Strong Growth and Another Buy for GlobalData
Business media and insight group GlobalData Plc has announced revenue up 22% to £121.7m in calendar year 2017, with profit (adjusted EBITDA) jumping 14% to £23.4m. It has also agreed to acquire energy, construction and financial services analyst Research Views Ltd.
Organic revenue growth for 2017 was 15%, while deferred revenue increased by 31% to £60.6m. Figures for GlobalData's even better performance in 2016, as well as its complicated origins, are here. The group was previously known as Progressive Digital Media, and rebranded when PDM acquired healthcare business information provider GlobalData from its owners Mike Danson (Datamonitor founder) and Wayne Lloyd, two years ago for approximately £66.5m. The pair are now GlobalData's CEO and US MD respectively.
GlobalData, which is still 'only just starting the integration process' for its last buy, the $17.5m acquisition of MEED in December 2017, says it is 'in advanced discussions' regarding the possible acquisition of Research Views Limited, or rather of a number of companies which will be reorganised into one group with that name, prior to the sale. The companies are Research Views Limited, Progressive Ventures Limited, Progressive Media Ventures Limited and their respective subsidiaries - these are private firms owned by Danson and other minority shareholders including Lloyd, and last year generated pro forma revenues of around £27.0m. The buy will be funded by the issue of c. 18m new ordinary shares in the Company to the Vendors, or c.17.6% of its current issued share capital.
The Directors say they believe the buy will further advance the group's transformation into 'a global data and analytics company with a truly differentiated multi-industry offering, significantly increasing its addressable market. It will add the Energy industry and strengthen the recently acquired Construction business. It will provide complementary intelligence assets and capabilities relevant to existing Healthcare and Financial Services industries'.
The acquisition is subject to due diligence, GlobalData shareholder approval and other conditions.
Executive Chairman Bernard Cragg says of the financials: 'Our results are encouraging, with strong revenue growth and we exit the year with record deferred revenue, which gives us confidence for the forthcoming year... The consolidation of GlobalData into one brand is continuing to help simplify the business and has allowed us to invest sensibly in content, platform and sales infrastructure and process. The high level of investment in the business is the reason behind our margins not improving in the short term, however such investment will enhance the prospects and credibility of our offering and long term growth prospects'.
The company has also seen recent Board changes: Simon Pyper stepped down at the end of the year, having held CEO and CFO roles, and former Finance Director Graham Lilley joined as CFO on 1st January 2018.
Web site: www.globaldata.com .