GlobalData 's (DATA) bold mission to present consumer, healthcare and information communications technology customers with a single platform capable of "decoding" future market trends quicker than peers sounds almost too good to be true. Based on its performance in 2016, the group, formerly known as Progressive Digital Media, appears to be delivering on those promises.
The Aim-traded business information specialist began the year by changing its name to reflect the coming together of three businesses under its wing. The upshot of this new direction, created by a series of transformative acquisitions, was revenue hitting £100m and a 71 per cent rise in adjusted cash profit to £21m.
Encouragingly, nearly a quarter of sales were generated organically, while the weak pound only contributed £2.2m to the top line - most of GlobalData's 61 per cent foreign revenue was booked at pre-Brexit vote levels. Investors, who sent the shares up 3 per cent on results day, were also impressed by a 57 per cent rise in deferred sales to £46m and a 0.8 percentage point widening of the group's adjusted cash profit margin to 20.6 per cent. Management expects profit to continue growing as it creates further synergies from previous acquisitions.
House broker N+1 Singer forecasts 2017 adjusted pre-tax profit of £20.6m and EPS of 13.6p, up from £17.7m and 11.9p in 2016.
GLOBALDATA (DATA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 599p | MARKET VALUE: | £613m | |
| TOUCH: | 575-620p | 12-MONTH HIGH: | 591p | LOW: 209p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 332 | |
| NET ASSET VALUE: | 87p* | NET DEBT: | 29% | |
| Year to Dec 31 | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 53.9 | 4.3 | 7.10 | nil |
| 2013 | 54.3 | 7.3 | 6.90 | nil |
| 2014 | 48.3 | -3.1 | -4.29 | nil |
| 2015 | 60.5 | -2.8 | -4.08 | 2.5 |
| 2016 | 100 | -2.5 | 1.80 | 4.0 |
| % change | +65 | - | - | +60 |
Ex-div: 13 Apr Payment: 12 May *Includes intangible assets of £134m, or 131p a share | ||||
