GlobalData confident after year of solid growth

4th Mar 2024 11:38

(Sharecast News) - Data, analytics and insights platform GlobalData reported a 12% rise in revenue in its full-year results on Monday, to £273.1m, accompanied by a 32% increase in operating profit to £73.7m.

The AIM-traded firm said its operating profit margins also saw a significant uptick in the 12 months ended 31 December, reaching 27%, up by four percentage points.

Adjusted EBITDA rocketed 28% to £110.8m, with the adjusted EBITDA margin expanding to 41%, reflecting a five-percentage-point increase.

Statutory profit before tax climbed to £41.5m, representing an 8% increase over the prior year, while adjusted earnings per share rose 11% to reach 6.8p.

The company proposed a final dividend of 3.2p per share, resulting in a total dividend increase of 28% to 4.6p per share.

GlobalData outlined its new growth transformation plan for the years 2024 to 2026, accompanied by a reorganisation into three focussed divisions - healthcare, consumer and technology.

The board said the initiative aimed to accelerate growth through various means, including investments in artificial intelligence (AI) capabilities, sales expansion, talent acquisition, and merger and acquisition activities.

An impending acquisition of a 40% stake in the healthcare division by Inflexion Private Equity Partners was on track for completion in the second quarter, the board said.

The transaction, valued at £434m, was expected to provide significant flexibility for further value-creating merger and acquisition endeavours across the group.

Looking ahead, GlobalData said it had entered the new financial year in a strong position, with robust revenue visibility and a sound balance sheet.

The company said it was focussed on delivering accelerated growth, leveraging its 'gold standard' data offerings and maintaining a disciplined approach to cost management and capital allocation.

With clear financial targets set for the 2024 financial year and beyond, including a steady progression towards a 45% adjusted EBITDA margin and a target revenue of £500m by the end of 2026, GlobalData said it was poised for sustained organic growth and strategic expansion opportunities within its three customer-focussed divisions.

"2023 has been a year of positive operational and financial momentum for GlobalData," said chief executive officer Mike Danson.

"Over the last four years we have transformed this business, having completed our growth optimisation plan, which was set to finish at the end of 2024, earlier than planned.

"Investment in our 'One Platform' has continued at pace as a wide range of corporates embed our mission critical data into their workflow."

Danson said the company was looking forward to welcoming Inflexion, which would invest to become a 40% minority shareholder in its healthcare business.

"This significant milestone in our evolution will unlock substantial value for our shareholders and offers us the flexibility to launch a more ambitious approach to growth, including accelerating value-creating mergers and acquisitions across the group.

"We enter the new financial year with the group now re-organised across three customer-focused divisions - healthcare, consumer and technology and with 80% revenue visibility."

Investing in its product and AI, sales resources and mergers and acquisitions were described by Mike Danson as key priorities.

"With a clear vision and a strong team ready to execute our new growth transformation plan, we look forward to the year ahead with confidence as we seek to significantly expand GlobalData's scale, speed up our growth, and sustain value creation for our stakeholders."

At 1039 GMT, shares in GlobalData were up 0.03% at 178.05p.

Reporting by Josh White for Sharecast.com.