GlobalData Plc
Full Year Results
31 December 2023
Strong results and Adjusted EBITDA margin above 40% for first time
Growth Optimisation Plan completed ahead of schedule
New Growth Transformation Plan launched to accelerate value creation
GlobalData Plc (AIM: DATA, GlobalData, the Group), a leading data, analytics, and insights platform, today publishes its results for the year ended 31 December 2023 (FY23).
· Excellent growth in Adjusted EBITDA (+28%), with margins accelerating to 41%
· Total revenue growth of 12% and strong underlying revenue growth of 7%
· Statutory profit before tax grew by £3.1m to £41.5m (2022: £38.4m) reflecting an 8% increase on prior year
· Proposed final dividend of 3.2p increases total dividend by 28% to 4.6 pence per share
· Launch of new Growth Transformation Plan 2024-2026 and reorganisation into three focused divisions – Healthcare, Consumer, Technology
· Inflexion acquisition of 40% of Healthcare division on track to close during Q2 2024. Net cash proceeds of approximately £434m will provide flexibility for accelerated value-creating M&A across the Group
· Well positioned for sustainable organic growth, supported by value accretive M&A
Mike Danson, Chief Executive Officer of GlobalData Plc, commented:
“2023 has been a year of positive operational and financial momentum for GlobalData. Over the last four years we have transformed this business, having completed our Growth Optimisation Plan, which was set to finish at the end of 2024, earlier than planned.
Investment in our One Platform has continued at pace as a wide range of corporates embed our mission critical data into their workflow. We look forward to welcoming Inflexion, who will invest to become 40% minority shareholder in our Healthcare business. This significant milestone in our evolution will unlock substantial value for our shareholders and offers us the flexibility to launch a more ambitious approach to growth, including accelerating value-creating M&A across the Group.
We enter the new financial year with the Group now re-organised across three customer-focused divisions – Healthcare, Consumer and Technology and with c.80% revenue visibility. Investing in our product and AI, sales resources and M&A are key priorities. With a clear vision and a strong team ready to execute our new Growth Transformation Plan, we look forward to the year ahead with confidence as we seek to significantly expand GlobalData’s scale, speed up our growth, and sustain value creation for our stakeholders.”
Highlights
Financial results for the year ended 31 December 2023.
| Key performance metrics | 2023 | 2022 | Growth | Underlying growth1 |
| Revenue | £273.1m | £243.2m | +12% | +7% |
| Operating profit | £73.7m | £56.0m | +32% | |
| Operating profit margin | 27% | 23% | +4 pts | |
| Adjusted EBITDA1 | £110.8m | £86.4m | +28% | |
| Adjusted EBITDA margin1 | 41% | 36% | +5 pts | |
| Statutory profit before tax (PBT) | £41.5m | £38.4m | +8% | |
| Earnings per share (EPS) | 3.8p | 3.8p2 | – | |
| Adjusted EPS1 | 6.8p | 6.1p2 | +11% | |
| Total dividends | 4.6p | 3.6p2 | +28% | |
| Invoiced Forward Revenue1 | £135.2m | £133.5m | +1% | +4% |
| Net bank debt1 | £243.9m | £249.6m | -2% |
Financial Highlights
· Strong growth in both revenue and profit
o The full year impact of acquisitions augmented underlying revenue progression, to report overall revenue growth of 12%.
o Robust underlying revenue growth of 7% (2022: 10%) was underpinned by subscriptions which represented 79% of total revenues (2022: 81%).
o Significant Adjusted EBITDA margin expansion to 41% (2022: 36%).
· Adjusted EBITDA up 28% to £110.8m (2022: £86.4m).
· Statutory PBT grew by £3.1m to £41.5m (2022: £38.4m) an 8% increase on prior year.
· Operating cash flow grew by 18% to £101.0m (2022: £85.4m).
· Invoiced Forward Revenue grew to £135.2m (underlying growth of 4%) at 31 December 2023 (31 December 2022: £133.5m).
· Enter FY24 with c.80% visibility (contracted and renewable revenues) of budgeted revenues.
· Total dividends grew by 28% to 4.6p (2022: 3.6p restated2).
Operational Highlights
· Completed our Growth Optimisation Plan a year earlier than expected via four key pillars:
o Customer Obsession, World-Class Product, Sales Excellence and Operational Agility
· In December, launched our new Growth Transformation Plan 2024-2026, continuing to use the same four pillar framework
o Transformational growth initiatives set GlobalData up for future success:
§ Three customer focused divisions from FY24: Healthcare, Consumer and Technology.
§ Accelerate our investment in Artificial Intelligence capability and make Artificial Intelligence central to our strategy and operations.
§ Invest in Sales global headcount.
§ Invest in people, culture and talent.
§ Invest in M&A capability and execution.
· Announced a minority investment by Inflexion Private Equity Partners LLP (‘Inflexion’) for a 40% stake in our Healthcare division, with anticipated completion in Q2 2024
o 40% stake for expected net proceeds of £434m, valuing our Healthcare division at £1.115bn.
o Healthcare represents ~38% of Group FY23 revenues.
o GlobalData retains majority control and will continue to fully consolidate the Healthcare results post completion.
o Transformational transaction that provides flexibility for value-creating M&A.
Current Trading and Outlook
· Entering the new financial year from a position of strength in terms of revenue visibility and balance sheet.
· Initiatives to deliver accelerated growth – uncertainty driving demand for our ‘gold standard’ data, delivered through our One Platform.
· Continued focused approach to cost management and capital discipline, including mitigating the impact of inflation through advancements in technology and efficiency savings, whilst ensuring the business remains appropriately invested for sustainable growth and systematic M&A activity.
· Clear financial targets for FY24 and beyond:
o Steadily progressing to 45% Adjusted EBITDA margin over the course of the plan period and reinvesting into the Growth Transformation Plan; targeting high single to double-digit organic revenue growth.
o Platform in place to accelerate inorganic growth opportunities across our three customer-focused divisions.
o Target £500m of revenue by the end of 2026, through a combination of organic growth and M&A.