GlobalData Plc (LON:DATA), a leading data, analytics, and insights platform, has published its results for the half year ended 30 June 2024.
· Continued improvement in Adjusted EBITDA1 (£57.8m, +8%) and Adjusted EBITDA margin1 (41%)
· Underlying revenue1 growth of 5%, with foreign exchange diluting total reported revenue growth to 3% at £139.6m
· Profit before tax grew by 13% to £26.9m (HY23: £23.9m)
· Inflexion 40% investment into our Healthcare business is complete with gross cash proceeds of £451.4m reshaping the Group Balance Sheet
· Proposed acquisition of digital media and industry news assets, and have completed a minority investment in technology enabled solution provider
Mike Danson, Chief Executive Officer of GlobalData Plc, commented: “We have started the year well and remain confident in GlobalData’s continued ability to generate sustainable value for its stakeholders. Now in the first year of our Growth Transformation Plan 2024-2026, we have been laying the foundations for future success. We are exiting this ramp-up phase of our ambitious plan in a strong position. We have made several key senior hires across the business, implemented a refreshed approach to customer proposition and invested in our go-to-market approach, strengthening our sales and AI resources.
We entered FY24 in a strong position with good traction in subscription revenue and over 80% revenue visibility and remain on track to deliver on our expectations for the full year. With the investment from Inflexion now complete, combined with a highly profitable, cash generative business model, we enter H2 in a strong financial position able to pursue growth more aggressively through organic and inorganic means, as we drive toward our target of £500m annual revenue by the end of the three-year growth plan.”
Highlights
Financial results for the six months ended 30 June 2024.
| Key performance metrics | HY 2024 | HY 2023 | Growth | Underlying growth1 |
| Revenue | £139.6m | £135.9m | +3% | +5% |
| Operating profit | £37.8m | £36.9m | +2% | |
| Operating profit margin | 27% | 27% | +0pts | |
| Adj. EBITDA | £57.8m | £53.5m | +8% | +12% |
| Adj. EBITDA margin | 41% | 39% | +2pts | |
| Profit before tax (PBT) | £26.9m | £23.9m | +13% | |
| Earnings per share (EPS) | 2.5p | 2.2p | +14% | |
| Adj. EPS1 | 3.8p | 3.4p | +12% | |
| Interim dividend | 1.5p | 1.4p | +7% | |
| Invoiced Forward Revenue1 | £125.9m | £122.9m | +2% | +3% |
| Net cash/ (bank debt)1 | £188.3m | (£230.8m) | -182% |
Financial Highlights
· Good underlying revenue performance across the Group.
o Total revenue growth of 3% at £139.6m (HY23: £135.9m).
o Underlying revenue growth of 5% (HY23: 8%) underpinned by high quality subscription revenue which represented 78% of total revenues (HY23: 78%).
o Healthcare segment revenue at £53.7m (HY23: £50.5m), non-Healthcare segment at £85.9m (HY23 £85.4m).
· Continued Growth in Adjusted EBITDA, up 8% to £57.8m (HY23: £53.5m).
o Adjusted EBITDA margin at 41% reflecting the continued impact of our significant operational gearing (HY23: 39%).
o Healthcare segment Adjusted EBITDA at £30.3m (HY23: £27.6m), non-Healthcare segment at £27.5m (HY23 £25.9m).
· Profit before tax grew by 13% to £26.9m (HY23: £23.9m).
· Operating cash flow grew by 19% to £75.2m (HY23: £63.0m), which reflects an operating cashflow conversion of 130% (HY23 118%).
· Invoiced Forward Revenue grew to £125.9m (30 June 2023: £122.9m), reflecting underlying growth of 3%.
· Interim dividend of 1.5p (HY23: 1.4p).
Operational Highlights
· Investment of 40% into the Healthcare business by Inflexion supports mid-term strategic goals
o Gross proceeds of £451.4m to support organic growth and value-creating M&A.
o Existing debt facilities fully settled and extinguished.
o Group now in net cash position of £188.3m.
· Significant transformational progress against our Growth Transformation Plan 2024-26
o Customer Obsession: Reorganisation into three customer focused divisions – Healthcare, Consumer and Technology – is well underway with Healthcare now fully operating as its own segment. The early stages of the Growth Transformation Plan have focused on building the foundations of the customer focused divisional management teams and we have made significant progress in bringing new talent into teams.
o World-Class Product: Improving our product through continued investment in Artificial Intelligence (AI) transformation programme. Following successful clients trials of AI Hub, we are now starting to roll out AI Hub across all clients and we expect to see a significant impact in usability and client experience as a result. As at July 2024, 29% of clients had access to AI Hub (December 2023: 8%).
o Sales Excellence: Good progress in increasing sales capacity and capability, with 53 new positions filled by the end of June, including senior leaders and major client specialists.
o Operational Agility: Investment in our People function has accelerated as a core enabler of our growth transformation strategy; new key hires and increased scale of M&A team creating high performance culture. We have started to deploy capital towards M&A and have entered into a conditional agreement for a small acquisition to purchase digital media and industry news assets for £10m (subject to customary adjustments), and have completed a £4m minority investment in a tech enabled solution provider.
Capital allocation
· Objective continues to be to achieve long-term compounding growth and to enhance shareholder value
o Completion of the Healthcare transaction gives us the flexibility to launch a more ambitious approach to growth investment across our portfolio.
o In this first year of our Growth Transformation Plan 2024-2026, we are continuing to invest in sales headcount, product development and our wider AI transformation programme.
· Remain committed to progressive dividend policy, following rebase from H2 2024
o We intend to rebase the dividend payout from 1 July 2024 onwards (following the completion of the Healthcare transaction). It is the intention to allocate most of the future free cash flow generated by the Healthcare business towards M&A. The Group will therefore allocate dividends from the remaining available free cash flow, whilst also balancing the strategic M&A ambition of the rest of the Group. H1 2024 interim dividend unaffected.
o Following the rebase, which will be reflected in the final 2024 payout, the Group will maintain a progressive policy in future years.
o Whilst maintaining a disciplined approach to capital allocation, we will look to use some funds for further share buybacks. Mechanism for share buybacks under review and could include a tender offer of shares.
o On-market buyback of up to £10m launched today.
Current Trading and Outlook
· Well positioned to maintain strong and resilient growth.
· Following a strong first half performance and continued momentum into H2, we remain on track to deliver results in line with our expectations for FY24.
· GlobalData remain on track to progress towards 45% Adjusted EBITDA margin over the course of our 3-year plan and maintain our ambition of high single to double-digit underlying organic revenue growth, supplemented by strategic M&A to surpass £500m annualised revenue.
Note 1: Defined in the explanation of non-IFRS measures on page 14.
