Cambridge Index

Cambridge Index slides 0.2%

The Cambridge index declined 50.8 points or 0.2% to close at 25536.5, as index heavyweights such as AVEVA Group and Greene King posted weekly losses to their share prices.

LPA Group, up 1%, in its interim results for the six months ended 31 March 2019, announced that revenues declined to £10.1m from £13.9m reported in the same period last year. Its loss before tax stood at £0.2m against a profit of £1m reported in the previous year. Its basic loss per share came in at 1.2p compared to earnings of 6.95p in the previous year. The company’s board declared an interim dividend of 1.1p per share, payable on 27 September 2019 to shareholders on the register as at 6 September 2019. FinnCap restated its “Corporate” rating on the stock with a target price of 131p.

IQGeo Group, down 3.2%, announced that Andy MacLeod has been appointed as an Independent Non-Executive Director with immediate effect. Frontier Developments, down 4.2%, in its trading update for the year ended 31 May 2019, announced that it anticipates annual revenue to more than double to £89m, citing significant growth of its Jurassic World Evolution game. Moreover, it expects to report an operating profit margin of approximately 21% for the period. Peel Hunt restated its “Buy” rating on the stock. Liberum Capital reconfirmed its “Buy” rating on the stock. Shore Capital reiterated its “Buy” rating on the stock. Jefferies Financial Group reaffirmed its “Buy” rating on the stock with a target price of 1453p. Kier Group, down 9.4%, announced that Andrew Davies, Chief Executive Officer, will commence a strategic review, as it aims to improve its resources allocation and identify new sources for cash generation. Kier will dispose its non-core activities including Kier Living, Property, Facilities Management and Environmental Services, amid high debt levels. Also, the company has planned to axe around 1200 jobs as a part of its restructuring plan for delivering annual cost savings of £55m from 2021, resulting into reduction of its average net debt.

UK markets closed mostly higher last week, led by gains in energy and mining sector stocks. On the macro front, the UK’s annual consumer prices rose as estimated in May, while the public sector net borrowing reported a larger than expected deficit in May. On the contrary, the British annual retail sales advanced less than anticipated in May. In major news, the Bank of England, in its latest policy meeting, held its key interest rate steady and warned that the UK economy might come to a standstill in the second quarter. The FTSE 100 index advanced 0.8% to settle at 7407.5, while the FTSE AIM 100 index fell 0.8% to close at 4859.2. Meanwhile, the FTSE techMARK 100 index gained 0.4% to end at 5085.1.

US markets ended higher in the previous week, amid hopes that the US Federal Reserve (Fed) might cut interest rates this year. On the data front, the US building permits unexpectedly rose in May, while existing home sales climbed more than expected in May. On the other hand, the US manufacturing PMI touched its lowest level since September 2009 in June, while the services sector activity unexpectedly fell in the same month. In other major news, the US Fed, in its latest monetary policy meeting, left its benchmark interest rate unchanged. The DJIA index rose 2.4% to end at 26719.1, while the NASDAQ index gained 3% to close at 8031.7.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps

Index movers

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, plummeted 12.6% to 83p and emerged as the top loser in the Cambridge Index.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, dropped 6% to 6.3p.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, rallied 18% to 52.5p 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, fell 4.9% to 140p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, rose 2.9% to 3182p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, tumbled 9.4% to 118.5p. The company announced that Andrew Davies, Chief Executive Officer, will commence a strategic review, as it aims to improve its resources allocation and identify new sources for cash generation. Kier will dispose its non-core activities including Kier Living, Property, Facilities Management and Environmental Services, amid high debt levels. Also, the company has planned to layoff around 1200 employees as a part of its restructuring plan for delivering annual cost savings of £55 million from 2021, resulting into reduction of its average net debt.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, surged 13.2% to 38.5p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, climbed 9.5% to 0.6p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, advanced 7% to 55.3p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, declined 7.4% to 282.5p.

Other movers

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, dropped 4.2% to 1054p. The company, in its trading update for the year ended 31 May 2019, announced that it anticipates annual revenue to more than double to £89 million, citing significant growth of its Jurassic World Evolution game. Moreover, it expects to report an operating profit margin of approximately 21% for the period. Peel Hunt restated its “Buy” rating on the stock. Liberum Capital reconfirmed its “Buy” rating on the stock. Shore Capital reiterated its “Buy” rating on the stock. Jefferies Financial Group reaffirmed its “Buy” rating on the stock with a target price of 1453p.

Greene King PLC

Shares of pub operator, Greene King PLC, declined 3.6% to 588.2p. Peel Hunt reissued its “Buy” rating on the stock.

IQGeo Group PLC

IQGeo Group PLC (former Ubisense Group PLC), a market leader of real-time location solutions, fell 3.2% to 45p. The company announced that Andy MacLeod has been appointed as an Independent Non-Executive Director with immediate effect.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, added 1% to 98p. The company, in its interim results for the six months ended 31 March 2019, announced that revenues declined to £10.1 million from £13.9 million reported in the same period last year. Its loss before tax stood at £0.2 million against a profit of £1 million reported in the previous year. Its basic loss per share came in at 1.2p compared to earnings of 6.95p in the previous year. The company’s board declared an interim dividend of 1.1p per share, payable on 27 September 2019 to shareholders on the register as at 6 September 2019. FinnCap restated its “Corporate” rating on the stock with a target price of 131p.

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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