The recent performance of the FTSE 100 and FTSE 250 indices reflects ongoing concerns about global economic recovery, particularly influenced by weak trade data from China. In such a volatile market environment, investors often seek out growth companies with high insider ownership, as this can signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Brickability Group Plc, with a market cap of ￡206.76 million, supplies, distributes, and imports building products in the United Kingdom through its subsidiaries.
Operations: The company's revenue segments are composed of Importing (￡94.77M), Contracting (￡58.17M), Distribution (￡62.72M), and Bricks and Building Materials (￡403.25M).
Insider Ownership: 28.9%
Brickability Group has demonstrated substantial insider ownership, with more shares bought than sold by insiders over the past three months. Despite a decline in sales to ￡594.08 million and net income to ￡15.37 million for the year ended March 31, 2024, its earnings are forecasted to grow significantly at 34.6% per year over the next three years, outpacing the UK market's growth rate of 14.2%. The company trades at a significant discount to its estimated fair value, suggesting potential upside despite recent challenges in profitability and revenue growth rates below 20% annually.
Overview: RWS Holdings plc offers technology-enabled language, content, and intellectual property (IP) services with a market cap of ￡613.50 million.
Operations: The company's revenue segments include IP Services (￡105.10 million), Language Services (￡325.40 million), Regulated Industry (￡149.40 million), and Language & Content Technology (L&CT) (￡137.90 million).
Insider Ownership: 24.6%
RWS Holdings shows strong insider ownership with more shares bought than sold in the past three months. The company is forecast to become profitable within three years, outpacing average market growth. Recent executive changes include Mark Lawyer joining as President of Regulated Industries & Linguistic AI, while product innovations like Trados Studio 2024 and Tridion Docs 15.1 enhance AI capabilities and accessibility. However, its dividend sustainability remains a concern due to low coverage by earnings or free cash flows.
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver deposits across Peru, Argentina, the United States, Canada, Brazil, and Chile with a market cap of ￡938.37 million.
Operations: The company's revenue segments include $266.70 million from San Jose and $451.91 million from Inmaculada, with a segment adjustment of $79.60 million.
Insider Ownership: 38.4%
Hochschild Mining demonstrates significant insider ownership, aligning management interests with shareholders. The company reported H1 2024 sales of US$391.74 million and a net income turnaround to US$39.52 million from a loss last year, indicating strong operational performance. Earnings are forecast to grow substantially at 43.8% per year, outpacing the UK market average of 14.2%. However, high debt levels and share price volatility present risks despite trading significantly below fair value estimates.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include AIM:BRCK AIM:RWS and LSE:HOC.
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