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Worst week for tech share performance in TechMarketView's history
As the headlines shouted, the last week of Feb 20 turned into a bloodbath on the world stock exchanges. Given that TechMarketView was only founded in 2009 - after the Great Financial Crisis of 2007/8 -it was the worst week in TMV’s history.
Our usual table showing the movements in Feb and 2020 YTD actually doesn’t show the real horror of the last week. Indeed, as you can see from the chart of NASDAQ by week in 2020 YTD, everything was actually going quite well up until 21st Feb 20. But the NASDAQ fell 12.2% in one week - - erasing all the gains YTD and some. Indeed NASDAQ is now down 5.7% YTD. The FTSE100 fell 10% last week and is now down 12.75% YTD. The FTSE SCS Index, which most closely tracks the UK Software and IT Services stocks that we cover at TMV, fell 10% last week and is now down 11.7% YTD.
The spread of coronavirus really spooked the market. To be fair, we (and others) had warned of this well before last week. The markets were enjoying a bull run which had extended over many years. A ‘correction’ was well overdue. Maybe the market was waiting for an ‘excuse’? Well, they certainly got one!
Was there an upside?
Indeed there were A Few Good Men. But mostly it was a month of the Not so Good, the Bad and the downright Ugly.
For a full and detailed review of tech share performance in Feb 20 and our views for the future (Don’t Panic sums it up...) See HotViews Extra Share Indices in Feb 20.
You’ll need to be a ‘paying’ subscriber to gain access. Most of the leading software and IT services companies serving the UK market are subscribers. But if you are not employed by one of them you can get an individual subscription which includes HotViews Extra as well as a host of other goodies. CLICK HERE for more details and to apply online to subscribe.
Posted by Richard Holway at '22:29'
Today we are incredibly excited to announce the launch of our latest Market Readiness Index (MRI) report.
The MRI is designed to help end user organisations – tech buyers – determine the readiness of their ICT suppliers to support them as they seek to digitally transform their organisations. The MRI models TechMarketView’s understanding of how advanced suppliers are when it comes to being able to contribute to the creation of more intelligent and more automated organisations for their customers.
The Market Readiness Index is a keystone piece of research within the TechMarketView Tech User Programme, for tech buyers – see here.
The MRI was launched last year, with our first report looking at how well placed the UK’s Top Ten IT and Business Process Services players are to deliver digital transformation for their customers.
In this latest round of MRI research, we have looked at the IT and Business Process Services players that are placed 11-20 in our Top 50 ranking. Those players are: BT, BAE Systems, Computacenter, CGI, Dell Technologies, Deloitte UK, Infosys, Sopra Steria, Tech Mahindra, and Wipro.
The question is: How ready are these suppliers to support clients looking to undertake complex digital transformation?
We’ve questioned and probed, we’ve analysed the numbers, the investments made, and the decisions taken. We’ve quizzed the Execs and their customers, and have undertaken a rigorous scoring and analysis exercise across six key areas:
As organisations look to tame the Digital Chaos many of them face, one of the most critical aspects to get right is the choice of partners/suppliers. With TechMarketView’s unparalleled position in the UK market, the MRI gives you the insight you need to make the choices that are right for your organisation.
Tech User Programme members can read the research here: TechMarketView Market Readiness Index (MRI): Top 10 UK IT & Business Process Services Providers.
If you would like to find out more about joining the programme and accessing the report, please contact Deb Seth.
If you are an IT/BP services provider and you are an existing TechMarketView subscription service client, reports published within our Tech User Programme are available to purchase. Please contact Deb Seth for information.
Posted by HotViews Editor at '18:00' - Tagged: MarketReadinessIndex MRI
Last week, we reported on Atos’ FY19 results (to 31st December 2019) – see Atos growth and margin edge up in FY19. Alongside the results, the company announced several other important changes, both to the leadership team and to its industry approach.
In this latest UKHotViewsExtra - Atos UK: adjustments, performance and prospects - we delve into the implications of the changes for the UK business and provide more insight into its recent performance and prospects.
TechMarketView subscribers, including UKHotViews Premium subscribers, can access the research note now. If you are not yet a subscriber, and would like to read this analysis and more besides, please contact Deb Seth to find out more.
Posted by Georgina O'Toole at '13:42' - Tagged: results reorganisation leadership digitalchaos
Insurtech Innovation: "New Kids on the Block" details a "Hot 10" of innovative, tech-driven, UK insurance startups.
In the context of TechMarketView's 2020 research theme of "Digital Chaos" it is the disruptive potential of these newcomers that is increasingly driving change within the insurance industry.
Just as technology and innovative business models brought major change to the UK insurance insurance industry in the 1990's, so a new breed of tech-enabled propositions is now having an increasingly significant impact.
Subscribers to TechMarketView's FinancialServicesViews research stream can download Insurtech Innovation: "New Kids on the Block" now.
If you do not currently have access to this research, please contact Deb Seth for further information about TechMarketView’s subscription services.
Posted by Jon C Davies at '07:00' - Tagged: insurance insurTech
Intuit is making the largest acquisition in its history, investing $7.1bn to take on fintech Credit Karma. The teenage company (founded in 2007), is a substantial business with annual revenue estimated at $1bn, based on 100m registered users of which 37m are said to be active monthly.
Credit Karma started out offering credit score checking but expanded and now offers a range of software and services for personal financial management. They include financial planning and tax filing, which position it as a competitor to Intuit, but other aspects of Credit Karma indicate this is more than a move to take out a disruptive competitor. Intuit stands to benefit from much of what Credit Karma has. More...
Posted by Angela Eager at '09:40' - Tagged: results acquisition software FinTech
2020 would seem set to be a good year for the Application Services (AS) market. The uncertainties surrounding the big Brexit question that dogged investment decisions during the last third of 2019 have been removed and customer spend on the “new” continues to expand quickly. Demand in the applications-centric Digital Solutions arena, for example, is set to increase by over 30% during this year. At an overall AS market level, however, growth remains muted. For the forecast period to 2022, we expect AS CAGR to reach just 2.7% on par with the overall SITS market. So why the disconnect?
We believe that the answers lie in this year’s 3 C’s; Chaos, Confidence and Cost. As enterprises race to digitally transform, anarchy has often been encouraged, resulting in unruly digital development far and wide across organisations. The impacts of investments have been dissipated. The practicalities and expense of both restoring order and driving successfully fundamental digital-enabled business change - including deep transformation of business processes, the elimination of organisational silos and cross-boundary data sharing – are becoming more fully appreciated.
This is the market context for Application Services Supplier Prospects 2020 and Beyond report which is now available to download (click here). Subscribers to TechMarketView's TechSectorViews can read the full analysis of the challenges facing the players in the AS arena over the coming year, what they need to do to be successful and the ways to win in the longer term. The document also includes profiles of the top 10 Application Services Suppliers to the UK market
If you are not yet a TechSectorViews subscriber, please contact Deb Seth to find out how you can access this research.
Posted by Duncan Aitchison at '07:38' - Tagged: systemsintegration applications suppliers digitalchaos
TechMarketView’s research theme for 2020 is all about taming Digital Chaos. You can learn more about what this means for both buyers and suppliers in our brand new brochure, where you will also get insights from each of our Research Directors on our exciting research agenda for the year ahead.
TechMarketView is also very excited to announce a new research approach, called TechSectorViews, designed to help our clients succeed in the digital age.
We have broken down the silos between our historic ‘horizontal’ research streams in Cloud & Infrastructure, Apps, Software/Emerging Tech, Business Processes, Cyber and Connectivity to create TechSectorViews. This stream of research is now available in addition to our core Foundation Service and alongside our in-depth coverage of key vertical markets in the PublicSectorViews and FinancialServicesViews streams.
With TechSectorViews, we’re turning things on their head and from 2020 our exciting research agenda will be focused on the key themes (see here) we see driving market activity. Our expert team of Research Directors will be given the freedom to create ground-breaking research in key areas, enabling our corporate clients to understand, and plan for, success in the digital age. Expect to see even more collaboration between our analysts and a ‘joining of the dots’ across key market areas - such as platforms and customer experience.
TechMarketView can help you to navigate change and spot opportunities across a broad spectrum of markets from cyber security to cloud transformation; and from the payments market to the police market.
For more information on the research agenda or any of our services, including our new 2020 subscription packages, drop us an email to info@techmarketview.com.
Posted by HotViews Editor at '09:49' - Tagged: cloud research cyber AI machinelearning data
Workforce and resource planning specialist Allocate Software has published its results for the year ended 31 May 2019. They reveal a proforma recurring revenue growth rate of 12% to £54.9m, driven by acceleration in SaaS sales, and a significant improvement in EBITDA, which grew 19% to £22.5m following operational improvements.
It has been a pivotal period in the history of the business. Hg sold Allocate to Vista Equity Partners in April 2018 (see Vista invests in Allocate Software) but subsequently took up an offer from Vista to acquire a co-controlling stake in the business. Nick Wilson became CEO in August 2018 (see Allocate appoints Advanced’s Nick Wilson as new CEO) and it acquired Wambiz and 247 Time later that year (see Allocate Software acquires 247 Time). Just before the financial year end it appointed a new MD for its defence and maritime business, Dynama (see New MD for Dynama).
The FY19 accounts represent the start of the new look Allocate under Vista and Hg co-ownership. When we met CEO Nick Wilson recently, he told us there were three key pillars to the strategy for the business going forwards: 1) extending its Human Capital Management (HCM) stack with a broader focus around healthcare people management (see Allocate expands portfolio with Enterprise Study acquisition); 2) driving scale in key geographies—as well as the UK, this will include a focus on Sweden, Denmark, Germany, Australia, and the US; and 3) a likely diversification into closely adjacent vertical markets.
Allocate Software remains well positioned to support health and care providers around the globe as they battle staffing challenges and look to improve efficiency with digital solutions.
UKHotViews Premium and research subscribers can read more about Allocate Software’s first year under joint Vista/Hg ownership here.
For more information about TechMarketView's subscription services please contact Deb Seth.
Posted by Dale Peters at '09:19' - Tagged: nhs saas software healthcare hcm
We are delighted to announce that the UK arm of leading European SI and consulting organisation, Sopra Steria, is engaging with no fewer than five exciting and innovative UK tech SMEs discovered through the TechMarketView Innovation Partner Programme. The companies are: oneclick Platform; SECOTI, Canalix, Wallet Services and Qualification Check.
Sopra Steria UK selected these companies from a wide field of candidates who applied to present their propositions at a series of pitch sessions in December last year.
Sopra Steria UK will be introducing these partners to their clients both in the UK and in Continental Europe, as well as helping them develop their propositions and their people.
We will be announcing our sixth TechMarketView Innovation Partner Programme on Monday 2nd March, seeking UK tech SMEs to partner with a global IT services firm. Keep an eye on UKHotViews for the announcement.
For further information, please contact TechMarketView Managing Partner Anthony Miller (amiller@techmarketview.com).
Posted by HotViews Editor at '07:42' - Tagged: partnerships
Sponsor an ‘Evening with TechMarketView’ this September
We are pleased to be inviting applications from organisations of all sizes interested in supporting our flagship annual event, ‘An Evening with TechMarketView’. Now in its eighth year, the event is held in September and will be based around our 2020 research theme ‘Digital Chaos’.
An Evening with TechMarketView attracts over 200 CXOs from across the UK tech market for an evening of analyst insight and convivial networking over drinks and dinner. This year it kicks off at 6.30pm on the 10th September with a drinks reception, followed by an hour of presentations from TechMarketView analysts and then a three-course dinner, all held at the magnificent Royal Institute of British Architects in London.
Attendees include CEOs and senior management from tech companies large and small, as well as end-users of technology from the public and private sector. Guests from previous years have told us it’s the best networking in the industry. (If you’re keen to book your table you can now do so via tx2 Events at early bird rates).
Varied Sponsorship packages are available
Our sponsors use the event as an opportunity to raise their profile, showcase their proposition, and generate leads with prospective partners and clients. There are a variety of packages to suit different budgets with benefits including:
· A five-minute speaking slot ahead of the analyst presentations (exclusive to Diamond package)
· Your brand prominent across the event
· Inserts in the delegate pack & advanced sight of attendee list
· Your company name & logo in our prolific UKHotViews & social media coverage in months leading up to the event
· A package of additional Sponsored Posts and Banner adverts in our UKHotViews email.
Previous sponsors have included Datto, InterSystems, Wells Fargo, Sage, NetSuite, Kimble, Aqilla (who is now sponsoring the event for the third year running) and Brands2Life.
For more details of available packages download our Sponsorship Brochure today and contact Paula Miles-Mathewson at TechMarketView to express your interest in supporting the event.
Posted by HotViews Editor at '07:30'
London HQ'd IT services company Endava marked its twentieth birthday with another set of impressive results. Continuing at the pace set by the company during the first quarter of this FY (see here), constant currency revenue in Q220 (the three months to 31st December) increased by over 20% yoy to just shy of £86m. The declaration of a non-recurring, discretionary employee bonus of £27.7m at the end of last year drove a loss before tax for the period of £17.3m compared to a profit before tax of £9.4m in Q219. Adjusted profit for the last quarter, however, was up 51% yoy to £20.5m generating a margin of 23.8%, up 490 bps on the same period in the prior year.
Most facets of the business again experienced growth during the third quarter with North America leading the charge. Sales in this region increased by 28% yoy. Only Europe failed to increase turnover in Q220. By the end of 2019 Endava’s headcount reached 6,267 up 16% from the level 12 months earlier.
Looking ahead, the company expects that full year revenues will be in the range £349m to £353m, representing constant currency growth of between 25% and 26%. FY20 is shaping up to be another impressive year for this UK tech success story and NYSE unicorn.
We recently caught up with Endava CEO, John Cotterell. All TechMarketView subscription clients, including UKHotViews Premium subscribers, can read more about this company’s performance and plans here HotViewsExtra: Endava turns twenty in rude health.
Posted by Duncan Aitchison at '07:00' - Tagged: results systemsintegration itservices digital
Fortinet’s FY19 performance saw the company make big double-digit gains in both revenue and billings on a global basis, with a temporary blip in UK turnover attributed to election paralysis and Brexit uncertainty failing to dampen the overwhelmingly positive picture in the EMEA (which saw revenue grow 19% year on year), APAC (up 22%) and Americas (up 23%).
The hybrid and multi-cloud emphasis is nothing new, but combining network security and SD-WAN within a single hardware appliance built on custom ASICs has delivered a significant competitive advantage for Fortinet just as rival security hardware companies see that side of their businesses shrink as they transition customers into virtualised solutions.
The company now looks well placed to further expand its IoT, 5G and hybrid cloud security capabilities and service provision through strong channel partnerships and MSSP sales in FY20.
Subscribers to our HotViewsPremium service can read more about its winning approach here: HotViewsExtra: Fortinet goes from strength to strength.
Posted by Martin Courtney at '09:11' - Tagged: iot firewall SD-WAN MSSP cybersecurity
Whilst growth rates across SITS markets have fluctuated in recent years, the overarching trend within UK financial services has been upwards. Meanwhile the performance of the leading technology vendors serving the sector has varied markedly.
TechMarketView's new report Financial Services Supplier Prospects 2020 examines the varying fortunes of the Top 10 SITS providers in the UK financial services market and analyses their successes and challenges.
The report provides commentary on what each of these vendors needs to do in order to take full advantage of the market opportunity and explores some of the potential challenges that all vendors in the financial services technology sector will face, over the medium to longer term.
Subscribers to TechMarketView's FinancialServicesViews research stream can download Financial Services Supplier Prospects 2020 now.
Posted by Jon C Davies at '07:00' - Tagged: insurance banking financialmarkets
Accenture hosted its client event Kaleidoscope in London yesterday, along with more than 30 of its ecosystem partners from Adobe to Zendesk. Partnering is vital for all organisations – recall our 2019 Year of the Relationship theme – but particularly for tech agnostic services organisations like Accenture.
Accenture does partnering well, scoring highly in this category in our Market Readiness Index (MRI) alongside Atos and Capgemini, and a growing proportion of its revenue comes from partners. As Ecosystem lead for Europe Neil Sanderson explained, partnering has to be part of everyone’s DNA at Accenture because they don’t have all the answers alone. In fact, Accenture has thousands of organisations in its extended partner ecosystem with which to find those answers, ranging from established ‘Platform’ partners – SAP, Microsoft, Oracle, Salesforce and Workday – through ‘Growth’ and ‘Emerging’ partners, to more than 6,900 start-ups on which it has a point of view. Five more names look set to be promoted to Platform partners shortly, they are... More…
All TechMarketView subscription clients, including UKHotViews Premium subscribers, can read the full version of this article in today's UKHotViewsExtra.
Posted by Tola Sargeant at '18:04' - Tagged: partnerships
The funding environment for early-stage companies in the UK is undeveloped in comparison to the US and some other countries. Despite the quality and quantity of developments in the UK, the market has historically been short of the capital required to exploit and drive the opportunities to full commercialisation.
This is changing, however, with more venture funding available through a greater number of funding vehicles. Despite recent political uncertainty in the UK, there is evidence of the venture capital market continuing to grow. The UK and Ireland attract most of the venture investment in Europe, with deal size growing as the investment ecosystem matures. Technology continues to attract a significant portion of this growing investment pot.
This is evidenced by data compiled by TechMarketView (see UK Tech Investment Patterns, also launched today), which makes clear that the UK/Ireland remains an attractive market.
But how do start-ups and other firms go about attracting this investment? Furthermore, how do they ensure they make the right decisions and don’t get caught out along the way?
TechMarketView clients can download Attracting funding in the UK market now to understand more about the optimal approach to attracting the best funding opportunities.
If you are not a subscriber and would like details about TechMarketView research and services Deb Seth will be happy to help.
Posted by HotViews Editor at '09:48' - Tagged: funding startups
Whether you are a supplier working on an acquisition programme, an SME seeking to understand the investment landscape, an end user organisation looking for insight into the emerging tech environment or an investor reviewing market activity, the UK Tech Investment Patterns report should be on your list of essential reading.
Building on TechMarketView’s deep knowledge of the UK market, the start-up community and the VC/PE funding scene, this data-driven report identifies the technologies attracting investment and the types of companies who are benefitting.
Based on data from UK HQ’d companies who secured funding over a defined period during 2019 and were featured in UKHotViews, the report explores where the £6.2bn that was invested was directed. Data points show the value of funding deals, the range of investment levels across Horizontal and Vertical market segments and the sub-sectors within these segments.
There was a very overt vertical sector skew, reflecting the accelerating market move towards specialists over generalists and the digital transformation-driven demand for domain expertise and technology applied to specific tasks and processes. Companies with horizontally-oriented software and services did attract substantial funding but based on this snapshot of the market, the investment case has shifted and previously popular software areas are being displaced. With the delivery of ‘experiences’ high on end user organisations’ agendas, the report also explores the B2C ‘Digital Experience’ investment landscape.
Through our various programmes (Little British Battlers, Great British Scaleups and the increasingly popular TechMarketView Innovation Partner Programme), we are champions of the UK SME tech scene. UK Tech Investment Patterns (eligible TechMarketView subscribers can download the report here), alongside the complementary Attracting funding in the UK market report, provide further perspectives on the SME tech sector and opportunities.
Posted by Angela Eager at '07:05' - Tagged: funding startup investment software
Building on the success of TechMarketView’s 2020 research theme, Digital Chaos, and the launch this week of TechSectorViews, our new research approach for the digital age, we are delighted today to formally launch our 2020 Digital Chaos brochure.
All UKHotViews readers can download a free copy to read more about our 2020 research theme and our exciting research agenda for the year ahead.
Hear from each of our expert analysts about their predictions and research priorities for 2020, and learn more about the broad range of services that TechMarketView offers clients including our Innovation Partner Programme and Tech User Programme.
TechMarketView is today very excited to announce a new research approach, called TechSectorViews, designed to help our clients succeed in the digital age.
We have broken down the silos between our historic ‘horizontal’ research streams in Cloud & Infrastructure, Apps, Software/Emerging Tech, Business Processes, Cyber and Connectivity to create TechSectorViews. From today, this stream of research will be available in addition to our core Foundation Service and alongside our in-depth coverage of key vertical markets in the PublicSectorViews and FinancialServicesViews streams.
With TechSectorViews, we’re turning things on their head and from 2020 our exciting research agenda will be focused on the key themes we see driving market activity. Our expert team of Research Directors will be given the freedom to create ground-breaking research in key areas, enabling our corporate clients to understand, and plan for, success in the digital age. Expect to see even more collaboration between our analysts and a ‘joining of the dots’ across key market areas - such as platforms and customer experience.
TechMarketView’s vision for the ultimate digital entity requires organisations to focus on six prime areas in order to deliver critical outcomes:
Expect to see much more in our 2020 research agenda explaining their meaning and importance. Or if you can't wait, you can get a small taster by dipping into our brand new brochure, here: Taming Digital Chaos.
Characterised by rich market data and easy to digest written analysis, TechSectorViews will give our clients the knowledge and confidence to make critical strategic decisions. Our research directors can help you to navigate change and spot opportunities across a broad spectrum of markets from cyber security to cloud transformation; and from the payments market to the police market.
To understand more about how our new approach can help your organisation think differently and reach your goals, please contact me or any member of the research team.
Posted by Kate Hanaghan at '07:14' - Tagged: cloud cyber AI machinelearning data platforms workflows
We are very pleased to announce Aqilla as a sponsor of our 2020 ‘Evening with TechMarketView’. This is the third year running that Aqilla has proudly supported the popular event, which is held every September, and we’re delighted to welcome them back.
Aqilla has been delivering class-leading Cloud based accounting and business solutions since 2006. The feature rich platform is aimed at delivering cost and efficiency savings to medium sized businesses and divisions of larger organisations. Designed for Cloud from the start it runs with ease within any browser on any desktop or mobile device delivering real cost and efficiency benefits across the enterprise. With customers located in some 34 countries and designed to support multi-company, multi-currency and even multi-lingual operation, we’re very excited to have them on board!
Our eighth annual Presentation and Dinner – An Evening with TechMarketView - will be held at the magnificent Royal Institute of British Architects (RIBA), in Portland Place London, from 6.30pm on Thursday 10th September. Over 200 of UK tech’s ‘great & good’ are expected to attend the evening event which has become a popular fixture in the tech calendar and has been described by attendees as “the best networking event in the industry”.
If your organisation is interested in joining Aqilla as a sponsor of the 2020 TechMarketView Evening, you’ll find more details of available packages in our Sponsorship Brochure or contact Paula Miles-Mathewson (pmilesmathewson@techmarketview.com) at TechMarketView to express your interest in supporting the event.
Posted by HotViews Editor at '09:31'
Harold MacMillan when asked what he feared most, replied ‘Events dear boy. Events’ Except all the best books of quotations say he never uttered those words! None the less, it is a good way of summing up an unexpectedly turbulent start to 2020.
‘Getting BREXIT done’ (or have we?) on 31st Jan and Trump’s impeachment (or will he be?) were well trailed. But no one expected a global pandemic like Coronavirus The implications for the global economy are pretty significant. China is both a huge market and the manufacturing base for much of the tech that the world consumes. The real effects of this on the stocks that we track were only starting to appear in the last few days of January. Indeed NASDAQ was still up a pretty impressive 2.8% in Jan. The FTSE100 was, however, down 3.4% - more reflecting the strengthening of the £, as the BoE decided not to reduce interest rates, than Coronavirus.
The biggest faller amongst the UK tech indices was the near 15% decline in the FTSE Fixed Line Index. The FTSE SCS Index fell just 1.3%. Putting that into context, it is still up 20% yoy.
The full, detailed Review of Share Price Performance in January 20 is only available to TechMarketView’s paying subscribers including HotView Premium subscribers. For more details see How to become a HotViews Premium Subscriber. Or Signup here.
Posted by Richard Holway at '22:07'
