March was a busy month for public company results, painting a solid picture overall.  Nonetheless, there were notable exceptions as share prices and public company valuations remained stagnant. Looking at deal flow, a superficial analysis of the data suggests that activity levels in March mirrored those of January and February – and were notably lower than the levels achieved in Q1 2023. While this observation holds true, it overlooks some crucial underlying trends, the most striking of which is the significant surge in private equity activity, with deals up 2.5 times from March 2023. Sim ..read more

February in the UK tech sector continued to prove the notion that downturns are sudden and universal whereas recoveries are slow and patchy. While some companies report improved trading, others are still finding it hard going, especially those focused on the financial services sector. Share prices were weak in the UK but much stronger in the US, evidencing an emerging (and worrying) trend that the UK is not benefiting from the AI bounce. Deal volumes remain subdued, with similar trends to the previous month with solid private equity numbers, ongoing weakness in M&A volumes, especially in I ..read more

It has been a rather subdued start to the year in most parts of the UK tech sector, but the overall picture does seem to be improving. Trading news, of which there has been plenty, is broadly positive with the emphasis very much on utilising operational leverage to build back to the Rule of 40. Share prices on both sides of the Atlantic consolidated recent gains, but UK stock market corporate activity is still at rock-bottom. Once again, private equity activity was robust with SBOs leading the way, while VC and M&A activity continued the stable trends established in the last few months of ..read more

As we kick off 2024, this month’s Megabuyte CEOBarometer follows a slightly different format. In addition to reviewing all of the key share price and corporate activity trends for 2023, this month’s show is all about looking forward to the coming year and beyond. We present on our 10 key predictions for 2024, exploring tech demand trends, valuation dynamics, and the outlook for corporate activity. Focused on actionable insights, we also share five key recommendations for tech company Boards looking to capitalise on these trends. So what of 2023? While the recovery was slower than expected to g ..read more

In this month's podcast: Finally, there's some positive news to discuss regarding UK tech share prices, as they surged by 11% in November, hinting at the first signs that investors anticipate brighter prospects ahead. Let's hope that this upturn proves to be sustainable this time. Unfortunately, that's where the positive developments for this month largely conclude. Trading conditions remain challenging, and indications from FDM and Kainos updates suggest a continued deterioration. Moreover, activity in capital markets, mergers and acquisitions, as well as venture capital, was notably feeble i ..read more

In this month's podcast: After a brief summer uptick, the UK tech sector faced a Q4 setback, grappling with tough trading conditions, escalating costs, and, in some cases, excessive leverage. October's 5% drop in tech sector share prices pushed valuations to a decade low, dimming the optimism sparked earlier in the year. Capital investments from venture capitalists hit a five-year low, and apart from public takeovers, M&A activities stagnated. While the private equity market offered some relief, deal flow remained below last year's levels. Despite the prevailing gloom, history reminds us t ..read more

In this month’s podcast: The market adapts to the 'new norm' of higher interest rates and lower valuations, witnessing a thaw in the SBO market and a resurgence in VC funding in September. However, persistent weakness in M&A volumes, burdened by increased debt servicing costs, prevails. Tech share prices, especially in software, hit a 5-year low, hindering the revival of capital markets deal activity ..read more

In this month’s podcast: The summer got off to a roaring start with strong share prices and enhanced corporate activity, but August rolled back much of the gains. Overall, UK tech sector share prices were broadly flat across July and August, modestly underperforming the wider market, and the picture was similar in the US. Public company valuations have largely stabilised at their lower levels but there is still some price discovery going on in the private equity world. Kerridge’s buyout by CapVest was a particularly interesting case in point. Indeed, it was surprising strong period for PE tran ..read more

In this month’s podcast: While UK tech sector share prices were stronger in June, valuations remain stubbornly low, especially in ICT Services. Meanwhile, the US tech sector continues its rapid recovery with a 33% jump in the tech-heavy NASDAQ so far this year compared to just 7% in the UK. Nevertheless, confidence in capital markets does seem to be recovering, albeit from rock bottom levels, with more fundraising and M&A activity amongst listed businesses. Likewise, AI-driven green shoots continue in the UK tech VC market where deal numbers were better than they have been all year. Conver ..read more

June: It's quiet out there people! Weakening confidence finally spills over into M&A and private equity ..read more