GlobalData records 'strong' first half result

The AIM-traded firm said subscription revenue, which makes up 83% of group revenues, saw growth of 21%.

Adjusted EBITDA was ahead 27% year-on-year for the six months ended 30 June, at £39.0m, improving its by a further one percentage point to 35%.

The board said that reflected the company’s operational leverage, adding that it was now in line with its previously-stated ambition of a margin of between 35% and 40%.

Statutory operating profit grew 32% to £24.1m.

Invoiced forward revenue at the end of the first half was up 37% on the same time last year at £114.6m, which reflected underlying growth of 13% and provided “strong visibility” for the second half.

GlobalData said its business model was proving “highly” cash generative, with free cash flow rising to £45.7m from £34.7m year-on-year.

Cash flow from operations increased 38% to £56.1m, which represents operating cash conversion of 144% on an adjusted EBITDA basis, compared to 133% a year ago.

Earnings per share dropped “marginally” to 9.4p from 9.7p, which the board put down to increased finance costs, including a non-cash interest charge of £4m, as well as increased amortisation of acquired intangible assets.

On an adjusted basis, earnings per share were 27% higher.

The board announced a 26% hike to the interim dividend to 7.7p per share, “broadly in line” with the growth in adjusted EBITDA.

“The first half of 2022 demonstrated the strength and resilience of our business,” said chief executive officer Mike Danson.

“The quality of our content continues to drive increases in recurring subscription revenues.

“Through our ‘One Platform’, and with a largely fixed cost base, this revenue growth has driven an increased margin and significant cash generation.”

Danson said companies were increasingly turning to quality data to make critical decisions, adding that the firm’s industry intelligence, insights and analytics were helping clients navigate challenging market and economic conditions in a number of sectors and geographies.

“Mergers and acquisitions provide a significant growth opportunity for the group, and the acquisitions announced last year are already enhancing our overall client offering.

“With funding available to support further merger and acquisition activity, we will continue to execute against our strategy to combine optimised organic growth with quality assets that add further capability and depth to our platform.”

Mike Danson said the “premium assets” embedded in GlobalData’s platform had a history of growth and resilience during economic cycles.

“This strength in our business model, high cash generation and the must-have intelligence we provide our clients gives us confidence in our growth prospects for the second half of the year and beyond.”

At 1221 BST, shares in GlobalData were up 2.95% to 978p.

Reporting by Josh White at Sharecast.com.