Cambridge Index

Cambridge Index adds 1.0%

The Cambridge index advanced 239.6 points or 1% to close at 25088.5, as index heavyweights such as AVEVA Group, Abcam and Greene King posted weekly gains to their share prices. Johnson Matthey, down 1.2%, announced that its annual revenues rose to £10.7b from £10.3b reported in the last year. Its profit before tax climbed to £488m from £320m reported in the previous year, whereas its basic earnings per share widened to 215.2p from 155.2p. Its board declared a final dividend of 62.25p per share, payable on 6 August 2019. Separately, Johnson Matthey announced the appointment of Doug Webb as a Non-Executive Director and Chair of the Audit Committee, with effect from 2 September 2019 and July 2020, respectively. Moreover, Alan Ferguson’s tenure as a Non-Executive Director has been extended till January 2020, while John O'Higgins will join the company as a Senior Independent Director, effective July 2020. AVEVA Group, up 6.8%, announced that its annual revenues surged to £766.6m from £486.3m reported in the last year. Its profit before tax advanced to £46.7m from £36.7m reported in the previous year, while its basic earnings per share narrowed to 20.97p from 39.92p in the previous year. The company’s board declared a final dividend of 29p per share, payable on 2 August 2019. Numis Securities reiterated its “Add” rating on the stock with a target price of 3700p. DS Smith, down 2.5%, announced the extension of Gareth Davis' tenure as a Chairman of the Board till 3 January 2021.

Amino Technologies, up 9.4%, announced that its AminoOS software will support the distribution of IPTV services across Bolivia, covering almost 100% of the country. FinnCap restated its “Corporate” rating on the stock. FinnCap reconfirmed its “Corporate” rating on Cambridge Cognition Holdings, unchanged at 68p.

Kier Group, down 1.2%, announced that it expects underlying operating profit for FY2019 to be £25m lower than prior estimate, amid volume pressure across its businesses. Brady, down 1.3%, in its trading statement, announced that it reported considerable growth during for the four months ended 30 April 2019, with the trading performance remaining in line with management's expectations. LPA Group, down 2.1%, announced the appointment of FinnCap as its sole broker, effective immediately. Sareum Holdings, down 4.8%, announced that Sierra Oncology’s Phase 1/2 studies of Chk1 inhibitor SRA737 two first-in-human as monotherapy and as SRA737+LDG (low dose gemcitabine) recorded positive clinical data. Netcall, down 30.1%, in its trading update for the year ending 30 June 2019, announced that it expects to record lower product revenues for the period, citing purchasing delays within the NHS. Further, the company stated that its full year adjusted EBITDA is anticipated to be around £3.4m. However, the group remained positive over the robust growth in Cloud bookings and ACV. The group’s final results are expected to be published in September 2019. 

UK markets closed lower last week, amid losses in mining sector stocks. On the macro front, UK’s consumer confidence climbed to an 8-month high level in May, whereas mortgage approvals surprisingly rose to its highest level in 2 years in April. On the other hand, Britain’s net consumer credit rose at its slowest pace since 2014 in April, while house prices unexpectedly declined in May. The FTSE 100 index declined 1.6% to settle at 7161.7, while the FTSE AIM 100 index fell 0.1% to close at 5071.1. Meanwhile, the FTSE techMARK 100 index lost 0.7% to end at 4942.3.

US markets ended in the red in the previous week, weighed down by losses in technology and healthcare sector stocks. On the data front, US economy grew more than expected in the first quarter, whereas pending home sales rose in April. Moreover, the US consumer confidence index climbed to a 6-month high in May, while the Chicago Fed PMI rose more than expected in the same month. On the contrary, the US advance goods trade deficit widened in April. The DJIA index fell 3% to end at 24815.0, while the NASDAQ index lost 2.4% to close at 7453.2.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, surged 9.4% to 93p. The company announced that its AminoOS software will support the distribution of IPTV services across Bolivia, covering almost 100% of the country. FinnCap restated its “Corporate” rating on the stock.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, advanced 6.8% to 3696p. The company, in its final results for the year 31 March 2019, announced that revenues surged to £766.6 million from £486.3 million reported in the last year. Its profit before tax advanced to £46.7 million from £36.7 million reported in the previous year, while its basic earnings per share narrowed to 20.97p from 39.92p in the previous year. The company’s board declared a final dividend of 29p per share, payable on 2 August 2019 to shareholders on the register as at 5 July 2019. Numis Securities reiterated its “Add” rating on the stock with a target price of 3700p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, declined 7.3% to 5.1p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, fell 3% to 520p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, eased 2.5% to 316p. The company announced the extension of Gareth Davis' tenure as a Chairman of the Board till 3 January 2021.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, soared 10.6% to 1106p and emerged as the top gainer in the Cambridge Index.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, rose 1.8% to 5.6p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, tanked 30.1% to 39.5p and emerged as the top loser in the Cambridge Index. The company, in its trading update for the year ending 30 June 2019, announced that it expects to record lower product revenues for the period, citing purchasing delays within the NHS. Further, the company stated that its full year adjusted EBITDA is anticipated to be around £3.4 million. However, the group remained positive over the robust growth in Cloud bookings and ACV. The group’s final results are expected to be published in September 2019. 

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, dropped 4.8% to 0.6p. Today, the company announced that Sierra Oncology’s Phase 1/2 studies of Chk1 inhibitor SRA737 two first-in-human as monotherapy and as SRA737+LDG (SRA737 potentiated by low dose gemcitabine) recorded positive clinical data.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, added 1.5% to 53.6p.

Other movers

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, shed 1.3% to 57p. The company, in its trading statement for the four months ended 30 April 2019, announced that it reported considerable growth during the period, with the trading performance remaining in line with management's expectations. Also, the company indicated that interim results are expected to be released in September 2019.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, remained unchanged at 68p. FinnCap reconfirmed its “Corporate” rating on the stock.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, slid 1.2% to 3094p. The company, in its final results for the year ended 31 March 2019, announced that revenues rose to £10.7 billion from £10.3 billion reported in the last year. Its profit before tax climbed to £488 million from £320 million reported in the previous year, whereas its basic earnings per share widened to 215.2p from 155.2p in the previous year. Its board declared a final dividend of 62.25p per share, payable on 6 August 2019. Separately, Johnson Matthey announced the appointment of Doug Webb as a Non-Executive Director and Chair of the Audit Committee, with effect from 2 September 2019 and July 2020, respectively. Moreover, Alan Ferguson’s tenure as a Non-Executive Director has been extended till January 2020, while John O'Higgins will join the company as a Senior Independent Director, effective July 2020.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, fell 1.2% to 278.2p. Today, the company announced that it expects underlying operating profit for FY2019 to be £25 million lower than prior estimate, amid volume pressure across its businesses.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, declined 2.1% to 92.5p. Today, the company announced the appointment of FinnCap as its sole broker, effective immediately.

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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