The UK market has faced recent challenges, with the FTSE 100 index closing lower amid weak trade data from China and a broader global economic slowdown. In such uncertain times, identifying growth companies with high insider ownership can be particularly appealing to investors, as it often signals confidence in the company's future prospects by those who know it best.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments and has a market cap of £717.26 million.
Operations: The company generates revenue from two primary segments: Vacuum (£63.60 million) and Materials Sciences (£72.50 million).
Insider Ownership: 11.9%
Earnings Growth Forecast: 26.9% p.a.
Judges Scientific, a growth company with high insider ownership, recently appointed Dr. Ian Wilcock as Group Commercial Director to bolster its leadership team. The company's earnings are forecast to grow significantly at 26.88% annually over the next three years, outpacing the UK market's growth rate of 14.3%. However, revenue is expected to grow slower at 6.3% per year and profit margins have declined from 11% to 7%. Despite high debt levels and recent significant insider selling, insiders have also substantially bought shares in the past three months.
Overview: Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brand names in England and Wales, with a market cap of £289.74 million.
Operations: Revenue from operating café bars and café restaurants under the Lounge and Cosy Club brands in England and Wales amounted to £353.49 million.
Insider Ownership: 13.7%
Earnings Growth Forecast: 22.8% p.a.
Loungers, trading at 57.1% below its estimated fair value, has strong growth prospects with earnings forecasted to grow 22.8% annually over the next three years, significantly outpacing the UK market's 14.3%. Revenue is expected to grow at a robust 12.2% per year, also surpassing the market average of 3.7%. Recent results showed impressive sales growth from £283.51 million to £353.49 million and net income rising from £6.93 million to £9.12 million year-over-year.
Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of £191.03 million.
Operations: The company generates £294.27 million in revenue from the manufacture and distribution of radiators.
Insider Ownership: 15.6%
Earnings Growth Forecast: 14.5% p.a.
Stelrad Group's revenue is forecast to grow at 5.2% annually, outpacing the UK market's 3.7%. Despite high debt levels and an unstable dividend track record, it trades at a significant discount to its estimated fair value. Recent earnings reports indicated stable net income of £8.02 million for H1 2024 compared to £7.99 million a year ago, with basic earnings per share marginally increasing from £0.0627 to £0.063.
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:JDG AIM:LGRS and LSE:SRAD.
