Some of the greatest companies in the Cambridge UK technology pantheon have sidestepped government inaction in a bid to protect staff from the potentially fatal coronavirus.

A powerful cohort of businesses have either banned visitors from their premises or ordered staff to work from home until further notice. Anyone regarded as high risk is being given no choice but to self isolate, Business Weekly understands.

Reliably sourced data supplied to Business Weekly today (Friday) suggests that our best tekkies are leveraging technology to work smart – and safe.
Our bulletin suggests that:-

• Redgate Software has kept its office open but that employees are working from home from Monday for the foreseeable future 
• UltraSoc has temporarily closed its St John’s Innovation Centre offices and all its people are working from home for the foreseeable future
• Napp Pharmaceuticals has reportedly shut its Cambridge Science Park offices to visitors but staff continue working from the HQ. PA Consulting is said to have followed that model
• All Amazon office-based employees locally are reportedly working from home, ditto Arm staff although the superchip architect tells Business Weekly that all its offices remain open.
• Videogames ace Frontier Developments is said to be reinforcing its homeworking technology to allow staff to work from home
• Qualcomm has apparently given all employees the option to work from home but anyone regarded as high risk is not being given the choice
• Roku Europe, based at the Science Park, has reportedly given all its people the option to work from home but there is talk that this will become mandatory next week

One technology cluster source told Business Weekly that the template being deployed in the current crisis might have a lasting legacy.

They said: “Our tech companies have the tools needed to work smart and are not constrained by bricks and mortar. Many tasks can be carried out remotely.

“Better to have staff at home maximising their time and technology than sitting for ages on a congested A14 and other routes. If the coronavirus lasts for weeks or months employers are bound to look at whether the current arrangements represent a more sustainable and cost-effective model for future working practice.”

I once had a work colleague who complained that she got her first wrinkle before she lost her last spot. Or, to put it another way, her prime was over before it began. 

I know how she felt. It fits with the prejudices we all have about age, especially in the advertising world. You go from being unemployable because you have no experience to being put out to grass because you’re set in your ways.

Of course, In the ad industry we’ve made a rod for our own backs by our veneration of all that is ‘new’. We tell our prospects the product you have is ‘so last year’. You need the latest, new improved model etc. – all to generate new sales for our clients. 
 
New media has reinforced this mindset. The death of the press, TV and all forms of traditional advertising has been solemnly announced, and digital proclaimed its invincible successor.

The Media Machine worships at the shrine of youth. Most recently, Auntie has attracted derision for its mutton-dressed-as-lamb programming in desperate pursuit of the youth market, whilst alienating its vastly more numerous mature viewers who actually watch tv. 

Why this blind spot for the old? Especially as the elderly are the most rapidly growing sector of the population, and those between 50 and 65 have, on average, higher incomes and greater purchasing power than the young.

Which is why it’s gratifying to see that not everyone views wrinklies as write-offs. A new London Agency called Ancient & Modern has them firmly in their sights.  And it won’t surprise you to learn that the partners of that agency are all Old Men. 

They’re veterans of the business who, as they say, ‘can still produce advertising in the way it made, with care, craft and (hold on to your hats) an actual creative idea at the centre’.

And that’s no idle boast. Adrian Holmes, John O’Driscoll and Seamus O’Farrell (average age 64) are the bright old things who came up with such commercial classics as the ‘Heineken Refreshes the Parts’, ‘Happiness is a Cigar Called Hamlet’ and BT’s ‘Good to Talk’ campaigns.

And the work they’re turning out now – for Unilever, the London Diabetes Centre and Simplicity Cremations shows they’re far from past it. They might write about the grave, but they haven’t got one foot in it!

If you’re looking for someone with the wit and wisdom of the ages you might also like to look up Simpsons Creative. We’ve been in business for over 35 years and some of us still work a layout pad better than a Mac. 

We also cut our teeth on traditional media, and still have them (teeth that is) for getting to grips with any creative challenge you care to set us!

simpsonscreative.co.uk

Cambridge video games doyen Frontier Developments plc is racing ever closer to unicorn status after clinching a ‘to die for’ deal to publish Formula 1® management games worldwide for the hallowed motorsport championship.

The multi-year game licence with Formula 1® could be worth multimillions – a point that did not escape UK shareholders who filled their boots on the news: At one point after Tuesday’s announcement, the stock soared 186p, almost 17 per cent, to 1306 to haul the market cap past the $667 million mark.

Chief executive David Braben and his team were cock-a-hoop at the company’s Science Park headquarters when the F1 contract was unveiled. Frontier has exclusive rights to develop and publish F1 management games for PC and console platforms – together with the rights for streaming services – with the first launch off the starting grid for the 2022 F1 season. 

Releases will be worldwide and on multiple platforms.

This represents Frontier’s biggest ever game deal when one considers it has a licence for four games for seasons 2022 to 2025 in one of the biggest sports in the world.

Frontier has extensive experience of developing deeply engaging, high-fidelity simulation games which also achieve widespread global adoption. 
The partnership with F1 creates an exciting opportunity to bring together Frontier’s experience and capability, including its powerful and versatile Cobra game engine, to the management-rich environment of the globally popular and ever-changing world of F1.

Following the signing of the F1 Licence and the IP licence previously announced in March 2019, Frontier can now confirm that both of the major new internally developed releases in the financial year ending May 31, 2022 will benefit from major global IP licences.

Frontier has also confirmed the signing of another two Frontier Publishing deals, taking the number of signed deals to five for the company’s third party publishing initiative. 

A number of additional opportunities with carefully selected partners are in discussion and the company expects to start earning revenue in the next financial year.

David Braben said: “F1 is one of the most popular global sporting franchises in the world and we believe the combination of the F1 brand together with our extensive experience in management games will deliver fantastic game experiences to a wide and varied audience around the world.

“We have achieved great success with our own IP and are proven development and publishing partners for the highest profile third party IP. Both original and licensed IP will continue to be important as we grow and nurture our portfolio.”

Formula 1 bosses are equally thrilled. Frank Arthofer, director of Digital and Licensing at Formula 1, said: “Games are an important part of the F1 media ecosystem. This new manager franchise will allow fans to experience the challenging management aspects of the sport through immersive simulation games and make that experience as accessible as possible for a broad audience. 

“We have huge respect for Frontier and their achievements in the management simulation category, and are thrilled to be working with them for the 2022 season and beyond.”

This is a second quickfire deal for a Cambridge company in the world of Formula 1 following Darktrace’s cyber security contract with McLaren Racing, which Business Weekly announced recently.

Marshall Motors in Cambridge believes it has the underlying structure and resilience, plus the financial clout, to clear multiple obstacles in its roadmap to growth.

The automotive retail group posted good results for the year to December 31 which showed a strong outperformance of the market and encouraging strategic growth. Twenty new businesses were hitched to the runaway bandwagon.Marshall also reported record revenue and a fifth year of like-for-like revenue growth since IPO.

The company believes it can put the brake on any perceived threats from falling new car sales, a bad Brexit and the threat to global markets from coronavirus.

Despite market challenges, like-for-like operating profit of £33.1 million was only down 4.1 per cent against last year’s record result though underlying profit before tax was 10.8 per cent down at £22.1m.

Like-for-like total new vehicle unit sales were up 0.3 per cent at a time when  market registrations nationally fell by 2.4 per cent, with both retail and fleet delivering a strong market outperformance.

Used car unit sales were 6.1 per cent ahead while UK market volumes declined 0.1 per cent. Further growth of 3.2 per cent was recorded in aftersales.

Marshall has recommended a final dividend of 5.69p giving a full year payout of 8.54p per share (2018: 8.54p). CEO Daksh Gupta said: “The group continued to perform well in 2019 and despite a sustained period of market decline has grown market share by outperforming in all of its key segments. 

“The group delivered record total reported revenue and achieved like-for-like revenue growth. It has taken advantage of continued market consolidation, completing a number of strategic acquisitions in 2019, adding 20 new businesses. We are particularly proud to have become Volkswagen Group’s largest partner in the UK.

“The board notes the latest forecast by the Society of Motor Manufacturers and Traders for a further decline in the UK new car market in 2020 of 2.6 per cent. It is also cognisant of the potential impact that uncertainty over the outcome of future trade agreement negotiations between the UK and the European Union may have on the automotive sector.

“Although we have not seen an impact to date, the board is monitoring the potential impact of COVID-19 and is considering contingency plans in the event it starts to impact our dealerships.

“The board therefore remains cautious but our order book for the important March plate-change period is encouraging and our outlook for the full year is unchanged.

“The UK motor retail landscape may change over the years and decades ahead. The group’s longstanding strategy of partnering with the right brands in the right locations has positioned it well to remain a relevant and important part of that future landscape.”

Nasdaq quoted Cambridge life science business GW Pharmaceuticals, whose presc-ription medicines are cannabis-based, posted revenue of $109.1 million for the fourth quarter of 2019 and $311.3m for the full year.

Net sales of its flagship Epidiolex® product were $104.5m for the fourth quarter and $296.4m for the first full year of sales.

Chief executive Justin Gover hearalded the trail GW is blazing with Epidiolex in the US and prospects for a much broader reach with the product.

He said: “2019 was an exceptional and transformative year for GW, led by the successful launch of Epidiolex in the US and approval in Europe. 

“The positive impact this medicine has had on thousands of patients and their families provides a compelling foundation for continued growth in 2020. 

“We also expect 2020 to be an important year for our growing and developing product pipeline beyond Epidiolex as we build on our world leadership in cannabinoid science.

“We are focused on advancing nabiximols in the US in several indications and clinical programs with other potential products whilst continuing to bring Epidiolex to more patients in the US and Europe.”

GW plans further significant US commercialisation through 2020 and intends to focus on broadening the prescriber base, expanding payer coverage, entering long term care segment, and launch its Tuberous Sclerosis Complex indication.

A European launch is underway; Germany led the way in Q4 2019 and the company has secured a positive NICE recommendation in the UK with a commercial debut scheduled during this first quarter of the new year. 

Commercial launches in France, Spain and Italy are expected later this year.

On another front, GW Pharma is set to regain exclusive UK commercialisation rights for Sativex® (delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD)) from Bayer plc.

Sativex, often known by the USAN name nabiximols, is a complex botanical formulation that contains the principal cannabinoids THC and CBD in addition to specific minor cannabinoids and other non-cannabinoid components. 

Nabiximols is indicated in the treatment of spasticity due to multiple sclerosis.

Since it was approved by the Medicines and Healthcare products Regulatory Agency in 2010, Bayer has been responsible for the marketing of nabiximols in the UK. Under the terms of the agreement, there will be a transitional period until  December 31 at which point GW will take over all responsibilities for nabiximols in the UK.

In the interim, Bayer and GW will work closely to ensure a seamless transition for healthcare professionals and patients, with marketing transferring to GW during 2020.

Global life science research influencer Abcam plc is committing further significant investment in growing the business internationally from its Cambridge base.

CEO Alan Hirzel also reveals that the company is starting to see a return to normal working in Coronavirus-hit China – a massive market for the UK standard bearer.

As part of its five-year growth strategy Abcam is reviewing its capital allocation priorities, including the dividend, in view of the significant investment opportunities available and intends to consult with shareholders accordingly.

The heavy investment in technology and acquisitions in recent times is reflected in the interim results for the six months to December 31.

Total revenue on a reported basis was 10.8 per cent ahead to £138.2 million but profit before tax was 22.8 per cent lower at £26m. Abcam initiated investment across all areas of its growth blueprint and Hirzel said the business remained confident in the long term outlook.

Abcam reports taking a c.£3m revenue hit to date due to Covid-19, predominantly originating from the early spread of the virus in China but says operations there began reopening on February14 and that the supply chain had been largely unaffected to date. While broader China activity was returning, albeit still below full levels prior to outbreak, the full financial impact on the business remains uncertain given the evolving global situation. 

Abcam says it is closely monitoring developments and will provide further updates as appropriate.

Hirzel said: “Abcam is investing in and advancing across all strategic areas we described earlier this year. Our early progress sets the business on a course to sustain long term revenue growth from market share gain and portfolio expansion.

“In the short term, we are doing our best to look after our global team and our customers as we face into Covid-19’s impact on family lives, research activity, and operations. In China, we are starting to see a return to normal operations, and we will work through this situation as we confidently invest in our long term growth and being the most influential company for life science researchers worldwide.”

Cambridge superchip architect Arm is already on a different planet after shipping more than 160 billion chips – over 20 times Earth’s population. Now the tech Trekkies are shooting at fresh frontiers to the stars and beyond with ultra durable chips for use in space.

Arm believes its research into chip radiation hardening and resiliency may temper the potentially dangerous effects of solar radiation on space electronics.

While space corrosion of electronics has yet to trigger an inter-galactic disaster, Arm feels it might only be a matter of time before catastrophe strikes a mission.

Rob Aitken, Fellow & Director of Technology of Arm, says earth-grade electronics don’t fare well in space. 

“They’re regularly exposed to a barrage of disruptive forces: solar winds, extreme temperature fluctuation, cosmic radiation and Van Allen radiation belts,” he says.

“The results of these radiation effects can be temporary, leading to a few incorrect calculations as a computer chip’s internal bits are flipped. However, total ionizing dose and single event latch-ups can spell total destruction for unprotected hardware.

“While non-destructive effects can amount to recoverable hiccups during routine tasks like playing a video or maintaining basic communication channels, the stakes become far higher when a computer is responsible for gathering data. In these situations, some or all of the data may become corrupted, making it difficult to determine whether or not it can be used. In extreme environments, reliability is king.”

SoftBank-backed pioneer OneWeb, a company focused on deployment of satellite-based Internet to millions of people living in remote areas, has spoken of the need to shield from proton radiation and bury some electronics inside the craft. This sort of thinking is vital, whether the equipment is skirting the stratosphere or heading to Saturn, says Aitken.

He adds: “In the most optimistic scenario, we can use the parts we already have. In 2017, NASA sent an HP supercomputer into space to test how standard hardware and software would hold up on a Mars mission. Eleven months later, the computer still worked, at least without major glitches.

“Similar resilience has been seen in fault injection experiments in research labs. But, most of the faults injected do not cause system failures largely because of masking behaviour and application characteristics.

“When later faced with other complex workloads, failures show up and can be catastrophic, especially when system state is corrupted ‘silently’ – that is without triggering any fault detection mechanisms.”

Radiation-hardened Arm chips are seen as building blocks for a future interplanetary computer. A number of experimental programs have explored the viability of Arm chips in space using explicit design techniques such as radiation-hardened, or rad-hard chips. The breakthrough technology could also have major benefits in our own homes and businesses on Earth.

Radiation-hardened VORAGO Technologies microcontrollers have already been used to control SpaceX CRS-10 cargo resupply missions to the International Space Station (ISS). 

VORAGO’s Arm Cortex-M based microcontrollers use the VORAGO HARDSIL process, patented and proven to harden devices for radiation and extreme temperature environments.

The ongoing High-Performance Spaceflight Computing program at the University of Michigan, funded by NASA and the US Air Force, seeks to dramatically advance the state of the art for spaceflight computing, developing highly power-efficient and fault-tolerant systems. 

As part of this program, a Next Generation Space Processor analysis program engaged industry to define and benchmark future multi-core processor architectures.

The reference design features a chiplet containing eight rad-hard chips based on Arm Cortex-A53 64-bit processors: building blocks for a capable interplanetary computer. Following a competitive procurement, the contract was awarded to Boeing, with deliverables due in April 2021.

But Aitken says that rad-hard chips are no longer the only option; radiation hardening has its downsides. Compared to standard technology, the cost of development is high and there’s a negative impact on power, performance and area. 

Now there’s a second option – using resiliency techniques such as those outlined in the Arm Triple-core lockstep research work to enable Arm chips in space to detect and recover from faults. 

Aitken adds: “This leads to slightly lower system availability, but on the upside there’s no need for specialised process libraries. And by combining the two technologies, Arm and partners can create reliable electronics designed for many years of interplanetary service.

“Most of the innovation currently taking place is in low-Earth-orbit space applications where exposure is lower than it would be on Mars but far still more severe than it is generally on Earth. 

“With aspirations for satellite and transportation infrastructure to last longer than a single space mission, researchers are dedicating themselves to long-term chip dependability.

“That means modern researchers are focusing on hardening rad-hard chips for total-ionizing-dose radiation, otherwise known as the amount of radiation the device should be able to withstand in its lifetime before something fails. Usually, a good benchmark is 100 kilorads of total-dose radiation hardness; that’s roughly 300,000 times a typical human receives per year.

“As more chip manufacturing moves to FinFET and SOI processes, increased tolerance for total-ionizing-dose radiation follows. But at the same time, physically smaller transistors and gates are more vulnerable to single event upsets.

“The key to solving this new problem at system scale may depend on new breakthroughs in the competitive semiconductor industry and researchers are already experimenting with new materials like gallium nitride, silicon carbide, diamond, and graphene, to significantly increase reliable operation in harsh environments. These emerging materials are inherently radiation-hardened, yet costly and far less in demand than silicon.

“It’s possible that changing conditions on Earth may one day make rad-hard chips applicable to our daily lives. Due to factors like heightened solar radiation, there’s more radiation on Earth today than our ancestors dealt with. 

“In fact, there are already harsh environments on Earth that could benefit from rad-hard chips. For instance, they could help easily monitor the Fukushima radioactivity zone and other disaster areas, or be applied to radiation imaging in the healthcare industry for longer-lasting X-ray equipment that would require less maintenance and upkeep.

“Exploring the applications of rad-hard chips on Earth actually will allow us to use them to their highest potential in space. Exploiting the endless number of uses can increase demand, making innovation and mass production cheaper.

“This, in turn, would make it lucrative for researchers to improve their low-Earth orbit reliability and make space applications more dependable. With transistors only a few nanometers across, these diminutive chips can transform the universe – and our homes.”

It’s that time of year again and whilst the start of 2020 hasn’t all been smooth sailing one thing to guarantee is the Carter Jonas Cambridge team launching our annual Cambridge Commercial Edge report, part of a series of research looking at the commercial property market in our key areas across the UK.  

In comparison to several other markets, economic growth in Cambridge has been strong, increasing by 2.2 per cent per annum across the last five years. This compares to a 1.7 per cent per annum increase across the UK. Access to a highly skilled labour force continues to be a key attraction for the city and has contributed to phenomenal economic growth over the last 20 years. 

This, coupled with output forecast to increase by 24 per cent over the next 10 years, reinforces why this resilient city is attractive for residents and businesses.

Take-up of office and laboratory space improved in 2019 with a total of 690,000 sq ft transacted. This was up nearly a third on 2018 numbers though is 13 per cent below the five-year annual average of 790,000 sq ft. Deal volumes in the second half of the year were slightly subdued, impacted no doubt by the wider political uncertainty leading up to the December general election. 

Whilst many 2019 transactions were below 10,000 sq ft, some notable deals, particularly in the CB1 market, helped bolster leasing activity. Apple led the pack with a 79,000 sq ft pre-let at 30 Station Road in October. The firm is looking to occupy the space upon completion in 2021 and in September agreed 23,000 sq ft in nearby 10 Station Road to accommodate its immediate requirements. 

Other notable deals were agreed outside the city centre, including 61,000 sq ft by DisplayLink and 26,000 sq ft by Citrix Systems, both at Cambridge Science Park and 51,000 sq ft by AstraZeneca at Eastbrook House. 

Heightened transaction volumes meant availability decreased across the office market from 786,000 sq ft to 643,000 sq ft and stock in the CB1 area remains limited. 

Most space is located in the city centre-periphery and northern fringe location. Here, approximately 440,000 sq ft is available, 101,000 sq ft of which is in Cambridge Science Park. 

The park is undergoing a period of transformation since the collaboration with TusPark, helping to support its ability to attract tenants looking for good quality workplaces. Moving forward, the most notable projects in the pipeline include the 93,700 sq ft office development, One Cambridge Square at CB4, the refurbishment of 270 Cambridge Science Park along with 25,000 sq ft at Babraham Research Campus.

Exceptional rental growth was achieved in 2019, with levels reaching £46.50 psf in the CB1 and Station Road area. Rents are unlikely to increase over this level in the coming 12 months due to the lack of available built stock. 

In the industrial market, availability remains high, more than 1 million sq ft, and take-up in 2019 was noticeably down on 2018 levels. The retail and leisure market has been driven by new national food and beverage operators, with brands such as BrewDog and Giggling Squid moving into the city centre area replacing failed operators Jamie’s Italian and Cau. Retail rents have remained flat at £210 psf (Zone A). 

No whistle-stop tour would be complete without mention of investment numbers. Here, activity remained healthy with £323 million trading in 2019, up slightly on the £315 million recorded in the previous year. 

Numbers were bolstered by the sale of 30 and 50/60 Station Road for £125 million. Prime office and industrial yields were unchanged at 4.5% and 5.5% in 2019, while prime retail yields softened by 100 basis points to 6 per cent.

Our research reports and their key findings will inform discussions with colleagues, associates and clients planning their next move. And looking ahead, it’s safe to say the general tone in Cambridge remains positive. 
We have talked of a Boris bounce across the UK, but in Cambridge, we have been less impacted than others by the wider political uncertainty. 

Whilst we await the outcome of the next stage of Brexit negotiations and the Government’s ability to secure a balanced and competitive trade deal it’s helpful to keep this in mind.

carterjonas.co.uk