Image source: © Jirsak | Megapixl.com

Highlights

  • GlobalData PLC reported 2.7% revenue growth in H1 FY24, driven by improved subscription revenue.
  • Adjusted EBITDA rose to GBP 57.80 million and EBITDA margin improved to 41% in H1 FY24.
  • The company plans a GBP 20 million share buyback, aiming for sustained growth and strategic M&A.

GlobalData PLC (LSE:DATA) is an intelligence provider based in the United Kingdom. It is listed on the FTSE AIM 100 Index.

In H1 FY24, the company reported revenue of GBP 139.60 million, a 2.7% increase from GBP 135.90 million in the previous corresponding period. Underlying revenue growth was 5%, down from 8% in the previous half-year. High-quality subscription revenue contributed significantly, making up 78% of total revenues. The healthcare segment generated GBP 53.7 million, while the non-healthcare segment reported GBP 85.9 million, showing slight growth from GBP 50.5 million and GBP 85.4 million, respectively.

Adjusted EBITDA for H1 FY24 reached GBP 57.80 million, reflecting an 8% increase from GBP 53.50 million in pcp. The adjusted EBITDA margin improved to 41%, up from 39% in the previous year. Strong operational gearing drove this improvement, with the healthcare segment contributing GBP 30.3 million and the non-healthcare segment reporting GBP 27.5 million.

Operating cash flow also saw a significant rise, reaching GBP 75.20 million, up 19.4% from GBP 63.00 million in pcp. This resulted in an operating cash flow conversion of 130%, compared to 118% in pcp.

Further, the company had a net margin of 11.3% and an ROE of 58.1% in FY23 versus the industry median of 5% and 17.6%, respectively.

Recent Business Update

On 30 August 2024, the company announced the acquisition of Business Trade Media International Limited.

The company recently announced the approval of an additional GBP 20 million of share buyback program. This follows the completion of a GBP 10 million buyback announced on July 31, 2024. The program aims to decrease share capital.

Company Outlook

The company believes it is well-positioned for sustained growth. It had a decent performance in the first half and is maintaining momentum into the second half. The company expects to meet its FY24 targets and aims for a 45% Adjusted EBITDA margin over the next three years. It is targeting high single to double-digit organic revenue growth, supported by strategic M&A to exceed GBP 500 million in annual revenue.

Top 10 Shareholders

The top 10 shareholders of DATA own about 82.06% of the total shares. Michael Thomas Danson has the largest stake, holding around 56.94%. Liontrust Investment Partners LLP follows with approximately 7.85%. The chart below illustrates this information.

Price Information

The stock price of DATA has dropped by about 8.61% in the past month. However, over the past six months, it has surged by approximately 10.56%. The stock's 52-week low is GBX 132.00, and its 52-week high is GBX 245.00. Currently, it is trading below the average of these 52-week high and low values and its closing price as of 03 Oct was GBX 203.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 03 October 2024. The reference data in this report has been partly sourced from EODHD/Others.