As the United Kingdom's FTSE 100 and FTSE 250 indices face downward pressure due to weak trade data from China, investors are increasingly looking for resilient growth opportunities within the market. In such challenging times, companies with high insider ownership can be appealing as they often indicate a strong alignment of interests between management and shareholders, potentially offering stability amidst broader economic uncertainties.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Craneware plc, along with its subsidiaries, develops, licenses, and supports computer software for the healthcare industry in the United States and has a market cap of ￡706.03 million.
Operations: The company generates revenue primarily from its healthcare software segment, amounting to $189.27 million.
Insider Ownership: 16.5%
Earnings Growth Forecast: 24.3% p.a.
Craneware demonstrates potential as a growth company with high insider ownership in the UK. Despite recent substantial insider selling, its earnings are forecast to grow significantly at 24.3% annually, outpacing the UK market. The company recently announced a strategic partnership with Microsoft Azure, enhancing its cloud-based healthcare solutions and potentially driving further business growth. Although it has experienced share price volatility, Craneware's revenue is expected to grow faster than the broader market at 8.1% per year.
Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of ￡299.02 million.
Operations: The company generates revenue through three main segments: Research & Fintech (￡24.20 million), Distribution Channels (￡21.40 million), and Intermediary Services (￡23.30 million).
Insider Ownership: 29.9%
Earnings Growth Forecast: 34% p.a.
Fintel shows potential as a growth company in the UK, with earnings forecasted to grow significantly at 34% annually, outpacing the market. Despite a decline in net income and profit margins compared to last year, revenue is expected to increase faster than the UK average. The company trades at 35.9% below its estimated fair value and recently increased its interim dividend by 9%, indicating confidence in future prospects despite lower current profitability.
Overview: LSL Property Services plc operates in the United Kingdom, offering business-to-business services to mortgage intermediaries and estate agency franchisees, as well as valuation services to lenders, with a market cap of ￡292.19 million.
Operations: The company's revenue segments include Financial Services generating ￡47.22 million, Surveying and Valuation contributing ￡79.49 million, and Estate Agency (excluding Financial Services) bringing in ￡30.61 million.
Insider Ownership: 10.7%
Earnings Growth Forecast: 28.2% p.a.
LSL Property Services demonstrates potential with earnings forecasted to grow significantly at 28.2% annually, surpassing the UK market average. Recent results show a return to profitability with net income of ￡9.95 million, up from a loss last year. Revenue is expected to increase by 12.1% annually, outpacing the broader market growth rate. Despite trading at 55.3% below estimated fair value and high insider ownership, dividend coverage remains weak due to large one-off items impacting earnings quality.
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:CRW AIM:FNTL and LSE:LSL.
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