshall Motor Holdings, down 3%, announced the resignation of Sarah Dickins as the Non-Executive Director and Chairman of the Remuneration Committee. As a result, the company’s Chairman, Richard Parry-Jones, will assume the role of an interim Chairman of the Remuneration Committee. Sareum Holdings, down 6.3%, announced that its two preclinical TYK2/JAK1 inhibitors in autoimmune diseases and cancer has attained intense clinical validation convincing that SDC-1801 and SDC-1802 represent strong and well-differentiated candidates. The company expects the first in-human clinical trials to commence in 2020. Kier Group, down 16%, announced that its Chief Executive, Andrew Davies, will lead a strategic review to streamline its resource allocation and recognize further paths for cash generation. Liberum Capital trimmed its target price on the stock to 320p from 400p and gave a “Buy” rating.

 

UK markets closed mostly higher last week, led by a weaker Pound. The UK unemployment rate remained unchanged at a 45-year low in the three months ended April 2019, while the average weekly earnings rose more than expected in same period. Meanwhile, Britain’s economy contracted more than anticipated in April, whereas the manufacturing production surprisingly declined to a 17-year low in the same month. The FTSE 100 index advanced 0.2% to settle at 7345.8, while the FTSE AIM 100 index fell 0.5% to close at 4898.8. Meanwhile, the FTSE techMARK 100 index gained 0.7% to end at 5065.5.

US markets ended in the green in the previous week, supported by gains in technology sector stocks. The US annual inflation advanced less than expected in May, whereas the nation’s budget deficit widened in the same month. Furthermore, the US advance retail sales jumped less than anticipated in May, while the Michigan consumer sentiment index fell in June. The DJIA index rose 0.4% to end at 26089.6, while the NASDAQ index gained 0.7% to close at 7796.7.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, soared 14.4% to 71.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, skyrocketed 38.5% to 6.7p and emerged as the top gainer in the Cambridge Index. The company, in its AGM statement, announced that it performed in line with the Board’s expectations in the five months ended 31 May 2019, following a transformational full year 2018. The company expects renewed orders for its Omnimesh Advanced Metering Infrastructure (AMI) platform from its largest market, India, in near future.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, rallied 17.5% to 555p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, advanced 6.5% to 350.1p. The company, in its final results for the year ended 30 April 2019, announced that revenues soared 12% to £6.1 billion from £5.5 billion reported in the last year. Its profit before tax rose to £350 million from £260 million reported in the previous year, while its basic earnings per share advanced to 33.3p from 30.7p in the prior year. The company’s board declared a final dividend of 11p per share, payable on 1 November 2019 to shareholders on the register as at 4 October 2019.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, climbed 6% to 5.7p.

Greene King PLC

Shares of pub operator, Greene King PLC, tumbled 7% to 610.4p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, sank 16% to 130.8p and emerged as the top loser in the Cambridge Index. Today, the company announced that its Chief Executive, Andrew Davies, will lead a strategic review in order to streamline its resource allocation and recognize further paths for cash generation. Liberum Capital trimmed its target price on the stock to 320p from 400p and gave a “Buy” rating.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, declined 6.8% to 34p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, dropped 6.3% to 0.5p. The company, in an update regarding the progress of its SRA737 active preclinical portfolio, announced that its two preclinical TYK2/JAK1 inhibitors in autoimmune diseases and cancer has attained intense clinical validation convincing that SDC-1801 and SDC-1802 represent strong and well-differentiated candidates. The company expects the first in-human clinical trials to commence in 2020.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, decreased 4.6% to 51.7p.

Other movers

Elektron Technology PLC

Elektron Technology PLC, a provider of fast-moving engineered products, advanced 3.5% to 44.5p. The company, in its final results for the year ended 31 January 2019, announced that revenues surged 13.1% to £33.7 million from £29.8 million reported in the last year. Its profit before tax increased to £4.6 million from £2.7 million in the previous year, whereas its basic earnings per share rose to 2.1p from 1.1p in the previous year.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, climbed 4% to 1100p. The company announced that it has entered into its first publishing partnership agreement with Haemimont Games under its new Frontier Publishing initiative in order to expand its portfolio. Liberum Capital reiterated its “Buy” rating on the stock with a target price of 1800p. Shore Capital reissued 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, edged 0.5% lower to 147.2p. Numis Securities reconfirmed its “Buy” rating on the stock with a target price of 280p.

Marshall Motor Holdings PLC

Marshall Motor Holdings PLC, one of the UK's leading automotive retail and leasing groups representing a unique portfolio of prestige and volume brands and with the highest brand coverage of any dealer group in the UK, declined 3% to 160p. The company announced the resignation of Sarah Dickins as the Non-Executive Director and Chairman of the Remuneration Committee, with effect from 30 June 2019. As a result, the company’s Chairman, Richard Parry-Jones, will assume the role of an interim Chairman of the Remuneration Committee.

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 that its portfolio company, Frontier Smart Technologies Group Limited (Frontier), received a preliminary approach from a credible industry player, to execute a corporate transaction. The company criticized Frontier for continuously frustrating its proposal of a takeover and that it has not received any tangible progress from Frontier, seeking clarification for the deliverability of this second approach. The company highlighted possible risks to Frontier from further delay of the process and advised its board of directors to conclude the transaction with Science Group within the stipulated time.

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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