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) - Shares in GlobalData plunged on Monday after the data and analytics group warned that full-year profits would fall short of market expectations as weaker-than-expected revenue growth and increased investment pressured margins.
The shares were down 24.7% at 53.9p by 0947 BST, having touched a fresh 52-week low of 52.61p earlier in the session.
GlobalData said underlying revenue growth had been "more muted than expected" in the first half, and now expects full-year revenues to come in towards the lower end of the current analyst consensus range of £325.3m to £335.7m.
Meanwhile, targeted investment in AI-native workflows, proprietary data and human expertise means full-year margins are now expected to be broadly in line with the first-half adjusted EBITDA margin of 34%, leaving adjusted EBITDA below market expectations. Consensus currently stands at £121.0m to £126.7m.
The warning represents a deterioration from July, when GlobalData had expected full-year adjusted EBITDA merely to be at the low end of consensus.
For the six months to 30 June, revenue rose 4% to £162.9m, although underlying growth was just 1%. Adjusted EBITDA increased 5% to £54.8m, while reported pre-tax profit fell 6% to £23.2m because of higher finance charges.
Free cash flow dropped 27% to £31.3m and operating cash flow fell 23% to £50.8m. Net bank debt stood at £133.0m, compared with £16.8m a year earlier.
Chief executive Mike Danson said: "Revenue and growth remained below our ambitions and the benefits of the transformation have not yet been reflected in our financial performance."
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.