Arm Holdings found itself in the familiar position of stock market star in the wake of an impressive set of third quarter results.
Assuming it keeps up the pace (count on it) the end-of-the-year numbers should show revenues have doubled and earnings have quadrupled in the space of five years.
The doyen of Silicon Fen remains the best British company most people have never heard of, despite their using its chips daily in their smartphones. Which raises a question too rarely asked in this country: why aren’t there more like it?
It is true that Arm an unusual company. Coming out of Cambridge University, it focuses on the design and licensing of chips rather than their manufacture, and it managed to catch the smartphone zeitgeist at the perfect time. Today you’re just as likely to find its chips in your smart fridge.
Why can’t more conventional tech companies get off the ground here?
To be fair, Arm, which would benefit from the clustering effect of a few more fellow travellers, is trying to help hasten their development. For example, it has partnered with the BBC to produce a laptop that kids can use to create code, in an attempt to replicate the success of the old BBC Micro that got many of Arm’s staff going, including chief executive Simon Segars. It’s a nice idea, but sadly many of the budding geniuses that play around with it will find their way not to the Fens but to the trading desks of City banks.
The Square Mile is often seen as a source of strength to the UK, but it can also serve as an impediment. The short-term horizon of its investors means far too many quality companies such as Arm are sold before they have a chance to flower, and lately they’ve been replaced by unlovely natural resources giants such as Glencore.
Moreover, it has singularly failed to get funding into the pockets of those who might be able to use it to produce other Arms. Until things like this change, the Fens will remain windswept and lonely while California’s Silicon Valley is bathed in sunlight.
