Companies prosper thanks to knowledge. The more they understand economic, political and social trends, the better they can assess what customers want today and what they might want tomorrow.
No one can predict the future, but companies are willing to pay handsomely to learn as much as possible about market conditions and industry prospects, and Global data works hard to provide this type of information.
The group scours the world for data, not only collecting what is freely available, but also delving into particular industries and conducting in-depth research and surveys. As a result, most of your data is proprietary, and that appeals to businesses large and small. Businesses pay an average of £20,000 to access GlobalData information, with multinationals spending up to £3m a year on top-notch material.
Midas recommended GlobalData in January 2023, when the shares cost £11.75. The company carried out a share split last summer, so investors with 14 shares worth £164.50 would have received 100 new shares at £1.64½. The move was designed to boost the price and today the stock is £2.08, but there should be plenty more upside to come.
CEO Mike Danson is driven, determined and has a track record of making money for shareholders. He also owns 57 percent of the company, so he feels incentivized to give it a try.
Valuable: Companies are willing to pay a lot to get as much information as possible about market conditions, and GlobalData works hard to provide this type of information.
Recent measures demonstrate this. The last time Midas analyzed GlobalData, Danson was in the middle of a three-year growth plan, which was expected to be completed this year. The plan achieved its goals early, so a new program was launched last month.
It aims to increase revenue from £273 million to £500 million by the end of 2026, by selling more to existing customers, adding new ones, investing in technology to make data more attractive and easier to use, and acquiring companies in fields complementary. Danson has also reorganized the group into three divisions: healthcare, consumer and technology. It aims to increase the value of each section and, late last year, agreed to sell 40 percent of healthcare to investment company Inflexion.
Healthcare accounts for a third of GlobalData’s turnover, but the deal values this division at £1.15bn, when the entire business is valued on the stock market at £1.8bn. It’s no surprise that Danson feels this is unfair.
GlobalData has grown steadily over the years: 80 per cent of revenue comes from annual subscriptions and the data market in the industries it covers is more than £20 billion.
Midas Verdict: GlobalData shares are up 26 per cent in 15 months but, at £2.08, the price should continue to rise. That makes this stock attractive to new and existing investors.
Traded in: Aim Heart: DATA Contact: globaldata.com or 020 7936 6400
