GlobalData (DATA), which specialises in analysing data to “decode the future”, achieved an operating margin of 1 per cent against an improved top line in the first half. Although small, this marginal gain was encouraging after last year's £845,000 operating loss. In other good news, the group saw a 35 per cent increase in deferred revenue to £51m, essentially providing greater clarity about what the future will hold for GlobalData’s top-line, two-thirds of which are derived from annualised contracts. Therefore, deferred revenue is a key performance indicator. North and South America were particularly strong regions in terms of sales growth, comprising 35 per cent of overall revenue – 5 per cent below the 40 per cent target set by the group for the medium term.
Management notes that North America constitutes 50 per cent of global spend in the business information market, with Europe and Asia Pacific coming next. This explains the group’s focus on geographical diversification in terms of revenue mix. As part of the “transformation” under way at GlobalData, it has found that operating under a single brand name is “making selling and marketing much more effective”. And the group has worked to streamline product price points under this brand, while also developing its fixed cost base. GlobalData also acquired a bolt-on business to “broaden” its healthcare proposition during the first half. This contributed to a rise in net debt from £25.5m to £30.6m.
Analysts at N+1 Singer forecast adjusted pre-tax profit of £19.9m and EPS of 13.2p for FY2017, up from £17.7m and 11.9p in 2016.
| GLOBALDATA (DATA) | ||||
| ORD PRICE: | 563p | MARKET VALUE: | £575m | |
| TOUCH: | 555-570p | 12-MONTH HIGH: | 620p | LOW: 338p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 148 | |
| NET ASSET VALUE: | 84p* | NET DEBT: | 36% | |
| Half-year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (£m) | profit (£m) | share (p) | per share (p) |
| 2016 | 47.1 | -1.28 | -2.6 | 2.5 |
| 2017 | 57.9 | 0.01 | -0.6 | 3.0 |
| % change | +23 | - | - | +20 |
| Ex-div: | 31 Aug | |||
| Payment: | 03 Oct | |||
| *Includes intangible assets of £138m, or 136p a share | ||||
