GlobalData (DATA) H2 2024 earnings summary

Executive summary

• 2024 marked the launch of a three-year Growth Transformation Plan, focusing on customer-centricity, AI investment, sales excellence, and operational agility, with significant progress in organizational transformation and talent acquisition.

• Inflexion Private Equity acquired a 40% stake in the Healthcare business, generating £451.4m in gross cash proceeds, fully settling pre-existing debt and strengthening the balance sheet for future M&A.

• Four accretive acquisitions were completed, and a further acquisition (AI Palette) was announced post-year-end, supporting strategic expansion.

• Two share buyback programmes totaling £29.3m were completed, with an additional £50m buyback announced for 2025.

• The company announced a proposed move to the Main Market of the London Stock Exchange.

Financial highlights

• Revenue grew 5% year-over-year to £285.5m, with underlying growth of 4%.

• Adjusted EBITDA increased 5% to £116.8m, maintaining a 41% margin.

• Operating profit declined 12% to £65.1m due to acquisition/integration expenses, restructuring, and higher share-based payments.

• Profit before tax rose 32% to £54.9m, reflecting improved trading and lower finance costs.

• Adjusted EPS grew 10% to 7.5p; basic EPS was flat at 3.8p.

• Contracted Forward Revenue increased 12% to £171.4m.

• Net cash position of £10.1m at year-end, a significant improvement from net debt of £243.9m in 2023.

• Free cash flow was £32.7m, down 42% year-over-year, mainly due to one-off tax and M&A costs.

• Total dividend for the year was 2.5p per share, down 46% as the payout was rebased to prioritize M&A.

Outlook and guidance

• Targeting annualized revenue of £500m by end of 2026, driven by high single to double-digit organic growth and M&A.

• Aiming to progress towards a 45% Adjusted EBITDA margin over the plan period.

• Strong revenue visibility and financial position underpin continued investment in strategic growth opportunities.