As the FTSE 100 and FTSE 250 indices experience declines amid weak trade data from China, investors in the United Kingdom are navigating a complex market landscape. In such uncertain times, growth companies with high insider ownership can offer a unique appeal, as they often indicate strong confidence from those closest to the business and potential resilience against broader economic challenges.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Mortgage Advice Bureau (Holdings) plc, with a market cap of £418.45 million, offers mortgage advice services across the United Kingdom through its subsidiaries.
Operations: The company generates revenue of £243.31 million from its financial services provision in the UK.
Insider Ownership: 19.8%
Earnings Growth Forecast: 29.6% p.a.
Mortgage Advice Bureau (Holdings) plc showcases strong insider confidence with substantial recent insider buying and no significant selling. Despite a volatile share price, the company is poised for growth, with earnings forecasted to grow significantly at 29.6% annually, outpacing the UK market's 14.1%. However, recent earnings have declined to £3.7 million from £6.42 million year-on-year, raising concerns about dividend sustainability despite high return on equity projections of 27%.
Overview: Gulf Keystone Petroleum Limited is involved in the exploration, development, and production of oil and gas in the Kurdistan Region of Iraq, with a market cap of £292.79 million.
Operations: The company's revenue segment consists of $115.15 million from the exploration and production of oil and gas in the Kurdistan Region of Iraq.
Insider Ownership: 12.2%
Earnings Growth Forecast: 80.6% p.a.
Gulf Keystone Petroleum demonstrates robust insider confidence with substantial recent insider buying and no significant selling. The company is trading at a discount to its estimated fair value and is poised for rapid revenue growth, forecasted at 42.8% annually, significantly outpacing the UK market average. While the company reported modest net income improvement recently, it faces challenges with low return on equity projections. Recent board changes may impact strategic direction positively.
Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally, with a market cap of £193.58 million.
Operations: The company's revenue is primarily derived from the manufacture and distribution of radiators, totaling £294.27 million.
Insider Ownership: 14.8%
Earnings Growth Forecast: 14.5% p.a.
Stelrad Group's high insider ownership is complemented by a stable leadership team, with Leigh Wilcox's recent appointments as CFO and board member. The company trades at a substantial discount to its estimated fair value, despite having a high debt level. Earnings are forecasted to grow 14.5% annually, outpacing the UK market average, though revenue growth remains moderate at 5.2%. Recent earnings showed slight improvement in net income despite declining sales.
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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:MAB1 LSE:GKP and LSE:SRAD.
