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Region has 25% of all new hi-tech stockmarket firms

Written by Business Weekly
Wednesday, 06 October 1999
East of England technology companies are underpinning an exciting initiative by London Stock Exchange to raise the profile of UK hi-tech business on a global stage. East of England technology companies are underpinning an exciting initiative by London Stock Exchange to raise the profile of UK hi-tech business on a global stage. Almost a quarter of the companies on London Stock Exchange's new market for technology companies - techMARK - are based in the East of England or have substantial operations here. Executives with the local companies providing the cornerstone of techMARK believe that the initiative could clinch substantial new investment and help nervous investors better understand what is regarded a high risk sector. TechMARK brings together London-listed companies involved in leading-edge technologies, creating a central focus for investors. Stock Exchange officials also believe that streamlined rules will provide a wider range of young, innovative growth companies with access to the UK equity market. The new market goes live in November, linking companies from across the main market - ranging from the FTSE 100 to the FTSE Fledgling. London says the move will increase the profile and visibility of technology shares. Companies will be included in both their existing FTSE Index and the new FTSE techMARK Indices. It will enable private and professional investors to target technology stocks more easily, regardless of size, industrial sector or location and provide a new investment benchmark for both institutional and private investors. To encourage early stage technology businesses, techMARK will offer an early route to the main market for young developing hi-tech companies without the traditional three-year trading record. TechMARK covers companies in computer hardware, computer services, Internet, semiconducters, software and telecoms equipment as well as sub sectors, including aerospace, defence, electrical equipment, fixed line telecoms services, medical equipment and supplies, pharmaceuticals and wirless telecoms services. Local companies included on the new techMARK include Densitron, Domino, GEC, Linx Printing Technologies, MTL, Plasmon, Racal, Roxboro, Xaar, Celsis, Enviromed, Psion, Tadpole, ARM Holdings, Glaxo Wellcome, SmithKline Beecham, Cambridge Antibody Technology, Cantab Pharmaceuticals, Celltech Chiroscience, Chiuroscience Group, Huntingdon Life Sciences, Oxford Molecular, Peptide Therapeutics, Phytopharm, Powderject, Quadrant Healthcare, FI Group, Logica, Synstar, Dialog Corp, Cadcentre, JBA Holdings, Laser-Scan, Misys, Pegasus, Vocalis, BT, Cable & Wireless, Energis and Vodafone. Nigel Bond, Managing Director of Domino, said: 'We were given the chance to turn it down but felt there were considerably more benefits than disadvantages. 'It is a bit of a double-edged sword. In bad times the share price could be exposed and in good times it will go the other way, but business life is full of ups and downs. 'As a relatively small player in global terms any additional exposure that brings us to the attention of potential investors and shareholders has to be welcomed. John Aston, Finance Director of Cambridge Antibody Technology added: 'We welcome the initiative: hopefully, techMARK will lead to increased investor awareness of technology companies and of their distinctive attributes.