Publicly listed UK resellers took a battering in late June but the feel-good factor has returned, according to CRN analysis.
Reading the headlines in the aftermath of the Brexit vote, it would have been easy to conclude that UK technology stocks – including the small number of resellers and distributors with a listing on AIM or the main market of the London Stock Exchange – would be in for a rough ride for the rest of 2016.
But analysis reveals that the majority of UK-listed resellers have actually enjoyed a post-Brexit bounce in their share price, despite enduring big losses on 24 and 25 June.
Five of the nine publicly listed UK-based resellers and SIs who appeared in CRN Top VARs 2015 are now trading higher than the day before the UK voted to leave the EU.
Speciality: Smart buildings
After the Brexit vote knocked six per cent off its share price, smart buildings specialist RedstoneConnect has rallied strongly over the past two months. In August, the Cisco partner – whose CEO Mark Braund argued that Brexit may even fuel demand for the services it offers – announced it had completed its operational restructure following a change in name from its old moniker Coms.
Speciality: Education ICT
Having lost three per cent of its value in the immediate aftermath of the Brexit vote, RM's share price has since risen like a helium-filled balloon. In July the schools specialist's CEO David Brooks said the firm was confident of meeting its full-year expectations.
Revenues: Circa £140m
Speciality: Business comms
Apart from the initial seven per cent share price crash it induced, Brexit appears to have had no ill effect on the public valuation of Maintel, which trebled in size earlier this year through its reverse acquisition of privately held rival Azzurri. Its shares are now trading at over 10 times what they were worth in 2009 and are seven per cent up on its 23 June price.
Alternative Networks +7%
Speciality: Business comms
Despite having issued no trading updates or results since the referendum, Alternative Networks is another post-Brexit gainer. Its shares are up five per cent from the day of the vote.
Hull-based telecoms goliath Kcom is another UK tech stock seemingly on a post-referendum high, its share price having clambered to six per cent above what it was before the vote. That's despite it losing five per cent in the immediate aftermath.
Speciality: Mid-market managed services
Managed service provider Redcentric's shares lost eight per cent in the immediate post-vote fall out and its shares are still trading two per cent down on its pre-Brexit price.
Speciality: Business applications
Sage reseller K3's shares lost just four per cent on referendum day and have continued to slide since then, despite it saying in July that full-year trading had been in line with expectations.
Speciality: Enterprise IT services and product resale
Computacenter's share price fell 17 per cent on 24 and 25 June and has yet to rebound to pre-referendum levels. The IT services and reseller juggernaut had a dedicated section on Brexit in its recent interim results, which showed a five per cent year-on-year fall in UK revenues.
"Outside two principal areas where Brexit could affect the group, including weakness within the UK economy driving down short-term demand for the group's products and services, the potential impact is too early to foresee at this stage," said the firm's group financial director Tony Conophy.
Speciality: Mid-market reseller
Brexit has taken the shine off an otherwise glittering start to Softcat's life as a public company. Despite having issued no trading updates since the referendum, its shares crashed 22 per cent on 24 and 25 June and are yet to fully recover.
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