No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - GlobalData reported a 12% rise in revenue to 156.5m for the first half of 2025 on Tuesday, and announced a 60m tender offer to return surplus capital to shareholders, as it pressed ahead with its growth transformation plan and prepared to move to a main market listing.
Underlying revenue growth was modest at 1%, as the company continued to invest in its sales infrastructure and corporate transformation, while navigating macroeconomic headwinds.
Adjusted EBITDA fell 10% to 52.1m, with the margin narrowing to 33% from 41% a year earlier.
Operating profit declined 25% to 28.5m, impacted by acquisition-related expenses and integration costs.
"The first half of 2025 has been one of transition as we have embedded new ways of working to equip our sales teams to pivot to solutions-based selling," said chief executive Mike Danson.
"This is all part of our number one priority - customer obsession - to get even closer to our customers."
Danson added that as part of the firm's growth transformation plan, it continued to invest to make its 'One Platform' the best it could be, advancing its offering with AI and launching a suite of digital workers.
"We look forward to joining the main market and believe that our continued investment, strong balance sheet, cash flows and significant merger and acquisition firepower offers shareholders a compelling long-term opportunity for strong returns."
Contracted forward revenue grew 10% to 157.4m, with underlying growth of 3%, providing increased revenue visibility for the second half and beyond.
Cash flow conversion remained strong at 127% of adjusted EBITDA.
GlobalData said it expected profitability to improve in the second half as cost synergies from acquisitions begin to flow through.
Two recent acquisitions - Ai Palette and Stylus - were expected to contribute 8m to adjusted EBITDA in the second half.
To return surplus capital, the company announced a tender offer of up to 60m at 1.50 per share, a 5.1% premium to the closing price prior to the announcement.
The offer would open on 5 August and close on 5 September, subject to shareholder approval at a general meeting on 29 August.
Shareholders would be entitled to tender up to 4.95% of their holdings at the tender price, with any additional tenders subject to scale-back.
The shares repurchased would be cancelled.
Directors, who collectively hold around 59% of the company's issued share capital, had committed to vote in favour of the tender offer resolution.
The interim dividend was reduced to 0.3p, following a planned rebasing announced in 2024.
GlobalData said it remained on track with its three-year growth transformation plan, targeting 500m in annual revenue.
While foreign exchange movements were expected to reduce 2025 revenue by around 10m, the company reaffirmed that it expected to restore adjusted EBITDA margin in the second half and is well positioned for long-term growth.
At 1030 BST, shares in GlobalData were up 2.11% at 145.5p.
Reporting by Josh White for Sharecast.com.