Companies thrive on knowledge. The more they understand economic, political and social trends, the better they can gauge what customers want today and what they might want tomorrow.
No one can forecast the future but companies are willing to pay handsomely to find out as much as possible about market conditions and industry prospects – and GlobalData works hard to provide just this sort of information.
The group scans the globe for data, not just collecting what is freely available but digging deep into particular industries and conducting in-depth research and surveys too. As a result, most of its data is exclusive and that appeals to companies large and small. Firms pay an average of £20,000 to access GlobalData’s information, with multinationals spending up to £3 million a year for top-level material.
Midas recommended GlobalData in January 2023, when the stock was £11.75. The company undertook 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.
Chief executive Mike Danson is driven, determined and has a record of making money for shareholders. He also owns 57 per cent of the firm so he is incentivised to make a go of it.
Valuable: Companies are willing to pay handsomely to find out as much as possible about market conditions – and GlobalData works hard to provide just this sort of information
Recent measures prove the point. When Midas last looked at GlobalData, Danson was in the middle of a three-year growth plan, expected to end this year. The plan achieved its goals early so a new programme was launched last month.
This aims to take revenues 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 compelling and easier to use and acquiring firms in complementary fields. Danson has also reorganised the group into three divisions, healthcare, consumer and technology. His aim is to boost the value of each section and late last year, he agreed to sell 40 per cent of healthcare to investment firm, Inflexion
Healthcare accounts for a third of GlobalData’s turnover yet the deal values this division at £1.15 billion, when the entire company is valued on the stock market at £1.8 billion. Not surprisingly, Danson feels this is unjust.
GlobalData has grown consistently over the years – 80 per cent of revenues come from annual subscriptions and the market for data in the industries it covers amounts to more than £20 billion.
Midas verdict: GlobalData shares have risen by 26 per cent in 15 months but, at £2.08, the price should continue to increase. That makes this stock attractive for new and existing investors.
Traded on: Aim Ticker: DATA Contact: globaldata.com or 020 7936 6400
