Cambridge Index

Cambridge Index declines 2.6%

The Cambridge index fell 646 points or 2.6% to close at 23957.1, as four out of the top five index heavyweights posted weekly losses to their share prices. DS Smith, unchanged at 337.1p, announced an agreement to dispose its Plastics division to a private equity firm, Olympus Partners, for an enterprise value of around £450m. Also, it announced that the group continued to perform in line with its expectations during the period since 01 November 2018. Abcam, down 11.3%, announced that its half-yearly revenues soared £124.7m from £112.5m, while profit before tax rose to £33.7m from £32.8m. However, its basic earnings per share dropped to 13.5p from 15.8p. The Board declared an interim dividend of 3.55p per share. Peel Hunt reiterated its “Buy” rating on the stock.

Netcall, up 52.6%, announced that its half-yearly revenues advanced 6% to £11.4m, while profit before tax climbed 49% to £0.4m. Dialight, up 18%, announced that its Annual General Meeting (AGM) will be held on 17 April 2019. Peel Hunt increased its target price on the stock to 410p from 395p and gave a “Hold” rating. 1Spatial, up 1.5%, announced that it anticipates annual revenues to be at par with the market estimates and adjusted EBITDA to be at least in line with the market forecast.

Brady, down 0.4%, announced that it will publish its FY2018 results on 25 March 2019. Separately, the company announced the appointment of Iain Greig and Daniel Look as Non-Executive Directors. Frontier Developments, down 2%, signed a global IP licence agreement for developing as well as publishing of a future game. Science Group, down 2.4%, announced that its annual revenues climbed to £48.7m from £40.8m, while profit before tax advanced to £4.9m from £3.9m. The Board declared a final dividend of 4.6p per share. Kier Group, down 6.5%, announced that the Group remains on track to meet its underlying FY2019 expectations. Also, its net debt position as at 31 December 2018 has been revised higher to £180.5m from £130m. Cambridge Cognition Holdings, down 7.3%, announced that its annual revenues declined to £6.1m from £6.7m in FY2017, whereas its loss before tax widened to £1.5m from £0.3m. Separately, the company successfully raised £2.5m to accelerate its operations and strengthen its balance sheet. Moreover, the company announced the appointment of Dr. Matthew Stork as the Chief Operating Officer. Xaar, down 9.2%, announced that it expects FY2018 revenues to be around £63.5m and in line with its prior forecasts. Sareum Holdings, down 9.7%, announced that its half-yearly operating loss rose to £0.9m from £0.8m, while loss after tax widened to £0.8m from £0.7m. Its basic loss per share remained unchanged at 0.03p.

 

UK markets closed lower last week, amid losses in mining stocks. British house prices advanced in February, while the services PMI unexpectedly rose in the same month. Meanwhile, UK’s construction PMI narrowed for the first time in 11 months in February. The OECD slashed Britain’s growth outlook for 2019, amid Brexit uncertainty and warned that a disorderly Brexit might lead the economy into recession. The FTSE 100 index ended marginally lower to settle at 7104.3, while the FTSE AIM 100 index fell 1.7% to close at 4677.2. Meanwhile, the FTSE techMARK 100 index lost 0.5% to end at 4709.6.

US markets ended in the red in the previous week, as investors remained concerned about slowing global economic growth. The US trade deficit surged to a 10-year high level in December, while the non-farm payrolls climbed less than estimated in February. On the other hand, the US unemployment rate fell more than anticipated in February, while the services sector activity climbed in the same month. The DJIA index fell 2.2% to end at 25450.2, while the NASDAQ index lost 2.5% to close at 7408.1


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, plummeted 11.3% to 1189p and emerged as the top loser in the Cambridge Index. The company, in its interim results for six months ended 31 December 2018, announced that revenues soared 10.8% to £124.7 million from £112.5 million reported in the same period last year. Its profit before tax rose to £33.7 million from £32.8 million reported in the previous year. However, its basic earnings per share dropped to 13.5p from 15.8p in the previous year. The company’s board declared an interim dividend of 3.55p per share, payable on 12 April 2019 to shareholders on the register as at 15 March 2019. Peel Hunt reiterated its “Buy” rating on the stock.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, advanced 10.8% to 103p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, dropped 7.3% to 76.5p. The company, in its preliminary results for the year ended 31 December 2018, announced that its revenues declined to £6.1 million from £6.7 million in FY2017. Moreover, its loss before tax sharply widened to £1.5 million from £0.3 million reported in the previous year, while the basic and diluted loss per share surged to 7.0p from of 1.3p. Separately, the company announced that it has successfully raised £2.5 million for the purpose of accelerating its operations and strengthening its balance sheet. Moreover, the company announced the appointment of Dr. Matthew Stork as the Chief Operating Officer with immediate effect. FinnCap reissued its “Corporate” rating on the stock.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, surged 18% to 485p. The company announced that its Annual General Meeting will be held on 17 April 2019. Peel Hunt increased its target price on the stock to 410p from 395p and gave a “Hold” rating.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, soared 11.7% to 4.6p.

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, climbed 10.3% to 160p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, fell 6.5% to 497.2p. Today, the company announced that the Group remains on track to meet its underlying FY2019 expectations. Its net debt position as at 31 December 2018 has been revised higher to £180.5 million from £130 million, while the average month-end net debt advanced to £430 million from £370 million.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, skyrocketed 52.6% to 46.1p and emerged as the top gainer in the Cambridge Index. The company, in its interim results for the six months ended 31 December 2018, announced that revenues advanced 6% to £11.4 million from £10.7 million reported in the same period last year. Its profit before tax climbed to £0.4 million from £0.3 million and basic earnings per share rose to 0.2p from 0.13p in the previous year. FinnCap restated its “Corporate” rating on the stock.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, tumbled 9.7% to 0.7p. The company, in its interim results for the six months ended 31 December 2018, announced that its operating loss widened to £0.909 million from £0.831 million in the same period last year. Also, the company’s loss after tax widened to £0.764 million from £0.722 million in the previous period. The basic and diluted loss per share remained unchanged at 0.03p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, declined 9.2% to 134.6p. Today, the company announced that it expects FY2018 revenues to be around £63.5 million and in line with its prior forecasts. Xaar anticipates its preliminary results to be published on 21 March 2019.

Other movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, rose 1.5% to 33.5p. The company, in its trading update for the financial year ended 31 January 2019, announced that it anticipates revenues for the period to be at par with the market estimates and adjusted EBITDA to be at least in line with the market forecast. However, the company noted that the ongoing turbulence in the US could likely impact its financial results.
Table 1: Cambridge Index - Weekly Top 5 Gainers

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, edged 0.4% lower to 59.3p. The company announced that it will publish its preliminary results for the year ended 31 December 2018 on 25 March 2019. Separately, the company announced the appointment of Iain Greig and Daniel Look to the position of Non-Executive Directors with immediate effect.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, remained unchanged at 337.1p. The company announced that it has signed an agreement to dispose its Plastics division to a private equity firm, Olympus Partners, for an enterprise value of around £450 million. Also, the company, in its trading update, announced that the group continued to perform in line with its expectations during the period since 01 November 2018, while the group margins are likely to progress further in the second half of its financial year. Jefferies reconfirmed its “Hold” rating on the stock with a target price of 330p. Peel Hunt reaffirmed its “Buy” rating on the stock with a target price of 460p. JP Morgan Cazenove reiterated its “Overweight” rating on the stock with a target price of 430p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, declined 2% to 896p. The company announced the signing of a major global IP licence agreement for developing as well as publishing of a future game. Frontier forecasts that its development would continue for a period of 2 years beginning in late 2019. Liberum Capital reiterated its “Buy” rating on the stock with a target price of 1800p. FinnCap reconfirmed its “Corporate” rating on the stock.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, dropped 2.4% to 205p. The company, in its final results for the year ended 31 December 2018, announced that revenues climbed to £48.7 million from £40.8 million reported in the last year. Its profit before tax advanced to £4.9 million from £3.9 million reported in the previous year, while its basic earnings per share rose to 10.7p from 7.7p. The company’s board declared a final dividend of 4.6p per share, payable on 17 May 2019 to shareholders on the register as at 26 April 2019.

The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Cambridge Index - Weekly Top 5 Gainers

Cambridge Index - Weekly Top 5 Losers

Cambridge Index - Top 5 Weights

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