Press Room.
UK-listed technology companies outperform the market Q1
2010
The first quarter of 2010 saw the valuation of listed technology
companies rise by 9.7%, significantly outperforming the FTSE All
Share which saw gains of only 5.4% and the FTSE 100 which rose by
just 4.9%, according to the Grant Thornton Technology Index.
The Technology Index tracks the performance of 142 UK-listed
mid-market technology companies*. The Index reveals that since Q1
2009 technology valuations have more than doubled (111.6%). This
compares to a 31.7% increase on the FTSE All Share and a 28.1% on
the FTSE 100.
Niki Dixon, Head of Technology at Grant Thornton said: "The
important contribution that the sector makes to the UK economy is
evident. Since Q1 2009 the valuation of Technology Index companies
rose rapidly. Q1 2010 saw continued growth albeit at a slightly
slower and more sustainable level. This may signal a return to
stability as technology stocks often improve ahead of the general
market as the recession comes to an end.
"Within the sector, the UK video games industry in particular is
a world leader. After many months of lobbying this was finally
acknowledged by the Government in last month's Budget with the
announcement of a tax relief to help support the industry. However,
it remains to be seen whether the relief will be implemented after
the general election. It is vital for the industry to keep the
pressure on to ensure this valuable boost to the sector does not
fall by the wayside."
The sub-sector leading the valuations increase is Semiconductors
which saw an average increase of 22.4%** in Q1 2010, a substantial
rise on the 14.6% increase in the previous quarter (Q4
2009).
"As the emerging economies return to significant growth we are
seeing increased demand for electronic devices which has increased
the appeal of Semiconductor companies to the market," Dixon
concluded.
The sub-sector struggling the most in Q1 2010 was Fixed Line
Telecoms which saw an average drop of 4.0% in the quarter. This
reflects adverse market sentiment in what is seen as a less
attractive sub-sector compared to mobile telephony and wireless
solutions.
For further information, please contact: Lisa Ritchie, Grant
Thornton Press Office: on 020 7728 2208 or lisa.ritchie@gtuk.com