UK’s Supercharging Tech Sector That Hit the Ground Running Amid Health and Economic Crisis

  • May 31, 2020 BST
  • Team Kalkine
UK’s Supercharging Tech Sector That Hit the Ground Running Amid Health and Economic Crisis

The technology forms the backbone of most of the other sectors, and amid the Covid-19 crisis, the technology has played an immense role in the survival of the businesses in the services sector. The businesses quickly adapted to the work from home concept during the lockdown period, not even that they were able to reduce their operating costs to a certain extent in terms of rent and electricity.

Technology businesses have reshaped the world in which we live today. Tech-businesses have progressed by leaps and bounds and have made a significant contribution to the UK’s as well as the whole global economy by redefining the sectors. All the major sector, like the financial services sector, healthcare sector, manufacturing sector, education sector and the supply chain, are hugely driven by technology.

The UK fosters one of the largest global technology eco-systems with several tech start-ups, which are building a robust entrepreneurial culture. The world looks up to the UK for its technological innovations in the field of 5G communication, Artificial Intelligence (AI) and Internet of Things (IoTs).

The novel coronavirus has made the world realise, the need for technology in facilitating different facets ranging from working remotely to sharing of information. The lockdown induced by Covid-19 is likely to bring a paradigm shift in the way traditional businesses work towards a more technology-driven resilient business model in the times to come. For many tech companies, the spread of the novel coronavirus has been a blessing in disguise, and they are ramping up their efforts to buck the trend.

Post Covid era- a new era with hopes of various innovations

The beauty of technology-driven businesses is that they can adapt to changes swiftly. In the prevalent conditions, when it is not safe to travel to work, people are working remotely. The technology-driven services industry has faced a minimum impact in comparison to other sectors.

However, with more and more businesses, making work from home concept, a regular feature in their style of working, a new risk has emerged in terms of network security and cyber-attacks. This calls upon the industry to address the issue and bolster the network infrastructure by installing a firewall, antivirus protection and other security features.  

Further, the human tragedy caused by the novel coronavirus has been a learning curve for the businesses. This has made them focus on revenue generation opportunities by investing in the existing technological infrastructure as technology has emerged as a critical tool in these unprecedented times. The industry majors are likely to innovate and disrupt the market by launching new products which would lead the way for businesses in the post-Covid era.

FTA with the United States likely to benefit the UK tech firms

With the free trade (FTA) negotiations underway between the United States and the UK, the innovative UK tech firms are likely to benefit the most in terms of digital trade and copyright frameworks. The UK’s dynamic and globally competitive professional business services would also be benefitted.

With the promotion of digital trade between the two nations, the UK tech firms would be likely to see huge developments in the realm of data flows, blockchain, driverless cars and quantum technology. The financial services sector and the tech firms, along with the Fintech groups would be a common theme from business associations under the FTA and is likely to gather huge support from investors and businesses.

Let us examine some tech stocks which made huge strides forward during the lockdown period. (All data are taken from Thomson Reuters.)

  • Tekcapital Plc (LON: TEK) 3-month return 256%

Software & Computer Services group, Tekcapital Plc provides intellectual property (IP) services across the globe. On 29th May 2020, after the market close, Tekcapital Plc’s shares were down by 5 per cent against its previous day closing price; last traded at GBX 14.25. Stock's 52 weeks High and Low is GBX 20 /GBX 4. The beta of the company stood at 0.15, reflecting lesser volatility as compared to the benchmark index. Tekcapital Plc’s market capitalisation stood at £13.17 million. The stock generated a 3-month Total return of around 256 per cent.

  • Dev Clever Holdings Plc (LON: DEV) 3-month return 127.4%

United Kingdom-based Dev Clever Holdings Plc is a software development company. On 29th May 2020, after the market close, Dev Clever Holdings Plc’s shares were up by 6.82 per cent against its previous day closing price; last traded at GBX 7.05. Stock's 52 weeks High and Low is GBX 8.10 /GBX 1.10. Dev Clever Holdings Plc’s market capitalisation stood at £28.81 million. The stock generated a 3-month Total return of around 127.4 per cent.

  • LoopUp Group Plc (LON: LOOP) 3-month return 123.2%

AIM-listed LoopUp Group Plc is a Software & Computer Services group, which provides high-quality remote meetings solution. On 29th May 2020, after the market close, LoopUp Group Plc’s shares last traded at GBX 110.50. Stock's 52 weeks High and Low is GBX 320 /GBX 40.50. LoopUp Group Plc’s market capitalisation stood at £61.05 million. The stock generated a 3-month total return of around 123.2 per cent.

  • Bango Plc (LON: BGO) 3-month return 75.10%

Bango Plc is a Cambridge, United Kingdom-headquartered software company known for its mobile payment platform, which facilitates e-commerce. On 29th May 2020, after the market close, Bango Plc’s shares were up by 5.80 per cent against its previous day closing price; last traded at GBX 155. Stock's 52 weeks High and Low is GBX 159 /GBX 62. The beta of the company stood at 0.81, reflecting slightly lesser volatility as compared to the benchmark index. Bango Plc’s market capitalisation stood at £108.72 million. The stock generated a 3-month total return of around 75.10 per cent.

  • Avast Plc (LON: AVST) 3-month return 30%

Avast Plc is a Prague, the Czech Republic-based company that offers security software. On 29th May 2020, after the market close, Avast Plc’s shares were up by 1.13 per cent against its previous day closing price; last traded at GBX 503. Stock's 52 weeks High and Low is GBX 551 /GBX 270.60. Avast Plc’s market capitalisation stood at £ 5,086.90 million. The stock generated a 3-month Total return of around 30 per cent.

Comparison chart of TEK, DEV, LOOP, BGO and AVST

(Source: Thomson Reuters)

 


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The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd, Company Number 12643132. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

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