2310: The Exchange with James Thorne of Colombia Threadneedle

The episode opens with James Thorne highlighting a surprisingly healthy debt market, where spreads between government and corporate borrowing sit at historic lows. This environment traditionally favours small‑cap equities, especially in the UK where recent earnings strength and a looming decline in energy prices could pave the way for interest‑rate cuts. Thorne argues that even modest improvements in confidence could unleash significant upside for undervalued UK small‑cap stocks, which currently trade at steep discounts to larger peers.

Thorne then dives into several recent M&A stories that illustrate the dynamics of niche markets. Auction Technology Group (ATG) rebounded after a rejected £4‑per‑share bid, driven by stronger revenue and operational leverage that improve liquidity for auctioneers. Kitwave’s potential consolidation of a fragmented food‑distribution sector remains under review, while Oxford Biomedica secured a high‑profile Bristol Myers contract, underscoring its 30‑year expertise in cell‑and‑gene therapy manufacturing. One Spatial’s strategic sale to Vertiges further shows how specialised geospatial firms attract premium valuations despite modest price points.

Finally, the conversation turns to technology‑driven efficiency gains. ActiveOps, a software platform embedding AI into regulated banking and insurance workflows, is highlighted for its rapid ARR growth and its role as an automation backbone for complex processes. Thorne emphasizes that such tools are essential as institutions balance cost pressures with the need for transparent, compliant operations. Across equities, biotech, and software, the common thread is disciplined capital allocation toward businesses with strong fundamentals and clear pathways to scaling, offering compelling opportunities for investors seeking exposure to resilient, high‑growth niches.