Cambridge Index

Cambridge Index declines 3.6%

The Cambridge Index dropped 985.5 points or 3.6% to settle at 26760.3, as index heavyweights such as Johnson Matthey and DS Smith posted weekly losses to their share prices. UBS raised its target price on AVEVA Group, up 1.3%, to 4365p from 3775p and gave a “Neutral” rating. Johnson Matthey, down 12.1%, in its interim results for the six months ended 30 September 2019, announced that revenues surged 37% to £6.8b from £5b reported in the same period last year. However, its profit before tax fell to £225m from £244m posted in the previous year, while its basic earnings per share declined to 91.8p from 106.1p in the previous year. The company’s board declared an interim dividend of 24.5p per share. Deutsche Bank lowered its target price on the stock to 3600p from 3700p and gave a “Buy” rating. Liberum Capital reaffirmed its “Buy” rating on the stock.

Brady, up 47.5%, announced that a potential offeror has proposed to acquire its entire issued and to be issued share capital. Separately, Brady announced that its subsidiary Brady Trading Limited has secured a £5m loan from Hanover Acquisition Limited, from which it will immediately withdraw £3m to refinance the existing Brady Trading and Brady Credit Trading Limited facility. Also, Brady announced the resignation of Ian Jenks as a Non-Executive Chairman and Bob Beveridge as a Non-Executive Director, with immediate effect. Following the resignation, Nick Greatorex has been appointed as the Non-Executive Chairman and Matthew Peacock, Nick Greatorex and Jog Dhody as Non-Executive Directors. FinnCap reissued its “Corporate” rating on Netcall, up 10%. IQGeo, unchanged at 44p, announced that it has secured two new contracts worth more than $1.2m from a US-based electric and natural gas utility firm. The first order includes licences for IQGeo's geospatial software along with recurring maintenance and support and the second order is for professional services.

Cambridge Cognition Holdings, down 1.8%, announced the launch of an improved electronic clinical outcome assessment (eCOA) platform. Bango, down 3.4%, announced that it has surpassed the revenue and additional targets for its subsidiary Audiens SRL, which was acquired by Bango in January 2018, two months prior than expected. Consequently, Marko Maras, founder and CEO of Audiens, will obtain the agreed deferred incentive payment of €1.16m in January 2020, while Bango will gain complete ownership of Audiens. Dialight, down 16.7%, in its trading update for the year ending 31 December 2019, announced that it expects EBIT to fall in the range of £5m to £8m, affected by the global economic slowdown due to the US-China trade dispute. The Signals and Components market conditions remained weak and is not expected to recover until the second half of 2020.

 

UK markets closed higher last week, supported by gains in healthcare and consumer discretionary sector stocks. The UK’s manufacturing PMI eased more than expected in November, while the services PMI unexpectedly declined to a 40-month low in the same month. The UK’s budget deficit widened to a 5-year high in October. The FTSE 100 index advanced 0.3% to settle at 7326.8, while the FTSE AIM 100 index rose 2.2% to close at 4643.6. Meanwhile, the FTSE techMARK 100 index gained 1.5% to end at 5656.7.

US markets ended in the red in the previous week, after reports emerged that the phase one of the US-China trade deal might not be signed this year. The US manufacturing sector activity rose to a 7-month high in November, whereas the services PMI advanced beyond estimates in November. The FOMC minutes showed that most officials considered maintaining the current interest rate level for a longer period, provided the economic condition remains constant. The DJIA index fell 0.5% to end at 27875.6, while the NASDAQ index lost 0.2% to close at 8519.9.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, dropped 4.8% to 30p.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, skyrocketed 47.5% to 17.7p and emerged as the top gainer in the Cambridge Index. The company announced that a potential offeror has proposed to acquire its entire issued and to be issued share capital. Separately, Brady announced that its subsidiary Brady Trading Limited has secured a £5 million loan from Hanover Acquisition Limited, from which it will immediately withdraw £3 million to refinance the existing Brady Trading and Brady Credit Trading Limited facility. The entire proceeds of the facility would fulfil its current requirements till January 2020 and aid the firm through its expected Q1 2020 shortfall in working capital cycle in February 2020. Separately, Brady announced the resignation of Ian Jenks as a Non-Executive Chairman and Bob Beveridge as a Non-Executive Director, with immediate effect. Following the resignation, Nick Greatorex has been appointed as the Non-Executive Chairman and Matthew Peacock, Nick Greatorex and Jog Dhody as Non-Executive Directors.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, tumbled 14% to 2.2p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, plummeted 16.7% to 254p and emerged as the top loser in the Cambridge Index. The company, in its trading update for the year ending 31 December 2019, announced that it expects EBIT to fall in the range of £5 million to £8 million, affected by the global economic slowdown due to the US-China trade dispute. The Signals and Components market conditions remained weak and is not expected to recover until the second half of 2020.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, fell 4.5% to 1198p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, declined 12.1% to 2846p. The company, in its interim results for the six months ended 30 September 2019, announced that revenues surged 37% to £6.8 billion from £5 billion reported in the same period last year. However, its profit before tax fell to £225 million from £244 million posted in the previous year, while its basic earnings per share declined to 91.8p from 106.1p in the previous year. The company’s board declared an interim dividend of 24.5p per share, payable on 4 February 2020 to shareholders on the register as at 29 November 2019. Deutsche Bank lowered its target price on the stock to 3600p from 3700p and gave a “Buy” rating. Liberum Capital reaffirmed its “Buy” rating on the stock.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, climbed 10% to 26.5p. FinnCap reissued its “Corporate” rating on the stock.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, rose 4.3% to 0.4p.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, advanced 7.3% to 234p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, rallied 31.6% to 62p.

Other movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, added 1.3% to 4430p. UBS raised its target price on the stock to 4365p from 3775p and gave a “Neutral” rating.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, eased 3.4% to 128.5p. The company announced that it has surpassed the revenue and additional targets for its subsidiary Audiens SRL, which was acquired by Bango in January 2018, two months prior than expected. Consequently, Marko Maras, founder and CEO of Audiens, will obtain the agreed deferred incentive payment of €1.16 million in January 2020, while Bango will gain complete ownership of Audiens. FinnCap restated its “Corporate” rating on the stock.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, fell 1.8% to 27p. Today, the company announced the launch of an improved electronic clinical outcome assessment (eCOA) platform.

IQGeo PLC

IQGeo PLC (former Ubisense Group PLC), a market leader of real-time location solutions, remained unchanged at 44p. The company announced that it has secured two new contracts worth more than $1.2 million from a US-based electric and natural gas utility firm. The first order includes licences for IQGeo's geospatial software along with recurring maintenance and support (M&S) and the second order is for professional services.

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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