REG - GlobalData PLC - Trading Statement

GlobalDataAnnouncement

14/01/2025 07:00

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RNS Number : 1646T  GlobalData PLC  14 January 2025

14 January 2025

GlobalData Plc

(AIM: DATA, "GlobalData", the "Group")

 

Full year trading update

 

Trading in line with market expectations

 

Strong momentum with M&A

 

GlobalData Plc ('GlobalData' or the 'Group'), a leading data, analytics,
insights and technology platform, today provides this update following the end
of its financial year to 31 December 2024 ("FY24").

 

Trading

 

Following its interim results on 31 July 2024, GlobalData continued to deliver
strong, profitable growth throughout the second half of the year.

 

For FY24, the Group expects to report Group revenue of c.£286m, within the
range of market expectations for the year* (2023: £273m), and up 4% on an
underlying basis. Adjusted EBITDA is also expected to be within the range of
market expectations, representing growth of c.6% ahead of FY23 with a
sustained margin of c.41% following our continued planned investment in the
Growth Transformation Plan (2023: 41%).

 

The Group closed the year with underlying Contracted Forward Revenue ("CFR")
growth of 4%, providing strong visibility into 2025 (CFR includes both
Invoiced Forward Revenue and contracted revenue un-invoiced as at 31 December
2024).

 

FY24 was a significant year of investment across our Growth Transformation
Plan initiatives. We continued to invest in our AI capabilities, delivering
demonstrable client impact with a 60% increase in AI Hub usage, as well as
launching our new client solutions offerings. As at 31 December 2024, we had a
strong increase in sales headcount versus the same point last year, which
included an additional 30 senior sales positions.

 

Following the completion of our transaction with Inflexion in June 2024 to
support growth through a bolt-on M&A strategy, the Group closed four
M&A transactions during the second half of FY24 (BTMI, LinkUp, Celent and
Deallus) for a combined purchase price of c.£86m (of which £32m was in
Healthcare). In aggregate these acquisitions will add c.£42m of revenues
during FY25 (of which £13m will be in Healthcare) and c.£6m of Adjusted
EBITDA (£2m within Healthcare).

 

In addition to M&A, the Group has deployed capital towards share buybacks
in the second half. During H2, we purchased shares to the value of c.£29m
across two buy-back programmes which were purchased into treasury and
subsequently cancelled. Additionally, the Group's Employee Benefit Trust
bought £29m of shares, to satisfy future share scheme exercises.

 

Net cash reduced from £188m at 30 June 2024 to c.£2m as at 31 December 2024
(2023: Net Debt £244m). This movement largely reflects the deployment of
capital on M&A (c.£86m), share buy backs (c.£57m), plus £26m of
expenses for the Inflexion transaction that were unpaid at the half year that
were settled in H2. The Group announced new £340m financing facilities in
December and therefore has significant firepower to further execute against
its M&A strategy.

 

Outlook

 

The Board is confident in GlobalData's outlook for 2025, underpinned by high
levels of revenue visibility, good execution of the Growth Transformation Plan
and a strong financial position that allows continued investment in strategic
growth opportunities.

 

FY24 results will be announced in full on 10 March 2025.

 

Mike Danson, Chief Executive Officer of GlobalData Plc, commented:

 

"2024 has been a year of investment for GlobalData and we have made
significant progress in our first year of executing the Growth Transformation
Plan 2024-26. Our mission-critical data and insights remain vital to our
global customers, demonstrated by our strong, profitable growth in 2024,
delivering an EBITDA margin of 41%.

 

Our AI advancements have transformed how customers access insights. With our
platform's generative AI capabilities, customers can now access trusted,
actionable intelligence with the touch of a button, giving them the
information they need to make informed decisions, navigate complexity with
confidence, and achieve measurable business success.

 

Following the arrangement of new £340m financing facilities in December, we
have substantially bolstered our ability to execute our ambitious M&A
strategy. Four strategic acquisitions have been completed during the second
half with expertise spanning healthcare, financial services and media.
Integrating these businesses into our platform will enhance our capability to
deliver even better service and valuable insights for our clients.

 

In addition to strategically deploying capital to advance our world-class
products through M&A, we remain focused on actively pursuing organic
growth opportunities.

 

We enter 2025 from a position of strength with good revenue visibility and the
firepower to execute on our strategy. We continue to progress towards our
targets of 45% margin and  £500m revenue by the end of the three-year growth
plan."

 

*GlobalData's compiled market expectations consensus as at 31 December 2024 is
as follows: Revenue range £285.5m - £288.1m and Adjusted EBITDA range of
£117.0m - £123.3m

 

ENDS

 

ENQUIRIES

 

 GlobalData Plc
 Mike Danson, Chief Executive Officer        0207 936 6400
 Graham Lilley, Chief Financial Officer

 J.P. Morgan Cazenove (Nomad, Joint Broker)  0203 493 8000
 Bill Hutchings
 Mose Adigun

 Panmure Liberum (Joint Broker)              0203 100 2000
 Rupert Dearden
 Dougie McLeod

 Investec Bank plc (Joint Broker)            0207 597 5970

 Henry Reast

 Virginia Bull

 FTI Consulting (Financial PR)               0203 727 1000

                                             globaldata@fticonsulting.com (mailto:globaldata@fticonsulting.com)
 Edward Bridges
 Dwight Burden
 Emma Hall

 

About GlobalData Plc
GlobalData Plc (AIM: DATA) is a leading data, analytics, insights and
technology platform for the world's largest industries. Our mission is to
help our clients decode the future, make better decisions, and reach more
customers.

 

One Platform Model

GlobalData's One Platform model is the foundation of our business and is the
result of years of continuous investment, targeted acquisitions, and organic
development. This model governs everything we do, from how we develop and
manage our products, to our approach to sales and customer success, and
supporting business operations. At its core, this approach integrates our
unique data, expert analysis, and innovative solutions into an integrated
suite of client solutions and digital community platforms, designed to serve a
broad range of industry markets and customer needs on a global basis. The
operational leverage this provides means we can respond rapidly to changing
customer needs and market opportunities, and continuously manage and develop
products quickly, at scale, with limited capital investment as well as
providing unique integration opportunities for M&A.

 

Strategic Priorities

GlobalData's four strategic priorities are: Customer Obsession, World-Class
Product, Sales Excellence and Operational Agility.

 

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