24th Feb 2020 11:07
(Alliance News) - Market research firm GlobalData PLC on Monday reported a swing to profit for 2019, as revenue rose on recurring subscriptions and contributions from recent acquisitions.
For the year, London-based GlobalData made pretax profit of GBP10.2 million, compared to a loss of GBP7.7 million, driven by both revenue growth and an overall fall in costs.
The reduction in costs includes a GBP16.3 million non-cash charge on the amortisation of acquired intangibles, reflecting GlobalData's M&A activity over recent years. In 2018, this non-cash charge came up to GBP20.4 million.
On an adjusted basis, pretax profit rose by 42% to GBP39.5 million from GBP27.8 million the prior year.
Revenue for the year increased by 13% to GBP178.2 million from GBP157.6 million, reflecting the benefit of a full-year contribution from Research Views Ltd - acquired in 2018 - and Aroq Ltd in January 2019. Underlying organic growth was 7%.
Invoiced forward revenue, formerly known as deferred revenue, rose by 5% to GBP85 million from GBP81 million, due to a slowdown of sales orders as GlobalData undertook the restructuring of its sales operations in Europe.
GlobalData declared a final dividend of 10.0 pence per share, bringing the total payout to 15.0p, up 36% year-on-year from 11.0p.
Looking ahead, GlobalData said it has entered 2020 with strong fundamentals, and although the global political and economic environment, including coronoavirus remains uncertain, the company remains confident in its business model.
"We continue to make impressive strides forward on our strategic priorities whilst still delivering strong financial results. Our strong business model demonstrates the characteristics that define best in-class Information Services companies," said Chair Bernard Cragg.
Shares in GlobalData were down 0.6% at 1,282.51 pence on Monday in London.
By Dayo Laniyan; [email protected]
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