Cavendish Tech Chat | We love regulation
April 2024
The legacy of losing 11 days in 1752 left us with a peculiar tax year end, so, in light of our second new year, here is our second “looking to the year ahead”.
The legacy of losing 11 days in 1752 left us with a peculiar tax year end, so, in light of our second new year, here is our second “looking to the year ahead”.
Sometimes, looking back at old CES articles is like a game of “where are they now” and it wouldn’t surprise you that unavoidable and predictable buzz at CES this year is AI; CES celebrating gimmicks is the inevitable consequence of media focus, usually on the wrong thing.
Is winter here? Or is winter still coming? Beauty is in the eye of the beholder, and where equity multiples fall so far, and UK equity performance is so subpar to the US, bidders invitably pounce. Through our own investigations, we examine the characteristics and bidders of the 51 tech takeouts since 2017 in our Joy of Techs sector report. There remains plenty of value on the market for both investors and bidders and the Cavendish Equity Capital Markets tech team, the largest and most experienced on AIM, is well positioned to take advantage of it.
Things that seem permanent do change: pronunciation, the pace of technological change... and us. This is the 379th, and final finnCap Tech Chat, as we return as Cavendish Securities (as part of Cavendish Financial Group). Cav Secs Tech Chat here we come.
We are pleased to share our latest report – Better boards for growth companies, written in conjunction with the Quoted Companies Alliance. The report is based on a study, which surveyed over a hundred Non-Executive Directors (NEDs) of smaller quoted companies.
Growing levels of water scarcity pose a significant risk to businesses and the broader economy – it has been estimated that business-as-usual levels of water productivity and economic growth will increase the likelihood of water-related production shortfalls and economic disruptions related to water shortages, putting nearly $63tn or 45% of global GDP at risk by 2050. However, adopting sustainable practices could allow $17tn of GDP to escape exposure to the risks from severe water scarcity.
Bill Gates says he's only seen two demonstrations of technology that struck him as revolutionary. The first became Microsoft Windows. The second was GPT. If we have now entered the ‘Age of AI’ as Gates suggests, the self-propagating nature of the technology could lead to rapid changes in how developers, and everybody else, work and live.
Does history rhyme or repeat? If you apply the description of a company with "£24m ARR and 60% recurring revenue, a renewed focus on SaaS and ARR, and a drive to M&A", you could be talking about Ideagen in 2017 (sold for £1.1bn in 2022)....or Sopheon now. History seems to be repeating.
Transition risks refer to business-related risks that follow societal and economic changes towards a low-carbon economy. Transition risks can come in multiple forms that may include increased disclosure requirements or risks associated with carbon pricing.
The response to climate change can be categorised into two approaches - mitigation and adaptation. Climate change mitigation is already at the forefront of many businesses’ strategies, having gained traction over the past decade. Today, for example, 91% of the global economy falls under net zero pledges, up from 19% in 2019. Promises of net zero and an emerging 2-billion-dollar carbon credit market have invigorated action from governments and businesses alike. However, even under a best-case scenario, some degree of adaptation will be required. Physical climate risks pose a major yet often unappreciated threat to corporate assets and infrastructure.
How best can 192,000 hours be put to work? Ultimately, that is the question that management of a company with 100 staff working 8 hours a day must answer. Today's Tech Chat highlights companies that drive towards 'automation of the unglamorous' and save their customers compounded minutes of valable time.